The Home Development Mutual Fund or Pag-IBIG Fund extended socialized home loans to 5,074 members from the minimum-wage and low-income sectors totaling P2.2 billion in the first three months of 2021 despite the continuing pandemic.
Socialized home loans make up about 25 percent of the 20,712 total number of loans financed by the agency in the first quarter of 2021. The amount, meanwhile, is equivalent to 11 percent of the P20.94 billion it disbursed. Amid the health crisis, the number of socialized home loans granted grew by 25% from the 4,045 loans extended during the same period last year, while the amount increased by 34 percent.
“In the wake of the pandemic, Pag-IBIG Fund’s Affordable Housing Program (AHP) has become the means for minimum-wage and other low-income workers to achieve their dream of homeownership. The program’s lowest rates and longest term allow them make buying a home within their reach. Offering affordable home financing to our members is our way of adhering to President Rodrigo Roa Duterte’s directive to government institutions to provide programs that serve the needs of the underserved sector, especially during these challenging times,” said Secretary Eduardo D. del Rosario, Chairperson of the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund Board of Trustees.
With Pag-IBIG Fund’s Affordable Housing Program (AHP), members can borrow up to P580,000 to buy socialized house and lot packages, or up to P750,000 for socialized condominium units at a special rate of 3 percent per annum.
The AHP is specifically made for members earning not more than P15,000 per month within the National Capital Region, and not more than P12,000 per month for members outside of National Capital Region, who intend to buy socialized housing units. This loan program also features a 100% loan-to-value ratio allowing borrowers to purchase homes without spending for equity. Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said the agency has been offering the special 3-percent rate under the AHP since May 2017 and has kept the subsidized rate since, thanks to Pag-IBIG Fund’s tax-exempt status provided under Republic Act No. 9679. SOVEREIGNPH