Modified Guidelines on Pag-IBIG Affordable Housing

Loan proceeds can finance purchase of fully developed residential lots not exceeding 1,000 sq. m.
Purchase of residential house and lot, townhouse, or condominium units, old or new, including properties mortgaged with Pag-IBIG Fund.
Construction or completion of residential unit on lot owned by borrower or relative.
Home improvement on owned property or one secured under Contract-to-Sell (CTS) or Deed of Conditional Sale (DCS).
Loan proceeds may refinance existing housing loans for borrowers with no payments more than 30 days past due in last 6 months.

Must be an active Pag-IBIG member with at least 24 monthly savings remitted or meet lump sum equivalent.
Non-members allowed to apply upon remittance of required 24 monthly savings.
Gross monthly income must not exceed P17,500.
Age below 65 at application and below 70 at loan maturity.
Legal capacity to acquire and encumber real property.
Pass satisfactory credit, background, and employment/business checks.
Housing accounts must be updated; no arrears on short-term loans.
No prior foreclosed, cancelled, or otherwise terminated housing accounts.

Maximum loan amount is P750,000 or based on actual need, income capacity, and loan-to-appraised value (LTV) ratio.
Gross monthly income clusters define limits: up to P15,000 and P17,500 in NCR and up to P12,000 and P14,000 in regions.
Loanable amount determined by capacity to pay; monthly payment should not exceed 35% of gross income.
Tacked loans allowed for up to 3 qualified members with relation or co-ownership obligations.
LTV ratios: 100% up to socialized housing loan ceiling; 95% for loan amounts above ceiling up to P750,000.

Two interest rate tiers based on income and loan amounts: 3% for lower income groups and loans up to socialized ceiling for 5 years; 6.5% for higher income groups and loan amounts up to P750,000 for 10 years.
Rates subject to change as per Management approval.
Interest rate repriced after fixed periods based on prevailing Fund rates.
Interest applies from initial until final release of loan proceeds if staggered.

Equal monthly amortizations covering principal, interest, and insurance.
Preferably paid via salary deduction with borrower’s consent.
Other payment channels include post-dated checks, accredited developers, collection partners, auto debit arrangements.
Payments apply first to penalties, insurance, interest, then principal.
Penalty of 1/20 of 1% per day on unpaid balances.

Collateral must be the same property financed, no off-site collateral allowed.
Retail loans secured by first Real Estate Mortgage (REM). Accommodation mortgages allowed if related up to second civil degree.
Developer-assisted loans use Contract-to-Sell (CTS) or Deed of Conditional Sale (DCS); title procedures detailed.
Properties must be free from liens except as allowed; surety bond required if adverse claims may arise within 2 years.
Properties appraised by Pag-IBIG or authorized agents.
Real estate taxes must be updated yearly; evidenced by official receipt.

Mandatory Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI) coverage.
Interim coverage effective upon approval; regular coverage non-medical and annually renewable.
Borrower must obtain Fire and Allied Perils Insurance for appraised value or loan amount, whichever is lower.

Prepayment allowed in full or part without penalty but subject to service fee.
Excess payments treated as advance amortization or principal reduction as requested by borrower.

Default triggered by failure to pay 3 monthly amortizations, failure to submit tax payment proof, or breach of agreement.
Outstanding obligations immediately due with continued interest and penalty charges.
Borrowers in default barred from new housing loans.
Pag-IBIG may cancel CTS/DCS or foreclose mortgage upon default.
Payments on defaulted accounts do not reinstate loans unless fully updated.
Payments to sellers prior to loan takeout recoverable from seller/developer.

Borrowers with existing loans may apply for additional loans up to aggregate limit of P750,000.
Must be active members with updated accounts and capacity to pay.
Multiple loans treated as separate, subject to cross-default provisions.

Special Pag-IBIG housing loan programs align with these guidelines unless otherwise specified.

Guidelines subject to review every two years to reflect Fund viability and market conditions.

Issues in interpretation resolved at officer level; unresolved matters escalated to higher authorities.

The guidelines take effect 15 calendar days after publication in Official Gazette or newspaper of general circulation.