Home > Benefits and Programs > Wholesale Lending > Pag-IBIG Credit Facility for Private Developers

OBJECTIVE

The Program aims to provide a liquidity mechanism for private developers to enable them to continue developing housing projects pending the take-out of delivered and complete housing loan applications.

ELIGIBILITY

The program shall be made available to accredited developers awaiting take-out of delivered and complete housing loan applications, and who satisfy the following criteria set by the HDMF Credit Evaluation Committee, among others:

1. Must have an established track record of delivering quality mortgages to HDMF.
2. Must have had previous satisfactory dealings with HDMF under any of its homelending programs, and/or the NHMFC as originator under the UHLP.

AMOUNT/TERM OF CREDIT LINE

An accredited developer shall be granted a revolving credit line up to a maximum of P40.0M.

The credit line shall be made available for a maximum term of one (1) year from the date of execution of the MOA between HDMF and the developer, renewable for another year thereafter.

The MOA shall stipulate, among others, that the developer shall secure an interim fire and other allied perils insurance on the property assigned/mortgaged to the Fund for an amount equivalent to the funds released by Pag-IBIG Fund.

TERMS AND CONDITIONS FOR AVAILMENT

1. Amount

Each availment shall not exceed 70% of the total value of takeout proceeds or collectibles assigned to HDMF, computed on the basis of the loan amounts applied for, minus the MRI and Fire Insurance premiums due thereon.

2. Maturity

Each availment shall have a maturity period of 120 calendar days.

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%.

4. Loan Payment

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

5. Penalty

The developer who fails to pay his loan obligations when due shall be charged a penalty of 1/20 of 1% of any unpaid amount for each day of delay or 18% p.a..

6. Processing Fee

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