Pursuant   to   approval   of   the   Management  Committee,  the   following guidelines on the Determination of the Loanable Amount Based on Capacity to Pay and Loan-to-Appraised Value (LTV) Ratio Under Pag-IBIG Fund End- User Home Financing Program is hereby issued:

1.    Loanable Amount Based on Capacity to Pay

The loanable amount shall be limited to an amount for which the monthly repayment shall not exceed thirty-five percent (35%) of the borrower ™s gross  monthly  income.  In  case  of  tacked  loans,  the  individual  gross monthly income of at most three (3) borrowers shall be considered.

2.    Loanable Amount Based on LTV Ratio

The ratio of the loan amount to the appraised value of the collateral shall not exceed the following:

Loanable Amount	LTV Ratio
Up to the Economic Housing Limit [a]	95%
Over the Economic Housing Limit up to P6,000,000	90%

The foregoing provisions shall repeal Item Nos. 4.1.2 and 4.2.1 of Pag-IBIG Fund Circular No. 396, or the Modified Guidelines on the Pag-IBIG Fund End- User  Home  Financing  Program.  All  other  terms  and  conditions  of  the  said Circular that are consistent with the above provisions shall continue to be in full force and effect.

This Circular takes effect after fifteen (15) calendar days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.