Is income proof required for loan against property?
Is income proof required for loan against property?
No. Proof of Income is a must when applying for a loan against property. Salaried applicants are required to submit salary slips of the past 3 months, and self-employed individuals, as well as SMEs, are required to provide audited financial statements of the past 2 years to show a steady source of income.
Is loan against property eligible for tax exemption?
Yes, a loan against property enables you to save on the tax amount payable. Salaried individuals can also claim benefits under Section 24(B) of the Income Tax Act if the borrowed funds are utilized for funding the purchase of another residential property. The maximum deduction one can claim is Rs. 2 lakh.
How to prove a property is free and clear?
ASK YOUR TITLE COMPANY FOR A PRELIMINARY TITLE ON THE PROPERTY YOU NEED PROOF THAT IT’S FREE AND CLEAR. This, coupled with the HUD1 from the purchase, shows that you didn’t use a loan to purchase it, and there is no existing lien from a mortgage on the property.
What kind of loan can I get against my property?
It is a loan against fully constructed, freehold residential and commercial properties for: Personal and Business Needs (other than for speculative purposes) like marriage, medical expenses and child’s education etc. Existing Loan Against Property (LAP) from other banks and financial institutions can also be transferred to HDFC.
What does free and clear mean on a 30 year mortgage?
If you have a 30-year fixed-rate mortgage and make the same monthly payment every month for 30 years, at the end of 30 years, you will own your home free and clear. Free and clear means if you were to sell the home and wanted to make owner financing available for a new buyer, you would have no underlying lenders who could prevent that choice.
What’s the maximum amount you can loan against a property?
Loan Against Property being availed should not, generally, exceed 50% of the Market Value of the property, as assessed by HDFC. You may spread out your payments for the loan over a maximum term of 15 years.