Home Renovation Loan
|Bank||Interest rate||Best for|
|Canara Bank||Starts at 6.90% p.a.||Low Processing Fee|
|PNB Housing Finance Ltd.||Starts at 9.10% p.a.||Higher Eligibility Criteria|
|HDFC Bank||Starts at 7.55% p.a.||Flexible Repayment Options|
|IIFL||Starts at 8.70% p.a.||Non-Resident Indians (NRIs)|
In this manner, can you use home loan for renovations?
A renovation mortgage loan allows borrowers to buy the home they want and pay for their desired renovations and repairs all under a single loan. The loan can then be paid back over time through affordable monthly payments, just like with a conventional 30-or-15-year mortgage.
Hereof, is renovation loan a secured loan?
No, renovation loans are unsecured loans. Plus, you can only use it to pay for renovation works, not new furniture purchase.
What are renovation loans?
A construction loan works by allowing you to borrow against the value of the property. In this case, the lender will take into account the estimated value of the property after renovation. A renovation only qualifies for a construction loan where there are structural changes made.
An FHA 203(k) rehab loan, also referred to as a renovation loan, enables homebuyers and homeowners to finance both the purchase or refinance along with the renovation of a home through a single mortgage.
Compare The Best Home Improvement Loans
|Company||Starting Interest Rate||Minimum Recommended Credit Score|
|SoFi Best Overall||4.99%||680|
|Avant Best for Bad Credit||9.95%||580|
|LightStream Best Rates||3.99%||680|
|Wells Fargo Best Brick-and-Mortar Lender||5.74%||620|