Can I Get Home Loan Without Down Payment?

If you are planning to take home loans with no down payment, then let me inform you it's not possible. Lenders typically require borrowers to pay back a portion of the entire cost of the property in advance. And that amount is known as the down payment. Let's learn more about it.

Can I Get House Loans with No Money Down?

Generally speaking, you can't get home loans with no down payment. However, it depends on the lender's guidelines, it usually varies from 10% to 20% of the property's worth.

Lenders want you to make a down payment, usually to lower the risk they take when granting a home loan. Besides lowering the total loan amount and showing the borrower's financial commitment to the property, the down payment lessens the lender's risk.

However, if you can't arrange the down payment, there is a popular alternative option. One possibility is you take a personal loan to cover the down payment. Compared to home loans, personal loans have shorter payback terms and higher interest rates, but they also offer quicker approval and more flexibility.

Furthermore, having two loans to balance can put you further in debt, so be sure you have enough money to pay the home loan and your personal loan's interest. I hope this answers your query on can I get home loan without down payment.

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To answer your query, how to get a zero down home loan, I’d like to say that it is not possible to get a zero down payment on a home loan. In India, the required minimum down payment for a home loan is 20% of the total cost of the property you intend to buy. When you take out a loan from a bank, the majority of them will want you to pay them at least this sum.

Is it Possible to Get No Down Payment Home Loan?

According to Reserve Bank of India (RBI) standards, banks are not allowed to offer home loans in India with no down payment. Only a specific percentage of the buying price of a property may be borrowed by them.

Consequently, you can finance up to 75–80% of your property purchase by applying for a home loan, with you being responsible for the remaining 20–25% in the form of a down payment. 

Although it is not possible to obtain a first time home loan no down payment, there are a number of methods you can raise the money needed to make the required down payment including;

• asking friends and family

• utilising your investment funds

• selling certain assets

• take a loan from your employer

Hope this helps!

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How much Down Payment for Home Loan?

The majority of lenders will only lend up to 90% of the value of your home. Thus, a down payment of the remaining 10% is required. This down payment could vary based on the property's valuation. Therefore, the down payment will increase in line with the value of your home. If you do not have enough money in your bank account, things could become too much to handle in this situation. Thus, the issue, is it possible for me to get home loans with no down payment, arises.

Is it Possible to Get a House Loan without Down Payment?

If you are wondering whether can you get home loan without down payment, I’d like to say that in technical terms, the answer is no. On the other hand, there are a few choices that will enable you to swiftly and effectively arrange the funds needed for the down payment. 

Here are a few of the most popular ways to get money for a down payment on a house:

• Withdraw money from your investments

• Paying the down payment might be greatly benefited by careful planning. It is essential that you set aside a certain portion of your monthly income for this. 

• Seek the Assistance of Friends or Family to Provide Funds for Your Project

• You can sell off a few assets

I hope this helps you understand facts about without down payment home loan.

When it comes time to repay the remaining balance of your loan, it's normally preferable to have enough money in your bank account rather than needing to look into other options. Your load will be lessened as a result, and you won't have to worry about the down payment when buying your dream house.

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Zero down payments in loan refers to the payment facility where the financier pays the cost of the product and the applicant need not pay anything upfront. However zero down payment home loans India got cancelled by RBI. It clearly stated that banks cannot lend 0 down payment home loans but they can lend up to a certain limit on the purchase amount of a property. Let me share how to buy home without down payment. Kajol ma'am has rightly stated some of the methods so I will just add a few more methods to it.

 

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Can I buy home without down payment?

Some methods that can help you get a house loan with no down payment is 

• Borrow from your relatives or friends

• Taking an unsecured loan

• Taking a loan from your organisation

• Make use of your investments

 

Other methods to get home loan with no down payment are-

 

Sign up for PMAY

Government has initiated several schemes to help its citizen buy or construct a house of their own and one such scheme is the PMAY or Pradhan Mantri Awas Yojana scheme. The beneficiary can get up to 65% interest rate subsidy on the home loan.

 

Take a loan from the employer

Several employers offer general-purpose home loans to their employees. The interest rate of such loans is also low and can be availed with minimal documentation. 

 

These are the methods to get zero down payment home loans India but do check the eligibility criteria and learn about their interest rates before finalising a home loan. 

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What is down payment?

Can you get a loan for a down payment?

How to buy property with no down payment?

 

According to RBI guidelines, your bank can lend only up to a specified limit on the buying cost of a house. So, when you apply for a housing loan, you can get money up to 80% of your house purchase. You have to pay the remaining 20% in the form of a down payment. So, what if you want to take a home loan without down payment in India? Don’t worry! Let me tell you how to get a house loan with no down payment. Borrow from your relatives or friends Since buying a home is costly, won’t it be amazing if your friends or relatives offer a helping hand? Ask if they can help you with the down payment. It is a simple way to arrange funds and can save both energy and time. Take an unsecured loan If you don’t have money for making a down payment, an unsecured loan is sure to help you. For instance, if your property’s value is Rs. 50L, and you get a housing loan of Rs. 40L, you can take a personal loan of Rs. 10L for making a down payment. Make sure you have a good credit score of 750 or above! Take a loan from your organization Some organizations provide general-purpose loans at low-interest rates to their employees. The process of taking such loans usually requires minimal documentation and is usually hassle-free. The tenure served in the company and your relationship with the employer plays a significant role in such cases. Make use of your investments You can pull up money from your investment to make a down payment. Plus, you should also consider taking a loan against mutual funds or fixed deposits to make a down payment. Now you know how to deal with 0 down payment home loans! Plus, there are some companies like Homefirst that are offering zero down payment, you should check them out as well. You may also want to check your home loan eligibility before you apply for a home loan. You can check it easily on NoBroker, here,

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Check out these answers if you like this answer on zero down payment home loans: How to get loan against property? How to get home loan with low CIBIL score? How do I get tax benefit on a joint home loan? I hope now you know how to take home loan without down payment in Bangalore and other parts of the country.