Steps on How to Apply for a Pag-IBIG Housing Loan

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May 282013

how to avail housing loan thru pag-ibig

Here are the Step by Step Procedures When Applying for a Pag-IBIG Housing Loan

  1. Attend a loan counseling session at the Pag-IBIG office and accomplish the following forms:
    • Preliminary Loan Counseling Questionnaire
    • Housing Loan Application (HLA)
    • Membership Status Verification Slip (MSVS)
      If eligible secure Checklist of Requirements (COR), requirements would depend on the loan purpose.
  2. Submit HLA with complete requirements, and pay the processing fee of P1,000 (non-refundable).
  3. Receive Notice of Loan Approval/Letter of Guaranty and sign loan documents.
  4. Proceed to the following:
    • Bureau of Internal Revenue for payment of documentary stamps and capital gains tax
    • Registry of Deeds for transfer of the title and annotation of mortgage
  5. Submit the following documents to Pag-IBIG for the release of loan proceeds:
    • Original Transfer Certificate of Title (TCT) in the name of the applicant with annotated mortgage
    • DOAS 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 (secured from LGU Engineering Office, if applicable)
    • Assignment of Loan Proceeds
  6. Pay the first monthly amortization on the month immediately following the loan take-out/final loan release.

Pag-ibig Housing Loan Frequently Asked Questions FAQs

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May 282013

pag-ibig faqWho should register with the Pag-ibig Fund as Members?

With the signing of Republic Act No. 9679, membership to the Fund shall be mandatory for the following:

  1. All employees, workers, professionals, officers and companies who are compulsorily covered by the SSS and GSIS
  2. Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police;
  3. Overseas Filipino Workers (OFWs)
  4. Filipinos employed by foreign-based employers, whether deployed locally or abroad.Membership to the Fund is also open to the following:
  1. Non-working spouses of Pag-IBIG members;
  2. Filipino employees of foreign government or international organization, or their wholly-owned instrumentality based in the Philippines, in the absence of an administrative agreement with the Fund;
  3. Employees of an employer who is granted a waiver or suspension of coverage by the Fund under RA 9679;
  4. Leaders and members of religious groups;
  5. A member separated from employment, local or abroad, or ceased to be self-employed but would like to continue paying his/her personal contribution;
  6. Public officials or employees who are not covered by the GSIS such as barangay officials; and
  7. Filipinos naturalized in other countries.

How Much is the monthly contribution?

With the signing of Republic Act No. 9679, membership to the Fund shall be mandatory for the following:

Monthly Compensation              Percentage of Monthly Compensation

                                                                  Employee Share         Employer Share
P1500 and below                                         1%                                     2%
Over P1500                                                   2%                                    2%

The maximum monthly compensation used in computing the employee contributions is currently set at P5,000. This means that the maximum member contribution and employer counterpart per month are both currently P100.

What are the benefits of Pag-IBIG Membership?

The Fund offers its members the following benefits:

  1. Savings
  2. Short Term Loans
  3. Access to Housing Programs

What Housing Programs are available for members?

An eligible member may avail of a housing loan under either the End-User Financing Program or the Magaang Pabahay, Disenteng Buhay Program. Under the End-User Financing Program, a member may avail of a loan to finance any of the following (Circular 247):

  1. Purchase of a fully developed lot not exceeding one 1,000 square meters, which should be within a residential area;
  2. Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot. The unit may be:
    • Old or brand new;
    • A property mortgaged with the Fund; or
    • An acquired asset, which is disposed of through sealed public bidding, negotiated sale, or the Rent-to-Own Program.
  3. Construction or completion of a residential unit on a lot owned by the member;
  4. Home improvement, i.e. any alteration in an existing residential unit intended by a homeowner to be a permanent integral part of the property, which will enhance its durability and material value;
  5. Refinancing of an existing mortgage with an institution acceptable to the Fund, provided that:
    • The loan is not in default within the 12 months prior to the date of application;
    • The said loan has a repayment history of at two years with the original mortgagee
  6. Combination of loan purposes, which shall be limited to the following:
    • Purchase of a fully developed lot not exceeding 1,000square meters and construction of a residential unit thereon;
    • Purchase of a residential unit, whether old or new, with home improvement;
    • Refinancing of an existing mortgage with home improvement;
    • Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.

    Under the Magaang Pabahay, Disenteng Buhay Program, a qualified member may purchase an acquired asset of the Fund either in cash or through a housing loan at very reasonable prices. A buyer who purchases an acquired asset in cash is entitled to a 20% discount on the property’s sales price, while a buyer who purchases through a housing loan is entitled to a 15% discount on the property’s sales price.

Who are eligible to avail of a housing loan under the End-user Financing Program?

To qualify for a Pag-IBIG housing loan, a member must satisfy the following requirements:

  1. Must be a member under the Pag-IBIG I for at least 24 months, as evidenced by the remittance of at least 24 monthly contributions at the time of loan application.
  2. Not more than 65 years old at the date of loan application and must be insurable; provided further that he is not more than 70 years old at loan maturity;
  3. Has the legal capacity to acquire and encumber real property;
  4. Has passed satisfactory background/credit and employment/business checks conducted by the developer and the Pag-IBIG Fund;
  5. Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co- borrower;
  6. Has not availed of a Pag-IBIG housing loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion enpago, which shall include cases where the borrower is no longer interested to pursue the loan and surrenders the property;
  7. May have an outstanding Pag-IBIG multi-purpose loan but which is updated in payments at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrears over the counter to update his account.

How to Choose a Good Real Estate Broker or Agent to Work For Tips

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Apr 262013

Tips In Choosing Real Good Real Estate Broker Agent Work

So how does one choose a good real estate broker?

how to choose a good real estate brokerReal estate is a popular investment avenue. A lot of people go for real estate investing. Some people follow real estate as their prime job. So you have real estate brokers, real estate investors, real estate attorneys and others who thrive mainly on the real estate industry. However, there are others who don’t follow real estate investing as a profession but still want to invest in real estate (as it is an attractive avenue for investment). For such people, getting a good real estate broker can make a big difference between a good deal and not-so-good one.

The first thing to look for is the reputation of the real estate broker. A real estate broker who has good reputation would have earned it over a period of time by helping buyers get the property of their choice (and as per their needs), at the same time getting a good price for the property seller. In fact, experience is the second important thing to look for in a real estate broker. Bad real estate brokers cannot exist for long (since the bad news about anyone travels much faster than the good news). So experience is a good measure because then you know that the real estate broker has not done anything so bad as to throw them out of business. A good real estate broker will not act just as the salesperson for the seller (from whom the real estate broker is due to receive commission/fee when the deal materializes) but will also pay heed to the needs of the buyer. Also, a good real estate broker will normally have a lot of properties available for sale at any point of time. Good real estate brokers will generally have a small team of people working in an organized way to get the deal closed between a buyer and a seller (making both parties happy at the same time).

Good real estate brokers will group the properties in a way that is easy to understand e.g. group them on the basis of location, grouping them on the basis of price, grouping them on the basis of house types etc. for the buyer. A good real estate broker will also offer advice to the seller on small repairs or things that can get help them in getting an even better price for their property. And a good real estate broker will patiently listen to the requirements of the buyers and point them to the properties that best fit their requirements (instead of just showing them the list and asking to choose one).
Checking with friends or family that have previously used the services of a good real estate broker can sometimes help you in getting a good real estate broker fairly quickly.

Tips In Choosing Real Good Real Estate Broker Agent Work

All about real estate agents roles and responsibilities

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Apr 062013

Real Estate Agent Roles And Responsibilities

Real Estate Agent Roles and ResponsibilitiesReal estate agents are professionals who help in connecting the buyer to the seller. A lot of real estate agents also do rentals wherein they connect tenants to landlords and even maintain the property on the behalf of the landlords. The real estate agents work by linking together the two interested parties and charging a commission for their services. For sales, they charge commission only to the seller but for rentals (i.e. agent managed rentals) the commission is charged to both parties involved in the transaction.

Real estate agents generally calculate their fee as a percentage of the selling price (in case of sales) and as part of the rent (for rentals). People, who want to sell/let their property, leave the details of their property with the real estate agent (and in fact, even leave the keys of the house so that the real estate agent can arrange for viewings without them getting into any hassle). The other interested party (i.e. the buyer/tenant), gets access to this information by contacting the real estate agent. That’s how the real estate agents become a hub of information.

A lot of home seekers (including real estate investors) use the services of real estate agents not just for getting good deals but also getting them quick. Since real estate agents are probably most familiar with the market situation in their region of operation, it makes sense to approach them to get an idea of the going rate for properties in that region. Real estate agents would generally know the prices of various properties of different types and at various locations in the region.

A property seller can possibly get a few thousands more for his/her property by using the advice received from a good real estate agent. A good real estate agent will also analyse the needs of a home buyer/tenant and provide suggestions on what kind of home could be available to them within their budget. So a good real estate agent will not just throw a list of available properties to the buyer/ tenant but will actually discuss their needs and make a suggestion. This, in fact, works in the favour of real estate agent in two ways. Firstly, if the real estate agent is able to sell the house they get their commission and secondly, if they make the buyer happy too they earn a good reputation (and hence more business).

However, it is worth noting that real estate agents work on seller’s behalf. So, beware if they are trying too hard to sell a property.


Real Estate Agent Roles And Responsibilities

Guiding Rules in Buying Properties In The Philippines

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Feb 212013

Guide In Buying Properties In The Philippines

There are some rules and guide for filipinos and foreigners in buying properties in the Philippines.

guide in buying properties in the philippines

Tip #1: Buy Only Titled Properties

There are still vast amounts of land in the Philippines that have no Land Title under the Torrens System. Usually, the only proof of ownership that the seller has is a Tax Declaration. Buying this type property is a perfect recipe for a real estate disaster. As a buyer, you don’t want to get involved with this kind of real estate deal.

Ask the seller to hand you a photocopy of the Title. Take note of the Title Number and the indicated name of the owner. To verify the Title at the Registry of Deeds, you will need at least the Title Number and the Name of the owner of the property.

Tip #2: The Title Must Be Authentic and Accurate

Always request a Certified True Copy of the Title from the Registry of Deeds that has jurisdiction of the property. You simply can’t trust the seller’s broker or agent to handle this part. You have to personally do it, or have someone you can trust do it on your behalf.

Once you got hold of the title’s Certified True Copy, compare this with the photocopied Title handed to you by the seller or his broker. There should not be any inconsistencies or discrepancies.

Tip #3: The Title Must Be Clean, Free From Liens and Encumbrances

A clean title simply means one that has no encumbrances or liens. Liens, Encumbrances, and other annotations are printed at the back portion of the title.

Take a look again at the Certified True Copy of the Title. Is the back page clean? It should not have any unnecessary words or sentences other than those related to the property’s technical descriptions.

Special Note: Some Titles have very long descriptions that span more than just the front page. If you are not sure about the things written at the back portion of the Title, please consult it with your lawyer or someone who is an expert in handling such cases.

Tip #4: Double Check If The Property Being Sold Is What Has Been Stated In The Title

This sounds crazy, but some unscrupulous sellers will show you a property and show you a completely different land title, which doesn’t correspond to it.

The Title will always indicate a technical description of the property, its exact location and its boundaries. It would help if you can tap the services of a Geodetic Engineer or a Licensed Surveyor. You can request that such professional verify the accuracy of the land being described and, if possible, make conduct a re-survey of the land.


Guide In Buying Properties In The Philippines

Real Estate Rentals, Most Attractive Ways of Making Good Money

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Feb 212013

Business Plan In Rentals And Real Estate Investing

Residential Rental Real Estate Investing is one of the most attractive ways to making good money. It’s an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions. Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art).

business plan rental real estate investing

Here is a list of strategies that can make real estate investing profitable for you:

Looking for old listings:

    • The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.

The hidden treasure:

    • A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.

Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA):

    • Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.

Keep tab on the newspaper announcements:

    • Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.

Team up with attorneys:

    • There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.

Thus, Investing in Real Estate Rentals not just a good idea but one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.



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  • How to Negotiate: 7 Real Estate Negotiation Tips – I love to negotiate! Whether it’s buying furniture off of Craigslist or being part of a multi-billion dollar corporate merger team (I’ve done both), I love the challenge of trying to get a great deal for myself while at the same time making the other person feel like they got a great deal too.
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  • The Top 100 Ways To Make Money In Real Estate – Let’s just say it involves a plugged toilet, three college-aged tenants, three weeks of procrastination (with continual use of that plugged toilet), and my bad mistake of not hiring a plumber. It was a low point in my investing career but a turning point as well. I realized the type of investor I wanted to be and the type of investor I did not want to be.
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Business Plan In Rentals And Real Estate Investing