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Pag-IBIG Housing Loan: Eligibility, Application, Requirements and Modes of Payment

Pag-IBIG Housing Loan: Eligibility, Application, Requirements and Modes of Payment

Through the Pag-IBIG Fund, an individual can apply for a housing loan or other form of home financing as long as they meet the requirements.

The government of the Philippines offers many benefits, one of which is the opportunity to own a home. A person may apply for a housing loan or other type of home financing, particularly through the Pag-IBIG Fund.

Through the Pag-IBIG Fund,  also known Home Development Mutual Fund (HDMF), a member may obtain a housing loan and finance the purchase of their dream home. According to Pag-IBIG Fund, only six steps are required to avail of a housing loan.

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What is Pag-IBIG Fund or Home Development Mutual Fund (HDMF)?

The Pag-IBIG Fund or Home Development Mutual Fund (HDMF) was set up in response to a demand for two distinct services: first, a national savings program, and second, shelter financing for Filipino workers. By Presidential Decree No. 1530, HDMF was established.

During that time, Pag-IBIG Fund was still managed by the National Home Mortgage Finance Corporation, tasked with reporting to the Ministry of Human Settlements. As a result of Executive Order No. 538, it was given the authority to function as its own agency on June 4, 1979.

Pag-IBIG continues to be the single most important source of residential mortgage financing in the Philippines today.

Anyone can register, become a member, apply for a housing loan, and pay online through the VIRTUAL Pag-IBIG portal.

Who is eligible for a Pag-IBIG Fund Housing Loan?

All active members with at least 24 months of savings are eligible for a housing loan, and their age must be no older than 65 at the time of loan application and no older than 70 at the time of loan maturity. The following is a list of those who are eligible:

  1. Active member with at least 24 months of savings;
  2. Not older than 65 at the time of loan application and not older than 70 at the time of loan maturity
  3. Legal ability to acquire and encumber real estate;
  4. No Pag-IBIG housing loan foreclosed, canceled, bought back, or voluntarily surrendered; and
  5. Payments must be updated if there is an existing Pag-IBIG housing account or Short Term Loan (STL).

What are the purposes of Pag-IBIG housing loans?

Individuals who wish to obtain a housing loan may use the proceeds for the following purposes, according to the Pag-IBIG Fund:

  1. Purchase (plus transfer costs) of a residential lot or adjoining residential lots (max 1,000 sq.m.);
  2. Purchase (plus transfer costs) of a residential house and lot, townhouse, or condominium unit (old or new, property mortgaged with the Fund, adjoining houses/units) inclusive of a parking slot;
  3. House construction;
  4. House improvement;
  5. Refinancing of an existing housing loan; and
  6. Combined Loan Purposes.

What are the documentary requirements needed to avail of the PAG-IBIG Fund Housing Loan?

Borrowers must provide the following documents; additional documents may be required depending on the loan purpose:

  1. Two copies of the housing loan application with a recent ID photo of the borrower and co-borrower (if applicable.) You may check the forms here: borrower (HQP-HLF-068), co-borrower (HQP-HLF-069).
  2. Proof of the borrowers' income (locally employed, self-employed, overseas Filipino workers).
  3. One photocopy (back-to-back) of valid ID  of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse, and Developer’s Authorized Representative and Attorney-In-Fact, (if applicable).

List of acceptable Proofs of Income for locally employed, self-employed individuals, and OFWs:

For locally employed borrowers (you can submit any of the following):

  • Certificate of Employment and Compensation (CEC), indicating the employee's gross monthly income, monthly allowances, or monthly monetary benefits (1 original copy), duly signed by the employer's authorized signatory. The signature of the authorized signatory of the employer must be reflected in the system-generated CEC.
  • Latest Income Tax Return (ITR) for the year preceding the loan application date, with attached BIR Form No. 2316, duly acknowledged by the BIR or authorized representative of the employer. (1 photocopy)
  • One (1) month pay stub from the three (3) months preceding the loan application date, with the employer's authorized signatory's name and signature. (1 true certified copy)

Note: For government employees who will pay their loan amortization through salary deduction, the original copy of one (1) month payslip issued within the last three (3) months prior to the date of loan application must be submitted along with the CEC or ITR as described above.

For self-employed employed borrowers (you can submit any of the following):

  • ITR, Audited Financial Statements, and Official Receipt of Tax Payment from Bank, accompanied by DTI Registration and Mayor's Permit/Business Permit.
  • Commission vouchers with the issuer's name and contact information (for the last 12 months).
  • Bank statements or a passbook from the previous 12 months (in case income is sourced from foreign remittances, pensions, etc.).
  • Copies of the Lease Contract and the Tax Declaration (if income is derived from rental payments).
  • Transport Franchise Certified True Copy issued by an appropriate government agency (LGU for tricycles, LTFRB for other PUVs).
  • Certificate of Engagement issued by the owner of the business.
  • Other documentation that would support the source of income. 

For Overseas Filipino Workers (OFW) borrowers, you can submit any of the following:

  • Employment Contract:
      • Employment contract between employee and employer; or
      • POEA Standard Contract
  • Notarized Certificate of Employment and Compensation (CEC)
      • CEC written on the Employer/Company’s official letterhead; or
      • CEC signed by the employer (for household staff and similarly situated employees) and accompanied by a photocopy of the employer's ID or passport.
  • Income Tax Return filed with Host Country/Government

Note: An English translation is required if the documents are in a foreign language.

Sellers (and/or borrowers) may also provide the following: 
  • Transfer Certificate of Title(TCT) (latest title, Certified True Copy). For Condominium unit, present the TCT of the land and the Condominium Certificate of Title (CCT) (Certified True Copy).
  • Recently updated Tax Declaration (House and Lot) and Real Estate Tax Receipt (photocopy).
  • Vicinity Map/Sketch Map leading to the Loan Subject Property.

What are the steps to avail of  PAG-IBIG Housing Loan?

Pag-IBIG Fund boasts an easy six steps to avail of the Housing Loan. You may check it below:

Step 1 – Complete the necessary requirements to apply for a Pag-IBIG Housing Loan. 

In order to apply for a Pag-IBIG Housing Loan, the first step is to fulfill all of the necessary documentary requirements. These are the following:

  • Housing loan application;
  • Updated tax declaration and tax receipt;
  • Vicinity map of the property;
  • Valid IDs;
  • Additional requirements by loan purpose;
  • Certified true copy of the title; and
  • Proof of income.

Step 2 – Submit your Pag-IBIG Housing Loan application.

You can submit your application form and its initial requirements through the Virtual Pag-IBIG platform. After that, you can submit your application form and all of the requirements to any Pag-IBIG Housing Business Center or Pag-IBIG Fund branch that is conveniently located near you. 

You may check here to see the nearest branch or Pag-IBIG desk in your area.

Step 3 – Get your Notice of Approval (NOA) and Letter of Guaranty (LOG).

Once Pag-IBIG determines that your application is complete and in order, you will receive a Notice of Approval (NOA) and a Letter of Guaranty (LOG). You will be informed of the best location to claim your NOA and LOG.

Step 4 – Complete the necessary requirements stated in your Notice of Approval (NOA).

Within ninety (90) calendar days, you must complete the requirements outlined in your Notice of Approval (NOA). This includes, among other things, title transfer and mortgage annotation.

Step 5 – Receive your Pag-IBIG Housing Loan proceeds.

You will receive the loan proceeds within ten (10) working days of submitting your post-approval requirements. Pag-IBIG will notify you of how your loan proceeds will be released securely and conveniently.

Step 6  – Begin making payments on your Pag-IBIG Housing Loan.

Begin repaying your Pag-IBIG Housing Loan one month after its release date. When paying, remember to use your permanent Housing Loan Account No. 12Digit-HLAN. You can pay your Pag-IBIG Housing Loan online through Virtual Pag-IBIG, accredited collecting partners' outlets, or online payment facilities.

What are the payment options for Pag-IBIG Housing Loan?

Pag-IBIG has expanded its list of payment options for your home loan. These are some examples:

  • Virtual Pag-IBIG
  • Payroll deduction via an Employer Collection Servicing Agreement (CSA)
  • Auto debit arrangement with banks
  • Post-dated checks
  • Accredited collection partners:

         Local Remittance

      • Asia United Bank
      • SM Bills Pay
      • Metro Bank
      • LandBank
      • Bayad Center
      • ECPay
      • GCash
      • UCPV
      • MLhuillier
      • CashPinas
      • Maya (formerly Paymaya)

        Overseas Remittance

      • iRemit
      • Ventaja PayRemit
      • PNB
      • Asia United Bank
      • CashPinas

Note: Whether you pay in person or through online payments, you will need to provide your 12-digit Housing Account Number (HAN).


Since everything is now automated, applying for a housing loan through the Pag-IBIG fund is now easier as long as you meet the requirements. We hope that this iTacloban guide helps you on your journey to owning your dream home.

You should also use the Pag-IBIG housing loan calculator, which can be found on their official website, to better understand the interest rates when taking out a loan. —iTacloban

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