Pag-Ibig Fund finances 2,968 homes for low-wage earners in Q1 2023

THE Home Development Mutual Fund, better known as the Pag-Ibig Fund, has financed 2,968 socialized homes for minimum-wage and low-income members in the first three months of 2023, its top executives said on Tuesday, May 9.

Socialized home loans make up 14 percent of the 21,870 units financed by the agency from January to March this year. The amount of socialized home loans represents five percent or P1.26 billion out of the P27.57 billion home loans released by the agency for the period.

“We always emphasize inclusivity as a major pillar in the implementation of the Pambansang Pabahay para sa Pilipino Housing or 4PH Program. With the Pag-Ibig Affordable Housing Program, we provide the unserved and underserved sectors, particularly low-wage earners in our country, the opportunity to own a home,” said Secretary Jose Rizalino Acuzar, who leads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-Ibig Fund board of trustees.

“All these are in line with the directive of President Ferdinand R. Marcos Jr. to provide our fellow Filipinos with better and dignified lives,” he added.

The Affordable Housing Program is for members from the low-income and minimum-wage sectors who earn up to P15,000 a month in the National Capital Region (NCR), and up to P12,000 per month outside the NCR.

Under the program, borrowers enjoy a subsidized rate of three percent per annum for home loans of up to P580,000 for socialized subdivision projects, and up to P750,000 for socialized condominium projects.

Affordable Housing Program’s special rate of three percent per annum – a rate that the agency has provided for low-income members since May 2017 – remains the lowest in the market, according to PagIbig Fund chief executive officer Marilene Acosta.

The loan program also features a 100 percent loan-to-value ratio allowing borrowers to enjoy equity-free purchase of housing units.

Acosta said with the loan program, the monthly payment for a socialized housing unit is as low as P2,445.30, which is lower than the cost of rent in most parts of the country.

“Qualified borrowers will never have to put out cash for equity, truly making homeownership within their reach. That is the Lingkod Pag-IBIG brand of service,” Acosta said.