The AP Government Housing Scheme is a scheme that aims to help first time buyers secure their dream home. Even if you have experienced bad credit history, you can still get approved for this scheme. There are two types of people who can benefit from the scheme, namely first time home buyers and people with bad credit. With the help of experts, you can find out how you can qualify for the relevant home loans.
1. The first thing that you should know is the type of home loan that will be provided for you in the AP Government Housing Loan Scheme. You have two options to choose from when it comes to home finance. You can either secure a fixed rate loan or an interest only loan. Both these schemes will enable you to borrow money to buy your first house.
The property that you will buy in the AP Government Housing Loan Scheme is not your own. It is a one hundred per cent trust deed property that was given to you by the Government. To qualify for this scheme, you should have a viable plan for purchasing a new home. You should also be over the age of 18 years and hold a legal passport and a permanent residence card.
2. Another option that you can go for in the APHousing Loan Scheme is an interest only mortgage. If you have a large down payment, it can be beneficial for you. This scheme allows you to borrow money at a lower rate of interest and with longer repayment period as compared to a fixed rate loan. This option is best suited for people who can easily pay off their monthly installments.
For people who have less money to spare for a down payment and want to purchase a house easily, they should opt for the first mortgage option. This is the cheapest option and is suitable for those who have a good credit rating and a convincing plan for purchasing a new house. This scheme works by borrowing from the bank. Initially you may have to pay some amount as down payment. After paying off the first installment, you can use the remaining amount as your monthly repayment and can buy a new house easily.
3. The third option that you can go for in the AP Housing Loan scheme is an FHA loan. You may not be able to get an FHA loan from a traditional financial institution but you can use an FHA consultant to help you get a suitable house loan. An FHA consultant will be able to provide you a list of all the houses available in the market that fall under the FHA category and help you choose the best option for your house purchase. The consultant will also give you a clear idea about the cost involved in buying a house through this scheme.
4. Another good option for purchasing a home through the AP Housing Loan scheme is to use the Sell and Rent Back scheme. This is a short term solution that is perfect for those who need a home for a specific time frame. The concept is simple. You make a commitment to buy a house for a particular duration and then the home is put up for sale by a property investor at a reputed location. Once you have sold your house, you can come and live in it without any hassle. There are many people who choose this option to get out of the house they are renting quickly; others do so because they don’t like to rent.
These are various other government housing schemes that you can consider too if you really want to purchase a house fast. The government has also announced several incentives to encourage investors to purchase homes. Find out the best alternative plan that suits your situation and goals before going in for a house purchase in the APHousing Loan scheme. While you are deciding, you can also take into account your future plans like marriage, education or launching a new business and avail of the incentives provided by the government housing schemes.