It’s easy to become overwhelmed by the jargon and many sorts of mortgage options available when looking for a house loan. Learn more about the most common types of mortgages and discover whether you qualify for any of the specialty mortgages listed below. The home loan eligibility should meet for loan sanctions.
Purchase of Land Loans
Several financial institutions offer loans for the purchase of land. Owners of plots have a great deal of overall latitude in terms of how they build their homes. You can also buy land for the sole purpose of making an investment.
2.Loans for the Purchase of a Home
As the names suggest, these loans are intended to buy a brand new or pre-owned home. Your interest rate will either be fixed or floating. The interest rate will usually be between 6.65 percent and 8.25 percent.
Home Improvement Loan
You can always get a home building loan if you own a piece of land and would like to build your dream home on it. The housing construction loan amount is disbursed in multiple phases based on the status of the construction project, which makes it different from a typical home loan. It is worth noting that the permitted amount will be determined by the projected construction cost.
Loans for home expansion or extension
Many people want to expand their homes by adding more rooms or a balcony, and this mortgage is ideal for them. It’s a type of financial aid for modifying the structure of your home or adding on to it.
Loans for home renovations
This loan can be used by folks who are currently paying off a loan but would like to purchase a new home.
6.Loans for Home Renovations
Restoration and/or repair work on a property, such as internal/external repair, building of above water tanks, and/or electrical renovation, will undoubtedly improve the look of a room, but at a cost. You can always take out a Home Improvement Loan to cover the costs and then repay it over a period of time.
Balance Transfer on a Home Loan
If you want to transfer your house loan from your current bank/NBFC to another lender, you can use this option. If the other standard bank provides you a lower rate of interest or a greater variety of services, or both, you may choose to do so.
Home Loan for Non-Resident Indians
Home Loans for Non-Resident Indians (NRIs) work in the same way as regular home loans, with the exception that they need the client to fulfill a distinct set of requirements. NRI loans are often offered by a lot of private and public sector banks as part of their home mortgage portfolio.
These are short-term loans made exclusively for homeowners who want to buy a new home. It helps identify the sale of the old property as well as providing financing for the purchase of a new home. These loans typically require the borrower to mortgage a new house with the borrower and are usually for a shorter period of time than 24 months.
10. Stamp Duty Loans
Stamp duty loans, as the name implies, are granted to cover stamp duty charges that must be paid when purchasing a home. Such loans are infrequently used, but they really do exist for those who want to pay the stamp duty charges with a loan.