In an ideal world, you should never be turned down whenever you apply for a Pag-IBIG Housing Loan. You can simply go to the office of the Pag-IBIG Fund, the staff would be excited to serve you, you smile as you submit all the requirements and wait the next day for the approval. What wonderful world it would be!
Unfortunately, that will never happen in a real world setting. Like all other financial institutions, the Pag-IBIG Fund has to consider a number of factors before granting you the loan. In the past articles we have discussed some of those factors they use to evaluate a loan application, among those are the following:
- Your Records with the Pag-IBIG Fund
- Employment or Business Status / History Capacity To Pay
- Appraised Value of the Property
- The Property Itself
By now, you should already realize that just because you are a member of the Pag-IB IG Fund doesn’t mean that getting a housing loan is going to be easy.
In case you are thinking of applying for a housing loan, bear in mind that it could be possible that your loan application could be denied, or you will get an amount that is much lower than you expected. In other words, you don’t get what you want.
This article is meant to guide you on what to do next if the result of your loan application will be negative. To this end, take note of the following tips on what you can do.
Tip #1: Check if The Problem Related To The Property
Obviously, not all properties are equal. Some are good investments, others are just plain crap. Some places are safe to live; others are camping grounds of criminals. Indeed, some are more problematic than others.
You may not know it, but Pag-IBIG is very strict in evaluating a property that you consider buying. It has to undergo a series of rigorous evaluations to see if the property is worth the risk. Remember: the land title will be used as collateral so eventually if it is really a lot of risk, Pag-IBIG will not even consider that property.
Bear in mind that the Pag-IBIG Fund is in the business of real estate loans, not on selling problematic properties.
(See also : Collateral Requirement of Pag-IBIG Housing Loan.)
Tip #2: Get Your Finances In Order
Until now, I’m still shocked to receive comments like, “If I pay the 24 months upfront, can I apply for a housing loan immediately?” It is as if paying the 24 months contribution is the only factor that hinders them from being granted the loan. In reality, paying 24 months is not at all the problem. That’s just a total of P 4,800; even kids can do that.
Instead of putting too much focus on the 24 months contributions, what you should do, if you are really serious about buying a home, is to work on your cash flow. The following should be helpful:
- Save enough money for the equity or down payment. This is roughly 20% of the selling price of developer-owned property.
- See to it that you can pay for the monthly amortization. That means, work on improving your level of income, which is one of the most important factor affects your loan entitlement.
- See to it that you will pay your money dues. Assuming that you can pay, the question is WILL you pay? Once you take on a loan, you better be serious about paying it.
(See also: Are you qualified for a housing loan?)
Tip #3: Consider A Cheaper Property
Of course, who doesn’t want to live in a mansion close to the downtown area with all the amenities just close by? That would be very sweet, after all.
But when reality bites as it should, it is best to settle on the one that you can afford to pay. The positive side effect of that decision is that you can sleep soundly at night.
(See also: Forget About That Dream House, Buy A Functional House Instead.)
Tip #4: Get A Co-Borrower
If you have some good relatives who are willing to help you out, that would be nice. You can talk to them about becoming your co-borrower. Pag-IBIG allows a maximum of three (3) qualified Pag-IBIG Members to tack in a single loan secured by the same collateral, provided they are related within the second civil degree of consanguinity.
That means they can be your:
- Parents
- Siblings
- Children
- Aunts and uncles
- Cousins
- Grandparents
- Grand children
See? That’s a lot of help. But please proceed carefully. This is one of those itchy options that you want to avoid as much as possible.
Tip #5: Try Other Housing Loan Alternatives
Denied a Pag-IBIG Housing Loan?
Relax! Please realize that the world doesn’t stop spinning if you are denied a Pag-IBIG housing loan. There are other alternatives that you may consider such as the following:
- Bank Financing
- Mortgage Loans From Credit Cooperatives
- In-House Financing if the seller itself is also a developer.
For a detailed explanation on this topic, please read the “Pag-IBIG Housing Loan Alternatives” article.
If any of the above still doesn’t work, don’t lose hope. You can always try again next time.
“5 Tips To Take If Your Housing Loan Application Is Denied” is written by Carlos Velasco
Right now the pagibig contribution of mine was stop due to I have no work since OCT.2010….I verify my monthly contribution and it is almost more than 43 months..My question is…Can I proceed to a MULTIPURPOSE LOAN eventhough I dont have an existing employer? What will I do is to pay the would be loan by itself also within 2years. Is this possible.? pls. confirm.
kumpleto na po ako sa requirements last may 2011 pa po nai submit ang mga papers ko at natawagan pa ako ng pag-ibig just to inform na for approval pa lang ang loan ko pero until now wala pa ring update, hindi ko po alam kung ano status ng loan ko . indi naman po take out ang hinihintay kundi iyong approval lang para maka early move in po kami. tulungan niyo naman po kami. pag nag back out daw po ako sa loan ma black list naman daw po ako, bakit ganon hindi ko na nga po itutuloy ang loan para wala ng utang pero ma black list pa. totoo po ba iyon ?
anu po ba advantage sa buyer ng pre-approved ng pag-ibig yung subdivision? if pre-approved ng pag-ibig, does it mean na yung property appraisal will be just enough?
@Lani:
There are a lof of advantages. One is that, the houses are already appraised by the Pag-IBIG Fund. That means, the selling price of the house is also recognized by Pag-IBIG as such. There will be no more guessing on how much loan you can take when buying that house.
@jonathan:
Please check it from the office. The worst thing that could happen is you will be billed on your loan even if you disapproved of it.
@angekito:
YOu have to somehow show them that you are capable of paying your loan. And that means, some source of income.
hi admin my dad is a govt employee and currently having a basic salary amounting to 21,950.00 does he entitles to loan up to 1.3M pesos? tnx a lot….
@raven:
We have written an article about Income and Loan Amount Entitlement. Please check the link below to know more:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
Hi, pwede po ba na maging co-borrower ang magiging future wife ko or girlfriend? We are planning to apply for a single loan para mapagsama namin un amount ng iloloan nmin para hindi mabigat
HI Admin,
Pwede po ba ako mag housing loan sa pag ibig kahit na may existing loan ako na 3000 payable for 24mnths?
Thanks..
Ask ko lang po kung gaano katagal before ma-take out sa pag-ibig? 24 months to pay po kasi ang equity namin and nasa 11th months pa lang po kami ng pagbabayad. Gusto ko po sana ma-delay ang pag-take out sa amin para hindi mag-abot ang equity at amortization namin. Medyo mabigat kasi pag nagsabay ito. Pwede po ba kaming magrequest sa pag-ibig na i-delay ang pag-take out sa loan namin? During pag-ibig seminar tinanong ko yung speaker about that concern. Sabi ng speaker we can request to delay our pag-ibig housing loan pero nung kinausap na namin ang developer namin. Humingi ako ng consideration at nagrequest kami na i-delay ang housing loan namin hindi sila pumayag basta pag na-take out na daw ang loan namin wala kaming choice to pay for both equity and amortization… If that is the case, pwede po bang directly na akong magrequest sa pag-ibig na i-delay ang housing loan namin? Gusto ko lang po matapos ang 24 months para mabayaran ang equity then after that ok na ako na mag-umpisa magbayad ng amortization.
@ramon:
Co-borrowers are listed above on Tip #4. Please read it again.
@Fritz:
That must be a Multi-Purpose Loan. You need to pay it off first before you can take on a Housing Loan.
what if matapos ko yung loan ko within 10 months para di na umabot ng 24 months pwede na ba ako mag avail ng housing loan?
salamat admin..
@Fritz:
Sorry, I was wrong with my reply to your original question. Luckily for you, yes you can take a housing loan while the MPL is not yet fully paid. But, your MPL Loan must not be in arrears…meaning, make sure you are a good payer.
yup..thanks admin..
hi admin…ask ko lang po,ma approve po ung housing loan,kc,1year plang po me nkapagbayad?,but im willing to continue it.nkapag down payment n me sa house. thanks.please reply.
Hi Admin. I would like to ask if we can use the certified true copy of the title ng house or original talaga. Kasi balak ko i apply sa PAG-IBIG housing loan yung bahay na tinitiran namin. The owner of the house is a Korean kaya gumamit sila ng Filipino name to named the house in the TCT. Ang tanong, pwede ko po ba yun gamitin as my collateral in applying PAG IBIG housing loan?
Thanks po for your response.
Hi Admin,
Same po ba ng computation ang mortgage calculator dito at computation ng mga bangko?. in short pwede ko po ba gamitin ito using interest rate ng bangko.
hello po admin.ask ko lang po sana about sa broker ng pag-ibig?paano po ba malalaman if peke or hindi yung broker?mate-trace po iyon?then,need po ba talaga muna mag pay ng reservation fee don sa house kahit hindi pa approved ng pag-ibig yung housing loan?paano po kung denied?mababawi pa po yung reservation fee..sabi po kase nila marami na now manloloko na broker kaya advice naman po if ano dapat gawin,kase balak namen kumuha ng house ang lot ng husband ko,then sabi nila marami daw problema ang pag-ibig now,kase yung pera daw ng pag-ibig ay ginamit ni arroyo.totoo po bA iyon?ang gusto po sana kase ng asawa ko kung ma-approved yung loan saka mag pay ng reservation,movein fee,or equity..pls answer my question po..salamat po…
saka ask ko po pala..yung ibang broker po kase hindi sila humuhingi ng for equity,for reservation and move in lang…ok lng po iyon?
Hi Admin!
Good day… I acquired my house thru Pag-ibig loan 3 years ago… It is 25 years to pay and I’m currently on time paying it. However, taishin real estate (the developer of the house) just sent me a mail asking for Php6,000.00 payment for the mortgage and transfer of the land under my name within 15 days. They show me the title that it had been transferred to my name. We never had an agreement that I will be paying any extra money aside from the equity I payed to them and the Pag-ibig loan I made should settle the remaining balance to them and I should be paying only to Pag-ibig now.
The agreement before when they were selling the house is the only payment I need to give is the equity and Pag ibig loan… Then after 2 years the title will automatically be transferred to me if I’m a good payer … That is why I keep on following up with Pagibig if the title is already transferred to me since it is already more than 2 years and what Pagibig said when I inquire is that it is on process… Then suddenly the developer send me a mail asking for Php6,000.00 within 15 days for mortgage and transfer of the title which we never agreed and they never informed me about it.
I can pay the amount but the idea of them making charges without my prior consent/knowledge is I think not right.
Do I really need to pay them? If I don’t pay them within 15 days, will they have the power/authority to force me out of my house? The house is under the pagibig loan already for 3 years now and I don’t think the developer has any authority on the house anymore.
Please kindly enlighten me on this matter.
hi..pwede nyo ba ako tulungan gusto ko po mag apply ng housing loan sa pag ibig member na po ako 4 almost 4years makakaloan na po ba ako sa housing loan?my lupa na po kmi na nabili dto sa batangas tatanugin ko din po sana kung pwede po na housing loan lang apply ko ang asawa ko po ay isang ofw..ano po ba ang mga requirments sa housing loan please help me po
im ofw member of pag ibig since 2008.. ng apply po aq ng housing loan and now nggmit na po nmin ung house,,, i just want to ask when can we avail the land title…
dear admin,
co-borrower ko ang mrs. ko sa housing loan…. pwede rin ba sya mag avail ng another housing loan?
@jess:
She can’t until the first home loan is already fully paid.
@liezel:
The title will be released only after the loan is fully paid.
Here’s a list of the loan document requirements:
https://www.pagibigfinancing.com/articles/2010/pag-ibig-housing-loan-requirements/
@Sanz:
That payment is usually part of the so called, miscellaneous charge or transfer fee. Most developers are really imposing that, but in some others, it’s already built-in to the selling price. They should have explained this thing first before you make the commitment to buy.
@ana03:
FYI: Pag-IBIG Fund has no broker. The broker or agent must be representing the developer, not the Pag-IBIG Fund. However, if you are not sure if the project is not accredited by Pag-IBIG, you should back out of that deal while you are still at this early stage.
@Fritz:
Yes, you can rely on that tool.
@Vern:
It is always the original title that will be required of you.
@maryjanemalazarte:
the minimum is 24 months.
ask ko lang po kung nali-lift po yung ban sa housing loan sa pag-ibig. na-ban po kasi yung husband ko kasi di niya nabayaran yung housing loan nya bale naforeclose sya. medyo nagipit po kasi kami noon. pero sinalo ko naman po yung bahay. balak po nya mag-avail ulit ng housing loan
@Cris:
Once a member is banned from getting a home loan, that’s forever. Pag-IBIG Members should take this seriously.
Need po ba na updated ang BIR Form No. 2316 na ibibigay? Kc nawawala ang 2010 BIR form ko, kaya 2009 lang ang naibigay ko… Pero hinahanapan parin ako ng agent ng recent. Kaso lumipat na ako ng employer at malayo yung dati kong employer kung saan pdeng kumuha ng copy. Tatanggapin prin ba ang requirement ko. or may possibilities na ma-deny?
hi Admin,
goodday!!!
Right now the pagibig contribution of mine was stop due to I have no work since April 2008.. My question is…Can I proceed to a Housing LOAN eventhough I dont have an existing employer? . Is this possible.? pls. confirm..thanks…
maryjane omaga
@Mary Jane:
I’m afraid you won’t be granted a loan unless you can show some proofs of income.
@Aidz:
Yes, it must be the recent one.
hi admin,
sana matulongan ninyo ako mam nag apply po ako ng housing loan. im self employed po ako at i pay 500 per motnh tru pag ibig. approve na po yung papers ko sa developer at naka pasa na ako sa lahat ng requirement na binigay sa akin at equity naman kakatapos ko lang nagbayad for a 1 year total of 83T. sabi nila wait nalang daw ako ng approval ng pagibig housing loan pwede po ba ma dis approve ang loan ko kahit may utang ako sa credit card or black listed na ako sa credit card kasi di ako naka pagbayad dahil sa utang ko sa card na di naman ako nakapagpurchase ng items.. pls advise mam ill waiting your reply thanks ….
Hi admin,
I am currently self-employed and the co-owner of two small businesses. I have stopped my contribution when I resigned from work three months ago. I have only contributed for 3 years but on a staggered basis.
Now I learned a house near the place I am renting is being sold for P1.8M
Am I still entitled to apply for a housing loan? Thanks in advance 🙂
my husband is an ofw and we would like to avail a housing loan for an ofw housing loan program. i would like to know if how much would be the required contribution for us to be approved on the said program and how soon it will be approved? please advise us. thank you so much.
@jeff:
Please remember that a loan application is not guaranteed. You may still be denied, but your credit card records may not be traced yet.
@Mark:
Yes, but you need to reactivate your membership. Also, please be ready to present some proof of income for your business. They will require it from you.
@ina:
The minimum contribution is only 200 / month. Please read this to know the income requirements:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
Would like to inquire kasi nagamit ko pag-ibig housing loan ko pero lote nakuha ko. Gusto ko sana magpatayo ng bahay pero di pa kaya ng budget ko. Nag-inquire ako sa pag-ibig regarding sa additional loan w/c is house construction, kaso di pala yun binibigay ng pag-ibig ng biglaan at isahang bigay. Gusto ko sana yun mabibigay agad para mapatayuan ko na ng bahay, wala bang ganun sa pag-ibig? Good payer naman po ako at wala naman ako bad record pagdating sa loan. Or kung walang ganun sa pag-ibig, pwede ko ba ibenta ang lote ko sa halaga ng pagkakabenta sa akin at pag nabayaran ako ng buyer ay ibabayad ko sa pag-ibig yun balance ko at gagamitin ko ulit ang pag-big but this time ay house and lot na. pls. help.
Hi Joy,
Your idea is brilliant! Yes, you can do that. And if you are really good, you can even make a profit.
Unfortunately, the house construction loan is really like that. The amount is released on a staggered basis per progress of the project. 🙂
Good luck!
how long po bago maaprove ung housing loan from the time na nacomplete na documents.? ang illoan po na amount e 500k for condominium property..
Mar,
Well, it depends but 2 months should be a long time for processing.
nakapagsubmit na kami ng mga requirements sa pag-ibig kaso every time na nagpafollow up kami palaging may kulang na requirement pero nagcocomply naman kami..the lot was in the name of the seller but the prob lies on the 3rd tracer ng title na hiningi nilang additional requirement…per registry of deeds dito samin nawawala ung title ng first owner, as second owner is the seller.na nabili nia ung lot sa DBP as per deeds’ record, so, deeds gave us certification but it does not suffice the PAG-IBIG staff..so they ask us to submit additional requirements which are; annotated deed of sale from 1st owner to the seller plus a photocopy of TCT of the first owner. We comply again however they still disapproved our loan because the original deed of sale from the 1st owner to the seller doesn’t have annotation from the registry of deeds..so they asked us to have it annotated..and so we did, but the problem again is per record on registry of deeds, the DOS exist but the actual document can no longer be found…the said DOS was recorded on May 1992.so, another certification from the registry was furnished to us stating that they have recorded the said DOS however the document cannot be found…then again, PAG-IBIG staff did not accept the said certification which means disapproval of our loan. Is this a major ground for disapproval of my lot loan to PAG-IBIG? please enlighten! thank you!