Different Types of Home Loans in India

Sun Homes is the best builder if you are looking to make your own living space. Buying a house or property today is very expensive and it is not often possible without a substantial amount of savings. However, with Sun Homes, it is not the same.

With Sun Homes, most renowned banks will easily offer you home loans. For a home loan to be granted, you have to submit certain documents like financial documents, bank statements, etc. The bank will analyze all of these documents to determine the financial situation of the person. A home loan is only granted if the bank is sure that you have the means of paying it back.

Home loans available in India depend on the purpose and specific type of home loan you want to avail. You should always be careful while applying for loans. You have to be clear about your objectives and expenses.

There are different kinds of loans for different purposes. If you do not own a plot of land and want to construct your house, then you can opt for land purchase loans. These are provided for buying plots or lands. These are either used for investing in or making houses that are the residential purpose. For this loan, the bank will offer you up to 85% of the value of the property. The bank does not look at the price of the property or the number of residences but your income and capability to pay back the loan. Approval of your loan application depends upon your credibility.

Another loan is house construction loans. These loans are offered for constructing your own house. They are not taken for buying an already constructed house or a partially constructed one or a ready to occupy the house. These loans are a bit different from the other housing loans. The person applying for the loan must have a reasonable idea regarding how much cost would go into constructing a house. They have to apply for the loan accordingly after considering this calculation. The applicant will also have to produce various documents to substantiate his claims.

Another kind of common loan is a home purchase loan. These kinds of loans are usually availed when the applicant is buying it from another owner. Since it is another person’s asset, you have to be extremely careful. For this loan, fixed and floating interests will be considered. Hybrid loans are provided as well for this purpose.

The hybrid loan is the kind of loan where both floating and fixed interests are combined. The process entailing this loan is also a bit more detailed than the others. Another kind of loan is house improvement or house extension loans. Applicants apply for these loans when they want to undertake renovations for their houses or other repairs. This loan covers areas like plumbing, painting, etc.

The expansion is also another category included in this division. This includes adding an extra room. Yet another loan is the bridging loan. These are usually short-term loans. With these many viable loans and Sun Homes as your developer, nothing is holding you back from building your dream home.

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