Pag-IBIG finances 18K homes for low-wage earners

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    Pag-IBIG Fund has financed 18,715 socialized homes of minimum-wage and low-income members in the first nine months of the year.

    The Fund in a statement yesterday said socialized homes made up 29 percent of the 65,375 units financed by the agency during the period .

    In terms of amount, socialized home loans under Pag-IBIG’s Affordable Housing Program made up P7.18 billion out of the record-high P58.73 billion home loans released by the agency for the period.

    The program is open to members earning not more than P15,000 per month within the National Capital Region (NCR) and those earning not more than P12,000 per month if outside of NCR.

    Under this program, Pag-IBIG Fund maintains the lowest interest rate in the market of 3 percent per annum – a subsidized rate it has provided for minimum and low-wage workers since May 2017.

    This rate applies to socialized home loans up to P580,000.

    The Fund is able to subsidize this low interest rate due to its being a tax-exempt agency as prescribed under Republic Act No. 9679.

    Pag-IBIG   also reduced the insurance premiums of its home loans under the Affordable Housing Program.

    Qualified borrowers under this program will pay an affordable monthly amortization of only P2,445.30 for a socialized home loan of up to P580,000.

    The program carries a 100 percent loan-to-value ratio which means borrowers through the years never had to put out cash for equity.