Purchasing a house is a huge aspiration of most people, and when the purchaser has low-income, then home financing might appear to be a daunting experience. Nevertheless, through proper strategy, planning, and knowledge of options that are there, home ownership can be a reality. Let us see how you can acquire a home loan despite the fact that you have a low income.
Understand Your Eligibility
It is important to know the eligibility standards of lenders before one applies to get a home loan. The majority of financial institutions and banks consider the following factors; income, employment type, credit score, and available debts. To people with the low income, having a clean credit report and a credit score above 750 can result in being approved. There are also some lenders who take joint applications where the income of a spouse or family member can enhance the eligibility.
Choose the Right Loan Tenure
The choice of longer repayment period can enable you to lower the monthly EMI (Equated Monthly Installment) which will make the loan more affordable. Although this brings about an increment in the total amount of interest paid in the long run, it may make repayment easier to those who have low income. Delhi has numerous home loan providers that have different repayment plans that are flexible to the various levels of income.
Choose Affordable Housing Schemes
Indian government has a number of low and middle-income affordable housing programs. In cases such as Pradhan Mantri Awas Yojana (PMAY), the subsidy of interest on the loan to buy a house is up to 6.5 percent which is a big relief to the loan repayment. It should be checked whether you are within the bracket of eligible income to be able to enjoy such schemes.
Present Other Sources of Income
In case the lender only asks you to provide your salary, you can provide other sources of income that can support your application. This may involve rental, part time, commissions or family income. A variety of sources of income is considered favorable by lenders because it implies a higher repayment rate.
Reduce Existing Debt
Multiple loans or credit card payables may have an impact on your debt to income ratio and hence less likely to be approved. Settling smaller debts prior to submitting an application to home loan would enhance your financial statements. It also portrays a good financial discipline which is highly appreciated by the lenders.
Compare Different Lenders
All the home loan companies in Delhi are different in terms of eligibility, interest rates, and loan products. It is better to make a comparison of lenders prior to application so as to identify which one can best fit in your financial scenario. The other thing that you can do is contact home loan finance companies in Delhi that focus on providing individualized solutions to people with lower income levels.
Building a Home with a Down payment
The more down payment you have the less loan you need, the lesser are your EMIs, and the more the lender will be confident in your ability to make the loan repayment. Intend to save a minimum of 20 percent of the value of the property prior to loan acquisition.
Conclusion
We have knowledge about the specifics of problems of people with small incomes, and in Loan Guru we help people with moderate income level to make the appropriate choice of loans. We will ensure that it is easier, simpler and attainable for all to own homes.
