Add a Bathroom Update to Your Home Purchase Loan

In this week's 5-Point-5, we'll learn what to do when the home of your dreams looks a little dated.

1st point: Use a renovation loan - Update the kitchen, bathroom, or flooring. Add energy efficiency upgrades. Use a renovation loan to add the costs to your home purchase.

2nd point: One loan - one payment - Unlike a typical home improvement loan, a renovation loan combines both the purchase and upgrades in one loan, so you have one loan, one payment.

3rd point: Use the streamline option - For repairs and upgrades up to $75,000, you can use the streamline option that has less paperwork and doesn't require a general contractor.

4th point: Second homes and rental properties - okay - You also can use a streamline option to purchase and remodel a second home or an investment property for renovations up to $25,000.

Last point: It's a conventional loan - Renovation loans are conventional mortgages and have attractive rates with no scary loan terms.