Is it better to buy land on personal loan?
If all land paper are clear and it's completely NA plot then you should go for personal loan obviously why? Let me give you eg.If you buy land of Rs. 15 lac RS. Then let's take a look at 2 possible way. One is for Personal loan and another is for Home loan and plot loan.Personal LoanLoan amount - 1500000Tenure (max)- 5 yearROI (Base rate of ICICI AND CITI)- 11.00%FLAT ROI PA- 6.09%FLAT ROI PM- 0.51%EMI- 32613/-Total Interest- 456817/-Yearly interest - 92363.56/-2) Home loan:Loan- 1500000Tenure- 15 yrsROI- 8.25%EMI- 14552.11%Flat ROI PA- 4.47%FLAT ROI PM- 0.37%TOTAL INTEREST- 1119379.8/-Yearly Interest- 74626.32/-Now please see the difference of total interest so if you are capable of paying high emi so you can go for personal loan but indirectly it will save your total interest amount.
Buying Land: Two couples buying land. Do you go in on the same loan application or separately?
If both couples are applying to purchase the same piece of property then both couples will be required to apply on separate mortgage loan applications Land Loan). They would be processed the same way for the same property. Both couples would list all their assets income on their individual applications for the loan officer. Both couples names would be on the mortgage loan (Land loan) and responsible for the monthly mortgage payment. The loan docs would have both couples listed as owners and co-borrowers. Both couples would be required to sign the loan docs indicating responsibility of paying the monthly mortgage payment each month. Upon applying for the land loan, you would have to decide how and what manner the property would be on the title deed. A legal document drawn up between the two couples with the intent of the use of the property as well as disposal or buy out method in the event plans are changed, would be needed and signed by both couples. If you feel an attorney would be the best to complete this contract then by all means use one, however, it is not necessary. Are you purchasing two adjacent lots to build your future homes on? If you are purchasing one single lot or acreage, you should make sure the zoning is such that you may build residential homes on this acreage as well as how to break the acreage up in the future so both couples would be able to build separate homes on the lot they select. If the acreages is not zoned for residential building, when you decide to build your homes you would have to apply through the city or county to change the current zoning to a residential zoning that would permit the building of houses. Even though some acreages is zoned as farming land this does not allow, in some instances, the right of the owner to build a house on this land. I hope this has been of some benefit to you, good luck. "FIGHT ON"
Is it better to purchase land to build a house or buy a house already built ?
Deciding which to build a house has it pros and cons, as well is a personal decision. In order to have a house built and obtain a construction loan, you must have possession of the property to build the house on. When you purchase the land the seller must sign a document indicating they would subordinate to a construction loan. Most land lender would not have a problem in doing this. In the purchase of land to build your house most land lenders of raw land require a minimum of 50% down. There might be a few land owners that would finance the land loan, where as the down payment might be less. You would need to qualify thorough a mortgage lender to obtain funding for the construction of your house. A construction company would be required to obtain the various permits according to city, county and state construction laws. Once your construction is completed your construction loan would automatic convert to a mortgage loan, at the rate and terms you would have agreed to in your application loan for the construction mortgage loan. In the purchase of a house that is built you would be required to qualify for a mortgage loan. You would want to complete a mortgage loan application with a mortgage lender that is able to do FHA mortgage loans. The down payment would of your purchase would be determined by the mortgage loan program you are approved for.FHA has a mortgage loan program with a down payment as low as 3.5%. Conventional mortgage loan programs have programs with a down payment between 5%-10%(Normally you would be required to pay Private Mortgage Insurance -PMI) with a down payment of 20% or more you would not be required to pay (PMI) Since property values currently are still pretty low as well as the interest rate, it might be to your benefit to purchase a starter home. You may decide later to add to your home or move and purchase another house that would suit your new needs and requirement. I hope this has been of some benefit to you, good luck. "FIGHT ON"
Looking to build a home on parents land, and i have no idea about the loan stuff that goes into it HELP?
When I built a house on land my mom owes, I had to have my average cut out of hers by a survey and then put in my name. Talk to your loan agent. What they do is give you a construction loan. Once you have the loan, they will give you a certain amount of time to build the house. Once the house is done, they will convert the construction loan to a mortgage. We had better luck with our loan by going thru a small, local bank.