“Money saved is money earned” a thought we are well versed with and have even imbibed it in our day to day life. However there are times when we face some serious cash crunch. This is when loans come in the picture.

There are many banks and financial institutions these days that offer great deals when it comes to loans. There are different types of loans available as per the purpose they serve. A home loan is one such category that caters to your home buying related cash crunch.

However there are different types of home loans as well per the purpose they are used for. We chalk down different types of home loans.

Home Purchase Loans: The most common form of home loan, a loan undertaken to buy a new house or repurchase a house.

Home Improvement Loans: As the name suggest these loans are more prominently for funding the renovation and repair works at your house.

Home Construction Loans: When a home is to be built on a plot purchased this is when you have to apply for a home construction loan from a bank or any financial funding institution.

Home Extension Loans: These loans are given for expanding or extending an existing home. For e.g.: addition of an extra room, etc.

Home Conversion Loans: There are times when people purchase a home applying for a home loan. However later decide to move to another place where they might require some extra amount. This is where conversion loan comes into play. Therefore the loan amount is transferred on the new home purchased.

So the next time you wish to apply for a home loan you know the different categories that exist.