Trying to Start Now

With my desire to actually have our own space even as early as now, I have made inquiries about housing/lot loans offered by PAG-IBIG.

Here are the Steps on how to apply for a Pag-IBIG housing loan:

1. Attend a loan counseling session at the Pag-IBIG office (here in Legazpi, the schedule for counseling session is I think every Friday)
2. Accomplish a Preliminary Loan Counseling Questionnaire, Housing Loan Application (HLA) and Membership Status Verification Slip (MSVS). If eligible secure checklist of requirements (requirements would depend on the loan purpose)
3. Submit HLA with complete requirements. Pay the processing fee of P1,000 (non-refundable)
4. Receive Notice of Loan Approval/Letter of Guaranty and sigh loan documents.
5. Proceed to the BIR and present Deed of Absolute Sale (DOAS) between the owner of the property and applicant for payment of documentary stamps and capital gains tax.
6. Proceed to Registry of Deeds for payment of transfer tax and registration fees for the transfer of the title.
7. Proceed to Notary Public for notarization of Loan Mortgage Agreement (LMA) and annotation of mortgage with the Registry of Deeds and to Assessor’s Office to secure new tax declaration in the name of the applicant.
8. Secure Occupancy Permit from the Local Government Unit Engineering Office when the loan is for any of the following purposes: Purchase of new Residential Unit (PRU), Purchase of Lot and Construction of a Residential Unit thereon or for House Construction only.
9. Submit the following documents to Pag-IBIG:

• Original Transfer Certificate of Title (OTC) in the name of the

applicant with annotated mortgage

• DPAS with original RD stamp

• New Tax Declaration in the name of the applicant

• Updated Real Estate Tax Receipt (for house and lot, if applicable)

• Occupancy Permit

• Assignment of Loan Proceeds

10. Release of loan proceeds
11. Start of monthly amortization is the following month immediately following the loan take-out/final loan release.

As far as I know, you still need to shell out at least 20K for all BIR taxes and transfer of title fees even if you are going to loan it through PAG-IBIG - unless the owner/developer will shoulder these expenses. The capital gains tax would be the most costly.

I have already contacted an agent and offered me one of the lots near my parent’s house in OLV Buraguis. Its just 70 sq. m, quite small but just enough for a starting family. The owner is selling it at 2800 per sq. m. so that would be 196,000 in total price. But I heard there will be a new subdivision being developed in Ridgeview, I think it would be easier to deal with a developer than a personal owner since most of the time; developers process the papers for you and shoulder the BIR taxes and permits. Hmm. I just have to wait for that.

For more information on the qualifications and other requirements in applying for housing loan through Pag-Ibig/HDMF. visit their site. click here.