Home Development Mutual Fund/Pag-IBIG Fund(HDMF)

21 February 2022 Dear MR. HARRY KING C. AVENIDO, This refers to your eFOI request received on 07 February 2022 sent to the eFOI portal of the Home Development Mutual Fund (Fund) wherein you inquired about the following: 1. How to buy a property from a private owner if the loanable amount is less than the price of the property for sale; 2. Does the loan applicant need a conditional deed of sale or what other documents are needed; 3. May the buyer pay the remaining balance to the seller in an installment basis (if the seller agrees) after the Fund issued the payment for the property. Our Office deemed it proper to raise this matter to and confer with the operating unit concerned – the Housing Operations Support Unit (HOSU). May we inform you that for item 1, per our HOSU, as long as the buyer/borrower could provide the required documents, he/she may proceed with his/her housing loan application. However, it must be noted that any resulting difference between the loanable amount and the selling price may only be settled separately by the buyer and the seller. With regard to item 2, for the initial application process, the buyer/borrower would be required to submit a Contract-to-Sell to confirm his/her contractual agreement with the seller. The basic requirements for the Housing Loan application are as follows: 1. Duly accomplished Housing Loan Application with recent 1” x 1” ID photo of borrower/co-borrower (if applicable) (2 original copies); 2. Proof of Income: For Locally Employed, any of the following: a) Certificate of Employment and Compensation (CEC), indicating the gross monthly income and monthly allowances or monthly monetary benefits received by the employee (1 original copy) duly signed by the authorized signatory of the employer. For system generated CEC, the signature of authorized signatory of the employer must be reflected in the said CEC. b) Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached BIR Form No. 2316, duly acknowledged by the BIR or authorized representative of employer. (1 photocopy) c) One (1) Month Payslip, within the last three (3) months prior to date of loan application with name and signature of the authorized signatory of employer. (1 certified true copy) 3. One (1) valid ID with signature (1 Photocopy, back-to-back) of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse and Attorney-In-Fact (if applicable); 4. Latest title in the name of the seller/s (i.e., Original Certificate of Title (OCT)/ Transfer of Title (TCT)/Condominium Certificate of Title (CCT) etc.) (2 complete photocopies of all pages of the title); 5. Updated Tax Declaration (House/s and Lot/s) classified as Residential and Updated Real Estate Tax Receipt/s as of the quarter immediately preceding the date of application (2 photocopies); 6. Vicinity Map/Sketch Map of the Location of Property showing landmarks (1 original copy); and 7. Contract-to-Sell or similar agreement between the buyer and seller/s. (1 original copy). However, may we inform your good self that additional requirements may be asked of the member-borrower depending on the application. For easy reference, the Checklist of Requirements for Pag-IBIG Housing Loan Under Retail Accounts may be accessed through the following link: https://www.pagibigfund.gov.ph/document/pdf/dlforms/housingrelated/HLF730_ChecklistRequirementsRetailLotResidential_V02.pdf. In addition, the Housing Loan Application Form and Housing Loan Application (For Co-Borrower Only) may be accessed through the following links: https://www.pagibigfund.gov.ph/document/pdf/dlforms/housingrelated/HLF068_HousingLoanApplication_V08.pdf and https://www.pagibigfund.gov.ph/document/pdf/dlforms/housingrelated/HLF069_HousingLoanApplicationCoBorrower_V06.pdf, respectively. Finally, for item 3, as previously mentioned, any resulting equity or difference between the borrower/buyer and the seller should be settled separately by and between the said parties. It is recommended however that this kind of settlement must be completed prior to the loan application. It must be cautiously noted that agreement to settle the equity beyond the loan takeout period is considered highly unsecured, as this is already outside the coverage of the loan agreement with the Fund. Thank you. Very truly yours, ATTY. JOSE ROBERTO F. PO Department Manager III, Legal Department and Deputy Compliance Officer