HOUSING RETAIL GUARANTEE FACILITY

CASH FLOW COVERAGE

Terms and Conditions

Maximum Loan for Guarantee Coverage Type of Housing Packages (Selling Price/ Appraised Value)
  • Socialized Housing
    Up to P850,000 for Socialized Subdivision Projects (SSP) and up to P1.8 Million for Socialized Condominium Projects (SCP)*
  • Low-Cost Housing
    Above Price Ceiling of SSP and SCP up to P4.9 Million**
  • Medium-Cost Housing
    Above P4.9 Million up to P6.6 Million**
Extent of Guarantee Coverage Outstanding principal balance plus guaranteed interest
Form of Payment (Call on the Guarantee) PHILGUARANTEE shall pay the monthly amortizations of the defaulted loan at the guaranteed interest rate for the remaining term of the loan.
Government Guarantee Sovereign
Tax Exemption on Interest Income
  • Socialized Housing : 11.0%
  • Low-Cost Housing : 10.0%
  • Medium-Cost Housing : 9.5%
Loan Purpose
  • Purchase of House & Lot, Townhouse, Condominium Unit, Residential Lot and Residential Farm Lot
  • Construction of house on lot already owned
  • Major repair, improvements or expansion of an existing house
  • Refinancing of an existing loan
Security / Collateral Real Estate Mortgage or Receivables under Contract-to-Sell
First Home The Retail Loan covers the first acquisition of a house and lot or construction of a housing unit by the Borrower.
Loan Term Up to 30 years
Loan-to-Collateral Requirement
  • Socialized and Low-Cost Housing : 90%
  • Medium Cost Housing : 80%
Gross Monthly Income Ratio
  • Forty percent (40%) of the Gross Verifiable Monthly Income for those with income of at least P24,428.00
  • Thirty percent (30%) of the Gross Verifiable Monthly Income for those income less than P24,428.00
Equity / Downpayment
  • Socialized and Low-Cost Housing : 10%
  • Medium-cost Housing : 20%
Default (Consecutive non-payment of loan amortization) Monthly (amortization schedule) : 6 months
CMAP / NFIS Required
Mortgage Redemption Insurance and Fire Insurance Required
Property Location
  • Developed subdivision or classified as residential, near center of business, commerce and employment;
  • Accessible by transportation;
  • Have direct access to power/water utilities, sewerage and drainage systems; and
  • Must not be located in flood prone, landslide prone and lahar endangered areas
Guarantee Premium Rate 1.25% on all housing packages

*DHUSD-NEDA Joint Memorandum Circular No. 2023-003
**DHSUD-NEDA Joint Memorandum Circular No. 2024-001