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OBJECTIVES

1. To provide a ready inventory of completed housing units in a project to be known as a Pag-IBIG City, which shall be available for sale at more affordable prices to Pag-IBIG members, who shall likewise be assured that the project meets the standards of the HDMF as to land development and house construction.
2. To lower project financing costs since HDMF shall provide a faster turnaround of the developer’s investment, thereby increasing his capacity for housing production. This shall redound to the benefit of Pag-IBIG members in terms of lower priced housing packages.
3. To simplify and facilitate the processing of end-user financing, given time-savings realized in the wholesale appraisal and inspection of housing units in one project, and the use of the modified CTS scheme in lieu of the REM scheme, where applicable.
TERMS AND CONDITIONS FOR AVAILMENT
1. Amount.

Each drawdown shall not exceed 70% of the lower of two values:

• the developer's selling price; or
• HDMF’s appraised value of the completed house and lot units which are delivered to HDMF in accordance with the terms and conditions of the MOA.
  
2. Maturity - Each drawdown shall have a maturity period of six (6) months.
3. Interest.

The loan shall bear an interest rate defined as the prevailing market rate of 2-year Treasury Notes at point of drawdown, plus 3% during the six (6) months marketing period, and 5% thereafter.

4. Loan Payment

The loan principal and the applicable accrued interest charges shall be paid from the take-out proceeds.

5. Processing Fee

The developer shall pay a non-refundable processing fee of P10,000.00.



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