This article is a little bit off-topic considering that many of you are coming to this website mainly to know more about the programs of the Pag-IBIG Fund especially the Pag-IBIG Housing Loan. But please bear with us because this article could become a life saver to the other visitors who are not members of the Pag-IBIG Fund or those who are denied a Pag-IBIG Housing Loan.
We have consistently mentioned this in replies to comments from site visitors: a loan application offers no guarantee of approval. And if Pag-IBIG Financing may not be the best for you, please take note that there are other alternative home financing options that you can use.
In this article, we’ll elaborate further on the topic of In-House Financing – a Home Financing Scheme that you can use without ever becoming a member of the Pag-IBIG Fund.
(See also : What To Do If Your Pag-IBIG Housing Loan Is Denied)
The Anatomy of Conventional Home Financing
When you buy a house and take on a mortgage loan to finance it, here’s what normally happens.
- You pay a reservation fee.
- You pay the down payment or equity ( e.g. 20% of the selling price) either in one spot payment or in series of installments of up to one year or so depending on your arrangement with the seller. Note: the reservation fee could be part of the down payment also. The down payment goes to the developer’s account.
- You apply for a housing loan (e.g., 80% of the selling price) from a third-party lending institution like the Pag-IBIG Fund or a Bank.
- Your Loan is approved. Well, ideally that should be the case.
- The Lender (Pag-IBIG or Bank) takes your Title, which serves as collateral for the loan, and sends the money (or proceeds of the loan) to the developer or the seller.
- And you live happily ever after… in the house. That is, you take possession of the property and at the same time, you amortize on your loan.
( See also : How To Apply For Pag-IBIG Housing Loan)
What Is An In-House Financing?
It is a Home Financing Program offered by the real estate dealer (usually the developer) to their buyers who want to buy a house in a series of instalment payments without resorting to third-party financial institutions.
Ever noticed that we mentioned the third-party lending institution in Step #3 above? With In-House Financing, there is no more third-party involved. In other words, the transaction is just between you and the developer … no one else.
Question: Is In-House Financing good for you as a real estate buyer?
Answer: Ideally, it should make things less complicated on your part – and the seller’s side, too. But, in reality, the answer could be yes and no. We cite below the pros and cons of using the In-House Financing Scheme.
The Advantages of In-House Financing
- It’s quite simple and straight forward since you will be dealing only with one company.
- The document requirements may be minimal. Some will not even bother you with too much document details on your financial capabilities.
- This may be the only option for people who for some reasons can’t get a loan from the bank or other financial institution.
The Disadvantages of In-House Financing
- The interest rate is way up higher than what the market offers, sometimes even double market figure.
- The down payment could be bigger than would normally be required if you use bank or pag-IBIG Financing.
- Only Short-Term Financing. The developer is wise enough to minimize the risk of having you as a client.
- May be available only on property purchase with house that is still to be constructed. Some developers would not use In-House Financing on a house that is already finished and/or ready-to-occupy
Pag-IBIG Financing Insider’s Tip: The simplicity of using the In-House Financing Scheme comes with a steep price tag. The only reason you should take it is in when you are sure you will be denied a housing loan from a lending company. And, ironic as it may seem, real estate sellers would rather want that you take on a mortgage loan from a bank or Pag-IBIG than avail of the In-House Financing.
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“In-House Home Financing: A Good Alternative to Pag-IBIG Housing Loan?” is written by Carlos Velasco.
Good Afternoon! Ask ko lang po kasi ang alam ko 2-3 weeks lang po ang pag process ng papel sa pag ibig. bakit po yung sa amin sobrang tagal na ilang months na po kami naghihintay tuwing tatawag ako sa Filinvest ang sinasabi wala pa raw kayo pino forward sa kanila regarding sa aming application. Actually po 2 years na kami naghihintay tpos nung april nagpa update ng requirements. baka po pwede paki check kung ano na resulta kasi wala nman ako makita option pra makapag inquire kami online dko rin nman alam kung san pwedeng pumunta or tumawag pra malaman kung may possibility ba na maka loan kami ng bahay. Consessa Sagun ang name ng nagloloan sister ko po yun, Sunrise po ang name ng subdivision tpos po Filinvest ang gumawa. thanks so much po sana matulungangan nyo kami kasi yung tita ko 3mo’s lng naghintay ngayon lilipat na sila.
please me list of house for sale in melody plains subd. in san jose del monte bulacan. thanks
Helo po,gud evng! San po aq makapgmember d2 sa oman.
Sir / Madam,
Can you send me a list of foreclose house and lot in Butuan City, Agusan del Norte for me to apply for housing loan, I am an OFW and i have no time to look for some house and lot available in our area.
Thank you hope you can help me.
HI PO GUSTO KO PO SANANG MAGPA MEMBER, PAANO PO ANG PROCESSING NITO PO..THNKS
HELLO,po sa pag-ibig fund.gusto ko po sanang maging member ng pag-ibi fund.
i want to be a member of pag ibig fund trough online since im here in dubai uae,,help plz,tnx,,
hello…ask lng po kung ano yung mga requirements na kailanganin kung mag loan ako ng bahay….anyway,isa akong overseas seaman for about five years in service at onboard pa ako ngayon….thanks!!!
hello,nasa abroad pa ako nag tatrabaho,may nakita poh akong bahay binebenta, nasa 800th. wala pong problema sa lupa at bahay. pwede ko poh bang i loan yun sa pag ibig?kung pwede, mag kano ang ma ibayad ko lahat with in 10 years to pay? kung hindi naman pwedeng i loan, baket?…salamt poh
do u have vacant place her in las pinas city?or near las pinas city?pls send me a msg,
gusto ko po malaman if my available poh dto n malapit sa las pinas na housing loan poh…my alam poh ako sa cavite n part binibenta poh xa ask ko poh kung kukunin ko poh un pede po ba un n ang pag ibig ang mag babayad nun?tapos hulugan ko poh sa housing loan un?
Hi Admin, 1year na po akong member ng Pagibig…gusto ko po kasing mag loan for purchase of house and lot..gusto ko po sanang bilhin ang bahay at lupa ng father ko na nakasanla ngayon sa bank..2M po ang price ng bahay at lupa ..nabasa ko po sa website ng pagibig dapat 900-1000 ang contribution para maka avail ng 2M na loan..nakapagbayad na po ako ng 1 year sa contibution ko ang kaso 200 lang po every month…balak ko po mag aply na ng loan pag uwi ko ng pinas galing japan sa november..ano po ba ang dapat kong gawin para ma avail ko ang 2M loan this end of year? or pwede na po ba akong mag loan for purchase of house and lot this coming november 2012?
@helen:
Please be informed that you need to be a member for at least 24 months before you can get a loan from the Pag-IBIG Fund. And as I read your message, I don’t think this will be an easy process.
@Analyn:
Please check that one at the nearest branch or better yet, consult a broker or agent to help you find a property.
@Abs:
Well, it depends on many factors.
@endel:
Here are the requirements:
https://www.pagibigfinancing.com/articles/2010/pag-ibig-housing-loan-requirements/
Good day! ask ko lng po if possible to pay the 24 months contribution in FULL then APPLY for short term/personal loan immediately? Thank you.
good day,
gusto ko pong mag loan sa pag-big
I am a government employee. How much is the required net pay to avail pag ibig housing loan?
@jeanne:
Please check the link below for the income requirements:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
@Shia:
YOu can do that but remember that in a short-term loan, the amount of loan depends on your total contributions.
I am currently on an “In-house” financing scheme from a developer, can I still apply for a Pag-IBIG loan? What will be the loan amount? The original sale amount or the resulting amount from the In-house scheme?
@alan:
You can apply anytime as long as you are a qualified member. As to the amount, it depends on the result of the appraisal and your loan amount eligibility.
Im in davao city ask me lang po sana kung may mga list po ba kau location for housing loan.gusto me po kc talaga mg-apply for housing loan ng pag-ibig.yun mga assumed house po pala ndi pwde iappaly for housing loan in pag-ibig.kung meron po sana,yun nasa 4,000 po yun monthly.
@Shiela:
Please check from the local real estate brokers or agents there in your area or you can go directly to the Pag-IBIG branch and inquire for their accredited projects.
hello po magtatanung lang po, kasi first time namin kumuha ng house seaman po ang asawa ko at natapos napo namin ang 3months downpayment april,may,june..sumunod po nakaricv ako from dveloper ng NOTICE OF APROVAL naka date po ito ng october 21,2011…pero niricv ko po i2 ng dec 05,2011..sumunod po.hiningian ako ng 12pcs. cheke ng developer at ipapadala nadw i2 sa pag ibig blank check po i2 pirma ko lang nakalagay,at sinasabi na ang start ng amortisation namin at kelangan ndw mahulugan etong feb 18…kasi na take out dw po namin ung bahay ng january 18,,pero wala pa po akong nariricv na take out paper..may ma ibibigay dw po ang developer pero copy lng daw po nila un?ganun po ba un?at pano po ako makakasiguro na ung cheke e nasa pag ibig na at huhulugan ko napo sabangko pano ko po malalaman na naricv na nila issuehan po ba ako ng recbo ng pag ibig?pls help and guide us…thanks po godbless…
Hi Admin. I already contributed 24 months or more but stopped the contribution since 2008 (I am an OFW and just learned about the new rule on housing loan), am I still illegible on housing loan? Do I need to pay a lump sum payment from the period I stopped in order to avail a loan? Please advice.
I bought a lot in Pasig City worth P900k, and want to avail loan for house construction. What will happen if i failed to pay in 3 months, will my lot be included in the foreclosure?
how much and how many contributions needed to qualify for a housing loan (house and lot)? is it necessary that the contribution should be consecutive or ok lang kahit accumulated?
gud day to Admin,balak q pong mgaplay ng housing loan sa pagibig.Ang tanung q po ay ganito,pde po bng matrnsfer un byadan after 2 years sa father q na pensyunado earning 30plus a month?
Marilyn mondonedo po ng cebu city.ask ko lang po kung kailan po ba makatransfer sa bahay kung sakaling maaprove yung housing loan ko?myembro po ako ng Pag ibig Fund.tanx po.
Hello po, IM EDISON from sta mesa, at dito po ako nagtatrabaho sa manila for 15 years, gusto ko sanang i LOAN or ISANLA Sa PAGIBIG ung LUPA ko sa ilocos norte with area of 875 sq. mts. Pag ma i LOAN KO na, may ibinebenta na Lupa dito rin sa Sta mesa yon na rin po ang pagagamitin k0 pambayad sa lupa. okey ba itong paraan po na pag loan? THANKS and more POWER. WAITING FOR YOUR REPLY.
@Edison:
Quick answer: Pag-IBIG doesn’t have that kind of loan that you described. Why not just sell it instead?
@Marilyn:
It depends on your arrangement with developer or the seller of the unit.
@jeffrey:
He has to undergo some qualification assessments first.
Hello admin gud pm, Im dan alvarez from marikina city 12 yrs na po ako nag wowork as HRD Manager dito sa manila at 5 yrs pa lang akong member ng PAG IBIG with a monthly salary of 20, 000 pesos. di pa included dito ang 13th month pay, bonuses, allowance. meron akong gustong bilhin na lote dito sa amin marikina 90 sq, ang amount po ito ay aabot ng 750, 000 thousand. puede ba akong mag LOAN sa PAG IBIG ng ganyang amount ( 750,000) para lang mabili ko itong lote. THANKS HINTAYIN KO PO ANG IYONG REPLY.
HELLO PO ADMIN, SI EDISON MAGANA PA RIN PO ITO, 4 YRS PA LANG AKO NA MEMBER NG PAG IBIG WORKING AS AUTOCAD OPERATOR WITH A MONTHLY SALARY OF 18,000, WITH 13TH MONTH , ALLOWANCE, AND ALSO BONUS.ITONG LOTE PO AY 100 SQ. MTS,ANG LOCATION PO NIYA AY NSA AURORA BLVD. NEAR UERM, BINEBENTA PO NG MAY ARI NG 1 MILLION CLEAN TITLE PO ITO.MAGKANO PO ANG KAYA KONG I LOAN SA PAG IBIG? MARAMING SLAMAT PO ULI.
@Dan:
The maximum loan amount is 3M, but it will most likely depend on your income as well. Please read this for a better explanation:
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
Also, you may have to shell out for the down payment so you may not be able to get the whole 750k loan.
@Edison:
Please refer to the answer above on @Dan’s question. You have a similar case with him.
madam can please send me list of foreclosure house and lot or lot only at melody plains subd. san jose del monte bulacan. thank you very much