Home Loan Bank

By: EconomyWatch Content   Date: 17 December 2009

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A prospective homebuyer can choose from multiple home loan types offered by various banks. The process can be made easier by consulting a reputable mortgage broker having vast industry experience.

 

Home Loan Bank: Types

Here are the main types of home loans offered by various Indian banks:

Home Purchase Loans: Ideal for first-time home buyers, this category comprises the basic forms of home loans.

Home Improvement Loans: These loans are intended to finance the repair and renovations of already purchased homes or properties.

Home Construction Loans: Those who intend to construct a new home are eligible for these loans.

Home Extension Loans: If you want to finance the expansion or extension of your existing home, consider this category.

Home Conversion Loans: When a homebuyer intends to buy and move to a new house while residing in a home purchased through a home loan, s/he can apply for a home conversion loan. This eliminates the need for paying off the existing loan as this amount is added to the new loan.

Land Purchase Loans: One can take a land purchase loan to buy land for the purpose of construction and investment.

Bridge Loans: If you want to purchase a new home by selling your present home, you can take a bridge loan. The financing is available until the homeowner finds a buyer for the existing home.

Home Loan Bank: Mortgage Fraud

Mortgage fraud involves manipulation of information in the home loan application for the benefit of the borrower, seller or a third party for e.g. a realtor. The loan agency has to bear the cost of mortgage fraud in most cases, especially if it fails to uncover the criminals.

 

A mortgage fraud can be a fraud for property or a fraud for profit. A buyer putting in wrong income or employment status to get loan approval amounts to mortgage fraud.

In case of mortgage fraud for profit, a buyer takes away the profits while defrauding the loan agency. The most common way of committing this fraud is appraisal fraud, along with unlawful property flipping. In appraisal fraud a buyer artificially appraises the actual cost of the house and sells it to someone not necessarily a party to the scheme. In such cases, although the seller gets paid, the loan agency has to bear the loss of default on the loan.


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