Are You Aware of Various Home Loans?

Bangalore:  While buying a house, most of the buyers seek Home loans which are suitable to meet their needs and requirements.  Investing in a property involves enormous investment and buyers should know the types of home loans before they apply for the one they are looking for. To avail perfect home loans scheme, the list below briefs about the different types of loans.

Home Purchase Loans:  This is one of the traditional home loans which we all know when the word ‘home loans’ comes to our mind. This is one of the basic types of loans that is required at the time of buying a new home or apartment.

Home Construction Loans: This loan is offered for the construction of a new home on a particular property. Home construction loan is different than the basic home purchase loan in terms of documents, terms and conditions. Like, after purchasing a land if you happen to start construction work of your house with one year and apply for a loan then most of Housing Finance Companies (HFCs) will include the land cost in the valuation of total cost of property, and in case the period between purchasing of a land and application exceeds one year than land cost will not be included in the valuation of total cost of property.

Home Extension Loan: This loan is available at the time of addition or modification of an existing building. This loan will help you to congregate funds while extending your house to add extra rooms, Bathrooms, porch etc. moreover, to avail this loan facility, you have to get mandatory approval from the concerned municipal corporation.

Home Conversion Loans: This is preferred for those who have funded their existing home with a home loan and desire to buy and move to another home that requires some additional fund. Home conversion loan help you to carry the present home loan onto the new home including the extra amount involved, while excluding the need for pre-payment of the previous loan.

Bridge Loans: The intention of this loan is to bridge the gap between the purchases of a new home and to sell the old home. The amount difference between the two is funded by bridge loan. This loan is available when buyers want to sell their existing home and to buy a new home. The purpose of the bridge loan is to help the buyers by financing on their new home until a buyer is found for the old home.

Home Improvement Loan: This loan is available at the time of repair works for an existing home. The loan would help you meet the repair work expenses like plumbing, electrical work, flooring and waterproofing. One can apply for this loan only after the necessary approval is granted from the relevant building authority.

Land Purchase Loans: One of the most availed types of loan scheme where the main function is to provide funds at the time of land purchasing, either for construction or investment purposes.

NRI Home Loans: This loan is customized to meet the requirements of Non-Resident Indians (NRIs) who desire to purchase home and to invest in residential properties in India. The Housing Finance Companies (HFCs) provide attractive housing finance schemes for NRIs with appropriate refund options.