Title
Source: Supreme Court
Loanable Amount Rules for Pag-IBIG Home Loans
Law
Circular No. 402
Decision Date
May 29, 2018
Circular No. 402 establishes guidelines for determining loanable amounts under the Pag-IBIG Fund's home financing program, limiting loans to 35% of a borrower's gross monthly income and setting loan-to-appraised value ratios of up to 95% for economic housing and 90% for higher amounts.

Q&A (CIRCULAR NO. 402)

The loanable amount shall be limited so that the monthly repayment does not exceed thirty-five percent (35%) of the borrower's gross monthly income.

For tacked loans, the individual gross monthly income of at most three (3) borrowers shall be considered in determining the loanable amount based on capacity to pay.

The LTV ratio shall not exceed 95% for loans up to the Economic Housing Limit.

The LTV ratio shall not exceed 90% for loans over the Economic Housing Limit up to P6,000,000.

Yes, for developer-assisted housing loans up to the prevailing maximum limit for socialized housing loan, the LTV ratio shall be 100%, provided the developer's License to Sell is for a socialized housing project and the loan purpose is for the purchase of a residential unit.

Item Nos. 4.1.2 and 4.2.1 of Pag-IBIG Fund Circular No. 396 are repealed by this Circular.

This Circular takes effect after fifteen (15) calendar days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.

All other terms and conditions of Circular No. 396 that are consistent with the provisions of this Circular shall continue to be in full force and effect.

The purpose is to provide guidelines on the determination of the loanable amount based on the borrower's capacity to pay and the Loan-to-Appraised Value ratio under the Pag-IBIG Fund End-User Home Financing Program.


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