Builder Samuel
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Homebuyers rarely consider personal loans to finance their purchases. Home loans are the most popular alternative because they have low interest rates, a longer repayment period, and are specifically developed for this purpose. Most clients, on the other hand, believe that a personal loan can be used to cover a down payment on a home. Making a big down payment on a house loan lowers the principal and interest rate, as well as speeding up the approval process. Taking out a personal loan to cover the entire cost, on the other hand, raises the borrower's debt-to-income ratio, which lowers their eligibility, bringing the cycle full circle.
In a nutshell, personal loans are not recommended for house purchases unless you have no other option for making the minimum down payment.
In a nutshell, personal loans are not recommended for house purchases unless you have no other option for making the minimum down payment.