4. Home Lending Programs

Homeownership has also become more accessible and affordable for Pag-IBIG Fund members through the End-User Home Financing Program. With the recent increase in the maximum loanable amount to Php10 million, members can now finance bigger and better homes while enjoying competitive interest rates among housing loan providers in the market. The interest rates will be re-priced periodically depending on the chosen re-pricing period of the borrower.

The Pag-IBIG housing loan may be used to finance any one or combination of the following:

  1. Purchase of fully-developed residential lot or adjoining residential lots not exceeding 1,000 square meters
  2. Purchase of a residential house & lot, townhouse, or condominium unit, inclusive of a parking lot
  3. Construction or completion of a residential unit on a residential lot owned by the borrower or a relative of the borrower (within second civil degree of consanguinity or affinity).
  4. Home improvement on the house owned by the borrower or a relative of the borrower (within second civil degree of consanguinity or affinity), or on a property currently secured under a Contract-to-Sell (CTS) or Deed of Conditional Sale (DCS) between Pag-IBIG Fund and the buyer
  5. Refinancing of an existing housing loan; provided that the borrower must be regularly paying without any payment made beyond thirty (30) days past due for the last six (6) months from the date of application
  6. For retail housing loan applications, purchase of residential lot or unit plus cost of transfer of title

For more information, visit https://www.pagibigfund.gov.ph/Availmentofnewloan.html

Meanwhile for minimum wage earners, the Fund has come up with the Affordable Housing Loan Program in which the interest rates are 3% to 6.5% annum, depending on the gross monthly income and place of residence of the borrower.

For more information, visit https://www.pagibigfund.gov.ph/AffordableHousingLoan.html

These home lending programs falls under the umbrella of the Expanded 4PH Housing Loan Program of the government or the Expanded 4PH program, a government housing initiative designed to make homeownership more accessible and affordable for Filipinos, including Overseas Filipino Workers (OFWs). The expanded program offers subsidized housing loan interest rates starting at 3% per annum, supported by the government for the first five (5) years and may be extended up to ten (10) years, subject to the borrower’s continued qualification based on monthly income and subject to the availability of funds for the purpose. The subsidized rate from DSHUD is at 2% per annum for eligible borrowers.

For more information, visit https://www.pagibigfund.gov.ph/4PH_Program.html

Importantly for OFWs, eligibility under the program is not limited by income level, allowing them to qualify regardless of their monthly earnings, provided they meet the standard housing loan requirements. It also simplifies application processes to make it easier and faster to acquire a home, while promoting inclusive, dignified, and affordable housing options suited to different financial capacities.