PAG-IBIG Housing Loan Requirements│How to Apply, Loan Interests
So you want to avail yourself a housing loan from PAB-IBIG. Read the following important information and details on the implementing guidelines published by PAG-IBIG on how to apply and the loan requirements.
You may also want to check some criticism here about the quality of Pag-Ibig Membership Cards given to members.
1. LOAN PURPOSE
The Pag-IBIG housing loan may be used to finance any one or a combination of the following:
1.1 - Purchase of a fully developed lot not exceeding one thousand square meters (1,000 sq. m.), which should be within a residential area;
1.2 - Purchase of a lot and construction of a residential unit thereon;
1.3 - Purchase of a residential house and lot, townhouse or condominium unit, inclusive of a parking slot, which may be:
1.3.1 - Old or brand new;
1.3.2 - A property mortgaged with the Fund; or
1.3.3 - An acquired asset which is disposed of through sealed public bidding, negotiated sale, or Rent-to-Own Program.
1.4 - Construction or completion of a residential unit on a lot owned by the member;
1.5 - Home improvement, i.e. any alteration in an existing residential unit intended by a homeowner to be a permanent integral part thereof, which will enhance its durability and material value;
1.6 - Refinancing of an existing mortgage with an institution acceptable to the Fund, provided that:
1.6.1 - The loan is not in default within twelve months prior to date of application;
1.6.2 - said loan has a repayment history of at least two years with the original mortgagee
1.7 - Combination of loan purposes shall be limited to the following:
1.7.1 - Purchase of a fully developed lot not exceeding one thousand square meters (1,000 sq. m.) and construction of a residential unit thereon;
1.7.2 - Purchase of a residential unit, whether old or new, with home improvement;
1.7.3 - Refinancing of an existing mortgage with home improvement;
1.7.4 - Refinancing of an existing mortgage, specifically a lot loan, with construction of a residential unit thereon.
2. BORROWER'S ELIGIBILITY
To qualify for a Pag-IBIG housing loan, a member shall satisfy the following requirements:
2.1 - On Pag-IBIG Membership
2.1.1 - Must be a member under the Pag-IBIG I, Pag-IBIG II or Pag-IBIG Overseas Program (POP) for at least twenty-four (24) months, as evidenced by the remittance of at least 24 monthly contributions at the time of loan application.
2.1.2 - A member, whether new or with existing monthly contributions that are still short of the 24-month membership requirement, shall be allowed to make lump sum payment based on the basic monthly membership contribution rates to meet said requirement at point of loan application. Lump sum payment of membership contributions shall be considered a single contribution for the applicable month as of the payment date.
Said member shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards.
2.1.3 - A member who has contributed for at least two (2) years shall be required to pay the upgraded membership contribution rates upon housing loan approval and onwards.
2.1.4 For purposes of satisfying the residency requirement, the period corresponding to the Total Accumulated Value (TAV) applied earlier to a member's outstanding loan (offsetting) shall be considered when counting the total number of monthly contributions, provided that the remaining TAV after offsetting does not fall below the equivalent amount of 24 monthly contributions.
2.2 - Not more than 65 years old at the date of loan application and must be insurable; provided further that he/she is not more than 70 years old at the date of loan maturity;
2.3 - Has the legal capacity to acquire and encumber real property;
2.4 Has passed satisfactory background/credit and employment/ business checks of the developer and Pag-IBIG Fund;
2.5 - Has no outstanding Pag-IBIG housing loan, either as a principal borrower or co-borrower;
2.6 - Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back, or subjected to dacion en pago;
2.7 - Has no outstanding Pag-IBIG multi-purpose loan in arrears at the time of loan application. A member whose multi-purpose loan is in arrears shall be required to pay his arrearages over the counter to update his account.
3. LOAN AMOUNT
A qualified Pag-IBIG member shall be allowed to borrow an amount up to a maximum of Two Million Pesos (P2,000,000.00), which shall be based on the lowest of the following: the member's actual need, his loan entitlement and the loan-to-collateral ratio.
3.1 - Loan Entitlement based on Pag-IBIG Contributions
A member's loan entitlement shall be proportionate to his Pag-IBIG contributions (inclusive of the employer counterpart contributions), which shall be based on the following schedule:
Pag-IBIG Membership Contributions Loan Amount
POP Pag-IBIG I & II
US $ 5 200 Up to P500,000
US $ equivalent at point of availment 250 Over P500,000 – P600,000
300 Over P600,000 – P700,000
350 Over P700,000 – P800,000
400 Over P800,000 – P900,000
450 Over P900,000 – P1,000,000
500 Over P1,000,000 – P1,100,000
550 Over P1,100,000 – P1,200,000
600 Over P1,200,000 – P1,300,000
650 Over P1,300,000 – P1,400,000
700 Over P1,400,000 – P1,500,000
750 Over P1,500,000 – P1,600,000
800 Over P1,600,000 – P1,700,000
850 Over P1,700,000 – P1,800,000
900 Over P1,800,000 – P1,900,000
950 Over P1,900,000 – P2,000,000
POP contributions made in foreign currency shall be converted to its peso equivalent on the date when payment was made, rounded off to the nearest dollar. POP members may also opt to pay the upgraded contributions in its local currency (peso) equivalent.
For loans up to Seven Hundred Fifty Thousand Pesos (P750,000.00) which shall either be secured by a First Real Estate Mortgage or a Contract to Sell on the property which is bought from a developer, and are covered by a buyback guaranty, the member's loan entitlement shall be based solely on his Pag-IBIG contributions.
3.2 - Loan Entitlement base on Capacity to Pay
A member's capacity to pay shall be evaluated in the following cases:
a) The loan amount applied for is less than or equal to Seven Hundred Fifty Thousand Pesos (P750,000.00), and the account is not covered by a buyback guaranty;
b) The loan amount applied for is over Seven Hundred Fifty Thousand Pesos (P750,000.00)
A member's loan entitlement shall be limited to an amount for which the monthly repayment on principal and interest shall not exceed forty percent (40%) of the member's or family's net disposable income, whichever is applicable; provided further that the member's net take home pay does not fall below the minimum requirement as prescribed by the GAA or company policy, whichever is applicable, after deducting the computed monthly repayment, other obligations and statutory deductions.
These conditions shall be supported by the following documents:
3.2.1 - For Pag-IBIG I and II Members
a) Latest Income Tax Return (ITR) for the year immediately preceding the date of loan application, with attached W2 form, stamped received by the BIR.
In view of Revenue Regulation 2-98, employees receiving purely compensation income may instead submit the BIR Form 2316 or the Certificate of Compensation Payment/Tax Withheld filed by their employers with the BIR.
The following, however, are not qualified for substituted filing and therefore still required to file BIR form 1700:
a.1. individuals with two (2) or more employers, whose taxes during the year did not result to tax withheld = tax due.
a.2. individuals whose income tax have not been withheld correctly.
a.3. individuals whose spouses fall under a.1 and a.2.
a.4. individuals deriving other non-business, non-professional-related income in addition to compensation income not otherwise subject to final tax.
b) Certificate of Employment and Compensation (CEC) or pay slip, where applicable.
c) Other documents that the Fund may prescribe
3.2.2 - For POP Members
a) Employment Contract (EC), which shall be supported by an English translation if written in a foreign language other than the English language;
b) Certificate of Income duly certified by the employer;
The gross family income shall pertain to the income of the member, his legitimate spouse and unmarried children, provided they are living with the borrower and are Pag-IBIG members eligible to avail of a Pag-IBIG housing loan.
The net disposable income shall be the gross family income less statutory deductions and monthly amortizations on outstanding obligations.
Family members, whose income is being considered in determining the borrower's net disposable family income, shall be classified as co-borrowers to the housing loan. This shall likewise be in accordance with the policy on tacked loans as provided for in Section 3.4 hereof.
In the event that the co-borrower signifies an intention to avail of a Pag-IBIG housing loan for himself/herself, the principal borrower's net disposable family income shall be re-evaluated to determine whether he/she is capable to take on the original housing loan independent of the co-borrower. Upon arriving at favorable findings, the co-borrower shall be released from the original obligation and shall be allowed to avail of his/her own Pag-IBIG housing loan, subject to the evaluation of his/her own net disposable income.
3.3 - Loan-to-Collateral Ratio
The ratio of the loan amount to the appraised value of the collateral shall not exceed the following rates:
Loan Amount With Buyback
Guaranty Without Buyback Guaranty/
Up to P300,000
Over P300,000 to P750,000
Over P750,000 to P1M
Over P1M to P2M
3.4 - A maximum of three (3) qualified Pag-IBIG members may be tacked into a single loan which is secured by the same collateral, provided they are related within the first civil degree of consanguinity or affinity.;
4.1 - The Pag-IBIG Abot-Kamay Pabahay Program shall bear interest at the following rates per annum:
Over P300,000 to P500,000
Over P500,000 to P1,000,000
Over P1,000,000 to P2,000,000 6%
Such interest rate shall accrue on the basis of 365-day actual days elapsed.
4.2 - Repricing
4.2.1 - For loans up to Three Hundred Thousand Pesos ( P300,000), Pag-IBIG Fund may reprice the interest rate once every five years provided that it shall not exceed the original rate.
4.2.2 - For loans over Three Hundred Thousand Pesos (P300,000.00) up to Two Million Pesos ( P2,000,000.00), Pag-IBIG Fund shall reprice the interest rate once every five years at rates based on prevailing market rates at point of repricing which shall not exceed the following:
Original Loan Amount Interest rate
Over P300,000 to P500,000
Over P500,000 to P1,000,000
Over P1,000,000 to P2,000,000 9%
5. LOAN TERM
5.1 - The housing loan shall be repaid at a maximum term of thirty (30) years, and shall in no case exceed the difference between the present age and age seventy (70) of the principal borrower.
5.2 The borrower shall be allowed to lengthen or shorten the loan term only once during the life of the loan.
5.3 Acquired assets disposed of through Pag-IBIG housing loans shall have a maximum loan term of thirty (30) years.
6.1 - The loan shall be paid in equal monthly amortizations in such amounts as may fully cover the principal and interest, as well as insurance premiums, over the loan period, and shall be made, whenever feasible, through salary deduction.
a. The borrower shall execute the Authority to Deduct the monthly loan amortization from his salary, and shall secure the conforme of his employer for the purpose.
b. Pag-IBIG Fund and the employer shall enter into a Collection Agreement stipulating, among others, that the deduction for the employee's Pag-IBIG housing loan shall have priority over other obligations of the same nature after all statutory deductions have been effected.
6.2 - The monthly amortizations may also be paid to Pag-IBIG Fund through any of the following modes:
b) If the developer has a Collection Servicing Agreement (CSA) with Pag-IBIG Fund, payments shall be remitted to the developer.
c) issuance of postdated checks initially to cover the first twelve (12) monthly amortizations. Developers with Collection Servicing Agreement (CSA) with Pag-IBIG Fund shall have custody of the PDCs. Meanwhile, PDCs for accounts of developers not covered by CSAs shall be kept in the Fund's possession.
d) auto debit arrangement with banks
e) any other collection system which the Fund may implement in the future
6.2.2 Accounts not covered by buyback guaranty
a) issuance of postdated checks, initially to cover the first twelve (12) monthly amortizations
b) auto debit arrangement with banks
c) any other collection system which the Fund may implement in the future
6.3 - The first monthly amortization shall be deducted from the loan takeout proceeds. This requirement, however, shall be mandatory only for accounts that are not covered by buyback guaranty. Developers that provide buyback guaranty to its accounts may opt not to have the first monthly amortization deducted from the takeout proceeds. For purposes of recording, the basis of the PFR date (initial payment) for the payment shall be the takeout date.
Succeeding monthly payments of accounts that are subject to the deduction of first monthly amortization shall commence on the second month immediately following loan takeout/final loan release. On the other hand, succeeding monthly payments of accounts not falling on the above category shall commence on the month immediately following loan takeout/final loan release. The monthly payments shall be paid on the date that coincides with the date of loan takeout/final loan release, e.g. on the 17th
6.4 - The borrower who fails to pay the full monthly amortization and/or other loan obligations when due shall pay a penalty of 1/20 of 1% of the amount due for every day of delay.
Similarly, accounts taken out under earlier Pag-IBIG Fund housing programs shall be charged with penalties against any unpaid amount should the borrower fail to pay the full amortization and/or other loan obligations when due. The charging of penalties shall be governed by the guidelines prevailing at the time of loan takeout.
6.4.1 - For accounts released from September 10, 1988 up to November 22, 1994 (taken out under Circular Nos. 55,62,65,90, 90-A, 106, 119, and 122), the penalty rate shall be 1/10 of 1% of the amount due for every day of delay
6.4.2 - For accounts released from November 23, 1994 up to November 8, 2001 (taken out under Circular Nos. 127, 127-A, 148, 148-A, 171 and
178), the penalty rate shall be 1/20 of 1% of the amount due for every day of delay
6.5 - The upgraded membership contributions, net of the mandatory contributions (except in the case of individual payors / self-employed / POP who shall be shouldering both the EE and ER share), corresponding to the borrower's approved loan shall be paid together with the borrower's monthly amortization and shall be considered as contributions for the applicable month.
6.6 - A borrower's monthly payments shall thus be applied according to the following order of priority:
b) upgraded membership contributions
c) insurance premiums
d) interest, and
The loan shall be secured by collateral consisting of the same residential properties to which the loan proceeds are applied.
7.1 - For loans that are covered by buyback guaranty and are secured by properties which are bought from developers, the security shall consist of a First Real Estate Mortgage or a Contract to Sell (CTS) on the subject properties, fully covering the payment of the obligation, as stipulated in the corresponding loan agreement and promissory note of the borrower (for REM), or the Deed of Assignment (for CTS)
7.2 - For loans which are not covered by buyback guaranty and are secured by properties which are bought from developers, the security shall consist of a Contract-to-Sell on the aforesaid properties, fully covering the payment of the obligation, which shall likewise be stipulated in the Deed of Assignment.
The loan however, may be secured by a First REM instead of a CTS, and exempted from the buyback provision, provided any of the following conditions are complied with:
The borrower pays the advance amortizations for twenty-four (24) months;
The loan-to-collateral ratio does not exceed 70%.
7.3 - For loans which do not belong to the category of developers' accounts, the security shall consist of a First Real Estate Mortgage on the subject properties fully covering the payment of the obligation as stipulated in the corresponding loan agreement and promissory note of the borrower.
7.4 - The property must be covered by an Original Certificate of Title (OCT), Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) issued by the Register of Deeds, free from all liens and encumbrances; and must be registered in the name of:
7.4.1 - Any one or more of the borrowers, (except in the case of accommodation mortgages), in the case of a real estate mortgage (REM)
7.4.2 - The developer or the land owner, if the developer has a Special Power of Attorney under a joint venture agreement, in the case of a Contract to Sell (CTS), provided that the Deed of Assignment of the CTS and the property is annotated in the title in favor of Pag-IBIG Fund
7.5 - Accommodation mortgages shall be allowed only for borrowers who are related up to the first civil degree of consanguinity or affinity, subject to the following requirements:
7.5.1 - The owner shall constitute the first mortgage as accommodation mortgagor, to secure the borrower's loan obligation or give the latter the special power to do so; and
7.5.2 - The borrower shall undertake and sign as co-mortgagor, to fully cover the residential unit and improvements thereon
7.6 - The real estate taxes on the property must be updated as of the quarter immediately preceding the date of loan application, and yearly thereafter during the term of the loan.
7.7 - For developer accounts, the properties subject of the loans shall be appraised by Pag-IBIG Fund in two stages:
7.7.1 - A preliminary appraisal (PA) which may be undertaken prior to actual development and house construction upon the request of the developer, and payment of the corresponding appraisal fees; and
7.7.2 - A collateral inspection/validation to be undertaken upon completion of the house construction and land development servicing the houses constructed, for which a Collateral Appraisal Report (CAR) shall be issued.
The housing unit and the facilities fronting the unit for takeout must be 100% complete, and an occupancy permit presented by the borrower at the time of loan takeout, if the purpose of the loan is to purchase a residential unit (PRU)
Appraisal of developer accounts conducted by the Home Guaranty Corporation (HGC) shall be validated by the Fund
7.8 - For other accounts, the property subject of the loan shall likewise be appraised by Pag-IBIG Fund
A Pari-Passu arrangement with any institution acceptable to Pag-IBIG Fund, such as but not limited to provident funds, shall be allowed wherein said institution can extend its own loan (not for Pag-IBIG Fund takeout), in addition to the Pag-IBIG member housing loan, secured by the same collateral, on a pro-rata sharing of the mortgage lien, subject to the following conditions:
8.1 - Pag-IBIG Fund shall have physical possession of the mortgages, regardless of the loan amount extended by the other institution
8.2 - In computing the credit capacity of the borrower, the income already considered in determining the Pag-IBIG housing loan entitlement of the borrower shall be excluded.
8.3 - In case of default, the following shall apply:
d) Cross-default - Default in the monthly payments for either amortization shall constitute default in both.
e) Foreclosure - When foreclosure becomes necessary or advisable, proceedings may be initiated either by the Fund or the originating institution upon mutual agreement by both parties.
f) Proceeds - Foreclosure proceeds shall be divided according to the ratio of loan exposure of the Fund and the originating institution after deducting all the legal and incidental expenses.
The borrower shall be compulsorily covered by mortgage/sales redemption insurance and fire insurance:
9.1 Mortgage/Sales Redemption Insurance (MRI/SRI) - A borrower who is not beyond sixty-five (65) years old and six (6) months at the time of housing loan application shall be covered by the MRI/SRI, provided that he/she shall not be over seventy (70) years old on his birthday nearest the date the original housing loan expires. The MRI/ SRI coverage of the borrower shall be subject to the schedule of insurance in the Pag-IBIG Fund Master Policy.
In the case of borrowers who are tacked into a single loan, only the principal borrower shall be covered by the MRI/SRI to the full extent of the loan. Thus, the entire loan shall be extinguished by the MRI/SRI, should the principal borrower die. On the other hand, the principal borrower shall continue to amortize the entire loan, should one or both of his co-borrowers die.
9.1.1 - Interim Coverage
The interim MRI/SRI coverage on the principal borrower under the automatic coverage system shall take effect on the date of the issuance of the Notice of Approval (NOA) or Letter of Guaranty (LOG) by Pag-IBIG Fund.
9.1.2 Regular Coverage
a) The regular coverage shall be a non-medical yearly renewable term insurance (YRT) for which Pag-IBIG housing loan borrowers shall pay a uniform premium rate effective on the date of loan-takeout.
b) The amount of coverage shall be the original amount of the loan.
9.2 - Fire and Allied Perils Insurance - The borrower shall obtain fire and other allied perils insurance on the property mortgaged or subject of the Contract to Sell for an amount equivalent to the appraised value of the residential unit or the loan amount, whichever is lower.
9.3 - Premium Payments - The annual premium for the first year of coverage shall be prepaid and shall be deducted from the loan proceeds upon loan takeout. Premiums due for the second year, and every year thereafter that the insurance coverage is in force shall be prepaid on a monthly basis and shall be collected together with the monthly loan amortization.
9.4 All housing loan applicants registered under the Pag-IBIG Overseas Program and working overseas shall be charged an additional two pesos per thousand of coverage per year (P2.00/P1,000/annum).
9.5 No Evidence Limit (NEL) - The NEL shall be P2,000,000. As such, all borrowers up to 60 years old with loans of up to P2,000,000 shall no longer be subjected to underwriting approval.
9.6 Borrowers over 60 years old shall be required to submit a Health Statement Form (filled out by the applicant in his own handwriting, duly signed and dated, and witnessed by two persons) for underwriting approval.
9.7 FME for POP members over sixty (60) years old - The full medical examination (FME) report may be dispensed with for loan applicants under the Pag-IBIG Overseas Program who are over 60 years old. In its place, the Health Statement Form shall be submitted, filled out by the applicant in his own handwriting, duly signed and dated, and witnessed by two persons. The applicant shall also be required to submit a copy of the result of his medical examination conducted prior to his assignment overseas as required by his employment agency.
Should the applicant's health be found "sub-standard", the corresponding sub-standard rating shall be applied, and the applicant shall also be charged the additional extra premium.
10.1 - A borrower shall be allowed to prepay his loan in full or in part without prepayment penalty, pursuant to Republic Act 7394.
10.2 - Accelerated payments - any amount paid in excess of the required monthly amortization shall be applied automatically to principal, unless otherwise expressly requested by the borrower.
The treatment of excess payment the borrower prefers must be noted on/properly disclosed in the Pag-IBIG Fund Receipt (PFR).
11.1 The borrower shall be considered in default when he or any of his co-borrowers fails to pay any three (3) consecutive monthly amortizations and/or monthly membership contributions and other obligations on the loan.
11.2 - At point of default, the outstanding loan, together with accrued interest, penalties, fees and other charges, shall become immediately due and demandable. The said amount shall likewise be subject to the following:
11.2.1 - A penalty equivalent to 1/20 of 1% of the total amount due (comprised of the principal, accrued interests, insurance premiums, and penalties already incurred on unpaid amortizations) for every day of delay.
11.2.2 - It shall continue to bear interest at the stipulated rate from the time the outstanding loan become due and demandable.
11.3 Pag-IBIG Fund may adopt the following remedies:
a. Cancellation of the CTS;
b. Call against the warranty of the developer to buy back the defaulting account
11.3.2 - For Loans Secured By Real Estate Mortgage (REM)
a. The account shall be endorsed for foreclosure
b. Default shall also constitute a lien on the Total Accumulated Value (TAV) of the member's savings with Pag-IBIG Fund.
12. LOAN CHARGES
The borrower shall pay a Processing Fee of Three Thousand Pesos (P3,000.00), which shall be paid as follows:
a. One Thousand Pesos (P1,000.00) upon filing of the loan application, which shall be non-refundable if the loan is disapproved;
b. Two Thousand Pesos (P2,000.00) upon loan takeout.
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.
ATTY. ROMERO F. S. QUIMBO
President and Chief Executive Officer
Official Information from PAG-IBIG Official Website