LOAN - TO - COLLATERAL RATIO

Some subdivisions or property developers offer a
buy - back provision for housing unit sold through
various financing schemes .

The provision serves as guarantee that the property
developer will reacquire housing units foreclosed
by financing institutions due to non - payment of
borrowers .

Pag - ibig covers housing units costing up to P300,000
even without buy-back guarantee and over P300,000
up to P750,000 pesos with buy-back guarantee .
The fund will cover 90% of the cost of housing units
worth over P300,000 up to P750,000 pesos without
a buy-back guarantee .

Housing units that cost over P750,000 up to 1 million
pesos are only 95% covered if with a buy-back guarantee
and 85% covered if without

Pag - ibig covers 90% of the cost of housing units worth
1 million pesos to 2 million pesos if with buy - back
guarantee and 75% of the cost if without .

ACTUAL NEED

This presents the amount of the housing units as
stipulated in the contract to sell , licensed to sell ,
amount of loan applied for , or cost estimates .

CAPACITY TO PAY

Pag -ibig fund takes into consideration the members
capability to pay the monthly amortization of his or her
housing loan . It requires that the monthly amortization
of the member on his or her loans must not be more
than forty percent ( 40 % ) of his or her Net Disposable
Income ( NDI ) . Hence , if a member take home pay
is P20,000 monthly , his or her monthly amortization
must not exceed P8,000 pesos .

Other uses of housing loan , aside from the mentioned
above are :

* Home improvement and refinancing of existing loan
in institution acceptable to the fund .


Aside from meeting all the requirements , Pag - ibig
also requires that the borrowers must not more than
65 years old at the time of loan application and not
more than 70 years old at the date of loan maturity ,

Must not have any outstanding loan ( housing ) either
as a borrower or co-borrower , no arrears in their
multi-purpose loan repayment .

Pag - ibig charges P3,000 pesos for housing loan
processing fee . The P1,000 pesos is paid at the time
of the processing while the remaining P2,000 is taken
from the loan process upon its released .

The monthly amortization of the housing loan may
be paid in 2 ways through :
* Salary deduction
* issuing of 12 post dated checks to cover 1 year of payment.

Payment of the monthly amortization starts a month
after the full released of the loan

By fully developed lot , Pag- ibig covers kinds that is free
from squatters , with access to electricity and water ,
with provision from drainage and road right- of - way
and existing land monument .

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