If you are considering any type of work on your home from turning your garage into a gym, to a completely new kitchen then usually the only thing in your way is money; this is the purpose of a home improvement loan. Not many homeowners have the confidence to attempt home improvements on their own so they need the services of tradesmen which are a costly part of the plan.This type of home improvement loan has only one purpose, to improve your home but fortunately you do have the option of it either being a secured loan on your property or a loan where no security is required. Loans that do not require security are quite flexible and even new homeowners can apply. Finance organized to improve a home is normally arranged to run for up to fifteen years when equity is not required.The only condition made on no equity finance is that the owners must have a joint income which is lower than the county limit where the property is but reaches the limit specified by the lender. The loan process for people applying for a no equity loan is minimal even though the property and type of improvements planned are looked into.If your property has increased in value over the years and is now worth more than you owe on it then you may prefer a home improvement loan that uses this spare equity. The upside to this type of secured loan is it’s available at more favorable rates of interest but is not arranged as a second mortgage on the property.The lender will only provide funds for a secured loan based on the current equity available in your property. All factors are considered before a final amount is agreed upon and that includes how much is owed on the mortgage, its current value and what other debts the owners may have.At this stage, everything is still under negotiation and is only finalized when the applicant agrees to the amount, payments and any conditions. Although it is not set in stone, the amount they are prepared to lend will be based on a percentage of the property valuation but some lenders will actually lend as much as a quarter again as the property is worth.ClosingAn equity based loan can be risky if you arrange to lend an amount greater than you can comfortably afford so consider this carefully as you may end up handing your beautiful home over to your creditors. Home improvement loans can be a wonderful way to tidy up an aging home but remember that they need to be paid off and if you are likely to struggle, reduce the amount you want to borrow.