We’ve been asked by our Filipino readers to write about Pag IBIG Fund, as they are interested to apply for a loan with it to build their houses.

So, for the guidance of everybody who are planning to apply for a loan with Pag IBIG for their housing needs, we are writing this post.

In the Philippines, if you are a Pag IBIG Fund member, it is easy for you to secure a loan to purchase a lot and construct your house thereon. You can even transfer to a new house and lot, in a subdivision of your choice, through a loan from Pag IBIG, as long as the subdivision is accredited by it.

Who can borrow from Pag IBIG?  In its guidelines, Pag IBIG Fund provides a loan to members of good standing, defined as a member for at least 24 months or 2 years, and has remitted at least 24 monthly contributions.

What are the purposes of the loan that a member can avail of?  Pag IBIG provides loan for the following purposes:

1. Lot purchase

2.  House construction/House completion

3. Purchase of a Residential Unit

4. Refinancing of a Residential Unit

5. Home Improvement

6. Purchase of a Residential Unit with Home Improvement

7. Refinancing with Home Improvement and

8. Refinancing of a Lot account with House Construction.

What are the loan term with Pag IBIG, its charges and interest?  The loan term with Pag IBIG shall not be more than 30 years, and shall not exceed the difference between the present age and age seventy (70) of the principal borrower.

Pag IBIG charges a processing fee of Three Thousand Pesos, and the loan must be paid in equal monthly payments not exceeding 30 years.

A member can also avail of a second Pag IBIG Housing Loan, if he has already fully paid his first housing loan. Furthermore, he may avail of additional loans for house construction or improvement of a house construction on a lot purchased, or home improvement under the terms and conditions of the Good Payor Home Improvement Loan Program.