People nowadays are picking Home Loans for their different needs. One opts for home loans for variety of purposes such as construction of home, its renovation and extension as well as buying and purchase of home or property. Varied alternatives are also available for the customers. An individual is offered all alternatives of Home Loans to choose from depending on their requirement. The Housing Finance Companies (HFCs) provides various options today to encourage their customer.
The following is the list of different types of Home Loans you can avail from the market:
- Home Purchase Loans
- Home Construction Loans
- Home Improvement Loans
- Home Extension Loans
- Home Conversion Loans
- Land Purchase Loans
- Stamp Duty Loans
- Bridge Loans
- Balance Transfer Loans
- Refinance Loans
- Loans to NRIs
Home Purchase Loans are the basic home loan you can opt for purchasing new home or old house from its previous owner. . This type of Home Loan is offered by all kinds of Banks and HFCs.
Home Construction Loans:
These loans are sanctioned to construct a house on a piece of land you have already purchased. Formality of getting this loan has a little different from the normal Housing Loan. The plot on which the construction is being raised is purchased within a period of one year, the cost of the plot is then also included as the part for the valuation of total cost of the property. But in case the date of purchase exceeds one year to the date of application the above condition is not applicable.
Home Extension Loans:
Home extension loans are offered for expanding or extending an existing house. For example: addition of an extra room, a floor etc.
Home Conversion Loans:
These loans are available for people who have already purchased a house by taking a home loan but now want to buy and move to another house. Through this loan, the existing loan is transferred to the new home including the extra amount required and there is no need for pre-payment of the previous loan.
Land Purchase Loans:
Land Purchase Loans can be availed for purchasing land for both residential / home construction as well as investment purposes.
Stamp Duty Loans:
Stamp Duty Loans is offered for the payment of stamp duty in the transaction of the property.
Bridge Loans are offered for selling the existing home and purchasing of another. The bridge loan helps in the finance of new home, until a buyer is found for the old home.
Balance Transfer Loan: These loans are availed to transfer one’s home loan from one bank to another. That means transfer of the loan is the transfer of the balance of an existing home loan at a higher rate of interest (ROI) to either the same company or another. It is usually done to repay the left over amount of loan at lower interest rates or when a customer is unhappy with the services provided by his existing home loan provider and wants to switch to a different bank.
NRI Home Loans:
NRI Home Loans are specialized loans which meant for Non-Resident Indians who wish to build or buy a home or property in India.
Source & Image: Net