July 09, 2009 04:29 PM Thursday [journal.com.ph ]
VICE President and concurrent Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund (HDMF or Pag-IBIG Fund) Board of Trustees Noli “Kabayan” de Castro recently announced that the Fund is offering interest subsidy for socialized housing loan borrowers.
The program guidelines apply to borrowers whose socialized housing loans are taken out beginning 1 July 2009 to 30 June 2014. Beneficiaries shall be entitled to an interest subsidy of 1.5% per annum for the first five years of the loan term.
“Halimbawa, sa housing loan na P400,000 na may 6% interest rate, ang buwanang hulog, excluding insurance premiums and other fees, ay around P2,400. Pag-IBIG will subsidize the P500, kaya ang monthly na babayaran ay mahigit-kumulang P1,900 na lang,” De Castro explained.
Jaime Fabiaña, chief executive officer, explained that under the program, 500 beneficiaries monthly shall be chosen through a raffle from among qualified applicants evaluated from the preceding month/s.
To qualify, one must be an eligible borrower under the prevailing end-user housing loan program, and has not acquired a house or availed of a housing loan from any agency or financial institution. The loan being availed of must amount to at most P400,000. Applicant’s yearly gross family income must not exceed P180,000.
Fabiaña also said the housing loan may be used for any of the following purposes: purchase of a residential lot with selling price not exceeding P160,000; purchase of a residential unit and lot, which may be old, brand new, mortgaged with the Fund or an acquired asset; purchase of a lot and construction of a residential unit thereon; home improvement; or construction or completion of residential unit on a lot owned by the borrower.
Fabiaña, however, clarified that should the beneficiaries default, the subsidy granted to them will be forfeited. “A borrower is considered in default if she willfully misrepresents any of the documents executed in relation to the program; fails to pay three consecutive monthly loan amortizations and/or Pag-IBIG contributions. Violation of any Fund policies, rules, regulations and guidelines also constitutes default,” the CEO added.
Thus, even if the borrower paid to update his account, the amortization due for the month following the date of default and every month thereafter will be reverted to the regular monthly amortization rate.
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