Affordable Housing Loan Program of Pagibig Circular 12

Affordable Housing Loan Program of Pagibig Circular 12

Who are Eligible?

Borrower's eligibility is almost the same under Regular Housing Loan except that the maximum salary income required is P17,500 only. Also the maximum loan amount that the Borrower can avail is at P750,000 only.

Loan Purpose: The Borrower is entitled to this loan purpose only

Interest rates and Income Requirements:
Affordable Housing Loan program offers the lowest interest rates of 4% of P400,000 housing loan and 6.5% interest of P750,000 housing loan.

Monthly Amortization computation:

To summarize, the key advantage of having the Affordable housing loan program is a lower interest rate to the Borrower. Also, it limits the income requirement of P17,500 only so to give way to Borrowers who are earning of P17,500 or less.


Note: If you are looking for affordable house and lot in sta maria bulacan, we suggest to take a look at Las Palmas Subdivision.  To get more details about this project, check details in this website. Our contact details are also listed here so you can immediately send queries to us.

Pag-ibig End-User Home Financing Program (Circular No. 310)

Circular 10: End-User Home Financing Program

End-User Home Financing Program under Circular 10 is one of the two (2) Housing Program of Pagibig. The other one is Affordable Housing Program which I will be discussing in another topic. The guidelines on this Circular has become effective on July 2, 2012.

BORROWER'S ELIGIBILITY

LOAN PURPOSE

LOAN AMOUNT

LOAN ENTITLEMENT

INTEREST RATES

MAXIMUM LOAN TERM

MONTHLY AMORTIZATION BASED ON 3 YEAR FIXING

MONTHLY AMORTIZATION BASED ON 30 YEAR TERM

GROSS MONTHLY REQUIRED

INSURANCES

PAG-IBIG PROCESSING COST

**Note: For those interested to get an affordable house and lot in sta maria bulacan, Las Palmas Subdivision, check project details in this site.

What you need to know about Pagibig Housing Program?

The housing program of Pagibig has been divided into two (2) circulars; Circular 10 which is End-user Home Financing Program and Circular 12 which is Affordable Housing Program.

Both Circulars were effective last July 2, 2012.

Let us discuss the comparison of two (2) Circulars here:

INTEREST RATES:

Under Circular 10: End_user Home Financing Program

Under Circular 12: Affordable Housing Loan Program

Please note that there is a maximum income requirements for those who will avail the Affordable Housing Loan Program as you can see in the table above.

LOAN PURPOSE:

Under Circular 10: End_user Home Financing Program

Under Circular 12: Affordable Housing Loan Program

MONTHLY AMORTIZATION:

Under Circular 10: End_user Home Financing Program

Under Circular 12: Affordable Housing Loan Program

You can see here that the interest rates difference is about 3.485% for the Affordable Housing Loan Program. A big savings on the part of buyer.

You can note here that the Borrower will have a 1.485% savings as compared when he is taking a loan under Regular Housing Loan.



Note: If you are looking for an affordable house and lot in sta maria bulacan, we recommend Las Palmas Subdivision in Bulacan for you. For details of the project, you can check here in the website and get our contact details above.

What you need to know about Bank Financing for a Housing Loan?

What you need to know about Bank Financing for a Housing Loan?

If you're taking a Housing Loan you can consider getting a Bank Financing.  The loan term are relatively shorter than that of a Pagibig Financing but the interest rates are usually lower.  However, there are certain factors that you need to consider such as bank service charge which is usually at 3% depending on the bank.  Furthermore, there is a certain minimum required income/salary for you to avail the loan.

Please see table of comparison below of Five (5) Banks that offer housing loan.

Taking into consideration this table, because of minimum salary requirements, for an affordable house and lot, in my opinion, it is better to avail Pagibig Financing especially if you're salary does not exceed P30,000 per month.

But if you're qualified for the bank financing, the Developer of the Project usually have a tie-up bank for the housing loan which make you convenient on applying such a loan.

How To Compute the Monthly Amortization of your Housing Loan?

Have you ever wondered how the monthly amortization of your Housing Loan is computed?  There are several Financing institutions like Pagibig, Bank, or In-House Financing and these institutions use a Factor rate to compute for the monthly amortization of your housing loan. Your monthly amortization is composed of the principal plus interest payments paid regularly over a specific period of time.

To compute your monthly amortization, there are several factors that need to be considered:

• Total Contract Price of the Property you are buying

• Downpayment (DP) or Equity required by the Developer. Most Developers usually require 20% Downpayment.  Some of the Developers who offers Pagibig financing just require 10% or less Downpayment, thus, make it more affordable for the buyer. This usually applies to affordable house and lot.  Downpayment are usually payable in installment, thus, make it more easy for the buyer to pay.

• Loanable Amount - This is the Difference of Total Contract Price and Downpayment.  This is the amount that will be process in either Pagibig, Bank or In-House Financing.

TOTAL CONTRACT PRICE LESS DOWNPAYMENT = LOANABLE AMOUNT

• Interest Rate.  This is the dictated rate by the Financing Institution.  Bank rates are usually smaller as compared to Pagibig or In-house rates but they require minimum Gross income to be able to avail of the housing loan, like for BDO, they require at least 50K salary.  In-house financing offers the biggest interest rates as this is financed by the Developer itself. 

• Loan Term. This is the period wherein you plan to pay your loan.  For Pagibig Financing, maximum loan term is 30 years. Bank offers an average of 15-20 years depending on the bank. In-house offers usual loan term of 10 years 

• Factor rate - this is derived by taking into consideration the interest rates and the loan term. This is usually computed by getting the present value factor.

Here's the Factor rate table:

Illustration:

Let's make an example of the house and lot project of Las Palmas Subdivision in Bulacan. An affordable house and lot in Sta Maria Bulacan.

Total Contract Price = P844,000

Downpayment = 59,000

Loanable Amount = P785,000

Loan Term = 20 years

Interest rates = 7%

Factor rate = 0.0077529894

Computation of monthly amortization:

Loanable Amount                P785,000

Factor rate                       X  0.0077529894

Monthly Amortization =  P6,086.09

This is how to compute the monthly amortization.  For you to have simpler means of calculating it, you can go to Pagibig website for the housing loan calculator. You just need to input details of the housing loan you are buying.

Notes:

**Las Palmas Subdivision, is an affordable house and lot in Sta Maria Bulacan.  The Project ranges from 600k+ to 800k+ only, with a monthly amortization of 4-5K only.

Renting a House or Buying a House?

Renting a House or Buying a House and Lot?

To help you decide on it, here's the list of comparison of Renting versus Buying.

                             

Looking for affordable house and lot in Sta Maria Bulacan? low monthly amortization of 4-5K/month?Just check the project details in this website.

                                                                                                      

Notes:

**Las Palmas Subdivision, is an affordable house and lot in Sta Maria Bulacan.  The Project ranges from 600k+ to 800k+ only, with a monthly amortization of 4-5K only.

Earn Income from Real Estate either Part time or Full time

Earn Income from Real Estate either Part time or Full time

Real Estate to me is the pinnacle of Sales.  You will get an opportunity to earn bigger commissions as compared to just selling products that are low of value.  In Real Estate, you are selling houses or condos with an average price of 1Million.

Now, let me illustrate you what I mean about it.

Assuming, you earn 3% commission in every property that you are selling.

For example, you are selling an affordable house and lot in Sta Maria Bulacan, with prices of 600K to 800K only.

Scenarios you sell houses worth P800,000:
    1 unit   - 800,000  x 3% x 1   = 24,000
    2 units  - 800,000 x 3% x 2   = 48,000
    4 units  - 800,000 x 3% x 4   = 96,000

I know a lot of agents, that are selling an average of 4 units or more per month. Just imagine the income potential that real estate selling has to offer.  The income potential is already equivalent of that managerial position in a company.

Of course, the commission that you will receive depends on the mode of payment that the buyer will take.

• If Spot Cash, you can already received the commission in Full
• If thru Pagibig/Bank Financing, you can receive incentives and commission upon loan take out. Usually Loan take out occurs once the house is already built, which usually takes 1-2 years. Other Developers gives certain percentage of commission based on the downpayment that the Buyer has made

So how can you do real estate selling? Am I already qualified to sell a property? Does anyone can sell property anytime?

In the Philippines, there is a law governing Real Estate Selling.  Legally, the one who can sell are the Licensed Real Estate Brokers and the Accredited Real Estate Agents under a Licensed Real Estate Broker. Let me discuss the comparison of Licensed Real Estate Broker and accredited Real Estate Agents.

A Licensed Real Estate Broker is a professional who has passed the Real Estate Broker Examination given by the Professional Regulation Commission (PRC).  Under the law, Real Estate Broker can have at most 20 accredited Real Estate Agents.

An Accredited Real Estate Agents, are under a Licensed Real Estate Brokers. They are at least 2 years college graduate.  They have undergone 16 units of Continuing Professional Education and are registered in PRC and HLURB under a Licensed Real Estate Broker. 

So what if I'm not an Accredited Real Estate Agent? Can I still sell property? Legally No.  You need to be under a Licensed Real Estate Broker and be Accredited in PRC and HLURB. But if you're just referring a buyer, you can still do it.You can still earn a referral commission based on your agreement with the Broker.

Want to be an Accredited Real Estate Agent? or just want to be a referral Agent? Part time?

Join my Real Estate Team

Feel free to contact Mr. Ralf Roger Tagao, at:

Sun (Viber) 0922.879.7968

TM 0935.317.2057

Skype ralftagao2014

FB: https://www.facebook.com/ralfroger.tagao

Regards,

Ralf Roger Tagao

Certified Public Accountant

Licensed Real Estate Broker

PRC License # 0013076

Notes:

**Las Palmas Subdivision, is an affordable house and lot in Sta Maria Bulacan.  The Project ranges from 600k+ to 800k+ only, with a monthly amortization of 4-5K only.