Are you tired of your outdated kitchen? Is your living room becoming an eyesore? If you don’t have spare money to improve your house, there’s always the home renovation loan as an option.

There are three main types of home renovation loan.

• Home Equity Loan. In this type of loan, you borrow money using your house’s equity as collateral. Your home equity is computed as the difference between your home’s value and what you’ve paid toward the mortgage.

• Unsecured Loan. Unlike Home Equity Loan, Unsecured Loan does not require the use of your home as collateral. This one has a shorter payment term than the other types of home renovation loans.

• Title I Property Improvement Loan. With this loan, you can improve your home by borrowing money insured by the Federal Housing Administration (FHA). The term could be 12 to 20 years.

Whether you are planning to have a minor or a major improvement in your home, renovation loans are worth considering.