I am not a Pag-IBIG Member, How Can I avail a Housing Loan?

I am not a Pag-IBIG Member, How Can I avail a Housing Loan?

"I am not a Pag-IBIG Member, How Can I avail a Housing Loan?" This is the question that I always encounter of those interested in our affordable house and lot in Bulacan.  Most of them are OFWs who are working abroad to provide the needs of their family and eventually buy their own house and lot.

My response on their concerns is that they can still avail the Housing Loan thru Bank or In-house Financing or they can sign up as a Pag-IBIG member. Let us discuss here the three (3) Financing options available to the buyers.

Bank Financing

Bank financing allows you to get lower rates as compared to Pag-IBIG and In-House Financing. However, Bank offer shorter terms as compared to the 30 years that Pag-IBIG is providing.  Also, Bank will charge you with a bank fee which is usually 3% or more depending on the bank. 

In-House Financing

The Developer offers In-House Financing to cater those buyers who have problems with documentation.  The interest rate for In-house is doubled as compared to Bank or Pag-IBIG.  This is for the reason that the Developer is the Seller not a Financing institution.  More often than not, we do not recommend In-house Financing as Bank and Pag-IBIG is more favorable to the Buyer.

Pag-IBIG Financing

Pag-IBIG Fund is a government agency that provide housing loan benefits to its member.  In the Philippines, a locally employed or self-employed individual are required to be a Pag-IBIG member. OFWs are also mandated now to be a member under Pag-IBIG Overseas Program (POP). As members, you can avail a housing loan provided you are already qualified to get one.

Qualifications include, a Filipino Citizen, member of Pag-IBIG with updated monthly contribution and at least have 24 months of total contributions already.  As of now, if you're not yet a member of Pag-IBIG, and you want to avail of the housing loan to buy an affordable house and lot in Bulacan or other areas.  What you should do is just apply for a membership.  You can now pay the 24 months required contribution in lump sum payment (1 time payment).

I hope that this article helped some who have concerns on their Pag-IBIG membership.

If you have queries, feel free to contact me, Mr. Ralf Roger Tagao, a CPA and Licensed Real Estate Broker.  You can refer to our Contact Us Page.