A Better Home Financing: In-House or Pag-IBIG?

Torn between choosing which financial housing loan to commit-- In-House Financing or Pag-IBIG Fund Housing Loan? Well, you need to consider a lot of things including your financial capability to recompensate the amount that you borrowed.

Unless you are not a member of Pag-IBIG Fund or got denied to avail the Pag-ibig housing loan, then In-House Financing could be your lifesaver and your best choice. Otherwise, you should take into account the qualifications, requirements, and process of these two home financing schemes before deciding which one to commit.

Through In-House Financing

Let’s take a look first what is an In-House Financing. Actually, it is a home financing program being offered by community developers to their homebuyers that includes house payment through installment method without any aid from third-party financial institutions. The application in this kind of financing scheme is pretty simple and straightforward as there are only minimal requirements to apply for this kind of loan.

And like what is said earlier, it might be the only choice for homebuyers who are not a Pag-IBIG Fund member or those who by mischance can’t get any loan from the bank or other lending institutions.

You should just need to take note that the interest rate for this kind of financial scheme is way up higher than other offers. The down payment would also be bigger and it has a short-term financing usually up to 5 years.

But if you really want to avail this kind of home loan, then it’s best if you purchase properties that are still to be constructed. Usually, community developers offer great discounts for in-housing financing loan at this phase although you might need to wait some years before you can move in to your new house.

Through Pag-IBIG Housing Loan

If you are an active member of Pag-IBIG Fund, then you might really want to consider availing their housing loan in purchasing your new home. But before you get too frantic in filing your application, you might also take into consideration these general facts when applying for a Pag-IBIG Fund Housing Loan.

When securing a home loan, institutions might require you to disclose the purpose of your loan. For Pag-IBIG, they only allow their applicants to purchase a house and lot not exceeding to 1,000 sqm. But the good thing is eligible members can borrow up to Php 6,000,000 although you would be required to submit more documents than in-house financing.

You can even avail a loan with lower annual interest rate of 3% to 4.5% per annum if you will file an application under the Pag-IBIG Funds Affordable Housing Program. Just make sure that your monthly income is less than Php 15,000 for NCR while Php 12,000 for people working outside the Metro. With this, minimum wage earners can avail a housing loan up to Php 450,000 only.

Pag-IBIG also gives its members a fixed rate terms as long as 30 years unlike in-house financing. And since fixed rate is consistent, the repayment scheme for Pag-IBIG loan is easier to compute than other financial lending institutions.

So, which one to choose?

The answer will be totally dependent on your financial capability and eligibility, including your lifestyle. In deciding which one to choose, just make sure that you select the best house and lot for your family and your needs. Whether you select in-house financing or Pag-IBIG Funds Housing Loan, keep in mind to consider the security, accessibility, and durability of your prospective dream home.

 

Lumina Homes offers both In-house Financing and Pag-ibig Home Loan.

To answer the government’s call – and the country’s need – for economic and socialized housing, the Lumina line of mass housing communities was created. Started in August 2012, Lumina envisions itself as becoming one of the top-listed housing developers in the country. In just 8 years, Lumina already has over 50 developments in key locations across the country: Rizal, Bulacan, Pampanga, Bataan, Zambales, Nueva Ecija, Tarlac, Pangasinan, La Union, Cagayan, Isabela, Cavite, Batangas, Laguna, Quezon, Camarines Norte, Albay, Sorsogon, Iloilo, Capiz, Cebu, Negros Occidental, Agusan del Norte, Zamboanga del Sur, Bukidnon, Misamis Occidental, Davao del Norte, Davao del Sur, and South Cotabato.

 

Lumina homes are built of high-quality materials and cost from Php 500,000 to Php 1,700,000. If qualified by Pag-IBIG Fund as a “low-income earner,” a buyer can pay for as little as Php 1,898 a month at 3% interest for a brand new home in a safe and secure Lumina community.

 

Sparing no expense, Lumina developments are part of masterplanned communities that come complete with amenities like a community hall, basketball court, mini gardens and playground, and commercial areas in the near future. By building in accessible locations close to major thoroughfares, transport hubs, schools, hospitals, and business and leisure centers, Lumina not just builds a self-sustaining community, it also provides every Juan the pride of homeownership.