My father-in-law is a retired army person and we want to buy a house developed by Army Welfare Housing Organization. The property would be in the joint name of my father-in-law and my husband. Can my husband apply for a home loan on the above property? Can I also become the co-owner in the property? Will we be eligible for a loan amount of 85% of the cost of property if our combined income qualifies for the same?
Assuming that the said property can be mortgaged to the lender along with the required documents, your father-in-law and husband (co-owners) would be required to apply for a joint home loan. You could also join in as a co-applicant to the same. Owing to your father-in-law’s retirement, only your and your husband’s incomes will be considered for loan eligibility. Accordingly, you could get a loan of up to 85% of the cost of the property, subject to your repayment capacity.
Can pre-approval for a loan be requested only if a property is not yet identified? Is it possible to seek pre-approval in case the property has been booked, but the allotment or agreement has not been done yet?
Normally, after a thorough examination of the creditworthiness of the customer, a pre-approved home loan is granted to him. This way, the customer becomes aware of the funds available to him and can accordingly plan the purchase of the property and arrange for the necessary finances from his own sources. This is an independent process undertaken by the lender, irrespective of whether the property has been selected or not. However, the lender would disburse the loan only after the agreement of sale is duly registered, the customer has made his own contribution and the property documents are verified and they meet the lender’s approval criteria.
My wife has a plot of land in her name and we plan to construct a house on that plot. We plan that I should take a loan and construct the house, but the entire property remains in her name. Will the bank give a loan to me in that case? If not, what else can I do?
Yes, lenders do provide loans for construction of residential premises on a plot of land. However, in your case, since your wife owns the plot of land, you will get a housing loan for the construction only if your wife is a co-applicant to the housing loan.
Renu Sud Karnad is the managing director, HDFC Ltd.
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