Even though the terms, prices and operations regarding land loans are just like compared to a mortgage, there are several differences that are intrinsic the 2.
Indian investors are usually inclined towards buying land either purely as a good investment or even for building a home. Therefore, you may not be eligible for a home loan, but for a land loan if you are looking to buy a plot. Mortgage loans can be obtained just for the house currently built, under construction or very likely to go through construction quickly. For funding the purchase of the vacant plot, you will need to decide on a land loan alternatively. Even though terms, prices and operations linked to land loans are comparable to compared to a mortgage, there are numerous differences that are intrinsic the 2 as outlined below: