Owning a home is a sweet dream for every individual. But due to some financial barriers, many people often take a back step in fulfilling this dream. This is especially common with middle class people in the city.
They often think that loans are availed only for the purchase or construction of a new home. But in reality, home loans are available for everything from purchase to construction, renovation, remodeling, etc.
Below are the different types of home loans offered by various banks:
- Home Construction Loan: This type of home loan is used for the purpose of constructing new house.
- Home Purchase Loan: This is a basic form of home loan used for the purpose of purchasing new house.
- Home Improvement Loan: This type of loan is taken for the purpose of renovation or repair of the existing home.
- Home Conversion Loan: This type of loan is used for the purpose of transferring an existing housing loan to the new property with an increase in loan amount based on the current eligibility.
- Land Purchase Loan: This type of loan is available for the purpose of purchase of land.
- Home Extension Loan: This type of loan is used when the borrower wants to extend the existing loan.
- Bridge Loan: This is a short term loan designed for the borrower who wishes to sell the existing home and purchase a new one. It is given till the time a buyer is found for the old home.