Home improvement loans encompass a variety of loan types, all of which provide cash for borrowers to renovate, update, or repair their homes and increase property value. The most common loan types used for home improvement are home equity loans, home equity lines of credit (HELOCs), and cash-out refinancing.
Some banks also offer "home improvement loans," which are intended specifically for home improvements. These loans may have different standards and requirements (such as no equity) than other loan types that may be used for home improvements. In addition, the FHA insures certain home loans that cover both home improvement costs and the home's purchase price, under their Section 203(k) program.
