If you’ve done any research on renovation loans, you’ve probably seen Construction Loans pop up multiple times!

That’s because, for the longest time, these loans were the best way to finance home additions or major home remodels.

Many homeowners still use these loans because of the benefits they provide throughout the process (despite there being other beneficial loans to buy and renovate a property).

There are also a couple of different types of home improvement loans to choose from, so it’s important to have all the information before you decide which is the best option for you.

In this helpful guide, we’ll discuss everything you need to know from what is a Construction to Perm Loan, how construction to permanent loans work, and all the pros and cons of using it to finance your home renovation.

If you’ve been told that using a construction loan was the best way to finance your renovation project, you should read this guide to be sure you really know all the facts!

As a homeowner, you may be considering a home equity loan as a way to secure a home renovation loan or tap into your home equity.

A home improvement loan can be a great way to finance items on your renovation wishlist like a kitchen remodel or bathroom renovation. 

Every month, as you diligently make your mortgage payment, you might find yourself wondering when you will truly get to enjoy the major financial perks of homeownership - having funds.

HELOC and Home Equity Loans are considered the smartest way to pay for home improvements like a bathroom remodel, kitchen renovation, or home additions. Often homeowners use HELOCs to finance major renovation projects, as the interest rates are lower than they are on personal loans and credit cards. That’s because you can continually build equity as you live in your home and then access your home equity when you need it with a home equity loan or HELOC.

If you’re reading this article, someone probably told you the best way to finance your home renovation is with a construction loan. Sorry, but to put it bluntly, you’ve been given bad advice!

If you’re looking for the right way to pay for your home renovation, there’s a chance that you’ve been recommended a number of different options.

Many homeowners are taking on home renovation projects, and a significant portion of these homeowners financed these projects with home equity loans and HELOCs. What you may not realize is that the interest you pay on these loans might be tax deductible.