Can I apply for home loan for the property which is in my father-in-law’s name?

Ans: For any lender, home loans are sanctioned in the name of the homeowner so the responsibility of repayment lies with the borrower. So, you can have both of your names in the sale deed and apply for the home loan as co-applicants. That way your father’s bank account can be registered for repayment of home loan.

While this is the ideal solution, you can also choose to have the property registered in your father’s name along with the home loan. Once the home loan is paid off, he can create a gift deed for you to transfer the ownership.

Ans: Since this is an internal transfer of property between two related parties, you will not be able to get a home loan for the same.

Ans: In order to apply for a home loan against a particular property, it is mandatory that the said property is in the name of the applicant. Hence it is imperative that you get the property transferred in your name as a sale or gift. 

Ans: Taking a joint home loan with your friend can be a viable option to fulfill your dream of owning the desired home. Banks typically consider the combined income and creditworthiness of all co-applicants when approving a joint home loan.

In your case, since your friend has 40 lakh rupees for the down payment, you can apply for a home loan of 70 lakh rupees jointly. However, it's crucial to note that each bank has its own lending criteria and may evaluate the loan application based on factors such as income stability, credit history, and debt-to-income ratio.

Before proceeding, it's advisable to discuss the terms of the joint ownership with your friend and seek legal advice to draft a co-ownership agreement outlining the responsibilities, rights, and obligations of each party to avoid any potential conflicts in the future.

Additionally, consult with multiple banks or financial institutions to compare loan offers and choose the one that best suits your requirements in terms of interest rates, tenure, and repayment options.

By leveraging the combined financial strength of both applicants, you can increase the chances of loan approval and make your dream of homeownership a reality.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in