What Is Renovation Financing?
Renovation financing refers to loans that allow the borrower to use some of the financed money to make updates to the home they are purchasing. Depending on the type of financing chosen, your renovation loan may be a private loan or backed by the federal government. You’ll need decent credit to qualify for each of the options listed below.
A big advantage for choosing this type of financing over a separate home improvement loan is that you only have one loan for both the purchase of your home and the repairs. This means less paperwork, one monthly payment, and only one set of closing costs.