Here’s another letter that we’d like to share to every reader of this website. It’s about the use of the Income Tax Return as a requirement in applying for a Housing Loan. The letter is shown below.
“I want to become a member of [the] Pag-IBIG Fun. My question is, is it possible na maging voluntary member ako kahit wala akong ma-present na ITR [Income Tax Return]? Hindi kasi ganun kalaki ang kinikita ko eh.
“Hope you respond to this.
“Thank you so much.”
With reference to the letter presented above, we’ll limit the discussion on this article on the following points:
- Membership To The Pag-IBIG Fund
- Income Tax Return and Other Requirements
- Income Requirement
Locally employed individuals, freelancers, practicing professional, and operators of a small business in the Philippines who are interested about the Housing Loan Program of the Pag-IBIG Fund should pay attention to this article as we elaborate on the details in the succeeding paragraphs.
Mandatory Coverage
By now, you should be aware already that under the Home Development Mutual Fund Law of 2009, the following are mandated to become members of the Pag-IBIG Fund:
- Locally employed Filipinos who are compulsorily covered by the SSS and the GSIS
- Self-employed Filipinos with an income of at least P 1,000 / month
- Overseas Filipino Workers
- Filipino Seafarers
- Uniformed members of the AFP, BFP, BJMP and PNP
- Household helper earning at least P 1,000 per month
For these groups of people, there is no other choice but to become members of the Pag-IBIG Fund.
Voluntary Membership To The Pag-IBIG Fund
However, for the rest who also wanted to join as members, a Voluntary Membership to the Pag-IBIG Fund is available. If you should want to take this opportunity and become a voluntary member, take note of the following.
- You are self-contributing – That is, there is no employer counter-part to your membership contribution unlike the case for the locally employed members.
- Salary Deduction is NOT an Option – This should be obvious from #1 above.
- You may or may not be granted a housing loan. It’s important that you can demonstrate a proof that you are earning. More about this later.
(See also: Benefits of Becoming A Member of the Pag-IBIG Fund)
Income Tax Return and Other Document Requirements
Here’s a recap of the basic document requirements for the Housing Loan Application:
- Housing Loan Application
- Approved membership Status Verification Slip
- Transfer Certificate Title / Condominium Certificate Title – Must be a certified true copy
- Tax Declaration – Photocopy of the updated one
- Location plan and vicinity map
In addition to the above documents, the following are also considered as basic requirements…
Housing Loan Document Requirements For The Self-employed or Business Owner
Now, if you happen to be a practicing professional (dentist, architect, accountant, etc), an owner / operator of a small business (more specifically a business structured as a single-proprietorship), or self-employed, the Pag-IBIG Fund says you need the following when applying for a Home Loan Program:
- 1 year Income Tax Return (1 yr)
- Audited Financial Statement
- Official Receipt of Tax payment from the Bank, DTI Registration, Mayor’s Permit
As such, there’s no escaping the ITR for self-employed and voluntary members.
Housing Loan Document Requirements For The Employees?
For the locally employed, ANY of the following must be presented:
- Notarized Certificate of Employment and Compensation (Pag-IBIG Format)
- Notarized Certificate of Employment and Compensation (Employer’s Format) and 1 month latest Payslip/Payroll (certified by the employer)
- Income Tax Return / Certificate of Tax Withheld (W2-Form 2316) and 1 month latest Payslip/Payroll (certified by the employer)
In other words, for the locally employed, the ITR is only optional. In lieu of that, you may use a Certificate of Employment and Compensation from your employer.
For a complete list of requirements, please visit this article.
Income Requirements
The letter sender above must a little bit worried about getting loan when she declared, “Hindi kasi ganun kalaki ang kinikita ko eh.”
Having a large income is certainly advantageous in almost any business dealings when you apply for a real estate loan. That is, a bigger income gives you a better chance of getting a bigger loan amount also; and therefore, a bigger house.
But take note, Pag-IBIG Fund was created to make it easier for the low- and mid-income Filipino families to own a decent home by gaining access to a housing loan program that offers a lower rate and longer payment terms compared to the other financing institutions like banks.
(See also: Income and Loan Amount Entitlement)
When buying a real property and financing it using the Pag-IBIG Home Loan program, the following tips should be helpful to you:
- Determine Your Budget for the House – As much as possible, it should not exceed 30% of your combined household income.
- Loan Term – How much is it going to cost you on a month to month basis if you will be paying the loan in 15 years, 20 years or 30 years?
- Consider Getting a Co-Borrower – This must be avoided as much as possible. But if you really need that property, this is an option to take. (Follow this article for more options.)
“Loaning With No Income Tax Return” is written by Carlos Velasco.
good day! ask ko lng po kung pwede na po akong mag loan, please verify my contribution
@roderick:
Please verify your status or contributions at the Pag IBIG Office.
pwede po b mgadvance payment contribution pra ung 24 mos.macomplete?
what are the requirements if we’re going to avail cash loans?
paano po ba maging self employed?at saan po ba ang branches ninyo sa cavite?at ano po ba ang pagkakaiba ng voluntary at self employed?
I’ve been an active member of pag ibig for more than 24 months, pero po now i decided to resigned at my work, pwede ko po ba ituloy ung contribution ko as self employed? and one more thing until now wala pa po akong ITR, i have read na requirement un sa self employed contribution.
ako po ay isang retired military personnel gusto po akong mag apply ng housing loan ano po bang gawin ko wala na akong monthly salary ngayon
@florante:
Sir, it is really important that you can show them some proof of income. Otherwise, they will never grant you a loan.
@zhel:
You can still continue your contributions, but always bear in mind that if you are after the home loan program, you should show them a documented proof of income either from business, employment or practising your profession.
gusto ko pong mag loan panu po im here po in qatar.
ask ko po sana if paano po ba yung bibili ako ng pinapasa na bahay through pag-ibig tapos hindi po ako pag-ibig member pano po ba tamang process …thanks
local contribution ko po not sure f 24 months na un,f ever 24 na,maari ba aq mgloan na as pop member since and2 na aq sa riyadh since di pa nman ako naghuhulog d2 sa riyadh?f ever man po,less than 24 months pa xa,example 20 months,maari ko ba bayaran ung 4 months ng buo pra makapag-apply aq agad ng housing loan?..sana mabgyan nyu ng pansin ang aking katanungan.salamat at godbless you all.
one thing mam/sir,ung kcng balak qng patayuhan ng bahay wala pa papel,basta hinati nalang po ng nanay q isa buhay pa kc xa kya wala pa kami sa papel,anu po gagawin q since requirements nyu tct?at wala ap rin po aq itr,anu po gagawin q ?wala po ba ibang option liban sa itr.or consederasyon in the absence of itr?at gus2 q lng po confirm kung makapgloan po aq kht d2 aq sa riyadh?tnx and more power!
gud day po.am an ofw in ksa.nd willing to apply for a loan.ask ko lng po kung ano ang mga requirements at in what type of loan will i apply since yung lot na plano naming pagtitirikan ng bahay eh pag aari po ng lola ko.Secondly, pwede po bang dito sa ksa ako magfile ng application or,if not, pwd po ba na ang wife ko sa pinas ang mag file in my behalf?Lastly, can i apply ryt away after paying 24 monthly contributions, since nbasa ko sa isang article na up to july 2010 lng daw yun pwd?pls advice po and kindly send your comment to my email.thank you and God bless po.
hi po gud pm ask ko lang po kung pwede po ba magloan sa pag ibig ng housing loan active member po ako pero ang problem ko po d po sya real estate binebenta lang po sya ng kapitbahay namin under po sya ng nha…pwede ko po ba iapply yung ng housing loan???saka kung anu ano po ang mga requirements???thanks…
gud eve. admin, ask ko lang kung ilang linggo o buwan malalaman kung approve o denied ang housing loan? thanks
@erick:
Normally, you will be notified via phone call if your loan has been approved or not.
@Berl:
If that’s from NHA, I think they also have a home financing program. Please check it out with them.
Here are the document requirements:
https://www.pagibigfinancing.com/articles/2010/pag-ibig-housing-loan-requirements/
@harvey:
First, if your lola is willing to sell to you, then you may probably use a Pag-IBIG Housing LOan to finance your purchase. It will still
be assessed by the loan staff. You should apply at the Pag-IBIG branch that has jurisdiction of the property. As to the 24 months that you mentioned,
it depends on the branch, but generally, that’s not allowed.
@leonard:
First, ITR is not a requirement if you are an OFW. Second, there has to be a land title.
I think you should take care of the Title problem first before anything else.
@jenny:
Please remember that Pag-IBIG Housing loan is only avail to qualified members.
@wilma:
Please do that once you are here in the Philippines.
hi question lang po, nakakuha po kase kame ng lot pero nilalakad palang po xa sa NHA , okay lang po ba na i-loan ko un tru pag-ibig , I mean ang magfifinance is pag-ibig? from purchase of lot hanggang construction?,
i have only CTS , Plan vicinity map,ok narin po ung building plans, pati mga permit na kkailanganin ,
puede po kaya un? help naman po.. baka po kase hndi namin kayanin ung pagpapatau 😀 maraming salamat po…
thanks Admin. isa pa tanong may mpl loan me khit ba may mpl loan ma ka pag housing loan ba monthly nmn payment ko sa mpl loan… thanksss again
@erick:
You will be asked to first settle your MPL Loan balance before you can take out a home loan.
@laleyn:
Did you inquire also from the NHA? They too have a housing loan program. Please consider it first.
admin, bago lang kc ang mpl laons ko sa pag ibig mga 3 months palng pero updated nmn ang payments ng company namin khit updated ang payments d parin maka housing loan ganun ba yun? thankssss again
ano po ba ang requirement papers na kaylangan para maka pag loan ako gusto ko po kc sanang bilin ang bahay ng kapitbahay namin,sa darating na dec.2012 kc po uuwi ako ng pinas OFW po kc ako.sana po malaman ko agad,salamat po.
good day PAG IBIG…
Sa ngaun po meron ako binabayaran equity(landcaster developer) nasa 4th month na po…ang plan ko po ipasok sa PAG IBIG ang housing loan ko kasi thru banking finance sila eh…masyado mataas ang monthly amortation at maiksi panahon lang babayaran kapag thru bank…..ano 2x po proseso para maipasok ko ang housing loan ko thru pag ibig?
Maraming salamat po
Elaine
@Elaine:
You can apply as early as now. Here’s the housing loan process:
https://www.pagibigfinancing.com/articles/2010/the-pag-ibig-housing-loan-process/
@jenny:
Check the document requirements here:
https://www.pagibigfinancing.com/articles/2010/pag-ibig-housing-loan-requirements/
@erick:
I think you can, but you have to fully paid your MPL first.
good day po pag ibig..pwede po ba akong maging member ng pag ibig kahit dito ko nakatira sa japan?at pwede rin po bang advance yung 24 months na bayaran?pag nabayaran na po yun pwede na po ba akong mag house loan?magkano po ba ang dapat bayaran at ano po ang kailangan documents para maging member ako ng pag ibig?
@janet:
You can be a member even if you are based there. The best thing to do it is to have a representative apply on your behalf. As to when you can apply for a housing loan, the minimum is 24 months, but please don’t rush it. There are other more important factors they consider when you apply.
good morning!
gaano po katagal ang proseso ng housing loan?
I’ve been an active member for about 5years.
@Ana:
It depends on a lot of factors. If you are buying from an accredited developer, it should take from 2 weeks to 2 months for your loan to be granted.
good day!
inquire ko lang po kasi gusto ko kumuha ng bahay from a developer thru pagibig housing loan.active member po ako pero contractual pa lang ako sa work.qualified po ba akong ma approve yung loan ko?
@Rizzah:
There are lot of requirements that you need to comply, but the most important of these has to do with your income/salary. Please refer to the link below.
https://www.pagibigfinancing.com/articles/2011/how-your-income-and-contributions-affect-your-housing-loan-entitlement/
I am a retired Pagibig member and am now a semi-retired real estate broker (licensed by PRC). I wish to congratulate you for your highly informative website. May I have permission to have my website provide a link to yours? Your educational articles will be useful to our kababayans who do not yet know how to avail of Pagibig housing loans. Thank you.
Hi Mr Pilar,
Yes, sure you can link to it. But please don’t copy it and put it on your website.
Thanks for dropping by. And best of lucks!
Good Day!
Sales agent po ako. ng real estate. wala po kaming Pag ibig kasi commission basis kami. paano po ako mkapag apply at anong mga requirements?
I’m 21 years old na po.
God Bless! ty