Housing loan is the finance taken for buying or modifying a real estate property. Home Loans, Home extension loans, home improvement loans, NRI loans and home equity loans fall under the category of housing loans. The Housing Finance Companies (HFC) offer individuals with various alternatives to choose from while buying a home loan. And the availability of the different Types of Home Loans offered is as varied as their requirements. The most common type of home loan is Loans For Home Construction.
Loans For Home Construction is the most appropriate funding option, if you?re building a new home or planning major renovations to your existing home. The documents that are required in such case are slightly different from the ones you submit for a normal Housing loan. If you have purchased this plot within a period of one year before you started construction of your house, most HFCs will include the land cost as a component in Loans For Home Construction, to value the total cost of the property.
In case, where the period from the date of purchase of land to the date of application has exceeded a year, the land cost will not be included in the total cost of property while calculating eligibility.
Another difference between a Loans For Home Construction and a standard home loan is that instead of a lump sum payment at agreement sign off, the loan is usually drawn down in stages. Payments coincide with the initial purchase of the land followed by a number of key construction stages.
For more information about,the different Types of Home Loans, log onto our website, homeloansxl.com.
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