There are multiple ways to avail of a loan and one of them is through using a land title as collateral but in and of itself, a land title loan might seem intimidatingly broad and vague. In this article, we’ll discuss what properties you own that have titles you can use for loaning and a couple of things you can maybe use the loan for.
Residential or Commercial Lot
Let’s say that you we’re able to buy a lot. You are now the proud owner of a piece of land. Whether it’s 100sqm or a hectare, you are not making the most out of it if it isn’t developed. Since you are already the owner, you can use your land title to avail of a loan and use that money for the land’s development. Not only will you sustainably be able to reclaim the title, after the loan, you will have a piece of land AND property!
House and Lot
Not that you have a land and a property on it, you have no more problems, right? Well, not exactly—there are times when emergencies might arise and you could need a big sum of money in a pinch. Luckily, if a lot also has a property on it, you can loan a bigger amount of money. You can use this to further develop your home.
Some of us might think that because we don’t have a land, we can’t apply for a land title loan but actually, condominium owners can avail it as easily. As long as you have the condominium title deed, you can use that to apply for the loan.
And to end the list, you can’t only avail of the loan using residential units; you can put up your commercial building’s title as collateral to gain an even bigger capital or fund. Using a commercial building for your land title loan may afford you a big opportunity to make expensive procurement decisions to either expand your business, or fund a different venture altogether.