PAG IBIG Housing Loan Progran Guidelines No. 13 to 15

Pag-IBIG Housing Loan Program

For End-User Financing (Cir. 219)

GUIDELINES IMPLEMENTING THE "ABOT-KAMAY PABAHAY" PROGRAM

13. SECOND AVAILMENT

A Pag-IBIG member may avail himself of a second Pag-IBIG housing loan provided he has fully paid his first housing loan, whether as a principal borrower or as a co-borrower.

14. ADDITIONAL LOANS

A qualified Pag-IBIG member who has an existing housing loan may avail himself of an additional housing loan for the following purposes

a. house construction or improvement of a house constructed on a lot purchased through a Pag-IBIG housing loan; or

b. home improvement.

The additional loan shall be treated as separate and distinct from the original loan, and the interest rate of which shall be in accordance with the rates provided for in these guidelines. Hence, the original loan shall still be subject to the interest rates prevailing at the time it was taken out.

15. EFFECTS OF MEMBERSHIP TERMINATION ON AN OUTSTANDING HOUSING LOAN

15.1. Application of Member's TAV

A member whose housing loan is taken out under this Circular shall not be allowed to withdraw his TAV if he has an outstanding housing loan with Pag-IBIG Fund as of the date of membership/savings withdrawal, he shall be given the following options:

15.1.1. - Pay off the outstanding housing loan balance and withdraw his accumulated savings;

15.1.2. - Continue amortizing the loan until it is fully paid, provided that the account is updated. The member can withdraw his accumulated

15.1.3. - Apply the accumulated savings to the outstanding loan balance.

Meanwhile, withdrawal of TAV for a member whose account was taken out under earlier Pag-IBIG Fund housing programs shall be governed by the guidelines prevailing at the time of loan takeout.

15.1.4 - For Accounts released from 1 March 1999 up to 8 November 2001 (taken out under Pag-IBIG Fund Circular Nos. 171 and 178)

In case of membership termination due to membership maturity, permanent departure from the country, retirement, total disability or insanity, Pag-IBIG Fund shall effect automatic application of the member's TAV to the outstanding housing loan balance, regardless if the account is updated or in arrears.

15.1.5 - For Accounts released from 9 November 2001 (taken out under Pag-IBIG Fund Circular Nos. 189, 189-A, and 189-B)Upon membership termination on the grounds of membership maturity, permanent departure from the country, retirement, total disability or insanity, Pag-IBIG Fund shall automatically apply the member's total accumulated savings to his outstanding housing loan, only if the account is in arrears.

In all cases, should there be any unpaid loan balance after the member's total savings have been offset against the loan, Pag-IBIG Fund shall require the borrower to pay the balance either in full, or under a revised amortization scheme, for a period not longer than the remaining term of the loan. Should the borrower opt for the latter, he shall be required to pay his monthly membership contributions until the loan obligation is fully settled, in accordance with the terms and conditions of the loan agreement.

15.2. - Application of Insurance Proceeds

In the event of death, Pag-IBIG Fund shall apply the proceeds of the member's mortgage/sales redemption insurance (MR/SRI) to his outstanding housing loan balance, and the excess, if any, shall be paid to the member's designated beneficiaries.

In case the insurance proceeds shall not be sufficient to fully pay the member's housing loan balance, the Fund shall offset the remaining amount against the member's TAV. Should the member's TAV still not suffice, the Fund shall require the member's heirs/beneficiaries to settle any remaining balance in full or under a revised amortization scheme for a period not longer than the remaining term of the loan.