In today’s world, owning a house has become an important achievement. However, not everyone can afford to buy a house outright, which is where financing options come in. One such financing option is installment payments. But what if you own a house with only 2 certificates? Can you still avail of installment payments? In this article, we will explore this question and provide you with some valuable insights.
The Basics of 2 Certificates
Before we dive into the main topic, let’s first understand what 2 certificates mean. In the context of real estate, 2 certificates refer to the ownership of a property without a land title. This can happen when the property was acquired through inheritance or when there is a lack of documentation for the land. In such cases, the property owner only has two certificates: a tax declaration and an assessment certification.
Can You Avail of Installment Payments with 2 Certificates?
The short answer is yes, you can avail of installment payments even if you only have 2 certificates. However, there are some important factors that you need to consider. First, you need to find a financing institution that offers installment payments for properties with 2 certificates. Not all banks and lending companies are willing to take on this type of property, so you may need to do some research to find the right one.
Secondly, the financing institution may require additional collateral or a co-maker to secure the loan. This is because properties with 2 certificates are considered high-risk investments since there is no land title to prove ownership. As a result, the financing institution may require more assurance that they will be able to recover their investment in case of default.
Lastly, the terms and conditions of the installment payments may be different from those for properties with land titles. The interest rates may be higher, and the payment period may be shorter. It is important to carefully review and understand the terms and conditions before availing of the installment plan.
The Importance of Titling
While installment payments may be an option for properties with 2 certificates, it is important to note that having a land title is still the best and most secure option. A land title provides proof of ownership and protects the property from legal disputes. It also makes it easier to sell or transfer ownership in the future. If you own a property with 2 certificates, it is highly recommended that you work towards obtaining a land title as soon as possible.
In conclusion, owning a property with 2 certificates does not necessarily mean that you cannot avail of installment payments. However, it is important to find a financing institution that is willing to take on this type of property, and to carefully review the terms and conditions of the installment plan. It is also highly recommended to work towards obtaining a land title to protect your investment in the long run. With this information, you can make an informed decision on how best to finance your property.