I want to build a house over the land, which was in my father name, by taking a housing loan. I want to know whether I can apply loan in my name or do I need to change the ownership of the land to my name?
Yes, you can take a home loan on your name and even claim 80C tax exemption benefitsIts a big myth in India that you need to change the land on your name from your father if land is in father or mother name, like Ishant Harjai said in his answer.Why Do I say this ? Because in last week , I have talked to 2 home loan agents, who have shared with me major points related to this topic and have also helped their clients take home loan for building homes on land which is on their father and mother namesLet me share some points and rules related to this1. Land owner should be co-borrower - The first thing is that son/daughter can take home loan, just that the land owner (father/mother) should be co-borrower of the loan, if they are earning , it would be great if they can also share the EMI, that will fasten the process of loan taking2. NOC from legal heirs - If there are brothers and sisters, A NOC will be required from their side, where they agree that in future , they will not create an issue, and bank will be able to take over the land/house if EMI are not paid. SBI and HDFC banks are two banks whom I know give these loans because the two agents I talked to belong to these banks , so I am confirm on this . There might be some banks which might not entertain you, it really depends a lot on quality of your agent and how much experience he has. There might be more documentation in these kind of cases because of the complexity .Manish
I want get a loan for 20k for land and old trailer purchase,will a bank loan me the money?
we have ok credit.we want to buy a small piece of land 2/3 acres and a small trailer to put on it,so we can build an house on the other acre.will a bank loan us the money 20k?the trailer is older model so i dont know how much collateral that is.so the land probably wont be the amount of 20k.but once we have the house built on the other side it will be worth over that.we will have to build the house slowly,my brother helping building most of it.like save 5k put the frame up and roof on,then save a few more dollars and put windows and doors on it...etc it will be in the country
How do I get home loan on my brother property? Is there any co applicant scenario?
**** I answer questions based on what I personally would do in the situation.****Are you purchasing a property from your brother or purchasing for your brother?If you are purchasing a property from your brother, you should be able to go apply for a mortgage from a regular bank or mortgage company. Here are a few things to remember.GET A HOME INSPECTION!!!! The company I used charged $350 for the inspection and was worth every penny. This will help you find out some stuff about the house that you do not know and that could potentially cause you major issues down the road.Put down 20%. This will keep you from paying PMI (private mortgage insurance). This usually costs around $75 per month for every $100,000 borrowed.Get a 15 year mortgage to where the payment is around 25% or less of your take home pay per month. This will keep you from becoming “house poor”. It will also help you by saving you thousands in interest.Please don’t do an owner finance, land contract, contract for deed, or rent to own. These are rather high risk and will end up costing much more money than a traditional mortgage.If you are trying to purchase with or for your brother, you could possibly co-apply. This is not very common with most banks or mortgage companies unless the co-applicants are married, or in a long term relationship. I would say never cosign for any loan for any person for any reason whatsoever.I have first hand experience here. My brother and I went to purchase a home together, thinking that we would live together for a long time and end up building another home on the back of the property having two homes one for each of us. We tried to get a mortgage as co-buyers but there wasn't a company that would write it. 18 months later I moved 600 miles north and he was getting married and starting a family. The point here is that plans change. You don't want to deal with the headache of dissolving a partnership especially if y’all end up having an argument.
Can I get home loan for construction on land owned by my mother?
There is no unequivocal ‘ yes’ or ‘no’ kind of answer for this. Few banks may accept and few may decline as, such eventualities are not covered in their policy guidelines for housing loans.Those banks which accept to lend would stipulate that - (a) both you and your mother should sign the loan documents and (b) other legal heirs, if any, should give ‘No Objection Letter’ for the construction, borrowing and mortgaging property.This arrangement is however associated with two problems:(1) Not being an owner or Co owner of the property, you will not be eligible for tax benefits(2) You will not become legally the owner of the house property at any point of time during life time of ypur mother. The ownership of/ title on the property (plot + house) will pass on to all her legal heirs jointly, including you, as per succession law. You may have to have agreements with all other legal heirs as some protection but it is not legally full proof.
Can I remodel while under land contract?
That depends on the laws in your state. So I'd check with a lawyer who deals with real estate. However, in general you have what is known as "equitable" title in the land. Sort of like an Auto Loan. You don't really own the car in an auto loan. The bank does. But you have control and interest in the car. So if you want to pant the car you could. in most cases the same is true with Land Contracts. You have title to the land and you can encumber it if you choose to and its allowed in the contract. Chances are you would need to borrow money to add on, and most banks won't loan if you have equitable title. They would prefer to give you money to pay off the land contract and then let you build with a deed of trust. Again speak to an attorney.
Can we get a loan for a 50 sq yard constructed house?
The basic requirements of getting a loan for construction of a residential house areThe land title offered as security for such loan should be clear in all respect with no encumberance.The land title should be in the name of borrower and/or his/her spouse.The map for proposed construction should have been approved by the land regulating authority of the area where the plot is situated.The estimated cost of construction should have been assessed by a registered Valuer empaneled with the bank from which the loan is sought.Bank/financial institutions generally gives loan up to 75% of total cost of construction. In such case the borrower should be in possession with balance 25% and should be available in his/her bank account.The borrower and co-borrower should have sufficient income (supported by last three years ITR) to pay Instalment and interest due in time.The borrower/co-borrower should has clean past track record in matter of repayment of loan, if taken earlier (Checked from CIBIL Score of borrower and co-borrower)If you complete all the above requirements, every bank shall be ready to grAnt you loan for construction of House.
Will I get home loan for buying my father's house?
There are 3 parts to this question.Will you get a home loan for buying your fathers house?The answer is YES. Typically how the banks looks at this proposal is you are buying the property in question from your father and the property currently does not have any mortgage or housing loan on it at present.The bank will give you a housing loan for the purpose of purchase of the property which will be equal to the agreed-upon purchase price minus whatever down payment you are making to your father.This money would be given to your father, who will transfer the title to the property to your name. Thus, the property will be titled in your name, not your father's, when the purchase is completed.The bank will be entitled to foreclose on the property and sell it if you default on making the payments towards to the loan (interest+principle)You want to fix the price of the property basis your income and repayment capacity of 60k per month salary?The housing loan is sanctioned by the bank basis the valuation done by its own valuer. So fixing the property price is NOT possible. And typically the loan amount is lower of (1) the valuation given by valuer or (2) the registration amount of the property. (Having said that there are exceptions to this rule).A very broad thumb rule to calculate your housing loan eligibility is 4–5 times your annual income. This is very broad rule.The scientific way of calculating it is take 50% of your monthly salary as EMI and assume an interest rate (prevailing 9.25% - 10.5%) and a tenure (say 10,15 or 20) and calculate the eligibility using excel PV formulaPV( rate, nper, [pmt], [fv], [type] )Based on the above calculation for you it should be anywhere between 20–30 lakhs (depending upon the tenure of the loan - longer tenure, larger loan amount)Issues you should be aware of.There is leakage in terms of stamp duty (can run upto say 1–2 lakhs depending upon which state you are from) that you will have to pay when the property gets registered on your nameOnce you take the loan amount you have kind of exhausted the debt taking ability you have and wont be able to take any further debt in future (say for 10 or 15 years of loan tenure).Hope this helps
Can two brothers get a home loan?
Yes, you can apply for a joint home loan with your brother. An applicant has the option of having a co-applicant while apply for home loan online. There are a certain criteria in case of joint home loan. Those are:Your co-applicant cannot be a minorHe/she must be closely related to youPreferred relations are brothers, sisters, parent and son, husband and wifeA joint home loan helps to get tax benefits both on the principal and interest part of the loan. Both the primary applicant and the co-applicant can avail the benefit of tax deduction. One more advantage of joint home loan is that you can apply for a higher amount of loan and documents required for home loan balance transfer that means you can now purchase a bigger house.
Can I get a home loan if our land is registered in my wife’s name?
Yes definitely, There are few options to do so.Add your name to Property Deed.Be a Co-Applicant In Home Where the wife is Principal Borrower.The second option is easier to do, As there is no need to make any deed or other documents from scratch. Your parents will be co-applicant for Home Loan. Actually, it will increase your eligibility and amount you can borrow from banks. All co-application need to have a stable income and will need to submit the same document as the first applicant. Every co-owner will need to be a co-applicant, but every applicant does not need to be a co-owner. A document that needs to Submit by every Co-Applicant.It also reduces overall interest rate As many banks offer special interest rate to Womens.To Compare Interest Rate, Processing Fee and Document required, know how to improve eligibility, visit Now Home Loan | Find Best Housing Loan, Amount Up 90% Of Property Value.
May I get a home loan when I'm not the owner of the property?
Yes, you can get a Home Loan if you are not the owner of the property but the property has to be in the name of your spouse/children/parents. Most people take loans in the names of their spouses but in case you are not the co/part owner of the property, you will not be eligible to receive the tax benefits on Home Loan principal and interest repayments annually.It is always better to apply for a Joint Home Loan with a recognized co-applicant and both of you can be co-owners to reap the maximum tax benefits and also increase your Home Loan eligibility at the same time. As a co-borrower, you may not be the owner of the property but you cannot be the primary applicant for taking the Home Loan in case it does not belong to you.Additional Read:Gain Tax Benefits in Joint Home Loan