According to Bangko Sentral ng Pilipinas (BSP), a co-maker or co-borrower “is a person who, by contract, promises to pay another person’s (principal borrower) loan if that person fails to do so.”

Pag IBIG allows up to three people (including the principal borrower) to share in a single housing loan. A housing loan shared by co-borrowers is also known as a tacked loan. 

The co-borrowers or co-makers can be a relative (within the second degree of consanguinity or affinity) or non-relative.

People within the second degree of consanguinity are related to you by blood. These include your parent/s, child, siblings, grandparent/s, and grandchildren. Those within the second degree of affinity, on the other hand, include your spouse and in-laws.

Pag IBIG will evaluate both the principal borrower and the co-borrower/s to make sure they meet all eligibility requirements, specifically gross monthly income which is useful in gauging one’s capacity to pay.

If the co-borrowers are non-relatives, aside from having the eligibility requirements I mentioned previously, they should also meet the following conditions as stated in Pag IBIG Circular No. 396¹:

• The purpose of the housing loan is either for the purchase of a residential unit or lot or purchase of lot with house construction;
• The subject property shall be registered in the names of all the borrowers;
• All the borrowers shall execute the REM; and
• The mortgage shall be released only upon full payment of the entire housing loan obligation.

Go to the main article: How to Apply for Pag-IBIG Housing Loan: An Ultimate Guide

References

1. Pag-IBIG Fund. (2018). Pag-IBIG Circular No. 396 (Modified Guidelines on the Pag-IBIG Fund End-User Home Financing Program). Makati City.