Am I Qualified of a Housing Loan?
Maybe you are renting a house right now or just living with your parents or relatives. Maybe you are already thinking of getting your own house instead of renting. And you have asked yourself, "Am I qualified of a Housing Loan?" if ever that I wanted to get the house that I want?
We all want our own house, and I will be discussing here some of the criteria whether you are qualified for a housing loan or not and other course of action that you can do if ever that you do not qualify of the house you want to purchase.
For a Housing Loan, one of the major qualification is the capacity to pay which is evidenced by the proof of income i.e. contract of employment/payslip.
For a Housing Loan, one of the major qualification is the capacity to pay which is evidenced by the proof of income i.e. contract of employment/payslip.
For a Pag-IBIG housing loan, here are the basic qualifications;
In addition to this, there is a required income needed on the part of the Buyer for the property he/she is about to buy.
Note: the interest rates here are from the old Pag-IBIG guidelines, these figures are presented only to give idea on the buyer how much is the required income needed on his part.
As seen above, if your housing loan is P500,000 and you want it to be paid in 5 years, you need to have at least P28,956 monthly salary to be qualified.
Or we can compute it this way:
A.)For loans up to P1,250,000 - 35% of your Gross monthly income should be more than the monthly amortization of your housing loan.
Example:
Housing Loan Amount- P900,000
Monthly Amortization - P6,680
Required Gross Income - Should be at least P19,085 (P6,680/35%)
B.) For loans over P1,250,000 - 30% of your Gross monthly income should be more than the monthly amortization of your housing loan.
Example:
Housing Loan Amount- P1,300,000
Monthly Amortization - P9,500
Required Gross Income - Should be at least P31,666 (P9,500/30%)
In cases where your income is less than the required income, one course of action is to have a co-borrower or increase the Downpayment for you to qualify. Pag-IBIG allows tacking of loan of up to three (3) members.
For Bank or In-House Financing, same concept as Pag-IBIG applies.
I hope that this article helps you understand on the qualification of having a Housing Loan.
Regards,
Ralf Roger Tagao.
Certified Public Accountant
Real Estate Broker
A.)For loans up to P1,250,000 - 35% of your Gross monthly income should be more than the monthly amortization of your housing loan.
Example:
Housing Loan Amount- P900,000
Monthly Amortization - P6,680
Required Gross Income - Should be at least P19,085 (P6,680/35%)
B.) For loans over P1,250,000 - 30% of your Gross monthly income should be more than the monthly amortization of your housing loan.
Example:
Housing Loan Amount- P1,300,000
Monthly Amortization - P9,500
Required Gross Income - Should be at least P31,666 (P9,500/30%)
In cases where your income is less than the required income, one course of action is to have a co-borrower or increase the Downpayment for you to qualify. Pag-IBIG allows tacking of loan of up to three (3) members.
For Bank or In-House Financing, same concept as Pag-IBIG applies.
I hope that this article helps you understand on the qualification of having a Housing Loan.
Regards,
Ralf Roger Tagao.
Certified Public Accountant
Real Estate Broker
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