Types of Home Loans

Types of Home Loans - Buying you own home in the city of your own is no more just a dream. Thanks to the pocket-friendly home loans that are aimed towards improving the housing finance market in the country. For the purpose, there are a number of banks and housing finance companies that are coming up with innovative house loans services for the wide range of housing activities.

The different type of loans are as follows -

  • Home Purchase Loan - This one is the basic home loan that can be acquired for the purchase of new home. If you want to buy a new flat in the society or built your home then banks provide home purchase loan to do the same.
  • Home Improvement Loans - The type of loan is given for the purpose of making improvement in the home that has already been purchased by you. It includes the implementation of things like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc.
  • Home Construction Loans - Home construction loan as the name suggest is made available for the construction of the new home on the land that you have already purchased for yourself. Depending on the land you have purchased the documents might differ on part of the banks in such loans.
  • Home Extension Loans - Home extension loans are given for the purpose of expanding the existing home. Say for example, for adding an extra room.
  • Land Purchase Loans - Land purchase loans is granted for the purchasing land be it for home construction or investment purposes.
  • Bridge Loans - Bridge Loans are invented for the people who wants to sell their existing home and purchase another. In such a case, bridge loan helps in  financing the new home, till the time you find a buyer for your old home.
  • Refinance Loans - This loan type will help you pay off the debt you have incurred from lender  be it is your relative or friend for the purchase of your present home.  

Although all the home loans help in providing home-related financial aid, it is advised that you should get the fine details of the type of loan that suits your requirement before acquiring any one of them.