The types of housing loans may vary from one company to another. Most of the home loan providers and banks offer some basic home loan options like – home purchase loan, home extension loan, home construction loan, land purchase loan and refinance loan. The home purchase loan is nothing but the conventional home loan taken by the borrower in order to purchase a new house. The home extension loan refers to the loan granted to the borrower in order to fund any kind of extension or alteration done to the existing house.
After having an approval from the local government, acquiring such a loan becomes easy. The home construction loan is often confused with home purchase loan, but the home construction loan is granted for the construction of a new house on the existing property. The land purchase loan is given for the purpose of purchasing land for home. Some other home loan options that the borrowers can take up are – stamp duty loan, bridge loan, home conversion loan and balance transfer loan. Depending on the home loan rate, the home loan options may also vary. The various types of home loans that are now available are:
