“Get your finances in order.”
You have probably read that statement several times on different pages of this website. Usually, it is the response we give to visitors who are asking for guidance on how to get, and eventually be approved for, a housing loan from the Pag-IBIG Fund.
The phrase is very brief but it means a lot of things, which I will attempt to elaborate here in details.
Essentially, I’ll be talking financial talks that relate to the following topics:
- Employment or Business Track Record
- Level of Income
- Credit History
That’s it — just these three things are enough to help you flex your financial muscles so that you’ll be ready to face your loan officer. If you get them right, you’ll be smiling for making such a preparation. And take note, the same concept is applicable also to any loan application from any financial institution like the bank and credit cooperative.
Okay, let’s take them one by one.
Employment or Business Track Record
Quite simply, this is revealed by such question as, “How long have you been in business or in your current work or profession?”
The answer to this question is very important to the lending institution because it tells something about the stability of your income.
There are many ways a private lending institution can get a handle of this information. Depending on your source of income, some banks will be asking you the following:
- Your contract of employment — with stated terms of contract and salary
- Remittances in the Philippines (For OFW)
- Bank Statements
- Financial Statements for the past 2 years (for businesses)
In the case of Pag-IBIG Fund, one of the ways they can check this is by simply looking at your membership records with the Fund. Ever wonder why the Pag-IBIG Fund requires its members to have contributed at least 24 months of contributions? The very reason is that, they want to make sure that you have a steady source of income for the past two years. Somehow that gives them a hint of your employment record.
So the next time you are thinking about getting a loan, remember to take more time to reflect first on your employment, professional or business history. Stability in your work or line of business is the key. The longer you are in your work, profession or business, the more chances you have to being qualified for the Pag-IBIG Housing loan.
Pag-IBIG Financing Tip #1: Learn about Loan Pre-Qualification and its importance.
Level of Income
This one is very obvious. The higher your income level, the better chances of getting qualified for a housing loan, and the higher the loan amount entitlement also.
Question: If my income is P 35k per month, am I qualified for a housing loan with Pag-IBIG amounting to P 1.5 M?
Answer: Yes, but you should probably try to settle on a lesser amount of loan or strive to come up with an augmented income. Remember, your monthly amortization will also take a toll on your family’s budget. You don’t want to tie up a bulk of your expenses just paying of your home loan.
The answer to the question above is based on Pag-IBIG Fund’s Guidelines relating the income and member’s contributions to this loan amount entitlement. For more details, please check on the article entitled “How Your Income And Contributions Affect Your Housing Loan Entitlement“.
Pag-IBIG Financing Tip #2: As a general rule, you are safe if you select a loan amount and term where the resulting monthly amortization is less than 1/3 of your net monthly income.
Credit History
A borrower’s bad credit history really turns off any lending institution. Be careful about having a history of cancelled credit card because it will haunt you down once you apply for a loan from any bank in the country.
The current Housing Loan Application Form of Pag-IBIG already includes fields about the loan applicant’s credit cards. But some borrowers who have a bad credit history can simply skip on those blank items so that the Pag-IBIG staff won’t bother. But someday soon, it will become a critical part of the housing loan qualification process.
Essentially, what this means to all Pag-IBIG Fund members who want to apply for a housing loan is that, they should not make any Pag-IBIG Loan they can’t make up. Any unpaid loan you have made with Pag-IBIG can definitely affect any loan application you will make with the Fund.
Pag-IBIG Financing Tip #3: Don’t be careless even on small amount of loans. It can make or break your reputation with the Pag-IBIG Fund.
See also: The 5 Cs of Credit.
~~~
“Housing Loan Preparation: How To Flex Your Financial Muscle” is written by Carlos Velasco.
Dear admin, gud day po. Plan ko po mag-loan sa pag-ibig, nkahanap na po ksi ako ng haws, do i need to pay the downpayment in cash or the pagibig will pay this? Can i occupy the haws asap since my family need to vacate our current haws? Please i need your prompt response. Thank you.
Goo day! I am a permanent teacher since January of 2009. When I have my maternity leave without pay on June 2010, my PAG-IBIG and GSIS contribution went back to zero, accordingly. So my year in service for this institution starts July 2010. Nasasayangan po ako since I am contributing P500.00 a month and was just cut-off because of that leave without pay policy. How will I get back to that original month and year when I started my contribution so I can avail of your loan programs this year?
I have maternity leave w/o pay on June 2010, my PAG-IBIG and GSIS contribution went back to zero.Nasasayangan ako since I am contributing P500.00 a month and was just cut-off because of the policy. How will I get back to that original month and year when I started my contribution so I can avail of your loan programs this year?
good day! may housing loan na po me pag ibig. what if po lakihan ko yung monthly amortization? ano po maging epekto nun sa principal at loan term ko.
Hi ask ko lang po kung requirements po ba talaga sa Pag-ibig loan na mag bigay ng 24 blank checks? Kumuha po kasi ako ng condo unit sila na daw po mag lalakad n gPag-ibig loan ko. Ano po ba ang difference kung ako ang maglalakad ng loan o yung developer? Confuse lang po kasi di pa po ako nag attend ng any seminars from Pag-ibig so gusto ko lang makasiguro. Thanks po! Wait ko po response nyo.
@Marilyn:
First, you should never give a blank check to anyone. Pag-IBIG will not accept it.
Second, if you are the one to process your loan, that may take a lot of your time and energy. Think of your developer/agent as just
extending a helping hand.
@Meriam:
That way, you can say on your interest payments and your loan may be paid off earlier.
@Jiji:
Please note that Pag-IBIG doesn’t give any maternity benefit.
@Mary Joy:
The down payment is really yours to shoulder. Pag-IBIG will not pay for that one.
As to the occupancy, it depends on the policy of the house seller.
pwede po bng mag verify
hi! can pag-ibig refinance a mortgaged loan from pnb? my father-in-law’s housing loan from pnb will be due next year and we recently found out when he died this october that his last payment was 3/2011. I am a pag-ibig member but my husband is not. Can I avail of the program even if the lot is under my husband’s name and the pnb loan is under my father-in-laws name?
@ivy:
I’m sorry to hear that. I can only hope that the loan was covered by Mortgage Redemption Insurance.
A quick reply for you: The answer to your first question is “YES”.
But, considering this case, it may not be possible or it could be very complicated. You have to coordinate with the bank on the whole process.
Sir/Madam:
Good day!
I just want to confirm if pag ibig housing dept. has announced a new guidelines on the computation of the net income of the borrower. I have a housing application through a developer. I submitted my requirements with the approval of that developer that my net take home income has passed for the 25 years of amortization. We agreed and signed some docs and after 6 months of equity and was fully paid, the developer advised me that Pag ibig has come out with a new guidelines on how to compute the monthy income. They told me that only 30% from overtime, allowances, cola, night diff etc will be taken and 100% from my basic salary. And which i worry because I am earning more or less 15k/month and my estimated monthly amort. will be 6,100 for 25 yrs. Please confirm if there is a true new guidelines from Pag ibig or the
developer just would like us to pay another set of equity? Thank you very much and hoping for your soonest response.
More power
ask ko lang po dating OFW ang husband ko almost 1 year na po syang di umaalis 4 months na po kaming di nakakahulog sa bahay more than 2 months na po kaming nag huhulog mapapaalis na po ba kami sa bahay. Ano po kaya ang dapat kong gawin? Gusto po kasing humingi ng extention kung sakali.
ask ko lang po dating OFW ang husband ko almost 1 year na po syang di umaalis 4 months na po kaming di nakakahulog sa bahay more than 2 years na po kaming nag huhulog mapapaalis na po ba kami sa bahay. Ano po kaya ang dapat kong gawin? Gusto po kasing humingi ng extention kung sakali.
Good day po. I’m just concern po with my on going housing loan application sa pagibig. Natapos ko na po kasi ung dp at ngbgay na po kmi ng post dated checks sa developer. Sinabi po nila na na-apply na nila sa pagibig ung loan ko. Every month po ay ngfollow up and til now wla pa po ung approval (3 mos). Ang huli pong sinabi sakin ay inaayos pa ung tax declaration nung property kaya it will take another 1 o 2 mos na paghahantay. Normal po ba ung ganung katagal? Ilang months po ba usually bago ma approve ang loan? Worried din po kasi ako s bnabayad ko ngaun na monthly amortization kung tlgang papasok pa un sa calculation ng pag-ibig loan ko. At may mga nbabasa rin po kasi ako na strategy ng dveloper na patagalin ung processing pra sa knila mpunta ung bayad. Meron din po ba law o rule ang pagibig d2 pra maprotekthan ang pagibig members na tulad ko pra di maloko ng developer. Sana po matulungan nyo ko. Thanks po.
Good Day!
ask ko lang po, plan ko po magloan sa pag-ibig.pero my utang pa po ako sa credit card, at di ko na po nababayaran simula nung andito ko sa saudi arabia.. maaprove po kaya ang loan ko?
please need your answr.
thanks!
hi. posible kayang maapprove sa pag ibig housing loan kung may bad history ako sa isang financia institution? maliit na amount lang nman sya amounting to 5K only. paano ko kaya malilinis ang record kong yun para pag nag apply ako sa pag ibig maging ok na?