A renovation loan is a type of loan that is used to finance the costs of renovating a home. This can include things like repairing damage, adding new features, or even just making cosmetic changes. There are a few different types of loans that can be used for renovations. The most common type is a home equity loan. This is where you borrow against the equity in your home to finance the renovations. Another option is a personal loan. This is a good option if you don’t have much equity in your home or if you want to keep your mortgage separate from your renovation loan.