Money lies at the heart of all attempts at buying a condo. When it comes to real estate, the amount of cash the average person can carry around without looking uncomfortable and conspicuous is not enough. To buy almost anything on the Philippine real estate market, one needs to have a credit line. Given that the economy isn’t exactly the easiest thing in the world to navigate these days, it isn’t always easy to appear to have a good, solid credit rating.
More restrictions
If someone interested in buying a condo has bad credit, it isn’t necessarily the end of the line. There are still a few lending agencies that will allow someone with a bad credit history to get a loan. Most of the more conventional lending agencies are likely out of the question – the person is simply too much of a risk. For the lending agencies that will let someone buy a Makati condo despite a bad history, there are probably going to be harsher terms and more fees to pay that there would be normally.
Collateral
One of the easiest ways to secure a loan, even with a horrible credit history, is to put up collateral. For someone buying a condo, this might be tough to swallow, but it is an option. Basically, it is a way of guaranteeing that the lending agency isn’t going to lose any money if the person can’t pay off the debt. The collateral is a tangible guarantee that the debt will be repaid – if not, the lending agency is within its legal right to claim possession of the item as compensation. This is harsh and risky, but it is the easiest way to get a loan, whether one has a good credit record or not.
Rent-to-own
There are also rent-to-own arrangements that might be an option for some people who are interested in buying a condo. This is basically an arrangement where the prospective owner is renting the space for a limited period for higher than the market price, with the extra amount going towards a future down payment. This is a good option since it allows them to get their credit and financial status fixed before making the commitment.
There are some options for buying a condo, even with a bad credit rating. These may not be the most pleasant and not everyone can avail of them, but they are better than nothing and may end up being the only choice available. Nonetheless, it’s possible to invest in Philippine real estate even with that kind of background. You just have to examine your choices.
