Most people cherish the dream of owning a home where they can enjoy a happy and comfortable life with their loved ones. Given the sky rocketing prices of property, it has become imperative for individuals to seek home loans to fulfill their desire of buying their dream home. However, most such loan seekers are unaware of the fact that home loan is an umbrella term that is used to define a variety of loans to help meet the diverse financial needs of the applicants with respect to their residential property. Given below are the brief details of some of the most popular types of home loans offered by different financial institutions.
This is the most common type of loan sought by individuals intending to buy a residential property. This type of loan can be availed for buying new homes and apartments or even old ones that have been put up for sale.
Loans for Buying Land
Many people prefer to buy land and build a residential unit on their own rather than investing in a pre-constructed house or apartment. In such cases, they can avail the loans for buying the land on which they intend to construct their home as per their own choice and preference.
Loans for Home Construction
Many people, despite owning the land are unable to realize the dream of having their own home due to lack of finances. For such people, the financial institutions offer loans for construction of their dream home. The application and approval process for this type of home loan is slightly different from other loans under this category.
Loans for Home Extension/Expansion
People with growing families, might need to expand their existing homes to make it more comfortable for everyone. The home extension/expansion loans are designed for exactly these situations and can be availed to cover the expenses of adding a new room or even an entire floor to an existing structure.
Loans for Home Improvement/Renovation
As the name suggests, such loans can be availed by individuals intending to carry out repair and renovation work in their existing home. The renovation or improvement work might be done to strengthen the structure of the house or enhance its design and can be carried out both within the house or even on its exteriors.
Loans for Home Conversion
Many times people who have already availed a home loan for their current residential unit, might feel the need to move to another house, which might require extra funds. In such cases, the individuals can avail the home conversion loans, which enable them to get the extra finances for the new house by converting their pending existing loan into a new one for the new home.
In case of individuals who intend to buy a new home using the funds obtained by selling their existing one, the bridge loans can prove extremely beneficial. These short term loans offer them with the necessary funds to buy their dream home, until they can find the right buyer for their old one.