Home renovation loans are financial products that homeowners use to embark on a home improvement project. These are the ideal types of loans to renovate and fix up a home.
After the renovation has been completed, the goal is to increase the value of the home. However, when you apply for the loan the ‘after renovation value’ is what the lenders use to know the amount of loan you should receive rather than using the existing home value. In so doing, the homeowner gets credit for the increased home value of the projected renovation value.