Can I Get Home Loan for Buying Old House?

Borrowers typically use home loans to purchase one of two types of real estate: recently developed properties or previously owned resale homes. You can easily get a home loan for a newly built property, but getting one for an older, pre-existing property can be a little more challenging. So, coming to your query, can I get home loan for buying old house? As everyone said here, yes, you can get a home loan to buy an old house in India.

Can I Get Home Loan for Old Flat?

Yes, but it is subject to certain conditions set by banks and financial institutions.

1. The house must be structurally sound and habitable. Banks typically assess the building\'s age, condition, and remaining life before approving a loan. If the property is too old or poorly maintained, the bank might reject the application.
2. Older houses have a lower LTV ratio than new ones. Banks may finance up to 70%-80% of the property\'s value. You will need to arrange the remaining amount as a down payment.
3. To figure out the market value of the property, banks carry out a valuation survey. The purchase price or the property value, whichever is lower, determines the loan amount.
4. Standard documents like identity proof, address proof, income proof, and property-related documents (sale deed, title clearance, etc.) are required. Ensure the property has a clear title with no legal disputes.
5. Interest rates for home loans to buy old houses are the same as loans for new properties and start from 8% per annum, depending on your credit score and lender.

Your query about can we get home loan for old house should be solved.Avail Doorstep Assistance for your Home Loan at Lowest Interest Rate Via NoBrokerRead moreHow to pay home loan EMI through credit card?

Hello Ram, I came across your query regarding can I get home loan for buying old house. I can tell you yes, banks and NBFCs provide loans for resale property. 

As Ms. Jessica and Mr. Nehal said in their answers, there is a whole process of inspection and more where the bank determines whether it is good to give a loan on the said property.

I can help you by sharing some important things you must consider while looking for a home loan on resale property.

Can We Get Home Loan For Old House?

The decision to take a home loan for a resale property is a good call, given that you take cautious steps like preparation and due diligence. The assessment of the property’s legal documents and more is essential. Here are things you should look out for:

1. Check the property documents, such as the presence of clear ownership and the property is free from encumbrances.

2. Your eligibility: Check your eligibility, which includes your income, credit report, age, repayment capability and more. 

3. LTV Ratio: This is a ratio which showcases the percentage of the property value that the lender agrees to finance via the home loan. The LTV ratio for old properties may be lower because of the added risk. You might need to make a larger down payment.

So, keep these points in mind. I hope you now know can I get home loan for old flat.

Get a Home Loan at the Lowest Interest Across 15 Banks Via NoBroker! Some related information:

Important Documents to Check Before Buying a Resale Flat in 2024

 

Yes, you can get a housing loan for old house in India.

I would say that it is easier to get a home loan against a newly-built house in comparison to one that’s a resale one. I realised this during the time we applied for a home loan for a resale property around 5 years ago. This is because the lenders first check the condition of the house, and once they are satisfied, only then they sanction the home loan. 

So, what happens is that if the house is in a worn-out condition, or too old, the lender would see this as a risky deal. Hence, from their safety point of view, they first analyse the house you’re looking to buy and then make their decision to approve it or not. If they decide to approve your home loan, they would decide the amount based on the current age of the property, its state and your age as an applicant. 

A lengthy evaluation process is involved here, which has been explained well by Nehal in his response, you can read that for better understanding. 

What is your Checklist for Home Loan for Old House Purchase?

1. Before you finalise the deal for the house, analyse the property well. See if there are any structural issues. If you see anything serious, either cancel the purchase or get it fixed before applying for a loan.

2. Have the property checked by an expert in the field. Also, get all the property documents checked through a lawyer. I had connected with

   NoBroker’s legal services

   for this, and my lawyer Archana Shukla helped me with the process and was vastly experienced. She ensured that the property was free from any existing loan or dues. You should check the same whenever you decide to get a home loan.

3. Once you decide to take a home loan, keep all the documents in place for the application.

This is all about housing loan for old houses. I hope this helps.

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When I decided to buy a home for my family, I realised that there are two choices available to prospective home buyers. I knew I could either choose to purchase a newly built home or an older home that is being sold for a good price. To me, an old house up for sale appealed more because I did not have much time and I did not want to wait until a house under construction was finished before moving in. And I knew that the property was in a good location and that I would get a good return on it in future. But what I was not quite sure about was the process of getting a home loan for old house. I asked a friend of mine who works in a bank and he explained the process to me.

Check out home loans from the leading banks of India on NoBroker, here. Check out NoBroker’s EMI Calculator to get a correct estimate of your monthly EMIs.

Home loan on old property

Similar to new homes, resale homes are readily eligible for home loans. The resale market has its own advantages, such as the availability of flats with ready possession that you may move into right away. These homes may be purchased using the flexible payment plan.

Can I get home loan for buying old house?

Yes, you can. Here are the facts on the eligibility requirements for a home loan for an older home in case you are wondering whether you qualify or not.

Your ability to obtain a home loan for an ancient house may be impacted by a few significant issues. These considerations include the age of the home, its physical condition, and the buyer's age. The length of the loan is also based on the buyer's age. Therefore, the following eligibility considerations are taken into account by the lenders when determining the loan's term:

• The age of the house or how old it is

• The residence's status or physical state

• The borrower's age.

Additionally, the bank or other lending institutions make sure to do a house audit while deciding the terms of the mortgage. This is carried out in order to verify the house's age and physical state. It is carefully assessed that the house's age and condition are as stated and meet their requirements. All of this is necessary to ensure that the house can withstand the duration of the mortgage.

So, the structural engineer goes to the house or property where your loan application has been submitted. The loan application won't proceed till the approval is given. Additionally, the builder makes sure that it aligns with the interests of the lender if you are thinking about purchasing a house that is undergoing renovation and wants to apply for a home loan for that purpose.

When choosing a home loan for an older property, the state or condition of the ancient house is crucial. None of the banks or other lending organisations will give you the loan unless the property you want to buy and are looking for a loan for is not good enough.

Things to remember when getting a home loan for old house

When purchasing a secondhand home, remember the following:

• Verify each property document.

• Have a lawyer review the same.

• Request the account statement that verifies the prior purchase has not left any outstanding fees or penalties.

• Look around the house for any flaws or defects.

How to apply for a home loan for old house?

Following is information on how to apply for a house loan for an older property:

• Complete the loan application.

• Send in all required paperwork and passport-sized photos.

• Submit documentation of your identity, income, and address.

• Await the processing of the loan application.

I believe now you know everything related to home loan for old house.

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