Like all other loans, home loans are taken when one needs financial needs. But this loan is provided by lenders to borrowers for a home purchase or renovation. You cannot use a home loan to fund education or bear medical expenses. Following the difference in purpose, there are various kinds of home loans that you must know so that you can get a specific home loan as per your convenience and demands.
As the name suggests, this home loan is provided for buying land that could be used to build a house or anything else. Many people have been taking land-purchase loans as per their preferences and needs. Before you opt for this home loan option, you must explore its various aspects.
Home Purchase Loan
Using this kind of loan, you are supposed to buy a home as per your preference. You need to buy a house previously owned by someone else. So in this regard, the lender allows a borrower to get an already-built house with this loan. This is another popular home loan type that you can also consider going for.
Home Construction Loan
A home construction loan is provided to build a home on land that could be owned or co-owned by you. A home-construction loan’s terms and conditions could be different compared to other home loans. On the other hand, following the lender, the terms could also be different.
Some basic terms are that you must buy the land within the last 1 year of applying for a home construction loan. On the other hand, as a borrower, you should also estimate possible home construction costs.
Home Extension Loan
If you already own a home but want to extend it, you should go for a home-extension loan. In this regard, you can build a new room or space adjacent to your home. This kind of loan may also have different rules and regulations that you must know beforehand. So many borrowers prefer to go for this type of loan as per their convenience and benefits.
This loan is certainly quite effective and useful for you if you know how to utilize it in the best way possible. The home extension cost could be different for different individuals as per the type of extension they are looking for. It would be best if you determined your own cost and then applied for the loan accordingly.
Home Improvement Loan
A home improvement loan is provided to improve or renovate your home. Suppose you want to do interior decoration in your home to enhance its beautification, then you can decide to go for this loan.
It has perks and benefits for which plenty of people prefer to opt. It would be best to determine your exact reasons before proceeding with this. In this regard, you would benefit from opting for an HDFC home loan.
You can research extensively to explore various aspects of these kinds of loans. Then following your need, you can apply for a specific home loan.