03 June 2011
How to get Home Loan for People Living on Rent
“A home for every one” has become the motto of the Government nowadays. Keeping in mind this there are many options available for people who live on rent and who do not have the assets and finances to purchase a home of their own. Many lending institutions and mortgaging companies are willing to lend home loans to such individuals keeping in mind their limitations of salary and other liabilities. A way for every individual is created and these financial advisers know just how to go about the process of selecting budget homes and applying for a home loan.
Take advice and ask friends and relatives of a good financial adviser or lender. Also consider the internet for advertisements of financial advisers and lending institutions who offer loans to low income group individuals. Here you will save the time and energy of thinking about how to go and purchase a home of own and these are experienced people who will make a way for you keeping in mind your individual financial position, preferences and limitations.
Go in for home equity loans. Here the home you are going to purchase will be the security for your home loan. But remember that this only will be possible when the house you are going to purchase has to have a value of more than you are borrowing a loan. Time will take care of this as property prices are increasing fast and the value of your home also will increase with time if it is a good project from a reputed builder.
Lenders are promoting various schemes to target the buyers from different strata of the society. Rent to own Programmes are taking a good move as the borrower does not have to take loan. If they can get to collect only 30% of the value of the house then some mortgaging agents and financial loan lending institutions can help them to purchase the flat. The only point here would be the flat is in the name of the lender. The flat for some years, that is till the loan amount is repaid, is given on rent. By getting this monthly rent from the individual the lending institution will cover their monthly installments and once they are over this the flat will be transferred to the owner.
Look out for distress sales and buy cheap properties in suburbs could be another option if you can manage to save small amounts of money and try some lenders who are willing to offer loans for low budget homes. Before committing anyone and paying their fees kindly check and recheck about the purchase and sale deeds. Many properties advertised as sale may not be in real and you may be cheated after going in this deal. Also see the title of houses on resale and go in for a deal with clear title. Also when taking financial advise from an adviser do not follow anyone blindly. They may have a degree in finances but you are the right person to take the final decision of what is best for you and your family. Do not go in for deals that seem too good to be true.
So all those who dream of owning a home there are many options available and also home loans can be made available for low income and low budget homes. You just have to find the right lender and the right loan repayment schedule.