Amended Guidelines Abot-Kamay Pabahay Program'

AMENDED GUIDELINES
‘ABOT-KAMAY PABAHAY PROGRAM’
CIRCULAR 247
LOAN PURPOSE
The Pag-IBIG housing loan may be used to finance

any of the following:
• Purchase of a fully developed lot within a

residential area not exceeding 1,000 sq.m.;
not less than 32 sq. m
• Purchase of a residential house and lot,

townhouse or condominium unit;
BORROWER ELIGIBILITY
Active Pag-IBIG member with at least 24

months contributions at the time of loan
application.
BORROWER ELIGIBILITY
• Not more than 65 years old at the date of loan application;
insurable; not more than 70 years old at the date of
loan maturity
• Has the legal capacity to acquire and encumber real
property;
• Has passed satisfactory background/credit and
employment/business checks;
• Has no outstanding Pag-IBIG housing loan;
• Had no Pag-IBIG housing loan that was foreclosed,
cancelled, bought back, or subjected to dacion en pago.
• Has no outstanding Pag-IBIG multi-purpose loan in
arrears at the time of loan application.
LOAN AMOUNT
Maximum of P3M, which shall be based on the

lowest of the following:
• Capacity to Pay (40 % of NDI)
• Actual Need
• Loan to collateral ratio
• Membership Contribution
LOAN AMOUNT
Loan Entitlement Based on Pag-IBIG Contributions
Monthly Contributions Loan

POP Pag-IBIG I & II Entitlement
US/ Can$ 5 P200 Up to 500T

US/ Can$ P250 Over 500T – 600T
Equivalent at pt. P300 Over 600T – 700T
Of availment P350 Over 700T – 800T

P400 Over 800T – 900T
P450 Over 900T – 1M
P500 Over 1M – 1.1M
P550 Over 1.1M – 1.2M
LOAN AMOUNT

P600 Over 1.2M – 1.3M
US/ Can$ P650 Over 1.3M – 1.4M
Equivalent at pt. P700 Over 1.4M – 1.5M
Of availment P750 Over 1.5M – 1.6M

P800 Over 1.6M – 1.7M
P850 Over 1.7M – 1.8M
P900 Over 1.8M – 1.9M
P950 Over 1.9M – 2M
P1000 Over 2.0M – 2.1M
LOAN AMOUNT

US/ Can$ P1050 Over 2.1M – 2.2M

Equivalent at pt. P1100 Over 2.2M – 2.3M
Of availment P1150 Over 2.3M – 2.4M

P1200 Over 2.4M – 2.5M
P1250 Over 2.5M – 2.6M
P1300 Over 2.6M – 2.7M
P1350 Over 2.7M – 2.8M
P1400 Over 2.8M – 2.9M
P1450 Over 2.9M – 3.0M
LOAN AMOUNT
Loan Entitlement Based on Capacity to Pay
 40% of NET DISPOSABLE INCOME
Tacking Provision
Maximum of three (3) qualified Pag-IBIG members
who are related within the second civil degree of
consanguinity and affinity.
COMBINED INCOME
e.g. Married - Spouse and unmarried
children,
Single - Parents
CO-BORROWER
e.g. Married – Parents, Brothers, Sisters,
In-laws
Single – Brothers / Sister, In-laws
LOAN AMOUNT
Loan Entitlement based on Loan to Value Ratio
LOAN BRACKET w/ Buyback W/o Buyback
Up to P400T 100% 100%
Over P400T – P750T 100% 90%
Over P750T – P1.25M 95% 85%
Over P1.25M – P3M 90% 80%

INTEREST RATES
Loan Package Interest Rate

Up to P400T 6%
Over P400T – P750T 7%
Over P750T – P1.0M 8.5%
Over P1.0M – P1.250M 9.5%
Over P1.250M – P2.0M 10.5%
Over P2.0M – P3.0M 11.5%
INTEREST RATES
Re-pricing
every 3 years for loans over P400T to 3M
Loan Package Circular 247
Over P400T – P750T 9%

Over P750T – P1M 10.5%
Over P1.0M – P1.250M 11.5%
Over P1.250M – P2M 12.5%
Over P2M – P3M 13.5%
LOAN TERM
Loan Bracket Term
Up to P3M Maximum of 30 Years
Shall not exceed the difference between the principal borrower’s

age at the time of loan application and age seventy (70).
LOAN TERM
Borrower shall be allowed to lengthen or shorten

the loan term only once during the life of the loan.
PREPAYMENT
Shall be allowed to pay his loan in full or in
part without prepayment penalty, pursuant to

RA 7394.
LOAN PAYMENT
Mode of Payment
• Issuance of post dated checks
• Salary deduction
• If the developer has a Collection Servicing

Agreement (CSA) with HDMF, payments shall be
remitted to the developer.
• SM BDO Bills Payment

LOAN PAYMENT
DEVELOPER
• Monthly amortization shall commence on:
Month immediately following the loan

take- out
Ex.
Take-out Date / Final Loan Release April 1, 2010
First Monthly Amortization May 1, 2010
Succeeding monthly payments shall be paid on the

date that coincides with the date of loan take-out/final loan
release.
LOAN PAYMENT
Penalty
1/20 of 1% for everyday of delay for payments

made after the due date.
- Should due date fall on non working day,

payments shall be paid on the 1st working day
after the due date
- Cash/Check payment should be made directly to

the cashier (Atrium Building Rm. 118)
 Applications of monthly payments
according to the following order of
priority:
– Penalties
– Upgraded membership contributions
– Insurance premiums
– Interest, and
– Principal
SAMPLE COMPUTATION
INTERES REQUIRED
LOAN MONTHLY
T NDI
AMORTIZATIO (Amort /
PACKAGE RATE
N 40%)
P400T 6% P2,398.20 P5,995.51
P750T 7% P4,989.77 P12,474.42
P1.0M 8.5% P7,689.13 P19,222.84
P1.5M 10.5% P13,721.09 P34,302.72
P2.0M 10.5% P18,294.79 P45,736.96
P2.5M 11.5% P24,757.29 P61,893.21
P3.0M 11.5% P29,708.74 P74,271.86
All loan packages with 30-year repayment

DEFAULT
Failure to pay any 3 consecutive:
1. Monthly amortizations
2. Membership contributions and other
obligations on the loan.
DEFAULT
For Loans Secured by Contract-to-Sell (CTS)
1. Cancellation of the CTS

2. Call against the warranty of the Developer
For Loans Secured by Real Estate Mortgage (REM)
1. Outstanding loan shall be due and demandable
1. Shall constitute a lien on the Total Accumulated

Value (TAV) of the member’s savings with HDMF.
1. Accounts shall be endorsed to Foreclosure.

INSURANCE
Mortgage Redemption Insurance (MRI)
• Interim Coverage – upon issuance of Notice

of Approval (NOA) or Letter of
Guaranty (LOG) by Pag-IBIG.
• Regular Coverage – effective on the date
of loan take out.
Fire & Allied Perils Insurance

ITEMS TO BE DEDUCTED ON THE LOAN PROCEEDS:
DEVELOPER
• Processing Fee
P1,000 – upon filing of HLA, non-refundable

P2,000 – upon loan take-out
• One year prepayment insurance/s
• Retention (Conversion CTS to REM)
is the amount retained to cover the transfer of TCT
under the borrower’s name.
- 5.0 % - for loans up to P180,000.00
- 6.0 % - for loans over P180T to P500T
- 7.0 % - for loans over P500T to 1M
- 7.5 % - for loans over P1M to 2M
- 8.5 % - for loans over P2M to 3M
POINTERS IN HOUSING LOAN AVAILMENT
Lot area – minimum of 32 sq m.

Condominium floor area – 18 sq m.
Road Right of way - minimum of 1.5 meters
Full medical examination

- for loans over 2M
- for borrower 60 yrs old and above
Special Power of Attorney (SPA)

- Valid for one (1) year only
REAL ESTATE TAXES
The real estate taxes on the property must be

updated as of the quarter immediately preceding the
date of loan application and;
Yearly thereafter during the term of the loan and
shall be for the account of the member/borrower.
Second Availment
Provided the member/borrower has fully paid his
1st Pag-IBIG housing loan (whether as principal or co-
borrower)
Additional Loans
Borrower must be updated with his monthly
amortization/ contribution as of date of application
• House Construction on a lot purchased/
refinanced through Pag-IBIG
• Home Improvement
MSVS (MEMBERSHIP STATUS VERIFICATION SLIP)
DEVELOPER ACCOUNT
• Validity of loan counseling – 6 months only
• Claim Stub signed by the counselor to be

submitted to the Developer
• Developer to claim MSVS from Pag-IBIG Fund
Our Contact Details
Servicing Department
Room 108 & 109
Atrium of Makati, Makati Ave, Makati City
Tel nos.: 811-4230; 811-4491; 811-4212

Fax no.: 848-8245
WEB SITE: www.pagibigfund.gov.ph

Thank you and
good day!

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AMENDED GUIDELINES

‘ABOT-KAMAY PABAHAY PROGRAM’

The Pag-IBIG housing loan may be used to finance

• Purchase of a fully developed lot within a

• Purchase of a residential house and lot,

Active Pag-IBIG member with at least 24

Maximum of P3M, which shall be based on the

• Capacity to Pay (40 % of NDI)

Monthly Contributions Loan

US/ Can$ 5 P200 Up to 500T

Of availment P350 Over 700T – 800T

Monthly Contributions Loan

Of availment P750 Over 1.5M – 1.6M

Monthly Contributions Loan

US/ Can$ P1050 Over 2.1M – 2.2M

Of availment P1150 Over 2.3M – 2.4M

Loan Entitlement based on Loan to Value Ratio

LOAN BRACKET w/ Buyback W/o Buyback

Up to P400T 100% 100%

Over P400T – P750T 100% 90%

Over P750T – P1.25M 95% 85%

Over P1.25M – P3M 90% 80%

Loan Package Interest Rate

Loan Package Circular 247

Over P400T – P750T 9%

Loan Bracket Term

Up to P3M Maximum of 30 Years

Shall not exceed the difference between the principal borrower’s

Borrower shall be allowed to lengthen or shorten

Shall be allowed to pay his loan in full or in

part without prepayment penalty, pursuant to

• If the developer has a Collection Servicing

• SM BDO Bills Payment

Month immediately following the loan

First Monthly Amortization May 1, 2010

Succeeding monthly payments shall be paid on the

1/20 of 1% for everyday of delay for payments

- Should due date fall on non working day,

- Cash/Check payment should be made directly to

All loan packages with 30-year repayment

Failure to pay any 3 consecutive:

For Loans Secured by Contract-to-Sell (CTS)

1. Cancellation of the CTS

For Loans Secured by Real Estate Mortgage (REM)

1. Outstanding loan shall be due and demandable

1. Shall constitute a lien on the Total Accumulated

1. Accounts shall be endorsed to Foreclosure.

Mortgage Redemption Insurance (MRI)

• Interim Coverage – upon issuance of Notice

Fire & Allied Perils Insurance

P1,000 – upon filing of HLA, non-refundable

Lot area – minimum of 32 sq m.

Full medical examination

Special Power of Attorney (SPA)

The real estate taxes on the property must be

• Validity of loan counseling – 6 months only

• Claim Stub signed by the counselor to be

Tel nos.: 811-4230; 811-4491; 811-4212

WEB SITE: www.pagibigfund.gov.ph