Owning a home is a dream shared by many individuals and families. It provides security, stability, and a place to call your own. If you are considering purchasing a house in the Philippines, you may have come across the option to assume a Pag-IBIG housing loan. This can be an attractive choice, especially if you find a property that already has an existing loan with the Pag-IBIG Fund. In this article, we will explore the process of assuming a Pag-IBIG housing loan and answer some frequently asked questions related to this topic.
Assuming a Pag-IBIG housing loan can be a straightforward process if you follow the necessary steps. To begin, you must ensure that the property you are interested in assuming the loan for is eligible for this type of transaction.
How to assume a Pag-IBIG housing loan?
The first step is to contact the Pag-IBIG branch where the loan was filed and inquire about the assumption process. They will provide you with the required forms and list of documents needed for assessment. Once you have gathered the necessary documents, submit them to the Pag-IBIG branch for evaluation.
After submitting the required documents, the Pag-IBIG Fund will assess your capacity to assume the loan. They will review your financial capacity, credit history, and other relevant factors. If you meet their criteria, the loan assumption will proceed. The next step involves coordinating with the seller to execute the necessary documents, such as the Deed of Assignment and Assumption of Mortgage. These documents legally transfer the rights and obligations of the loan from the seller to the assumptor (buyer).
Once the documents are finalized and signed, you need to pay the necessary fees, such as assumption fees and transfer fees. The Pag-IBIG branch will calculate the exact amount you need to settle based on their guidelines. It’s important to note that the remaining balance of the loan will still have to be paid, either through cash, a new loan, or a combination of both. Consult with the Pag-IBIG Fund to determine the best course of action for you.
Frequently Asked Questions:
1.
Can anyone assume a Pag-IBIG housing loan?
No, only individuals who are eligible to avail of a Pag-IBIG housing loan can assume an existing loan.
2.
Can I assume a Pag-IBIG loan for a property that is not eligible for a housing loan?
No, only properties that meet the requirements for a Pag-IBIG housing loan can be assumed.
3.
What are the fees associated with assuming a Pag-IBIG housing loan?
The fees include assumption fees and transfer fees, which will be determined by the Pag-IBIG Fund.
4.
Do I need to undergo a credit evaluation to assume a Pag-IBIG housing loan?
Yes, the Pag-IBIG Fund will assess your financial capacity and credit history before approving the loan assumption.
5.
Can I assume a Pag-IBIG housing loan even if I already have an existing loan with Pag-IBIG?
Yes, as long as you meet the necessary requirements and can handle both loans.
6.
Can I assume a Pag-IBIG housing loan if I am self-employed?
Yes, self-employed individuals can assume a Pag-IBIG housing loan as long as they meet the eligibility criteria.
7.
What happens if the seller has outstanding loan balances?
The buyer assumes responsibility for the remaining balance of the loan upon assuming the Pag-IBIG housing loan.
8.
Can I assume a Pag-IBIG housing loan for a property located outside the Philippines?
No, the Pag-IBIG housing loan program is specifically for properties located within the country.
9.
How long does it take to process a Pag-IBIG housing loan assumption?
The processing time may vary, but it usually takes a few weeks to a couple of months depending on the circumstances.
10.
Can I assume a Pag-IBIG housing loan if I am not a Filipino citizen?
Yes, foreign nationals who meet the eligibility criteria can assume a Pag-IBIG housing loan.
11.
What happens if the loan assumption is not approved?
If the loan assumption is not approved, you may explore alternative financing options or search for another property.
12.
Can I assume a Pag-IBIG housing loan for a property that is already fully paid?
No, you can only assume a loan if there is an existing balance that needs to be settled.
Assuming a Pag-IBIG housing loan can be an excellent opportunity to own a property with an existing loan. It provides a streamlined process and potential financial advantages. If you are interested in this option, make sure to carefully review the eligibility requirements, gather the necessary documents, and follow the steps outlined by the Pag-IBIG Fund. By doing so, you can work towards achieving your dream of homeownership in the Philippines.