Step by Step Guide on how to Avail Pag-ibig Home Loan

The original goal of the Home Development Mutual Fund (HDMF) or popularly known as Pag-IBIG Fund was to answer the need for a “national savings program and an affordable shelter financing for Filipino workers.”

It was in December 1980 that it became independent from the National Home Mortgage Finance Corporation and the Fund’s rule-making power become solely focused on the latter.

Since its inception in 1978, it has developed and constructed low cost housing units in Metro Manila, highly urbanized cities, and socialized housing projects in the provinces.

Read: Comprehensive Guide to Bank Housing Loan in the Philippines


Pag-IBIG Fund is open to Filipinos who are covered by the Social Security System (SSS), but is not limited to the following:

  • A private employee who is either permanent, provisional or temporary. He/she should not be more than 60 years old.
  • A household helper earning more than Php 1000 a month.
  • Filipino seafarers
  • A self-employed Filipino who earns at least Php 1000 a month and who is not over 60 years old.

  • An expatriate who is not older than 60 years old and is covered by SSS. If he is not covered, Pag-IBIG Fund will.
  • All employees covered by the Government Service Insurance System (GSIS)
  • Members of the Armed Forces of the Philippines, Bureau of Fire Protection, Bureau of Jail Management and Penology, and Philippine National Police
  • Filipinos employed by foreign-based employers
  • Overseas Filipino Workers

Those who do not qualify under these criteria can still become a voluntary member if he/she is at least 18 years old, but not more than 60. However, you have to comply with a separate set of rules and regulations that emphasize on financial capacity and eligibility requirements for loans and benefits.


Members who satisfy the followingquirements are eligible to apply for house financing:

  • Not older than 65 years old at the date of application and not more than 70 years old at loan maturity
  • Has no outstanding Pag-IBIG housing loan
  • Has no unresolved multi-purpose loan in arrears

  • Must have remitted 24 monthly contributions under the Pag-IBIG I Membership Program. New members who want to avail the program must pay the 24 monthly membership contributions in lump sum, conforming to the loan amount applied for.
  • Have no Pag-IBIG housing loan that’s foreclosed, cancelled, bought back due to default or subjected to Dacion en Pago (giving back of the property mortgaged to the lender in exchange for the discharge of a mortgaged debt)
  • Has passed satisfactory background/credit and employment/business checks of Pag-IBIG Fund

How much can you borrow?

According to Pag-IBIG Fund Circular no. 310, a qualified member is allowed to borrow up to six million pesos (Php 6,000,000). The amount will be based on the lowest of the following: the member’s actual need, his loan entitlement based on capacity to pay, and the loan appraisal value ratio.

Loan Entitlement Based on Capacity to Pay

This is based on the following documents:

For locally employed

  •  Latest Income Tax Return for the year immediately preceding the date of loan application. For employees who are purely receiving compensation, you might submit the BIR Form 2316 filed by their employers to the BIR.
  • Notarized Certificate of Employment and Compensation
  • For government employees, a notarized Certificate of Employment and Compensation and the latest 1 month payslip
  • Other documents that Pag-IBIG may require

For self-employed

  • Income Tax Return and Audited Financial Statements and Official Receipt of tax payment from the bank, DTI, registration, and Mayor’s Permit.

For OFWs

  • Employment Contract, translated if necessary
  • Certificate of Income certified by the employer
  • Proofs of income that are certified true copy by the assigned Pag-IBIG Information Officer

Loan to Appraisal Value Ration

The ratio of the loan amount to the appraisal value of the collateral shall be based on the following:

Loan Amount:

Loan Amount Loan-to-Appraisal Value Ratio
Up to P1,250,000 90%
Over P1,250,000 80%

This might still be adjusted based on the result of the Borrower’s Evaluation System (BES). As for the interest rate, it will be based on Pag-IBIG’s pricing framework. The interest rate will be re-calculated periodically depending on your chose re-pricing period: after 3, 5, or 15 years.

What can you do with the loan?

A Pag-IBIG housing loan is not limited to purchasing a house. You can also use it to finance the following:

  • Purchase of Lot-Only Property – purchase of a fully developed residential lot or adjoining lots not exceeding 1,000 square meters
  • Purchase of a Condominium Unit – purchase of a low-cost condominium inclusive of parking space
  • Refinancing an Existing Mortgage – this applies to a house already mortgaged with the Pag-IBIG Fund or an acceptable institution to the Fund
  • Home improvement, renovation, and construction loan – permanent modification to an existing house which will increase its material value
  • Combination of loan purposes—applies to the 4 categories mentioned above

6 Steps to Avail a Pag-IBIG Housing Loan

1. Secure a checklist of requirements and Housing Loan Application (HLA) form either online through (click “Forms”) or at the 2nd Floor JELP Building Solutions, Shaw Blvd, Mandaluyong City. If you’re in the province, go to your nearest provincial branch office.

Required documents are as follows:

  • Recent ID photo of borrower and co-borrower (if applicable)
  • Proof of income
  • 1 valid ID of principal borrower and spouse, co-borrower and spouse
  • Certified true copy of Transfer Certificate of Title
  • For condominiums, a certified true copy of Transfer Certificate of Title of the land and

Condominium Certificate of Title

  • Updated tax declaration and real estate tax receipt
  • Contract to Sell or similar agreement between buyer and seller
  • Vicinity map of the property
  • For borrowers over 60 years old, a Health Statement Form and Full Medical Examination

2. Submit HLA with complete requirements. Pay a non-refundable and partial processing fee of Php 1000 at the following locations:
For NCR properties:

  • JELP Business Solutions Building– #409 Shaw Boulevard, Mandaluyong City (near Dumlao Gym)
  • Imus Branch—Olma Building, Emilio Aguinaldo Highway, Imus, Cavite
  • Kamias Branch– #795 Anchor Center EDSA, Quezon City (near GMA Kamuning Station)

For provincial properties: At the nearest Pag-IBIG office nearest the subject property

Processing period is 20 working days including Credit Investigation and Property Valuation. You may also file via, click “E-Services.”

3. Receive your Notice of Approval or Letter of Guarantee

NOA will be released only to the borrower or to the Attorney-in-Fact for OFW borrowers, provided with SPA. Upon receipt of NOA, sign the loan documents and submit within 90 days.

4. Accomplish NOA requirements for cheque release

You have 90 calendar days to accomplish the following NOA requirements:

If you are going to purchase House and Lot/Condominium Unit/Lot

  • Give Letter of Guarantee to the Seller
  • Proceed to BIR for payment of Capital Gains Tax and Documentary Stamp Tax. The BIR will issue Certificate Authorizing Registration
  • Proceed to the Local Government Unit for payment of Transfer Tax
  • Proceed to the Registry of Deeds for the transfer of the title and annotation of mortgage
  • Submit complete requirements to Pag-IBIG Fund

If you are going to purchase House and Lot Mortgaged with Pag-IBIG Fund

  • Proceed to the BIR for payment of Capital Gains Tax and Documentary Stamp Tax. The BIR will issue Certificate Authorizing Registration
  • Proceed to the LGU for payment of Transfer Tax
  • Go to the Pag-IBIG office to schedule trip to the Registry of Deeds for transfer of title and annotation of mortgage
  • Proceed to the LGU for transfer of Tax Declaration
  • Submit complete requirements to Pag-IBIG Fund

If you are going to use the loan for construction of house or house improvement

  • Proceed to the BIR for payment of Documentary Stamp Tax
  • Proceed to the Registry of Deeds for annotation of mortgage
  • Submit complete requirements to Pag-IBIG Fund

If you are going to use the loan for refinancing

  • Proceed to the bank/financing institution to give the LOG and Loan and Mortgage Agreement
  • Proceed to the Registry of Deed for annotation of mortgage
  • Submit complete Requirements to Pag-IBIG Fund

5. Get loan proceeds at the Pag-IBIG Fund

If you’re the payee, bring two (2) valid IDs. Borrower should bring 12 Post Dated Checks if payment is not thru salary deduction. Note: Payee is either the borrower, seller, or a third party to which the loan proceed is assigned to be released. The proceeds will be released to the person/institution assigned by the borrower/buyer.

6. Start of monthly amortization payments

Commences one month from DV/Check date. For house improvement/construction, one month from DV Check Date of the final loan release.

The loan release shall be staggered based on the progress of the construction.


For the list of Pag-IBIG offices in the Philippines, you can check the following links: – For NCR – For Luzon – For Visayas – For Mindanao – For Overseas

Welcome to your new home!

And when you’re done with the paper works and filing it with the proper departments, you finally have a place you can call HOME. Congratulations, you are now a certified homeowner.

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