Everything You Need to Know About the Home Loan Eligibility

A home loan might be a quick fix to all your home-related financial woes, but like any other loan, your lender will require you to prove your worth before awarding you with the funds.

So, how do you go about it?

It’s quite simple. All you have to do is produce all personal/professional details to your lender. Here’s a list of eligibility criteria you need to meet to successfully avail of a loan Coombs.

1. Examining your Eligibility

You’ll have to fulfil certain criteria to convince your lender(s) that you’re cut out for the loan. Here’s your home loan eligibility criteria checklist that might vary slightly depending on your lender, while maintaining the same essence:

Valid identification proof (passport/voter identification/ driver’s’ license) to prove that you’re an Indian resident
You must fall within the 25-70 years age group
If you are a self-employed individual, you’ll need to submit proof that your business is at least 5 years old
Your loan amount must fall between the minimum and maximum amount offered by your lender
Your latest credit report with a score of 750 or more and a brief history of on-time payments and credit utilisation

2. Documents Required for Home Loan Sanction

Once you’re eligible, the financial institution lending you funds will require documented proof of your existence and financial stability. Here are the papers you’ll have to put up:

Complete Home Loan application with all your credentials
Latest passport size photographs
Proof of identification (voter’s identification/passport/driver’s license)
Proof of residence (voter’s id/water or electricity bill)
Proof of business address (in case of self-employed candidates)
Bank account statement for the past six months
Signature identification
Personal assets and liabilities statements in a proper format as stipulated by your lender
Detailed information about loans you’re already paying including details of the lender and securities mortgaged

If you’re a salaried individual, you’ll have to provide the lender with additional documents. Here’s a list to help you organise your papers:

Original salary certificate for the previous month
Tax Deducted at Source certificate – Form 16 or a copy of the IT returns you’ve made in the past two years acknowledged by the Income Tax Department

For a self-employed individual running an enterprise, the additional documents to be submitted are as follows:

Income tax returns made in the past three years acknowledged by the Department of Income Tax
Receipt copies of advance income tax payments

3. Property Documents Required for a Home Loan Sanction

When you put up your property for a home loan, the financial institutions will demand legitimate paperwork to clear it of any illegalities before the loan amount is sanctioned. Here’s a list of documents you might have to produce if asked by your lender:

Agreement of sale
Paid building and land tax receipts
Certificate of possession
Location sketch of the property certified by revenue authorities
Letter of allotment issued by housing board or private builder
Receipts of advance payments made towards purchase of the flat
Non-encumbrance certificate
Original NOC under Urban Land Ceiling Act, 1976
Copy of relative order if the land has been utilised for agricultural purposes
Original NOC from Housing Society or private builder
Detailed estimation of the cost of construction

A stellar paper trail is undoubtedly the best method to get your loan application approved because those pieces of paper justify your ability to repay a loan. You’ll have to think of it as a job interview. Every detail mentioned in your documents has to be legitimate to get the final nod of sanction from your lender.

FHA Manufactured Home Loan – The Best Type of Manufactured Home Financing!

More people today, then ever before, own or want to buy manufactured homes. Unless you have cash buying power, getting a loan for this type of home is not always easy and actually can present quite a challenge. The problem with manufactured home financing is most mortgage lenders will not loan money to buy this type of home. Today, about the only type of mortgage available is a FHA Manufactured Home Loan.

The best type of manufactured home financing to get is a FHA Manufactured Home Loan. This type of loan opens up a lot of opportunities for people who want to buy this type of home but don’t have a lot of money to complete the transaction.

Most people who want to buy a manufactured home may want to get a Title 1 loan ACT.

A Title 1 FHA Home Loan is a great type of loan because they are not government or grant based. They also have requirements where they have to give the home owner a fixed rate for 20 years. FHA does not really loan money. By insuring loans they help you find lenders that are qualified to meet your needs. This type of loan can be used to buy a lot to place this type of home or a home and lot combination. The one requirement that FHA insists on is that the borrower be planning to make the home their permanent residence.

With an FHA Manufactured Home Loan you can borrow from $69,678 for just this type of home up to $92,904 for a home and lot combination. This is a substantial amount of money for people to work with, while looking for the right home. If your home is new they also require a 1 year warranty, which most new manufactured homes have anyway. These loans go up to 25 years for people looking to buy a home. In order to get an FHA loan you have to be an eligible buyer but most of the requirements are required by any lender.

If you are looking at manufactured homes and you want to get a loan, the best type of loan is a FHA Manufactured Home Loan. These loans are pretty workable for any buyer and they also are not too complicated to get. They do have some requirements but most of them are very reasonable for anyone looking to buy any type of home. You do have to have the money to make your payments and prove your income. The borrower has to make the home their permanent residence and they have to set up the home under correct guidelines. All of these requirements are reasonable for any future home owner.

While most conventional loan lenders will not loan money for manufactured home financing you can still get a FHA Manufactured Home Loan even for existing homes.