Home Ownership Nowadays
Buying a real state property or a house can be frustrating these days. It is complicated and generally difficult to raise the amount of money needed to acquire a property. House financing helps families to have their dream home. Home Development and Mutual Fund (HDMF) or Pag-IBIG Fund is thought to be one of the best options and demand some loan requirements.
What is Pag Ibig?
The Home Development and Mutual Fund (HDMF) known as Pag-IBIG Fund is a corporation that belongs to the Philippine Government under the development of the Housing and Urban Coordinating Council which is responsible for the national investments program and shelter supporting for employed people in Philippine. This fund offers temporary loans and housing programs.
The membership is limited to the citizens from the Philippines who are or will be protected by the System of Social Security.
There is a voluntary membership to individuals who are between 18 to 60 years, but they need to comply a set of Pag-IBIG loan requirements and regulations which includes the extent of contribution and the timetable for the payment.
Some conditions to be eligible for a voluntary membership include:
- Spouses without job who dedicate the entire time to the affairs of the family and household, except when they are also involved in another ability or employment, which can be subject to obligatory coverage, as long as the employed partner is member registered in the Pag-IBIG and allows the membership of the jobless partner.
- The Filipino workers found in foreign governments or worldwide organizations in the nonappearance of an administrative fund arrangement.
- The personnel of an owner who has been approved a possible dissolution of the coverage by the Fund under RA 9679.
- Religious groups members.
- A member removed from work, both local or abroad. In addition, those ceased to be self-employed but wants to keep on paying the corresponding individual contribution. This kind of member is mostly an imprisoned person, stockholder, or a person without active income.
- Public representatives or personnel without the GSIS; such as Barangay coverage.
- Other producing personalities or group of people selected by the Board through rules and regulations.
For more information, please visit: https://www.pagibigfundservices.com/pubreg/starter_page.aspx
Coverage of the Pag Ibig
It is obligatory for all the members of the Social Security System (SSS) or Government Service Insurance System (GSIS) who earns at least P4.000 a month.
Voluntary coverage is open to workers, which includes freelance persons, and street workers who have a monthly earning lower than P4,000.
It offers a prolonged voluntary basis coverage to overseas Filipino workers, immigrants and naturalized inhabitants through this Fund overseas program. Finally, nonearning partners of Pag‐IBIG members could apply willingly.
Pag-IBIG loan admissibility
People must meet some requirements before applying for a loan and include:
- Being a Pag-IBIG active associate with contributions for over two years.
- Joining seminars related to housing application where all the processing steps, all requirements and points regarding the housing loan application will be discussed.
- Provide the following requirements in folders.
Pag-IBIG application requirements
- The form for Housing Loan Application. It needs a recent 1X1 photo.
- The Verification Slip of the Membership Status. Photocopies of 2 valid IDs should be attached.
- The documents needed to prove the person’s Income.
- Nearby Worker: A Certificate of Employment Notarized with the Latest ITR in the year
Self-employed and other kinds of income
In this case, Pag-IBIG loan requirements include:
- The Audited Financial Declarations and the Authorized Receipt of Tax Payment.
- Commission Vouchers that reflects the person’s name and details of the contract.
- Bank Statements or passbook for the last 12 months.
- A Copy of the Contract and Tax Declaration
- An engagement certification sent by the business owner.
Joining the Pag Ibig
First, bring two MDF copies and the supporting required documents and go to Pag Ibig division of marketing and enforcement. It is highly recommended to bring the original documents for authentication.
The following step is to secure the pay order form from the Division of marketing and Enforcement then continue to Cash Division in order to pay the Initial Membership Contribution (MC).
Later, Present the documents previously confirmed and stamped to the division. Finally, payment order should be secured before heading to the cash department for contribution.
Pag ibig First-Timer membership procedure for Companies
For First-Timers, Companies must hand in a set of two copies of the form for the Membership Application known as (M1-1). Then, prepare two copies of the next documents:
- The SEC form or the DTI of the company as well as the Social Security System registration.
- The forms identified as R-3 and R-1A which refer to the Security System registration and payment.
Documents such as the M1-1 form and the SSS forms have to be verified at the Marketing Department of the concerned Pag-IBIG office. It is recommended to bring the original documents for authentication. It is also necessary to provide the transfer slip which will be organized by the marketing team as well as the checked papers to the bank cashier.
The subsequent payment date will rely on the office payment timetable. The delivered M1-1 will work as the remittance form for subsequent payments.
Another important requirement is to deliver a couple of copies of the Member’s information Forms or M.D.F. of all the employees that qualify according to the Division in charge within two months after paying the first contribution.
Lastly, the information of those employees that have been recently hired and protected by RA 7742 ought to be added in the form known as M.1-1, in addition to their contributions being sent to the fund.