A home renovation loan gives homeowners access to funds needed to fix up their home. These renovation loans can come in the form of mortgages with built-in fixer-upper funding or personal loans. Depending on the type of loan you receive, you may need to show proof that the money was spent on the house or paid to a contractor.There are many benefits to using a Renovation Loan to purchase a home. One of the biggest benefits is combining the cost of the home and the renovation into one low-cost mortgage. Along with that, you are able to borrow against the property value after the improvements to the property. With a Renovation Loan you are increasing your property value and building equity in your home from the start.