AMENDED GUIDELINES ‘ABOT-KAMAY PABAHAY PROGRAM’

1. AMENDED GUIDELINES ‘ABOT-KAMAY PABAHAY PROGRAM’ CIRCULAR 247

2. LOANPURPOSE • The Pag-IBIG housing loan may be used to finance any of the following: • Purchase of a fully developed lot within a • residential area not exceeding 1,000 sq.m.; • not less than 32 sq. m • Purchase of a residential house and lot, • townhouse or condominium unit;

3. LOANPURPOSE • Construction or completion of a residential unit • on a lot owned by the member; • Home improvement; • Refinancing of an existing loan

4. Combination of loan purposes shall be limited to the following: • purchase of lot and construction of a • residential unit thereon; • purchase of a residential unit, with home • improvement; • refinancing of an existing mortgage with • home improvement; or • refinancing of an existing mortgage, • specifically a lot loan, with construction of • a residential unit thereon.

5. BORROWER ELIGIBILITY Active Pag-IBIG member with at least 24 months contributions at the time of loan application.

6. BORROWER ELIGIBILITY •   Not more than 65 years old at the date of loan application; insurable; not more than 70 years old at the date of loan maturity • Has the legal capacity to acquire and encumber real property; •   Has passed satisfactory background/credit and employment/business checks; • Has no outstanding Pag-IBIG housing loan; • Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back, or subjected to dacion en pago. • Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application.

7. LOAN AMOUNT Maximum of P3M, which shall be based on the lowest of the following: • Actual Need • Capacity to Pay (40 % of NDI) • Loan to collateral ratio • Membership Contribution

8. LOAN AMOUNT Loan Entitlement Based on Actual Need BASED ON THE FOLLOWING DOCUMENTS: • CONTRACT-TO-SELL/ PURCHASE AGREEMENT : Purchase of Property (Lot/ House & Lot) • TOTAL CONSTRUCTION COST : House Con/ HomeImprovement • STATEMENT OF ACCOUNT : Refinancing

9. LOAN AMOUNT Loan Entitlement Based on Capacity to Pay • 40% of NET DISPOSABLE INCOME Tacking Provision • Maximum of three (3) qualified Pag-IBIG members who are related within the second civil degree of consanguinity. • COMBINED INCOME • e.g. Married - Spouse and unmarried children, • Single - Parents CO-BORROWER • e.g. Married – Parents, Brothers, Sisters • Single – Brothers / Sister

10. LOAN AMOUNT Loan Entitlement based on Loan to Value Ratio

11. Loan Entitlement Based on Pag-IBIG Contributions Monthly Contributions Loan POP Pag-IBIG I & II Entitlement US/ Can$ 5 P200 Up to 500T P250 Over 500T – 600T US/ Can$ Equivalent at pt. Of availment P300 Over 600T – 700T P350 Over 700T – 800T P400 Over 800T – 900T P450 Over 900T – 1M P500 Over 1M – 1.1M P550 Over 1.1M – 1.2M LOAN AMOUNT

12. Loan Entitlement Based on Pag-IBIG Contributions Monthly Contributions Loan POP Pag-IBIG I & II Entitlement P600 Over 1.2M – 1.3M P650 Over 1.3M – 1.4M US/ Can$ Equivalent at pt. Of availment P700 Over 1.4M – 1.5M P750 Over 1.5M – 1.6M P800 Over 1.6M – 1.7M P850 Over 1.7M – 1.8M P900 Over 1.8M – 1.9M P950 Over 1.9M – 2M P1000 Over 2.0M – 2.1M LOAN AMOUNT

13. Loan Entitlement Based on Pag-IBIG Contributions Monthly Contributions Loan POP Pag-IBIG I & II Entitlement P1050 Over 2.1M – 2.2M US/ Can$ Equivalent at pt. Of availment P1100 Over 2.2M – 2.3M P1150 Over 2.3M – 2.4M P1200 Over 2.4M – 2.5M P1250 Over 2.5M – 2.6M P1300 Over 2.6M – 2.7M P1350 Over 2.8M – 2.8M P1400 Over 2.8M – 2.9M P1450 Over 2.9M – 3.0M LOAN AMOUNT

14. INTEREST RATES

15. INTEREST RATES Re-pricing every 3 years for loans over P400T to 3M

16. SAMPLE COMPUTATION All loan packages with 30-year repayment

17. LOAN TERM Shall not exceed the difference between the principal borrower’s age at the time of loan application and age seventy (70).

18. LOAN TERM Borrower shall be allowed to lengthen or shorten the loan term only once during the life of the loan.

19. PREPAYMENT Shall be allowed to pay his loan in full or in part without prepayment penalty, pursuant to RA 7394.

20. LOAN PAYMENT • Mode of Payment • Issuance of post dated checks •   Salary deduction • Over-the-counter (under Developer w/ buyback only) • If the developer has a Collection Servicing • Agreement (CSA) with HDMF, payments shall be • remitted to the developer.

21. LOAN PAYMENT RETAIL Monthly amortization shall commence on: 2NDmonth from loan take-out/ final loan release (eg. House Construction) Ex. Take-out Date / Final Loan Release July 1, 2009 First Monthly Amortization September 1, 2009 Succeeding monthly payments shall be paid on the date that coincides with the date of loan take-out/final loan release.

22. LOAN PAYMENT DEVELOPER • Monthly amortization shall commence on: • Month immediately following the loan • take- out • Ex. • Take-out Date / Final Loan Release July 1, 2009 • First Monthly Amortization August 1, 2009 • Succeeding monthly payments shall be paid on the date that coincides with the date of loan take-out/final loan release.

23. LOAN PAYMENT • Penalty • 1/20 of 1% for everyday of delay for payments made after the due date. • Should due date fall on non working day, payments shall be paid on the 1st working day after the due date • - Cash/Check payment should be made directly to the cashier (Atrium Building Rm. 305)

24. Applications of monthly payments according to the following order of priority: • Penalties • Upgraded membership contributions • Insurance premiums • Interest, and • Principal

25. DEFAULT • Failure to pay any 3 consecutive: • Monthly amortizations • Membership contributions and other obligations on the loan.

26. DEFAULT • For Loans Secured by Contract-to-Sell (CTS) • Cancellation of the CTS • Call against the warranty of the Developer • For Loans Secured by Real Estate Mortgage (REM) • Outstanding loan shall be due and demandable, and • Shall constitute a lien on the Total Accumulated Value (TAV) of the member’s savings with HDMF. • Accounts shall be endorsed to Foreclosure.

27. INSURANCE • Mortgage Redemption Insurance (MRI) •   Interim Coverage – upon issuance of Notice of Approval (NOA) or Letter of • Guaranty (LOG) by Pag-IBIG. • Regular Coverage – effective on the date • of loan take out. • Fire & Allied Perils Insurance

28. ITEMS TO BE DEDUCTED ON THE LOAN PROCEEDS: • DEVELOPER • Processing Fee • P1,000 – upon filing of HLA, non-refundable • P2,000 – upon loan take-out • One year prepayment insurance/s • One (1) month advance month amortization (W2) • Retention (Conversion CTS to REM) • is the amount retained to cover the transfer of TCT under the borrower’s name. • - 5.0 % - for loans up to P180,000.00 • - 6.0 % - for loans over P180T to P500T • - 7.0 % - for loans over P500T to 1M • - 7.5 % - for loans over P1M to 2M

29. ITEMS TO BE DEDUCTED ON THE LOAN PROCEEDS: • RETAIL • Processing Fee • P1,000 – upon filing of HLA, non-refundable • P2,000 – upon loan take-out • One year prepayment insurance/s • One (1) month advance month amortization

30. ITEMS TO BE DEDUCTED ON THE LOAN PROCEEDS: • RETAIL (Additional Deductions) • House Construction/ Home Improvement/ Combination of Loan • Interim Mortgage Redemption Insurance(6 mos. premium) • Interim Interest • Refinancing • Retention

31. SPECIAL NOTES DEPENDING ON LOAN PURPOSE: REFINANCING Retention 5% of approved loan or; P25,000.00 w/c ever is lower and refundable upon compliance of the required document/s. Mortgage annotation Shall be handled by the borrower and the bank’s authorized representative. Releasing of Pag-IBIG check Shall be made only upon submission of the original title with annotation in favor of Pag-IBIG Fund.

32. SPECIAL NOTES DEPENDING ON LOAN PURPOSE HOUSE CONSTRUCTION/ HOME IMPROVEMENT/ COMBINATION OF LOAN Interim Releases Initial Release Based on collateral value or 30% of approved loan, whichever is the lower Succeeding Releases Based on accomplishment Interim Interest Daily Computation (Amount Released x Rate of Principal Amount) 365 days

33. Second Availment • Provided the member/borrower has fully paid his 1st Pag-IBIG housing loan (whether as principal or co-borrower) • Additional Loans • Borrower must be updated with his monthly amortization/ contribution as of date of application • House Construction on a lot purchased/ refinanced through Pag-IBIG • Home Improvement

34. POINTERS IN HOUSING LOAN AVAILMENT • Transfer Certificate of Title • PL/ PRU/ PCU • upon loan application TCT should be registered in the sellers name • Free or Miscellaneous Patent TCTs are not accepted • Free from any lien and encumbrances • a) Sec. 7 (Reconstitution) • b) Sec. 4 (Extra Judicial) • c) Adverse Claim

35. POINTERS IN HOUSING LOAN AVAILMENT Binangonan Subdivisions under GUIDO claims ARE NOT accepted. 1. MONTE VIDEO SUBD. 2. INARES VILLAGE 3. GOLDEN CITY 4. MABUHAY 2000 5. GREENRIDGE (STA. LUCIA REALTY) Bahay Financial Services (BFS) accounts are no longer accepted.

36. POINTERS IN HOUSING LOAN AVAILMENT • Right of Way : mimimum 1.5 meters • Lot Area : minimum 32 sq meters • Condominium Floor Area : minimum 18 sq meters • Special Power of Attorney : valid for 1 yr only • Real Estate Taxes • Must be updated upon loan application • Shall be for the account of the borrower for the duration of the loan term

37. FILING OF LOAN APPLICATION I) Makati - NCR - Rizal - Cavite - Tagaytay - Laguna (San Pedro, Biñan, Sta. Rosa, Cabuyao) II)Regional/Extension Office PROCESSING TIME

38. MSVS (MEMBERSHIP STATUS VERIFICATION SLIP) • RETAIL • Validity of loan counseling – 6 months only • MSVS will be submitted and processed upon filing of housing loan application. • Findings on MSVS will be part of the conditions on the Notice of Approval (NOA).

39. MSVS (MEMBERSHIP STATUS VERIFICATION SLIP) • DEVELOPER ACCOUNT • Validity of loan counseling – 6 months only • Claim Stub signed by the counselor to be submitted to the Developer • Developer to claim MSVS from Pag-IBIG Fund

40. HOUSING LOAN APPLICATION PROCESS • ATTEND COUNSELING • SUBMIT COMPLETE APPLICATION DOCUMENTS • CLAIM NOA/ LOG • SUBMIT DOCUMENTS FOR CHECK PROCESSING • LOAN RELEASE/TAKE-OUT

41. Our Contact Details Servicing Department Room 108 & 109 Atrium of Makati, Makati Ave, Makati City Tel nos.: 811-4230; 811-4491 Fax no.: 848-8245 WEB SITE:www.pagibigfund.gov.ph

42. Thank you and good day!