Home loan and HRA – how does it work?
The point we all reach at some point in life is the desire to provide for a house and to find a roof over our heads. Although we know at the beginning that this feat is not an easy one, there are things that can still surprise us. We live in a chaotic social surrounding, and having someone that can help you on this quest in the big city is worth mentioning. Home loan and HRA can be very helpful and they can get you out when it’s the hardest.
How can they help you?
HRA stands for The Human Resources Administration (also known as Department of Social Services) and this is a government organization providing social services programs. They offer many ways of assistance for people in need especially in these dark days due to the covid-19 worldwide pandemic. They can provide food assistance or rental assistance, they have career services, child support services, free legal assistance to different health care assistance, and other services.
Study the situation
When we talk about home loans and HRA connections and assistance, there is no direct help here, because if you have approved a home loan at a bank, you are not a part of an endangered group of people. If the bank says you are not endangered, have in mind that there are situations where you are in a hard position. House loan is a big burden on our shoulders, but that is the burden we carry for better tomorrow.
In life, we can be confronted with a situation where no matter how strong we are, that burden becomes too heavy.
Meet the conditions
There are few cases to get help from HRA when you have a house loan:
- When you own a house in another city – For example, you have managed to buy a house on a loan in Wisconsin, you started your living there, things go smooth, but then out of nowhere, you got your position transfer to the west coast to New York. Now you have to pay a house loan for your house in Wisconsin and rent a residence in New York. This is a moment you can address to HRA.
- House is under construction – You took a loan for a house or apartment, but it is still under construction. You can’t live there, can you? You need a rented place to live until construction is over. This is where HRA can assist you. You will be eligible to claim tax benefits on the total interest paid till the date of a house or apartment completion.
- The person owns a house, but is unable to move in – This one applies to the same city. You own a house but it is far away from your workplace. This where you can rent a place to live close to work and gain tax benefits from HRA. The condition for this is that your house is at least 35 kilometers far from work.
- The person resides in a rented house and rents his own house – You have bought the house on a loan. Instead of moving in, you have decided to rent the house and live in another cheaper rented apartment. This is the specific case but yes, you are allowed to apply for HRA assistance. In this case, you can get a deduction for rent paid and claim benefit for interest paid on loan. In this case, you cannot claim benefit for principal repayment under section 80C.
When you find your place…
The Human Resources Administration can still be a great assistance. Finding a home and taking out a loan can cost you a lot regardless of all the help. When you get to the moving, it is a great chance that you will run out of money. In a situation like this, don’t forget t that in this field as well HRA can help you, and all you need to do is to reach out to reliable people. Don’t be ashamed to call and ask.
Home loan and HRA are the combinations that can work great and provide you with your new home. Get well organized and informed and you will be in your new residence in no time.