Bulk sale of assets acquired by the Pag-IBIG Fund makes real estate financing more affordable

LA Subdivision and Housing Developers Association (SHDA), in conjunction with the Pag-IBIG Fund, is urging multiple groups and employers to access the Affordable Housing Finance Program through the joint and consolidated sale of its acquired assets.

“For more than 50 years, SHDA has remained steadfast, not only articulating housing industry advocacy, but also championing the welfare of member developers and providing its members with more opportunity. The Pag-IBIG fund, on the other hand, has partnered with the SHDA to provide affordable housing finance to our Kababayans,” said SHDA Chairperson May Rodriguez.

The Pag-IBIG Fund stresses that part of its mandate is to ensure that housing loan programs take into account all the stakeholders involved and that it responds to both the demand and the supply of the housing industry.

“That’s why we manage the Pag-IBIG fund prudently to keep our interest rates low and our home loans affordable. This is also why we have inclusive programs that reach out to all Filipino workers, including the public housing market,” said Marilene Acosta, Deputy Managing Director of the Pag-IBIG Fund for Home Loans.

For regular wholesale, buyers must avail at least 10 million pesos worth of properties under the negotiated sale only, while for buyer-initiated wholesale (BIBS), real estate and other property acquired (ROPA) may be in various stages of disposal, which are first and second public auctions.

The Pag-IBIG Fund urges buyers to purchase properties in bulk or in groups for a much higher discount rate of 40% for approved properties from 10 to 50 million pesos; 42% discount for more than 50 to 100 million pula; and 45% for sales over 100 million pesos for regular wholesale and BIBS.

The Pag-IBIG Fund also clarified that if buyers fail to secure properties worth 10 million pesos on their first attempt, they still have the right to bid or submit another request for three consecutive attempts in the five successive postings of properties in order to respect the ceiling prices set by Pag-IBIG to benefit from the discounts.

The Pag-IBIG Fund only approves cash or short-term installments and charges a fee of 5% of the net sale price. In addition to the down payment, a cash bank of P5,000 per property for short term installments is required.

Once the Pag-IBIG Fund has approved properties in regular bulk or BIBS, members of employee associations or cooperatives will be required to sign a Memorandum of Understanding with the Pag-IBIG Fund outlining the properties being sold and payment terms , including qualified discount.

With the considerable discount on bulk purchases, the Pag-IBIG Fund and the SHDA encourage cooperatives to extend their services to their employees to access government affordable housing. (PR)

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