Thinking of Home Construction Loan? Apply Now With HomeFirst

Thinking of Home Construction Loan? Apply Now!

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Home Construction Loan

Do you dream of getting a house with indoor swimming pools and multi-car garages? Have you ever ever thought of building a home or adding an additional bedroom to your existing home? Well, you’ll make that dream come true because banks provide short-term credit to cover building costs while the development is ongoing. Home construction can be a fun experience but it can also be an expensive process. A majority of people cannot bear to pay for the expense of home construction. To ease this problem, many banks and financial institutions offer financial help in the form of a home construction loan.

What is a Home Construction Loan?

A home construction loan is a short-term loan used to pay for the construction of a building. It is a sort of Home Loan where you can get a loan for building your own home instead of buying a one. As the work progresses, the loan specialist pays out the money in stages. If you wish to apply for a home construction loan, you need to give a detailed construction schedule plan to the loan specialist along with a construction plan and a practical budget plan for construction.

Types of Home Construction Loan:

  1. Construction to Permanent House: These loans are acceptable in the case that you have positive construction plans and a detailed construction schedule set up. In this case, the bank pays the builder as the work is being finished. Then, that cost is changed over to a home loan at closing. This kind of loan allows you to lock the interest rates at closing, which makes for consistent installments.
  2. Construction Only Loans: Construction only loans are paid off when the project is completed. If you have a lot of cash in hand or if you know that the total cost from the sale of the old house will be covered by the newly build house, then this loan is for you. Here, if you need a mortgage to cover the cost, you’ll have to search for the lender yourself and be approved a second time.
  3. Renovation Construction Loan: This type of loan is a little different from the other two home construction loans. A renovation construction loan is used if you want to renovate or improve your already existing home. Here, the expected expense of the renovation is covered with the home loan alongside the purchase price.

Key Benefits:

Here are some of the important key benefits:

  1. It has very attractive interest rates.
  2. Long tenure up to 30 years.
  3. Speedy approval process
  4. A high loan to value ratio is up to 100% of construction estimate or 90% of the property value, whichever is lower.

Documents Required:

Here is the list of important documents required.

  1. A duly filled application form with the latest passport size photograph.
  2. Age proof
  3. Address Proof
  4. Income proof or bank statement
  5. Property or plot-related documents
  6. Estimate quote of construction cost.

Apply Here:

The home loan construction process is somewhat similar to a home loan. To check affordable EMIs always use the Home loan EMI calculator. Home First Finance Company helps you to build your dream home at an affordable interest rate.

You can apply online for a home construction loan at HomeFirst by following few steps:

  • Visit the Home Construction Loan page on the HomeFirst website.
  • Fill out the Apply Now form with all the required details.
  • A representative will get in touch with you and to ease the process we will also arrange doorstep documents pickup for you.

Before applying for a home construction loan, do check about all the documents required to avail of the loan in order to avoid any confusion at a later stage.

Building a home on your property? Or adding another floor? Whatever the reason, HomeFirst gives you a loan, to make your home more beautiful.

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Also read:

Plot Loan: Loan on Plot Purchase and Home Construction

Everything You Need To Know About Home Construction Loans

Cost Effective Ways of Home Construction

Know How to Estimate Your House Construction Cost?

Vastu Shastra Tips To Bring Good Luck For Your New Home

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Interest rates and other charges depend on the products. Please refer to the individual product pages for the rates.

Your home loan will be processed in 2 steps:

  1. You receive the approval of your home loan.
  2. You sign the loan agreement papers and complete other necessary documentation. The loan amount is thereafter paid directly to the builder by Home First Finance Company.

Loan decisions are made in less than a week. You will receive an SMS on your registered mobile number as soon as we make a decision.

HomeFirst does not charge any prepayment fees. This applies to both partial and full repayments. In fact, we have a special Auto-Prepay feature to facilitate this process for you.

HomeFirst offers loan tenures between 1 year to 25 years. If you opt for a longer tenure, you can get the advantage of a lower EMI each month.

HomeFirst can provide finance up to 90% of the property value. The balance has to be arranged by you from other sources. Please note: 90% financing is only available for loans amounting to less than Rs. 30 lakhs.

All co-owners of the property have to be co-applicants to the loan. A person who is not a co-owner can also become a co-applicant to the loan.

During the construction phase, HomeFirst will disburse funds to the builder on your behalf. These will be based on payment requests made by the builder as per the construction schedule.

HomeFirst will charge interest only on the amount disbursed as loan during the construction phase. In this period, interest is charged only on the disbursed loan amount. For example, if you have a sanctioned loan of Rs 10 lakhs, but the property is under construction and we have disbursed only Rs 4 lakhs, you will be charged interest only on 4 lakhs. These interest payments are referred to as pre-EMI interest payments.

EMI payments will start only after completion of the project and registration of the property.

All cheques to HomeFirst should be written out in favor of ‘Home First Finance Company India Limited’.

In the event of an unfortunate incident, home loan insurance will help you or your family pay off the home loan. This ensures that the burden does not suddenly fall upon family members at a bad time.

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