Pag-ibig in Filipino means love. It’s also the popular name of our country’s leading housing fund, Home Development Mutual Fund (HDMF). Pag-ibig has helped countless of Filipinos to have a shelter that they can truly own. You, a hardworking and very deserving Filipino, can have the opportunity to have a home for you and the whole family. To help you get started, here’s Persquare’s guide on anything and everything about the Pag-ibig fund.
What is Pag-ibig?
Every Filipino family deserves their own home. From this, the government created Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund. The Pag-ibig fund is the government issued housing fund in the Philippines. Its objective is to provide low-cost and socialized property, may it be for rent or for sale, to the Filipino people. The fund currently has 13.8 million members with a total assets of P 350 billion. Through monthly contribution, members can get a house loan up to P 6 million pesos.
What are the benefits of being a Pag-ibig member?
Aside from access to a house loan, Pag-ibig members can also enjoy other benefits. Here are some of them:
- The Pag-ibig Fund can give you money to finance renovation or improvement to the house that you already own, especially to those who are affected by calamities.
- If you already own a lot and have no idea where to get the money for construction, then heed the help of Pag-ibig. They can provide you financial help for the construction of your home.
- Pag-ibig has a feature where three qualified members (you, your siblings, or your other relatives) can have a single loan for the same property. You and your siblings can now build the house that you’ve been dream of – in a more flexible terms!
- Through the “Multi-purpose Loan” program, you can borrow money from the Pag-ibig fund to finance your dream business and other important things that you want to acquire.
- Not known to many, but Pag-ibig has a program called “Provident Savings.” Provident Savings is when you can withdraw your Pag-ibig contributions at its maturity date.
How to become a Pag-ibig member?
Becoming a Pag-ibig member is very simple. You can do all the registration process online. Just go to the Pag-ibig Fund Services and select the Register as New Member option. Simply fill up the form and pay for it in accredited payment locations. After that, simply wait for the text message from Pag-ibig that states your Pag-ibig number.
How are the eligibility requirements for a loan?
To qualify for a Pag-ibig loan you must satisfy the following requirements:
- You must be a Pag-ibig member
- You should be no more than 65 years old at the date of your application and that you shouldn’t exceed at 70 years old at the date of the loan’s maturity.
- You must able to pass Pag-ibig’s background check.
- You shouldn’t have any withstanding loan with Pag-ibig. Members who have loans that resulted to getting foreclosed or getting cancelled are not allowed to apply.
- You must have the legal capacity to acquire property.
Complete the following steps to acquiring a housing loan:
Step 1: Get checklist of requirements and other important forms at qualified branches or the Pag-ibig fund’s website.
Step 2: Submit your application and pay a processing fee worth P 1,000. Processing period can take up to 20 days.
Step 3: Get your Notice of Approval (NOA) and Letter of Guaranty (LOG). You can also now sign important loan documents.
Step 4: Make sure that you accomplish your NOA requirements. You have 90 days to fulfill this.
Step 5: Congrats! You can now get your load at the Pag-ibig fund!
Step 6: After getting your loan, you can now start paying your monthly amortization.
Visit the Pag-ibig Fund’s website for more questions about their processes and requirements. Or simply drop a line here at the Persquare blog, your real estate adviser.