Can i get 100% loan facility.?

Q: I want to buy a flat at maximum 25 lakhs investment . I want 100% loan facility?. If yes, then i would like to go in for it immediately.

Chetan Rao,

9th July 2014

Home Loan in Atria Dhanashree Aangan, Handewadi, Pune

Follow Discussion

Also see discussions for

Pune Handewadi Atria Dhanashree Aangan Home Loan Home Loan in Pune Home Loan in Handewadi Home Loan in Atria Dhanashree Aangan

Replies (2)

Hi Sunil,
100% loans result in higher interest costs, the price you’ll pay over the life of your loan -- because you’re paying interest on 100% of the purchase price. What’s more, second mortgages generally have higher interest rates than first mortgages, so you’re paying a premium to borrow the extra 20%.

Nitesh Patil, Pune

10th July 2014

Comment

@Chetan Rao,
But it does not mean you should never buy a home with no money down? You can, but they are often misused and abused. If you evaluate all the alternatives, you may find that it makes sense to skip the down payment. However, you need a solid long-term plan that allows you to pay off the loan in good times and bad.

Sunil Kulkarni, Pune

10th July 2014

Hi Chetan,
You may still be able to buy a home without a down payment. A few programs, such as VA loans, still exist. FHA loans, and even conventional lenders, may also allow you to buy with a relatively small down payment.

Sunil Kulkarni, Pune

10th July 2014

Comment