Question & AnswerQ&A (CIRCULAR NO. 401)
The maximum loan-to-appraised value (LTV) ratio for loans up to the socialized housing limit is 100%.
The loan-to-appraised value ratio for loans over the socialized housing limit up to P750,000 is 95%.
Item No. 4.3 of Pag-IBIG Fund Circular No. 379, or the Amended Guidelines on the Pag-IBIG Fund Affordable Housing Program, is repealed by Circular No. 401.
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.
The Management Committee of the Pag-IBIG Fund approved the guidelines in Circular No. 401.
The loan-to-appraised value ratio determines the maximum loanable amount relative to the appraised value of the collateral property, ensuring that the loan amount does not exceed a certain percentage of the property's value to mitigate lending risks.
No, Circular No. 401 only repeals Item No. 4.3 of Circular No. 379; all other terms and conditions consistent with the new provision remain in effect.
The collateral considered is the property subjected to appraisal, typically the housing unit or lot, which is used to determine the loan-to-appraised value ratio.
Acmad Rizaldy P. Moti is the Chief Executive Officer who signed Circular No. 401.
Yes, the Circular takes effect after fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.