I want to apply for a home loan, but the property is registered in my father's name. Is it possible? Can anybody help clarify my understanding of home loans?
If the property is registered in your dad's name, you cannot get a home loan on your name. Look at it from a lender's point of view, you take the loan and vanish, they cannot take possession of the property as it’s not on your name. Legally your dad is not party to a transaction between you and Bank.
If your intent is to get some funds for the property then; Options: Let your dad take a loan and you can co-sign [although most Bank’s if you are co-signing need your name on the property]. This may allow your dad to take a loan if his own income does not allow him to do so.
Take a personal loan for smaller amount, though the rate of interest would be high and the tenure (duration of the loan) shorter.
If your intent is not for funding the property but to get tax breaks; then the above will not help you. You would need to have the property in your name.
A housing loan or mortgage is generally obtained to buy a property, and it is secured by the property being purchased.
protected by Chris W. Rea Oct 17 '12 at 12:35
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