Question 1

What is the Pag-IBIG housing loan?

Accepted Answer

Pag-IBIG Fund offers affordable housing loans for members with at least 24 monthly contributions. Benefits include: lower interest rates (currently 5.375-10.375% p.a.), up to ₱6 million loan amount, 30-year maximum term, and no required income. It's one of the most affordable financing options in the Philippines.

Question 2

What is the difference between bank loan and Pag-IBIG?

Accepted Answer

Bank loans: Higher interest (6-12% p.a.), faster processing (2-4 weeks), higher loan amounts possible, stricter income requirements. Pag-IBIG: Lower interest (5.375-10.375%), slower processing (1-3 months), max ₱6M loan, requires 24 months membership. Many buyers use Pag-IBIG for the lower rate despite longer processing.

Question 3

How much can I borrow for a home loan?

Accepted Answer

Banks typically allow monthly amortization up to 30-40% of gross monthly income. Example: If you earn ₱100,000/month, you can afford ₱30,000-40,000 monthly payment. For a 20-year loan at 7% interest, that's roughly ₱3.5-4.6 million loan amount. Use our calculator for exact figures.

Question 4

What documents are needed for home loan application?

Accepted Answer

Common requirements: Filled-out application form, Valid IDs (2+), TIN, Proof of income (COE, ITR, payslips for employed; business permits, financials for self-employed), Bank statements (3-6 months), Proof of billing, Marriage certificate (if applicable), and property documents (title, tax declaration, Contract to Sell).

Question 5

What is in-house financing?

Accepted Answer

In-house financing is offered directly by developers, not banks. Benefits: Easier approval, no income documents sometimes needed, flexible terms. Drawbacks: Higher interest rates (12-18% p.a.), shorter terms (5-10 years), and you don't get the title until fully paid. Best for those who can't qualify for bank loans.

Question 6

Can OFWs get home loans in the Philippines?

Accepted Answer

Yes! OFWs can avail of Pag-IBIG and bank loans. Requirements include: OEC (Overseas Employment Certificate), Employment Contract, Proof of remittance, Valid passport, and a local co-borrower or SPA holder. Many banks have special OFW housing loan programs with competitive rates.

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Home Loans & Financing FAQ

1What is the Pag-IBIG housing loan?

2What is the difference between bank loan and Pag-IBIG?

3How much can I borrow for a home loan?

4What documents are needed for home loan application?

5What is in-house financing?

6Can OFWs get home loans in the Philippines?

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