September 2010

Home Buyer Programs in the City of Edina

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

I called the City of Edina they told me to visit this website

Here is a Link to the Nonprofit Edina Housing Foundation

www.comehome2edina.org

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Home Buyer Programs in the City of Bloomington

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

http://www.ci.bloomington.mn.us/cityhall/commiss/hra/fhip/fhip.htm

Foreclosed Home Improvement Program (FHIP)
Funds available for improvements to foreclosed homes

Up to $20,000 is available for Bloomington residents purchasing and improving foreclosed homes.
If you are purchasing or have purchased a foreclosed home within the last 12 months, you may be eligible for up to $20,000 in loan funds to make improvements.

One half of the amount borrowed will not have to be repaid if the owner lives in the home for 5 years. The remaining half will consist of a 5% deferred loan that does not have to be repaid until the owner sells, transfers title or no longer lives in the home.

To be eligible for FHIP funds, properties must be located within the designated area of Bloomington, see map below. The area is bordered by American Boulevard on the north, E. Old Shakopee Road on the south, Old Cedar Avenue on the east and I-35W on the west.

All FHIP applicants must be purchasing or have purchased a foreclosed home within the designated area within the last 12 months.

Click on the links below to view the brochure and download an application.

• FHIP brochure (289KB, 2-page PDF)
• FHIP application (80KB, 2-page PDF)

For more information, contact:
Brian Duerwachter
Bloomington Housing and Redevelopment Authority
1800 West Old Shakopee Road
Bloomington, MN 55431-3027
PH: 952-563-8939 TTY: 952-563-8740
E-mail: bduerwachter@ci.bloomington.mn.us

Homebuyer financing

What type of loan is ideal for you? There are many options out there.

• For a quick overview, provided by the Mortgage Bankers Association, go to www.homeloanlearningcenter.com/MortgageBasics/MortgageTypes.htm
• VA loan eligibility – loans for those who have served in the Military. For answers to frequently asked questions, go to homeloans.va.gov/faqelig.htm

First-time home buyer programs

You can own a home! The Minnesota Mortgage Program (MMP) is a First Time Homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers statewide. Find out today how you can be on the road to successful homeownership with the Minnesota Mortgage Program.

• To read more on what the Minnesota Housing Finance Agency has to offer, go to www.mnhousing.gov/consumers/home-buyers/loans/index.aspx

What about assistance for down payment and closing costs? The Minnesota Housing Finance Agency provides the opportunity for eligible homebuyers who qualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with downpayment and closing costs through the Homeownership Assistance Fund (HAF) and the HOME Homeowner Entry Loan Program (HOME HELP).

• HOME HELP Frequently Asked Questions (FAQs)
• For more information, go to www.mnhousing.gov/consumers/home-buyers/loans/MHFA_003407.aspx

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Home Buyer Programs in the City of Minneapolis

Minneapolis Community Planning and Economic Development Department
Home Ownership Works Program

The City offers first-time homebuyers the opportunity to purchase homes, either remodeled, older homes—offering charm and character with modern conveniences—or newly built, through the Home Ownership Works Program (HOW). The HOW homes, located in Minneapolis, are for sale at affordable prices and to those homebuyers with incomes below 80% of the metropolitan median income.

Interested in purchasing one of these homes? Contact Erin Green, HOW marketing representative, at 612-721-7556 ext. 12.

General Guidelines:
If you are interested in one of these houses contact Erin Green, HOW marketing representative, at 612-721-7556 ext. 12.

The HOW marketing representative will show you available homes that are affordable to you and explain the HOW program requirements. The HOW marketing representative will work with you one-on-one throughout the purchase process or you may obtain your own agent to represent you.

Prior to purchasing a home through HOW you will need to complete two Home Buyer Education Workshops.

The Pre Purchase Workshop coordinated by the Home Ownership Center, 651-659-9336, provides comprehensive information about the home buying process and prepares you for home ownership Counselors will work with you to determine how much home you can afford, counsel you with credit issues and refer you to a lender.

The Housing Maintenance Workshop conducted at Northside Neighborhood Housing Services, 612-521-3581 provides training on general property maintenance such as furnace function and minor plumbing repairs.

For more information, contact CPED by calling 612-673-5229.

The Home Ownership Program

The Home Ownership Program, a partnership with the Greater Metropolitan Housing Corporation offers affordable home ownership opportunities to buyers with incomes at or below 80% of the metropolitan median income (MMI).

This program is funded using federal Community Development Block Grant (CDBG) funds. In addition to funds available to the developer for the construction gap, the City provides up to $30,000 in affordability gap financing to the homebuyer in the form of a deferred loan due and payable at the time of sale of the property.

Staff from CPED and GMHC review and discuss development opportunities and select sites to pursue.
Contact Person: Earl Pettiford, (612) 673-5231
Earl.Pettiford@ci.minneapolis.mn.us

Minneapolis Community Planning and Economic Development Department
Seeking Home Ownership in Minneapolis?

The City of Minneapolis works with for-profit and non-profit development partners to provide ownership opportunities that offer easy access to schools, services and public transportation.

Below is a list of partners who have worked with the City on recently developed projects and currently have homes for sale in Minneapolis. These projects offer urban amenities and home-ownership opportunities for low-to-moderate and upper-income households.

Need mortgage financing? Check out the City of Minneapolis CityLiving Mortgage Loan program or call 612 673-5282.

Follow the links below to find your first home – or your next home – in Minneapolis!

City of Lakes Community Land Trust
City of Minneapolis, CPED Housing Division
Humboldt Greenway Development, LLC
Greater Metropolitan Housing Corporation
Heritage Housing, LLC
PRG, Inc.
Prima Land, Inc.
Project for Pride in Living
Urban Homeworks

Resources

OwnAHomeMN.org is another online resource for finding quality affordable homes in the Twin Cities. OwnAHomeMN.org is a pilot initiative by the Metropolitan Consortium of Community Developers working in collaboration with members and partner organizations.

Minnesota Home Ownership Center offers home ownership education and foreclosure prevention counseling.

The City also encourages homebuyers to “Buy Smart, Buy Near Transit” to save money, deliver a better return on their investment, and ensure a higher quality of life for themselves and their neighbors.

Minneapolis Community Planning and Economic Development Department
Single Family Housing Development

CPED’s Single Family Housing Department administers the Home Ownership Works, Century Homes, and Vacant House Recycling programs which are funded by Federal CDBG, HOME, MHFA, Met Council, Family Housing and Development Account funds. Our success with these efforts has helped return vacant lots and vacant/boarded homes to the city’s housing supply. We acquire and demolished vacant structures to provide new housing opportunities, serving as the catalyst for new home development.

Home Ownership Works (HOW) Program

CPED remodels older homes in Minneapolis and brings the property up to code.  Through this program, homebuyers can move into a home that offers the charm and characteristics of a remodeled older home.

Century Homes Program

The Century Homes Program is a partnership between the City of Minneapolis and the Greater Metropolitan Housing Corporation (GMHC) to build new single-family homes on city owned vacant lots.

Vacant Housing Recycling Program

Vacant Lot For Sale List (pdf)

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Home Buyer Programs in the City of New Hope

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

The City of New Hope gave me the the following websites :

www.mnhousing.gov

www.capsh.org

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Home Buyer Programs in the City of Burnsville

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

Low Interest First Time Homebuyer Loans Available
Dakota County Community Development Agency Releases Over $41 Million in First Time Homebuyer Financing [Additional info...]

Homeownership Connection
Programs & Resources For Homebuyers

First Time Homebuyer Program
Downpayment & Closing Cost Assistance
Home Stretch® Homebuyer Education
Pre-Purchase Counseling
First Time Homebuyer Program
In the market for your first home? Whether you are buying an existing home or building a new one, the Dakota County CDA’s First Time Homebuyer Program provides a financial resource to make your purchase successful.
Current interest rate: 4.75%
Program Eligibility

• Homebuyers must be first time homeowners or someone who has not owned their primary residence in the last three years.
• Eligible properties include existing single family homes, townhomes, condominiums or duplexes in Dakota County.
• New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
• Homebuyers must occupy the home as their primary residence after purchase.
• Buyers must have a minimum credit score of 620.

Income Limits

• 1 or 2 person households: $84,000
• 3 or more person households: $92,400

Maximum Purchase Prices

• $276,683 for single family homes, townhomes or condominiums
• $389,205 for duplexes (not eligible for additional Downpayment Assistance)

Eligible Financing

• The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans.

Fees & Requirements

• An application fee of $225 is paid at closing. Mortgage lenders may also charge a $150 transfer fee as part of closing costs.
• Home Stretch Homebuyer Education certificate required prior to loan closing.

To apply, contact a participating mortgage lender. They have all the necessary paperwork to qualify homebuyers for the First Time Homebuyer Program and Downpayment Assistance.
Questions? Call (651) 675-4442.
Downpayment & Closing Cost Assistance
Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans up of up to $10,000 depending on household income.

Loan Terms

• Zero percent interest
• No monthly payments
• Loan must be repaid when the primary mortgage is paid off, the home is no longer the primary residence, or when the home is sold or refinanced.
• Borrower must contribute a minimum of $750 of their own funds toward the purchase of the home.
• Home must meet the minimum housing standards for FHA or VA mortgages.

Maximum Loan Amounts & Income Limits

• 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income.
• 5% of the first mortgage amount up to $7,500 for households with incomes between 51% and 80% of the area median income.
• 2.5% of the base mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits.

Household	10% Income	5% Income	2.5% Income
Size	Limit	Limit	Limit
1	$29,400	$45,100	$84,000
2	$33,600	$51,550	$84,000
3	$37,800	$58,000	$92,400
4	$42,000	$64,400	$92,400
5	$45,400	$69,600	$92,400
6	$48,750	$74,750	$92,400
7	$52,100	$79,900	$92,400
8	$52,100	$85,050	$92,400

Questions? Call (651) 675-4442.

Home Stretch® Homebuyer Education Program
Purchasing a home may be the biggest investment you ever make. The first step in making a sound investment is to learn about the homebuying process by attending Home Stretch.

Home Stretch teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Topics covered include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.

Home Stretch is taught by professionals in the homebuying field including a certified Home Stretch educator, mortgage lenders, realtors and home inspectors.

The Dakota County CDA holds Home Stretch classes monthly and is a HUD-Approved Housing Counseling Agency. Upon completion, participants receive a Home Stretch certificate.

2010 Dakota County CDA
Home Stretch Schedule

July 15, 20 & 22 closed
July 17 closed
August 21 8 a.m. – 4:30 p.m.
September 16, 21 & 23 6 – 9 p.m.
October 14, 19 & 21 6 – 9 p.m.
November 208 a.m. – 4:30 p.m.

The cost to attend the class is $15 per household for Dakota County residents and $25 per household for non-residents.

Pre-registration is required either by phone or online.

Online Home Stretch Registration

To register by phone, contact Shannon Kehoe (651) 675-4472.
For a list of other metro area Home Stretch class dates, visit the Home Ownership Center’s Web site at www.hocmn.org

Pre-Purchase Counseling

The CDA’s Pre-Purchase Counseling services provide free individual counseling to Dakota County homebuyers and can be accessed anytime during the homebuying process, whether you are buying a home now or in the future.

This program assists homebuyers in creating a plan to become successful homeowners. The plan may include: credit repair, creating a household budget in order to save for a downpayment on a home, identifying mortgage loan products that best meet the household’s needs and/or examining and answering questions about loan documents.

If you have questions about the homebuying process or would like to schedule a Pre-Purchase Counseling appointment, contact Shannon Kehoe at (651) 675-4472.

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Home Buyer Programs in the City of Plymouth

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

FIRST TIME HOME BUYERS

The Plymouth Housing and Redevelopment Authority offers a zero interest deferred loan up to $25,000 for qualifying first time homebuyers purchasing a home in Plymouth.

• Financial assistance can be used for up to 50% of the required down payment, 100% of allowable closing costs up to $5,000 and for reduction of the mortgage principle.
• Repayment of the loan is required if the home is sold or no longer homesteaded within the first 30 years of ownership. After 30 years, the loan becomes due and payable.
• Applicants will be accepted on a first-come, first-serve basis.
• Program guidelines and income requirements are subject to change.

Eligibility Criteria

• Must be a first time homebuyer — have not owned a home in the last three years or have been displaced due to a divorce.
• Must buy a home in Plymouth.
• Must register and attend all homebuyer training sessions with Community Action Partnership of Suburban Hennepin prior to closing.
• Must use only a participating lender for your primary mortgage.
• Household income must not exceed the maximum income limits by household size. This is based on your gross earnings and includes all income received, such as wages, child support, alimony, etc. Income limits are revised yearly.

Household Size	Maximum Household Income
1-Person Household	$45,100
2-Person Household	$51,550
3-Person Household	$58,000
4-Person Household	$64,400
5-Person Household	$69,600
6+ -Person Household	Call

• Authorization to Release Information (PDF)
• First Time Homebuyer Application (PDF)
• First Time Homebuyer Brochure (PDF)

Contact
Housing Division
Plymouth City Hall | 3400 Plymouth Blvd. | Plymouth, MN 55447-1482
P 763-509-5410 | F 763-509-5407 | housing@plymouthmn.gov

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Home Buyer Programs in the City of Minnetonka

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

Homeownership programs

• First-time homebuyer programs
• Downpayment and closing cost assistance
• Homebuyer education
• Other affordable housing programs
• Foreclosure prevention
• Reverse mortgage

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Home Buyer Programs in the City of Hopkins

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

First Time Home Buyers

Mortgage programs

More information on first time home buyer mortgage funds is available through the Minnesota Housing Finance Agency.

Information including the following is available:

• Minnesota City Participation Program
• Minnesota Mortgage Program
• Accessibility Home Fund
• Calculating a monthly mortgage payment

Housing Rehab Loans & Grants

The City of Hopkins provides funding to assist low and moderate income homeowners in improving their homes.

Who is eligible?

To qualify for a loan or grant the following requirements are necessary:

• Must be a Hopkins’ homeowner residing in the property to be improved.
• Must not exceed the income limits as listed below.
• Must have equity in the property equal to or greater than the loan or grant amount.

Income Limits (effective 5/14/10)

Number in HouseholdGrant	Grant	Half	Loan
One	$29,400	$37,250	$45,100
Two	$33,600	$42,575	$51,550
Three	$37,800	$47,900	$58,000
Four	$42,000	$53,200	$64,400
Five	$45,400	$57,500	$69,600
Six	$48,750	$61,750	$74,750
Seven	$52,100	$66,000	$79,900
Eight	$55,450	$70,250	$85,050

Terms

The maximum grant or loan is $25,000. The grant/loan is filed as a second mortgage on the property and is not assumable upon the sale of the home.

Loans are offered at 3% interest over a 12-year period. Grants do not require repayment, provided the homeowner lives in the home for ten years after the work is completed.

Eligible improvements

Improvements must be permanent. Such improvements include alteration or repairs to the property which correct defects or deficiencies in the property that affect the safety and habitability of the home. Work can also include upgrading the home’s energy efficiency. Examples of eligible improvements include:

• furnaces
• roofs
• windows
• electrical
• hot water heaters
• structural repair
• plumbing
• insulation

The program is funded through the Community Development Block Grant program under the Department of Housing and Urban Development.

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Home Buyer Programs in the City of Crystal

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

Do you have technical questions about a potential home repair or remodeling project? Are you interested in financial assistance for home repairs, improvements and remodeling? The HousingResource Center – Northwest is available to help!
2148 44
th Ave N Office Hours:

Minneapolis MN 55412 9 a.m. – 5 p.m. Mon-Thu
tel (612) 588-3033 9 a.m. – 1 p.m. 4
th Sat of
fax (612) 588-3028 each month
http://www.housingresourcecenter.org/
The Housing
Resource Center is operated by the non-profit Greater Metropolitan Housing Corporation in partnership with the business community, financial institutions, and the cities of Brooklyn Center, Crystal, New Hope,

Downpayment Assistance Program for FHA 203K Purchase-Rehab Loans

Homebuyers using a Federal Housing Administration loan program called “203K” to purchase and rehab a vacant house in Crystal may be eligible for downpayment assistance for 3% of the total purchase and rehab costs (maximum $5,000). To qualify, the buyer cannot own any other residential property and their household income may not exceed $83,900 (if a one or two person household) or $96,489 (if a household of three or more people). The downpayment assistance would be a deferred, no-interest second mortgage to be forgiven after five years if the buyer owns and occupies the house throughout that time. For more information, call the Housing
Resource Center at (612) 588-3033 or click on the “Downpayment Assistance Program” link at
http://www.gmhchousing.org/crystal_apps.htm.

U.S. Dept. of Housing & Urban Development Neighborhood Stabilization Program

The federal Neighborhood Stabilization Program (NSP) was adopted in summer 2008 to help local governments deal with foreclosed and abandoned properties. One strategy is to provide downpayment assistance for new homeowners to purchase these properties. Hennepin County is administering NSP homebuyer programs for several cities including Crystal. For more information, please review the materials at http://www.hennepin.us/neighborhoodstabilizationprogram

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Data.gov – A Cool Site With Lots Of Great Info

http://www.Data.gov I just found this site and wanted to share it.  It has a ton of info and reports.  If you have a project or just an “inquiring mind”, this is sure to be a hit.  Check it out and get the data you need.

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Balance Transfer and Housing Finance

By Addi Vardhaman

The Indian immovable property has come of ages. Consumer is the King now and gone are the days of monopolistic behavior. And definitely, if you are the one with sound financial background and impeccable credit record you can strike a better deal with the banks in terms of interest rates and other payment conditions and purchase your dream property without any hassle.

Interestingly, the same criteria is equally applicable on those, as well, who have already availed a loan from a bank. Near about all the major public and private sector banks in the Indian banking system are now offering the option of ‘Balance Transfer’ on housing finance. Often, banks in the housing finance sector tend to increase the interest rates when the benchmark interest rates increase. But, such alacrity is not shown by them in decreasing rates whether the Repo rate comes down or not. In such circumstances, balance transfer help the customer a lot. He can replace the higher rate loan and avail a lower rate one by paying some extra charges. These charges are lower compared to the total payable interest.

What is Balance Transfer and how is it relevant in the housing finance?

There are times you find that the interest rate on your home loan is at a higher level. Take an example. Suppose you were paying at the rate of 10.5 per cent per annum. This rate is quite high in comparison of 9 per cent offered by some other bank. In such cases balance transfer of housing finance comes into rescue. You can trigger off the balance transfer option with your existing bank or lending institution, under which the unpaid portion of your housing finance would get transferred to your desired bank, thereby taking benefit of the difference in the housing loan interest rate.

Things to take care of at the time of balance transfer:

* Tenure of loan amount should be taken care: Ideally, you should consider taking the balance transfer option when the remaining part of your payment period is more than 5-years and in such a case you have the time for speculative gains. There is no profit in transferring the home loan from one bank to another if you end up paying early payment penalty and other processing charges even more than the difference of housing loan interest rate and the amount you had to pay towards interest in the normal condition.

* Early Payment Charges associated with the housing finance scheme: Banks like State Bank of India, IDBI and ICICI offer benefits like exemption of the early payment charges to your existing bank if you transfer the balance. So you must confirm the same with the new lending institution that are they ready to deal with this matter. Otherwise, the deal is not profitable.

* Additional charges involved with the loan amount: You must confirm that the desired amount for your home purchase loan is perfectly at par with the balance you had in your previous bank. It may be the case that that your new bank pays all early payment penalties and processing charges on your behalf and later add the amount to the principal of your housing loan. So, in such case your total owing remain the same and the transfer is not profitable. In this situation, you have to suffer the impact of debt compounding, which does not favour you in the long run.

Seeking balance transfer as a burden reduction option needs the similar degree of caution and study that you undertake while taking housing finance. Definitely with balance transfer, you can save a considerable amount of interest charges under this option once you strike the right chord!

About The Author: For more information about home loans. Please visit our website: http://www.paisawaisa.com/

Article Source: http://EzineArticles.com/?expert=Addi_Vardhaman
http://EzineArticles.com/?Balance-Transfer-and-Housing-Finance&id=1337511

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Housing Finance – A Revolution In The Market

By Aditya Jaiswal

The housing finance in India is growing at a fast pace. The home loans or housing finance is a huge industry in itself. A lot many people are trusting home loans in India to purchase property. This is the best and affordable way of realizing your dream of buying your own home. These finance options are open for all salaried individuals, self-employed individuals, partnerships, and even NRIs. The home loan can be availed for various purposes like loan for building a house, purchasing a piece of land, buying an existing house or apartment, and renovating a house.

The home loan can be availed for all kinds of properties like residential, commercial, and industrial. The loans for industrial and commercial property are of huge size and are normally taken by organizations. People also take home loan for the purpose of investment in property rather than for their own use. These properties are later on sold in the market at good profit.

Apart from a normal housing loan one can also get home equity loan, a unique concept wherein the borrower can mortgage his existing property to avail loan that can be used for any kind of purpose as desired by the buyer. Generally, people avail home equity loan facility for the purpose of marriage, education, or to meet medical expenses. The maximum loan amount that banks normally offer is about 60% to 65% of the market value of the property. The home equity loan is generally provided on difference amount of the actual market value of the property and the amount the customer already owes to the bank. At one time this concept of borrowing was not much known but today it has become quite popular as the funds can be put in use as per the wish of the customer.

The housing finance companies follow a very strict process while providing loans to the customers. The loans are disbursed in line with the credit policies of the bank and financial institution. As part of their process, banks verify the credit history of the borrower to ensure safety of the funds. It is important to check whether the customer is a defaulter with some other financial organization or if he has misused any of the banking products.

The housing finance sector is being promoted in a big way in India. The banks and financial institutions are offering home loans at attractive terms. Even people find it advantageous to purchase property by availing home loan as they get tax benefits and easy repayment options. This is the best way to buy a property especially if you belong to service class. The banks and housing finance companies are also being professionally managed. They are always ready to assist the customers regarding queries related to the prevailing rate on interest, the various tenures available for repayment, conditions or the eligibility criteria for various categories of customers, the documentation required etc. It will not be wrong to say that housing finance in India has caused a revolution in the market and has motivated purchase of properties.

Aditya Jaiswal, advisor of home loans for NRIs, is an associated editor with the site: www.guide2homeloan.com The site is an online portal to provide home loan advice on home loans in India including types of home loans in India, home loan interest rates in India provided by home loan providers in India.

Article Source: http://EzineArticles.com/?expert=Aditya_Jaiswal
http://EzineArticles.com/?Housing-Finance—A-Revolution-In-The-Market&id=397589

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