How Much Can I Borrow for a Housing Loan?
Pag-IBIG Fund now offers up to P6Million housing loan. On the Borrower's standpoint, maybe you're asking how much you can borrow from Pag-IBIG. It is not automatic that you can borrow a certain amount in Pag-IBIG, there are certain criteria that will determine how you can borrow.
The Loan amount shall be based on the lowest of the following:
1.) Actual Need
Actual need is usually the value or price of the house you are about to purchase. If your purpose is to borrow to finance your house construction, then the actual need is the construction cost. If it is for refinancing the old outstanding housing loan, then the outstanding balance of the loan.
2.) Capacity To Pay
Capacity to pay is the ability of the buyer to pay for the monthly amortization of the housing loan that he/she has taken.
In every housing loan, there is a corresponding required Gross income needed to qualify for the loan.
Gross income is being computed as follows:
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%)
3.) Loan-to-Appraisal Value ratio
The loan to appraisal ratio is determined by multiplying a certain percentage on the appraised value of the property. Pag-IBIG fund has already a team of Appraisers that estimate the value of a certain house and lot or property.
The lowest value on these three (3) basis will be the value of loan that the buyer/borrower can borrow.
Please note that for cases that the gross income is not sufficient to cover the monthly amortization, Pag-IBIG has the "tacking provision" wherein 3 maximum Pag-IBIG members can be co-borrowers.
I hope this blog has given you idea on how much you can really borrow for a Pag-IBIG housing loan. If you like this article, I appreciate if you can share it to others.
If you're looking for affordable house and lot in bulacan, feel free to contact us. We will give you the best assistance to you.
Regards,
Ralf Roger Tagao,
Your Licensed Real Estate Broker/CPA
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