Renovation loans, sometimes referred to as rehabilitation loans, are backed by most of the entities mentioned above and are a great way to modernize your home so you can continue to enjoy it for years to come. Some renovation programs allow purchase and rehabilitation funds all-in-one, so you can buy a home that tick most of the items on your wish list and renovate before moving in to make it the absolute home of your dreams. Homes that need rehabilitation are priced lower than turn-key properties, which helps homebuyers afford the purchase and renovation in one loan.