Pag-IBIG Fund Affordable Housing Loan Program for Minimum Wage Earners

The Pag-IBIG Fund’s Affordable Housing Program (AHP) is a remarkable initiative that aims to make homeownership accessible and affordable for minimum-wage and low-income earners in the Philippines. The program offers a low-interest, long-term loan option designed to fit within the budget constraints of those earning lower incomes.

Also read: How to Apply for a Housing Loan from Pag-IBIG?

With monthly payments starting as low as P2,445.30* and repayment terms extending up to 30 years, the AHP makes the dream of owning a home a reality for many Filipinos who might otherwise find it challenging. It presents an opportunity to invest in a home and build equity over time, rather than spending money on rent with no return. This program reflects Pag-IBIG Fund’s commitment to providing its members with affordable housing options. It’s all about empowering more Filipinos by making homeownership not just a dream, but an achievable goal.

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The actual monthly payments may vary based on the specific loan amount, term, and interest rate. Always check with Pag-IBIG Fund for the most accurate and up-to-date information.

Benefits of the Pag-Ibig Affordable Housing Loan for Minimum-Wage Earners

The Affordable Housing Loan program by Pag-IBIG offers several benefits to minimum-wage earners, making homeownership more attainable.

  1. Affordability: The program offers low monthly repayments and long-term loan periods, making it easier for low-income earners to afford a home.
  2. Low Interest Rates: The Pag-IBIG Fund provides subsidized interest rates for low-income earners, which are typically lower than traditional bank loans.
  3. Long Repayment Period: Borrowers can choose a repayment period up to 30 years, which spreads out the cost and lowers the monthly payments.
  4. Flexible Loan Purpose: The loan can be used for purchasing a new lot, house and lot, condominium unit, or even for home improvements.
  5. Large Loan Amounts: Depending on the borrower’s capacity, the loan amount can be substantial enough to cover most, if not all, of the cost of affordable housing units.
  6. Membership Benefit: By being an active member of Pag-IBIG, minimum-wage earners are eligible for this program, unlike many traditional loans which have higher income requirements.
  7. Improved Quality of Life: Owning a home can provide stability, security, and a sense of achievement. It also eliminates the uncertainty of renting and potential rent incre
  8. Financial Investment: A home is a valuable asset that often appreciates over time, providing a good investment for the future.


By offering these benefits, the Affordable Housing Loan program substantially eases the path to homeownership for minimum-wage earners, ultimately promoting better living conditions and financial stability.

How Does a Minimum-Wage Earner Qualify for a Pag-IBIG Affordable Housing Loan?

To qualify for a Pag-IBIG Affordable Housing Loan, even as a minimum-wage earner, there are specific criteria you must meet.

  1. Income Level: Your monthly income should fall within the income levels covered by the loan program.
  2. Membership Savings: You must have at least twenty-four (24) monthly membership savings. A lump-sum payment of the required monthly membership savings is allowed.
  3. Age Limit: At the time of application, you should be no more than sixty-five (65) years old and not more than seventy (70) years old at maturity of the loan.
  4. Legal Capacity: You must possess the legal capacity to encumber real property.
  5. Background Checks: You should be able to pass satisfactory background/credit and employment/business checks conducted by Pag-IBIG Fund.
  6. No Outstanding Short-Term Loans: At the time of your loan application, you should not have any outstanding Pag-IBIG Short-Term Loan (STL) in arrears.
  7. Previous Housing Loans: You should not have a Pag-IBIG Housing Loan that was foreclosed, cancelled, bought back due to default, or subjected to dacion en pago. If you have an existing Pag-IBIG Housing Loan as a principal borrower or co-borrower, the account must be updated.

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Meeting these requirements will ensure your eligibility for the Pag-IBIG Affordable Housing Loan. Always remember to check with Pag-IBIG Fund for the most accurate and up-to-date information.

Also read: How to Check Your Pag-IBIG Contributions Online

Requirements for Applying for the Pag-Ibig Housing Loan

Applying for the Affordable Housing Loan from Pag-IBIG requires specific documentation from both the borrower and the seller.

From the Borrower

1. Housing Loan Application: Completed form with recent ID photo of borrower/co-borrower (if applicable) (2 copies, forms HQP-HLF- 068/HQP-HLF- 069).

2. Proof of Income

For Locally Employed, any of the following:

  • Certificate of Employment and Compensation (CEC), indicating the gross monthly income and monthly allowances or monetary benefits received by the employee (1 original copy).
  • Latest Income Tax Return (ITR) for the year immediately preceding the loan application, with attached BIR Form No. 2316 (1 photocopy).
  • One (1) Month Payslip, within the last three (3) months prior to loan application.

For Self-Employed, any of the following:

  • ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit.
  • Bank Statements or passbook for the last 12 months.
  • Other documents that validate source of income.

For Overseas Filipino Workers (OFW), any of the following:

  • Employment Contract or POEA Standard Contract.
  • Certificate of Employment and Compensation (CEC).

3. Valid ID: One (1) valid ID (Photocopy, back-to-back) of Principal Borrower and Spouse, Co-Borrower and Spouse, Seller and Spouse, and Developer’s Authorized Representative and Attorney-In-Fact, if applicable.

From the Seller (and/or Borrower)

  1. Transfer Certificate of Title (TCT): Latest title (Certified True Copy). For a Condominium Unit, present TCT of the land and Condominium Certificate of Title (CCT) (Certified True Copy).
  2. Updated Tax Declaration: For House and Lot, and Updated Real Estate Tax Receipt (photocopy).
  3. Vicinity Map/Sketch Map: Leading to the Property subject of the loan.

Remember to ensure all your documents are up-to-date and accurate to ensure a smooth application process.

Steps on How to  Apply for the Pag-IBIG Housing Loan

Applying for the Pag-IBIG Affordable Housing Loan involves a series of steps to ensure that all requirements are met and the process runs smoothly.

Here’s a step-by-step guide on how to apply:

Step 1: Complete the Requirements

Before applying, you need to gather all necessary documents including:

  • Housing Loan Application form
  • Vicinity Map of Property
  • Additional Requirements by Loan Purpose
  • Proof of Income
  • Updated Tax Declaration and Tax Receipt
  • Valid IDs
  • Certified True Copy of Title

Step 2: Submit Your Application

Start your homeownership journey by submitting your application form and initial requirements via Virtual Pag-IBIG. You can also submit your complete set of requirements at any Pag-IBIG Housing Business Center or Pag-IBIG Fund branch near you.

Step 3: Await Approval

After submission, wait for your Notice of Approval (NOA) and Letter of Guaranty (LOG). These documents indicate that your application is complete and in order. You will be advised where to conveniently claim your NOA and LOG.

Step 4: Fulfill Post-Approval Requirements

Upon receiving your NOA, complete the post-approval requirements within ninety calendar days. This includes the transfer of title and annotation of mortgage, among others.

Step 5: Receive Your Loan Proceeds

Once you’ve submitted your post-approval requirements, you can expect to receive your loan proceeds within ten days. You’ll be notified about how your loan proceeds will be safely and conveniently released.

Step 6: Start Loan Repayment

One month after the release of your loan, you can start making repayments. Make sure to use your permanent Housing Loan Account No. 12DIGIT-HLAN when making payments. You can pay your loan online via Virtual Pag-IBIG or through accredited collecting partners’ outlets or their online payment facilities.

Remember, each step is crucial to the successful processing of your loan. Ensure all your documents are accurate and complete to avoid delays.

Pag-Ibig Fund Cebu

Loanable Amounts and Interest Rates

The Pag-IBIG Affordable Housing Loan offers special subsidized interest rates for eligible members, which are determined based on their gross monthly income and the loan amount. Here are the details:

A. Interest Rates

Members can enjoy a 3% interest rate for the first five years of the loan term, and a 6.5% rate for the first ten years of the loan term. The interest rates are applied based on the following income clusters:

A. Income Cluster 1 (NCR)

  • 3.0% Interest Rate: For those earning up to P15,000 per month.
  • 6.5% Interest Rate: For those earning up to P17,500 per month.

B. Income Cluster 2 (Regions)

  • 3.0% Interest Rate: For those earning up to P12,000 per month.
  • 6.5% Interest Rate: For those earning up to P14,000 per month.

B. Loan Amounts

The maximum loanable amount under the Pag-IBIG Affordable Housing Loan is P750,000. However, the actual amount that one can borrow will be based on the lowest of the following:

  1. Actual Need: This refers to the total cost of the property or improvement project.
  2. Desired Loan Amount: The amount the borrower wishes to obtain.
  3. Loanable Amount Based on Capacity to Pay: This is determined by the borrower’s income, existing debts, and other financial obligations.
  4. Loan-to-Appraised Value Ratio: This is the ratio between the loan amount and the appraised value of the property.

These guidelines ensure that loans are granted in a way that’s affordable and sustainable for the borrower, while also protecting the interests of the Pag-IBIG Fund.

Please note that these details are subject to change and it’s always best to check with Pag-IBIG Fund for the most accurate and up-to-date information.

Modes of Payment

Pag-IBIG Fund provides various modes of payment for the Affordable Housing Loan, making it convenient for borrowers to make their monthly amortizations. Here are the accepted modes of payment:

  1. Salary Deduction: If your employer has a Collection Servicing Agreement (CSA) with Pag-IBIG Fund, you can opt for automatic deductions from your salary.
  2. Post-Dated Checks
  3. Accredited Developer: If your property developer has a CSA with Pag-IBIG Fund, you can make payments directly to them.
  4. Auto Debit Arrangement: You can set up an auto debit arrangement with your bank so that your loan repayments are automatically deducted from your account.
  5. Accredited Collection Partners: Both local and overseas remittances can be made through Pag-IBIG Fund’s accredited collection partners.

These options provide flexibility and convenience to borrowers, ensuring that they can choose the mode of payment that suits their lifestyle and financial management habits. Always remember to keep track of your payments to avoid any penalties or overdue charges.

Also read: How to Make Pag-IBIG Payments Online

Collaterals & Limitations

When applying for the Pag-IBIG Affordable Housing Loan, it’s important to know what can be used as collateral and understand the limitations set by Pag-IBIG. Here are the key points:

A. Collaterals

Pag-IBIG only accepts properties with a clean title (Transfer Certificate of Title/Original Certificate of Title/ Condominium Certificate of Title) as collateral.

The following are not accepted as collateral:

  • “Rights” over a property
  • Free Patent not covered by Republic Act 10023
  • Properties with ongoing disputes or claims in court

B. Limitations

Pag-IBIG has set specific limitations on the properties that can be financed through the Affordable Housing Loan. The property should not have:

  • A lot area less than 28 square meters
  • A condominium floor area less than 18 square meters
  • A road right of way less than 1.5 meters
  • Land types classified for uses other than residential

These guidelines ensure that the properties financed by the loan are of acceptable quality, size, and legal status. Always check with Pag-IBIG Fund for the most accurate and up-to-date information.

Tips for Applying for an Affordable Housing Loan

Applying for an Affordable Housing Loan can be a big step, and it’s important to approach it wisely.

Here are some tips to help you navigate the process:

1. Understand Your Financial Situation: Before applying for a loan, make sure you understand your financial situation. This includes knowing your monthly income, expenses, and how much you can afford to pay towards a loan each month.

2. Check Your Eligibility: Each loan program has specific eligibility requirements. Make sure you meet these before applying. For example, for the Pag-IBIG Affordable Housing Loan, you need to have at least 24 months of membership savings, among other requirements.

3. Gather All Necessary Documents: Having all necessary documents ready can speed up the application process. This includes proof of income, valid IDs, and property documents.

4. Choose a Property Wisely: Ensure the property you plan to purchase meets the requirements set by the loan program. For instance, with the Pag-IBIG Affordable Housing Loan, the property should not have a lot area less than 28 square meters or a condominium floor area less than 18 square meters.

5. Opt for Automatic Payments: Setting up automatic payments can help ensure you never miss a payment. This can be done through salary deductions, auto debit arrangements with banks, or through accredited collection partners.

6. Keep Track of Your Loan: Once your loan is approved, keep track of your payments and any changes in interest rates or terms. This will help you manage your loan effectively and avoid any potential issues.

7. Seek Professional Advice: If you’re unsure about anything, don’t hesitate to seek advice. Professionals can provide guidance on everything from choosing a property to understanding the terms of your loan.

Remember, applying for a housing loan is a significant commitment. Take the time to understand the process and make informed decisions.

Video: Affordable Pag-IBIG Housing Loan for Minimum Wage at Low Income Earners

Frequently Asked Questions

1. What is the loan repayment term?

The maximum repayment period for the loan is thirty (30) years. However, it should not exceed the difference between the borrower’s current age and seventy (70) years.

2. Does the Pag-IBIG Affordable Housing Loan carry insurance?

Yes, the Pag-IBIG Affordable Housing Loan includes a Mortgage Redemption Insurance (MRI) or Sales Redemption Insurance (SRI), as well as Fire and Allied Perils Insurance (FAPI).

3. Does Pag-IBIG housing require a down payment?

Yes, you will need to save at least 20% of the property’s value for the down payment before applying for a housing loan with Pag-IBIG. A higher down payment increases the likelihood of your housing loan application being approved.

4. What will happen if you did not pay your Pag-IBIG housing loan?

If a borrower fails to pay an installment on time, Pag-IBIG will notify them about a grace period to update their account. If less than two years of installments were paid, the borrower has a grace period of sixty (60) days from the due date of the installment.

5. How long is the Pag-IBIG housing loan approval?

According to the Pag-IBIG Citizens Charter 2023, the housing loan approval process takes around 20 working days. After submitting complete documents, the processing period is approximately 17 days.

Also read: List of Pag-IBIG Branches and Offices in Cebu


For many minimum-wage earners, the dream of owning their own home can seem like an unattainable goal. However, there is hope for those struggling to find affordable housing. Thanks to affordable housing loans, minimum-wage earners can now receive the funding needed to purchase a home of their own.

This loan option aims to provide low-income households with the opportunity to achieve stability and financial independence. By providing a chance for individuals to secure a home at an affordable rate, the affordable housing loan creates a path for many who may have otherwise been shut out of the housing market.

Contact Information

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Hi, I am Laika and I am a full-blooded Cebuana, born and raised in Toledo City, Cebu. A mother of 2 girls. I love spending time with my family, watching movies and exploring the beauty of nature. For collabs, email me at

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