Personal loans for home improvements are separate unsecured loans, meaning they are not tied to the value of your home and your home is not put up as collateral. A HELOC, or home equity line of credit, is a loan which allows you to draw from the existing equity of your home as cash to finance things like large home renovations. A cash-out refinance involves refinancing your mortgage for more than the principal and converting the extra amount to cash, typically to finance home improvements or renovations.