The Department of Human Settlements and Urban Development (DHSUD) is expanding housing options under President Ferdinand Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino (4PH) program to move away from a “captive market” scenario for Filipino homebuyers.
DHSUD Secretary Jose Ramon Aliling said the recalibrated program, following presidential directives, focuses on a “simplified, people-centric and sustainable approach” to address homelessness.
The Enhanced 4PH program now includes horizontal developments (subdivision-like projects), a revived beneficiary-centered community mortgage program (CMP) and the promotion of rental and incremental housing. This offers a wider array of options to suit individual homebuyer needs.
The DHSUD has assigned specific tasks to its key shelter agencies (KSAs): Social Housing Finance Corp. (SHFC) for revival and enhancement of CMP with incremental housing provisions; National Housing Authority (NHA) on rental housing; Pag-IBIG Fund for exclusive low-interest rate programs for socialized housing; and National Home Mortgage Finance Corp. for the housing secondary market.
“With these, we now have more options to offer to our beneficiaries depending on the need and their capacity. Instead of the previous limited choices that render home buyers as captive market, we have transformed Expanded 4PH into a beneficiary-focused program,” said Aliling.
Previously, 4PH primarily focused on vertical (condominium-type) developments, which had limited appeal due to higher costs compared to preferred subdivision-type housing.
Following the inclusion of horizontal socialized housing in the Expanded 4PH, at least 42 private developers have committed over 250,000 units to the program within the next three years.
The recalibration of the Expanded 4PH has garnered support from four major private developers’ groups including the Chamber of Real Estate and Builders’ Associations Inc. (CREBA), National Real Estate Association (NREA), Organization of Socialized and Economic Housing Developers of the Philippines (OSHDP) and Subdivision and Housing Developers Association Inc. (SHDA).
In a joint letter dated July 7, 2025, these groups expressed their “strong and unified commitment” to addressing the country’s housing needs through the Expanded 4PH, citing commitments totaling 251,846 units. They also conveyed confidence in Secretary Aliling’s leadership.
Private stakeholders also lauded DHSUD’s efforts to simplify, streamline and increase transparency in processes under Secretary Aliling’s 8-Point Agenda. Technical Working Groups (TWGs) with private sector representation are reviewing DHSUD procedures.
The department is also pushing for full digitalization and the establishment of housing one-stop-centers. Policies for expeditious resolution of concerns and zero backlog on applications have been issued, alongside a strict “zero tolerance for corruption” stance.
“President Marcos Jr.’s directive is clear: accelerate government services and extend the Expanded 4PH to both the working class and the most vulnerable sectors of our society, so they can have their own homes. That is the direction of DHSUD, to further expand the housing program,” said Aliling.
The Pag-IBIG Fund announced a special subsidized interest rate of 3 percent per annum for the first five years of housing loans under the Expanded 4PH Program.
The special rate is available to eligible members from the lowest income segments up to the seventh income decile, as well as all overseas Filipino workers (OFWs), for the purchase of socialized housing units.
This now includes house-and-lot units, condominium units and Pag-IBIG Acquired Assets. The initiative aligns with President Marcos Jr.’s directive to expand access to affordable housing under the administration’s Bagong Pilipinas vision.
“We are pleased to report that Pag-IBIG Fund has once again stepped forward in its commitment to helping more Filipinos secure dignified homes,” said Aliling, who also chairs the Pag-IBIG Fund Board of Trustees.
“Together with the enhancements under the Expanded 4PH Program – which now covers both vertical and horizontal housing developments – Pag-IBIG Fund’s wider home financing options ensure that more Filipinos can finally achieve homeownership,” he said.
Under the Pag-IBIG Housing Loan for the Expanded 4PH Program, first-time homebuyers earning less than P47,856 per month in the National Capital Region and less than P34,686 pesos outside NCR can avail of the subsidized 3-percent interest rate for the first five years. All OFWs, regardless of income, also qualify.
The loan can be used to purchase socialized house-and-lot units priced up to P850,000 and condominium units up to P1.8 million under accredited Expanded 4PH projects.
It can also be used for Pag-IBIG Acquired Assets within these price ceilings. The program also offers an additional P100,000 for home improvements and a 100-percent loan-to-value ratio, eliminating the need for cash equity from borrowers.
Pag-IBIG Fund CEO Marilene Acosta attributed the agency’s ability to offer low interest rates to its strong collection efficiency, eliminating the need for external borrowing. She noted this aligns with Pag-IBIG Fund’s 10-year plan to deliver double-digit dividends on members’ savings while allocating half of its housing portfolio to 3 percent interest rate loans through efficient asset management.
“Our robust financial position allows us to extend this special subsidized rate under the Expanded 4PH Program, enabling even more members – including private-sector workers, government employees, uniformed personnel, OFWs, self-employed individuals, and informal-sector workers – to achieve sustainable homeownership,” Acosta said.
