I recently took a construction loan for house renovation. My primary target was to build an extension of my house. These loans can be taken to build and renovate along with extending your existing house. So, if you are wondering how construction loans work for renovations, here is how.
How Do Construction Loans Work For Renovations
Construction loans are short-term loans given to people building their houses from scratch but can also be used for home renovation. When you apply for a construction loan, your lender will ask you for the building plan and construction estimate.
Following this, the lender will verify the details and then disburse the amount. Like construction loans, the loan amount will not be disbursed immediately. You will receive the loan amount in parts.
The maximum tenure of construction loans is approximately 30 years, and the rate of interest for these tends to be higher. The reason is that people don’t generally opt for these loans.
If you are planning to apply for a construction loan, then make sure to keep the documents mentioned below handy.
Architect authorized construction blueprint..
Approval from municipal corporation.
KYC documents.
Property papers.
Proof of income.
The documents mentioned here are according to the documents required by HDFC Bank.
And that is all about construction loan for house renovation.
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How Do Construction Loans Work For Renovations?
Seema
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2023-12-27T08:23:44+00:00 2023-12-27T09:42:58+00:00Comment
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