Renovation Loan Products

A renovation loan is a type of loan that is used to finance the cost of renovating a property. These loans can be used to fund a wide range of renovation projects, including updating a kitchen or bathroom, adding a room, or making energy-efficient upgrades to a home.

Renovation loans can be structured in a few different ways.

Renovation Loan Types:

• Home equity loans: A home equity loan is a type of loan that allows a homeowner to borrow against the equity in their home. This type of loan can be used to fund a renovation project, and the funds can be disbursed as a lump sum or in smaller increments as the work progresses.

• Home equity lines of credit (HELOCs): A home equity line of credit (HELOC) is similar to a home equity loan, but it is a line of credit rather than a lump sum. This means that the borrower can draw on the line of credit as needed to fund their renovation project, and they only need to make payments on the amount that they have borrowed.

• Construction loans: A construction loan is a short-term loan that is used to finance the cost of building or renovating a property. This type of loan is typically used to fund the construction phase of a renovation project, and it is usually paid off when the project is completed.

• FHA 203(k) loans: An FHA 203(k) loan is a type of government-backed loan that is specifically designed to finance the cost of renovations. This loan can be used to fund both the purchase of a property and the cost of renovations, and it offers flexible credit and down payment requirements.

Overall, a renovation loan is a type of loan that can be used to finance the cost of renovating a property. These loans can be structured in a few different ways, and they can be a good option for homeowners who want to fund a renovation project but may not have the cash on hand to pay for it.