Can I Take a Personal Loan to Fund Down Payment of My Home?

All of us dream of having a warm and cosy home of our own. But it is not easy to realise the dream of buying a home with rising prices of property. And saving up the whole amount is not practical.Thus, best home loans are a simple way out to fund your home.Problem is solved!Wait.Not yet.Banks or financial institutions offering home loans don’t provide 100% funding even if you are eligible to avail a loan to purchase a home. Instead of getting the full amount of your house as credit,you will get only 70-90% of the total cost of the house you want to buy. The percentage covered by the loan depends on the total value of your home, bank or loan providing institute and your loan paying capability.Thus, you will have to arrange the rest 10-30% of the total valuation from your pocket. This is known as down payment.

How to Arrange Money for Down Payment?

If you plan to buy a home and you want to take a loan, you must start saving for its down payment.Saving for the down payment is one of the safest methods. Apart from saving, you can accept monetary help from your family, relatives &/or friends.In case you do not have money saved for down payment, or you don’t want to ask for help from your loved ones, you can arrange cash from other safe methods like Personal Loan.

Can I Buy My Home If I Have No Money for Down Payment?

This is a million-dollar question. And the answer is Yes. Personal loan is an easy, safe and excellentoption to arrange money for your home loan down payment. Many experts can go on and on about why you must save up to buy a home but the truth is sometimes it is not possible. Personal loan is an unsecured loan and come handy when you need that additional financial supportto buy your home. All you have to do is analyse the amount the bank will provide you. To get an exact estimate, get a pre-sanctioned home loan before you finalise the property you want topurchase.With a sketch of how much home loan amount you will get, you can apply for a personal loan to get the amount your bank will not be offering. If the value of your purchased property allows, you can pay off the personal loan by availing a top up on your home loan. This will help in reducing the burden of loan and interest payment.

Benefits of Funding Home Loan Down Payment with Personal Loan

One of the crucial benefits of taking a personal loan to pay down payment of a home loan or homerenovation is that you can avail tax benefits. The tax benefit on such loans can go up to Rs. 2 Lakhs.

By using a best personal loan for the down payment, you can keep your savings untouched for emergencies. In case you have fixed deposits or investments, you will not have to break them to buy your property.

What to Keep in Mind?

While a personal loan is a beneficial option, you must keep a few things in your mind. You will have to pay two loans at a time. Even though personal loan repayment is flexible, you must plan your finances well to keep up with both repayments. There are many benefits of using personal to provide that additional financial support. It is up to you how you manage it. If you use it well, you will have your dream home without any stress.

Hello Guys, this is sourav kumar, i am blogger and love to share article. i am working with loan dealing company, Who offer the best loan services for you.