Get a Home Loan on My Parent's Name_Banner_WC
Can I Get a Home Loan on My Parent's Name_WC
While you can’t get a home loan in your Parent’s name, you can certainly add them as a co-applicant on your own loan application. Similarly, you can also apply for a home loan on their name and then add yourself as a co-applicant. In both cases, the responsibility of repayment of the home loan will fall equally on you and your parents.
A Home Loan is an easy and convenient way to buy a house - you can borrow the amount you need and repay it in a stress-free manner by opting for a tenor that works best for you. However, borrowers get approved for a home loan only when they meet their lender's eligibility criteria.
In case a potential borrower fails to meet these eligibility criteria, their loan application gets rejected. In this scenario, one of the easiest ways to enhance one's Home Loan eligibility is to add a co-applicant with a good credit score and stable source of income. This co-applicant could be your spouse, siblings or parent. Before we give you more details on how you can add your parent's name to your home loan application, let us first understand who a co-applicant is and what their responsibilities are.
So, what is a co-applicant?
The word co-applicant refers to an applicant whose name appears with that of the main applicant in the Home Loan application. Borrowers must know that a co-applicant can be a co-owner but a co-owner must mandatorily be a co-applicant. Further, only co-owners serving as co-applicants can claim tax benefits available on Home Loans.
So, if your parents are working but they are only co-applicants in your Home Loan application and not co-owners in your property, they won't be able to claim tax exemptions available by way of Home Loans. Further, if you add a parent as a co-applicant, know that they will be equally responsible for paying Home Loan EMIs.
If you are planning to add your parent as a co-applicant on your Home Loan application, there are a few things you must keep in mind:
If your parent is working, the lender will include their income while calculating the maximum Home Loan amount you are eligible for.
Similarly, their age will also be taken into consideration while calculating the tenor for this joint Home Loan.
If an unmarried daughter applies for a Home Loan with her mother, the income of the mother is not considered. Further, the property should be in the daughter's name so that there are no issues regarding ownership once the daughter gets married.
While you cannot take a home loan on your parent's name, you can take a Home Loan on your name and add them as a co-applicant. However, know that when it comes to joint home loans involving parents, lenders do not sanction loans easily. They do so because they do not want to get embroiled in contentions between legal heirs regarding property ownership in case of the demise of the parent. Thus, if you are applying for a home loan with your parents, make sure to have all the paperwork that establishes you as the sole owner of the property for which you are taking a home loan. This will help you get approved for the loan easily.
*Terms and conditions apply.
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