Which loan option is strongly recommended for first-time buyers?
FHA loans
FHA loans are excellent for first-time homebuyers because, in addition to lower upfront loan costs and less stringent credit requirements, you can make a down payment as low as 3.5\%.
How long does it take to get a loan against property?
Once they complete the necessary evaluation, the loan amount is disbursed into your account. At Bajaj Finserv, processing your loan against property request takes up to 72* hours, resulting in quick disbursal of funds.
Which type of loan has the highest interest rate?
Personal loans and credit cards come with high interest rates but do not require collateral. Home-equity loans have low interest rates, but the borrower’s home serves as collateral. Cash advances typically have very high interest rates plus transaction fees.
What is the easiest home loan to get?
1. FHA mortgage: Minimum credit score 500. FHA loans — backed by the Federal Housing Administration — have the lowest credit score requirements of any major home loan program. Most lenders offer FHA loans starting at a 580 credit score.
What is the difference between a home loan and a personal loan?
Primarily, applicants go for a home loan when they are ready to buy a house. On the other hand, a personal loan can be very useful when some extra cash is required to pay for a down payment. The major difference between a home loan and a personal loan is the personal loan is unsecured. That means the lender does not ask for a collateral.
What is the difference between a home loan and loan against property?
To this effect, home loans grant a higher percentage compared to the value of the property – up to 90\%. But, loans against property generally offer up to 60-70\% of the property value.
What types of property can I get a loan for?
There are three types of properties homeowners can get a loan for: primary, secondary and investment properties. While you may not be looking to buy a second home or investment property now, it could be an option in the future.
What type of mortgage can I get on a primary property?
You could be eligible for many types of mortgage loans on a primary property. This will depend on your individual needs and qualifications. Types of mortgage loans include: These are mortgages where the interest rate is fixed and the principal and interest payment stay the same over the life of the loan.