Old house renovations in Chicago can qualify for a home equity loan if the property has sufficient equity and renovations meet lender criteria. Key factors include home value, loan-to-value ratio, and project scope. Lenders typically require a minimum loan-to-value ratio of 20-30% and proof that renovations will enhance the property’s market value.

To qualify, homeowners must demonstrate that the renovations are for structural or functional improvements, such as roof repairs, HVAC upgrades, or room additions, rather than purely cosmetic changes. Data from the Federal Housing Finance Agency (FHFA) shows that home equity loans accounted for 31% of all mortgage originations in the U.S. in 2023, with Chicago’s median home equity at $300,000, reflecting strong property value growth. Lenders in the city often require a minimum credit score of 620 and a debt-to-income ratio below 43%. Additionally, the Chicago Housing Authority reports that 65% of approved home equity loans for renovations in 2023 included projects that increased property value by at least 10%, such as modernizing plumbing or electrical systems. These requirements ensure lenders mitigate risk while supporting sustainable home upgrades.