Am I Qualified of a Housing Loan?

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 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

What Are The Requirements for Pag-IBIG Housing Loan?

What Are The Requirements for Pag-IBIG Housing Loan?

Most of the First Time Home Buyers asked questions about requirements of a Pag-IBIG Housing Loan.

The following are the personal requirements of Principal Applicant, Spouse and Atty-in-Fact for Locally Employed, Self-employed and OFWs.

Also, some Pag ibig documents that must be signed and to be submitted together with the requirements.

Personal Requirements

• 4 pcs. 1 x 1 ID picture
• Photocopy of Birth Certificate (if single)
• Photocopy of Marriage Certificate (if married)
• Photocopy of Death Certificate (if widow / widower)
• Proof of Billing Address (MERALCO, PLDT, Water Bill, etc.)
• Certificate of Tenancy & Valid ID of Landlord (if renting)
• 2 Valid ID with Signature (Government issued)
• Approved Membership Status Verification Slip (MSVS)
• Special Power of Attorney and Valid ID of Atty-in-fact (if any)
• Residence Certificate/ Cedula (photocopy)
• Postdated Checks (Downpayment & Monthly Amortization)

For locally employed, please add these:

• Certificate of Employment and Compensation (Notarized)
• Latest Income Tax Return (ITR)
• Latest 2 months Payslip
• Service Record (if government employee)
• Copy of latest Pag-IBIG ESAV with at least 24 mos. contribution

For Self-Employed, please add these:

• Business Permit / Mayor’s Permit
• DTI or SEC Registration
• Audited Financial Statement (last 1 year)
• Income Tax Return (ITR) (last 1 year)
• Proof of Tax Payment
• Secretary’s Certificate (if any)

For Ofw, please add these:

• Job Contract (Authenticated by POEA) with English translation if in foreign language)
• Certificate of Employment & Compensation (Consularized) – if no Job Contract
• Proof of Remittance (last 3 mos.)
• Photocopy of Passport
• Special Power of Attorney (Consularized)
• Copy of latest ESAV with at least 24 mos. contribution
• Other Proofs of Income, whether original or photocopy, shall be duly validated and certified/initialed by Pag-IBIG Fund Information Officer assigned in the country where the member works.

For Atty-in-Fact (Authorized Representative)

• Latest ID Picture
• Residence Certificate (photocopy)
• 2 Valid IDs (Government issued)
• Tax Identification No. (TIN)

Loan Documents From Pag-IBIG

• Pag-IBIG Housing Loan Application
• Disclosure Statement on Loan Transaction
• Preliminary Loan Counseling Questionnaire
• Medical Questionnaire (if buyer’s is over 60)
• Certificate of Acceptance
• Conformity to Assignment of the Contact to Sell
• Contract to Sell (CTS)
• Deed of Assignment with Special Power of Attorney (DOA)
• Deed of Absolute Sale (H4-74 and H4-75)
• Promissory Note (PN)
• Loan and Mortgage Agreement (LMA)
• Deed of Restriction
• Conformity
• Certificate of House and Lot Acceptance and Completion (CHLA)
• Specimen Signature

Pag-IBIG Fund is cutting its interest rates for housing loans effective June 1, 2015

The Home Development Mutual Fund (HDMF) or Pag-IBIG Fund is cutting its interest rates for housing loans effective June 1, 2015 to encourage more members to avail of the program.

The new housing loan interest rates were implemented last June 1, Pag-IBIG Fund president Darlene Berberabe said.

Berberabe attributed the reduction of interest rates to the improved collections on housing loans which reached P33.9 billion last year, and P8.8 billion during the first quarter of 2015 alone.

“The reduction in interest rates was made possible by our strengthened fiscal measures, sound investments and reforms in collection, all contributing to a more robust and stable fund for our members. The new reduced interest rates will give Pag-IBIG members easier access to homes to shelter their families,” Berberabe said in a statement.

The new rates are as follows: 6.5 percent for a three-year fixed-pricing period, 7.27 percent for five years, 8.035 percent for 10 years, 8.585 percent for 15 years, 8.8 percent for 20 years, 9.05 percent for 25 years, and 10 percent under a 30-year fixed-pricing period.


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