Home Loan refers to a mutual agreement between the client and the lending company in which the client purchases a property and the lending company keeps the same property as security for the loan by the client. There are different kinds of home loan available in the market, and you should have the enough knowledge about different kinds of home loan before applying for one.

These are the different kinds of housing loan that are presently available in the market:

€ Home Purchase Loans:
These are the basic form of home loan used for purchasing of a new home.

€ Home Construction Loans:
These kinds of housing loan are available for building a new home.

€ Home Improvement Loans:
These loans are given for implementing repair works and renovations in a home that has already been purchased by the client.

€ Home Conversion Loans:
With home conversion mortgage, the current mortgage of the client transfers to the new home that includes the extra amount that the client requires. This eliminates the need of prepayment of the previous housing loan that the client borrows.

€ Home Extension Loans:
This is the home loan that is given for the expansion of a current home of a customer. For instance: addition of another room in the home, etc.

€ Bridge Loans:
You can take bridge loans, if you wish to sell the current home and get another one. The bridge loans help in financing the new home, until a buyer is found for the new home.

€ Land Purchase Loans:
This form of home Loan is available for buying land for construction. This kind of loan is also available for the investment purpose.

You can also get a housing loan, if your credit history is not good and it's also possible to take a home loan, in the case of debt consolidation. These days, it's quite easier to take a debt consolidation home Loan with a poor credit history. Hence, we need to know that what exactly the term "debt consolidation" stands for. Debt consolidation is a process through which you can combine all your debt payments into a single unit of payment to pay every month. This provides great benefit since the single monthly payment amount is very less as compared to the sum total of all the monthly loan payments. It proves to be an excellent idea for persons who suffer from debt related issues. But, before applying for a loan, you should calculate your total income and the amount that you will have to pay every month. This will not burden your pocket after you take loan and pay installments.