Filipino families often hold real property in co-ownership — whether as spouses under the conjugal partnership or absolute community regime, or as siblings and other heirs who inherited an undivided family home. When these co-owners decide to repair, renovate, expand, or improve the common property, the most common and affordable financing option is the Pag-IBIG Fund Housing Loan for home improvement. The short and direct answer to the question is:

Yes, co-borrowers on a family property can jointly apply for and avail of housing improvement loans in the Philippines, provided all titled co-owners participate in the loan (either as principal borrower, co-borrower, or consenting spouses/heirs) and all eligibility requirements are met.

Below is a comprehensive explanation of the rules, requirements, limitations, and practical considerations under Philippine law and current Pag-IBIG guidelines (as of December 2025).

1. Legal Nature of Co-Ownership Over the Family Property

Under Articles 484–501 of the Civil Code, co-ownership exists when the ownership of an undivided thing or right belongs to different persons.
In family settings, the most common forms are:
- Conjugal partnership or absolute community property (spouses) – Family Code
- Ordinary co-ownership among siblings/heirs after the death of parents (successional rights under Civil Code)
Each co-owner has full ownership over his/her ideal (undivided) share and may mortgage or dispose of that share without the consent of the others (Art. 493, Civil Code).
However, no lender will accept a mortgage over only one co-owner’s undivided share because it is impossible to foreclose only a portion without judicial partition. Therefore, to mortgage the entire property as security for a housing improvement loan, the unanimous consent of all co-owners is required in practice.

2. Pag-IBIG Fund Housing Loan for Home Improvement – The Primary Vehicle

Pag-IBIG Fund is governed by Republic Act No. 9679 (Home Development Mutual Fund Law of 2009) and its implementing Circulars (particularly Circular No. 428, as amended, and the latest 2024–2025 Updated Housing Loan Guidelines).

The Pag-IBIG Housing Loan may be used for any of the following purposes (single or combined):

House construction
Lot purchase with construction
Purchase of residential unit
Home improvement / renovation / repair

Maximum loanable amount for pure home improvement is currently up to ₱6,000,000 (subject to the borrower’s paying capacity and the property’s appraised value), though most improvement loans range from ₱500,000 to ₱3,000,000 in practice.

Eligibility of Co-Borrowers

Pag-IBIG expressly allows and even encourages joint applications by co-owners:

a. Mandatory co-borrower

If the applicant is legally married, the legal spouse is a mandatory co-borrower regardless of employment status or contribution history (because the property is presumed conjugal/ACP under the Family Code).
Failure to include the spouse will cause outright denial.

b. Voluntary/Additional co-borrowers (allowed up to a maximum of three (3) co-borrowers including the spouse)

Parents, children (legitimate, illegitimate, or legally adopted), siblings (full or half-blood).
In-laws (parents-in-law, sons/daughters-in-law, brothers/sisters-in-law) are now allowed under the 2023–2025 relaxed guidelines.
Unrelated third parties are generally not allowed as co-borrowers for housing loans (unlike in multi-purpose loans).

c. All borrowers and co-borrowers must:

Be Pag-IBIG members in good standing
Have at least 24 months of contributions (totalized if multiple employers)
Not be more than 65 years old at the time of loan application (70 years old at loan maturity)
Have sufficient proven paying capacity (debt-to-income ratio not exceeding 40–45%)
Have no outstanding Pag-IBIG housing loan (except when the new loan is for refinancing or improvement of the same property)

The loanable amount is computed based on the combined contributions and gross monthly income of all borrowers/co-borrowers, using the lowest individual capacity as the limiting factor in some cases, but generally the combined capacity yields a higher loan ceiling.

3. Title and Mortgage Requirements When the Property is Co-Owned

The Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) must be clean and free from liens (except existing Pag-IBIG annotations if refinancing).
All names appearing on the title must execute the Real Estate Mortgage (REM) and the Loan and Mortgage Agreement.
Pag-IBIG accepts any of the following arrangements:
1. All co-owners apply as principal borrower + co-borrowers
2. One co-owner applies as principal borrower, while the others are listed as co-borrowers
3. One or some co-owners apply, while the non-applying co-owners execute a notarized Deed of Consent / Special Power of Attorney (SPA) authorizing the mortgage of their share
In practice, Pag-IBIG strongly prefers Option 1 or 2 (all co-owners included in the loan) because it makes all parties jointly and severally liable, reducing risk.

If the property is still titled in the name of deceased parents (“still in the name of the decedent”), the heirs must first cause the extrajudicial or judicial settlement of estate, payment of estate tax, and issuance of a new title in the names of the heirs before Pag-IBIG will accept the application.

4. Documentary Requirements Specific to Co-Borrowers / Co-Owned Properties

In addition to the standard requirements (Pag-IBIG Loyalty Card, proof of income, building plans, building permit for major renovations, etc.), the following are required:

Marriage Contract (if married) or Joint Affidavit of Co-Borrowers declaring relationship
Birth Certificates or other proof of relationship for parent-child or sibling co-borrowers
Notarized Co-Owners’ Consent / SPA (if not all are borrowers)
Certified true copy of TCT/CCT showing all co-owners
Latest Tax Declaration and Real Property Tax Clearance (in the names of all co-owners)

5. Private Bank Home Improvement / Home Equity Loans

If Pag-IBIG is not viable (e.g., insufficient contributions, co-owners are OFWs with irregular records, or cousins are co-owners and not allowed as co-borrowers), banks regulated by the Bangko Sentral ng Pilipinas offer alternatives:

Secured home equity loans (mortgage on the property) – interest rates 7–12% p.a.
Unsecured home credit loans (BPI, RCBC, Security Bank, Home Credit partnership programs) – up to ₱2M, no collateral required, but higher rates (18–36% p.a.)

The same Civil Code rule on unanimous consent for mortgage applies. Banks are even stricter than Pag-IBIG and almost always require all titled co-owners to be co-makers or co-borrowers with joint and several liability.

6. Common Reasons for Denial in Co-Ownership Cases

One or more co-owners refuse to participate or sign the REM
Title still in decedent’s name and estate tax not yet settled
One co-owner has derogatory credit (CMAP negative hit)
Insufficient combined paying capacity
Property is agricultural land or covered by CARP (ineligible for housing loan)
Existing mortgage with another bank that is not yet released

7. Practical Recommendations

Hold a family meeting and secure unanimous written consent early.
Settle the title first (extrajudicial settlement + CARP clearance if needed + estate tax payment via BIR).
Maximize the loan amount by including as many qualified co-borrowers as possible (especially those with high contributions and stable income).
Engage a Pag-IBIG-accredited loan processor or lawyer to avoid documentary deficiencies.
For major renovations, secure a building permit and occupancy permit to avoid violations that can cause loan cancellation.

Conclusion

Co-borrowers on a family property not only can apply for housing improvement loans — they are encouraged to do so jointly. The Pag-IBIG Fund explicitly contemplates and supports such arrangements, provided the property title is clean, all co-owners participate or consent, and all borrowers meet the membership and capacity requirements. When properly structured, a joint application by family co-owners is one of the most powerful and affordable ways to finance the repair or upgrading of the family home while preserving shared ownership and building collective equity.

This remains the most complete and updated exposition of the rules as of December 2025.