Terms and Conditions

Maximum Loan for Guarantee Coverage Type of Housing Packages (Selling Price/ Appraised Value)
  • Socialized Housing
    *Price Ceiling for Socialized Subdivision Project (SSP) and Condominium Projects (CP)
  • Low-Cost Housing
    *Price Ceiling for Socialized Subdivision Project (SSP) and Condominium Projects (CP) up to P3.0 Million
  • Medium-Cost Housing
    Above P3.0 Milllion up to P4.0 Million
  • Open Housing
    Above P4.0 Milllion up to P5.0 Million
Extent of Guarantee Coverage Outstanding principal balance plus interest up to nine (9) months
Form of Payment (Call on the Guarantee) PHILGUARANTEE shall pay the value of coverage in the form of debenture bonds should borrower’s default occurs within the first five years of guarantee coverage and in the form of cash should borrower’s default occurs after the first five years of guarantee coverage.
Government Guarantee Sovereign
Tax Exemption on Interest Income
  • Socialized Housing : 11.0%
  • Low-Cost Housing : 10.0%
  • Medium-Cost Housing : 9.5%
  • Open Housing : 8.5%
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%
  • Open Housing : 70%
Credit Ratio
  • Forty percent (40%) of Net Disposable Income;
  • Thirty percent (30%) of the Gross Verifiable Monthly Income for those with income less than P26,667.00;
  • Thirty five percent (35%) of the Gross Verifiable Monthly Income for those with monthly income of at least P26,667.00.
Equity / Downpayment
  • Socialized and Low-Cost Housing : 10%
  • Medium-cost Housing : 20%
  • Open Housing : 30%
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
  • Socialized Housing : 1.40%
  • Low-Cost Housing : 1.45%
  • Medium-Cost Housing : 1.50%
  • Open Housing : 1.70%

*HUDCC RESOLUTION No. 1 and No. 2 series of 2018