Yes, in many cases it is possible to buy a house, take out construction financing for the purchase price and at the same time also finance the necessary modernization, i.e. to take out the same loan for house purchase and renovation. However, please note: the whole is at the discretion of each individual bank. We can only give you clues according to which a bank decides this. Most of the time, it is possible to get construction finance with modernization loans, provided that the mortgage lending limit of the house is not exceeded to.
The planned modernization measures should have an added value
This is the case, for example, with new windows or a roof renovation – new furniture, on the other hand, is often not enough and is not co-financed by banks through construction finance. The situation is similar if you need the loan for a renovation: the bank will probably want to switch to a normal installment loan for wallpaper and new floors.
Loan for renovation
Your home is an investment, and home improvement loans can offer the funding you need to strengthen that investment with renovations, updates and repairs. However, there are risks involved, and not all home improvement loans are the same.
This guide covers the types of home improvement loans available, the costs of a home improvement loan, how to qualify and how to choose the best lender. It is designed to help you decide if accessing your home’s equity or taking out a personal loan for home improvement is a good choice, and offer insight into how you can find the best loan for your needs.
We describe which alternatives are available to you in such a case on our page on the subject of modernization loans. If you are unsure or have any questions, simply contact our installment loan specialists. In a personal, free consultation, they take a close look at your financial situation and provide an assessment of which loan is best suited for your modernization. Simply fill out our financing request and you will receive feedback from our colleagues within 24 hours.