Guide on Pag-IBIG Housing Loan Equity for House Construction of Qualified Members
PAG-IBIG HOUSING LOAN EQUITY -You can check here the important details about the equity for the house construction.
In the Philippines, one of the most popular Housing Loan offer is the Pag-IBIG Housing Loan. It is exclusive for the members of the Pag-IBIG Fund, one of the biggest state entities in the country which has millions of members.
The Housing Loan offer of the Fund is open for several purposes. A qualified member may apply for the loan offer for the financing of any of the following:
- purchase of a fully developed residential lot or adjoining residential lots not exceeding 1,000 square meters
- purchase of a residential house and lot, townhouse or condominium unit
- house construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrowe
- home renovation
- refinancing of an existing housing loan
The Housing Loan offer is open for members who have posted at least twenty-four (24) monthly membership savings and not more than 65 years old at the time of the loan application.
Furthermore, the member-borrower must also have no outstanding Pag-IBIG short-term loan in arrears at the time of the loan application. The member-borrower must have no foreclosed, cancelled, bought back due to default, or subjected to dacion en pago loans.
The Pag-IBIG Housing Loan loanable amounts may vary depending on certain factors like the salary of the borrower, the actual need, and the project’s total cost. In the case of applying for the loan for the financing of a house construction, there is a Pag-IBIG Housing Loan equity that the member-borrower must be prepared of.
What is the Pag-IBIG Housing Loan equity? It is like the share of the member-borrower in the completion of the project. Before the Fund will start releasing the loan proceeds which will be done in a staggered manner, the member-borrower must first comply with the equity.
The Fund is the one that will set the Pag-IBIG Housing Loan equity rate. For example, for a loan of Php 1 million, the equity was set by the Fund is Php 300,000. Thus, the member-borrower must begin the construction of the project and spend Php 300,000 for the initial construction.
After the equity was reached, the member-borrower may request the Fund for an inspection. In case the equity passed the assessment of the Fund’s assessor, the releasing of the first check will proceed.
To apply for the loan offer, there is a specific set of Pag-IBIG House Construction Loan requirements that must be submitted in applying for the offer.
