Home improvement loan scams

General info only. Check with a licensed pro and your local building department.

Some contractor scams end with a high-cost loan against your home. The FTC explains how it works.

What the sources say

Topic	What the source says	Source
How it works	A contractor offers a deal, says he can arrange financing through a lender he knows, then has you sign papers — sometimes blank or rushed. Later you learn you agreed to a high-interest home equity loan, and the work may not be finished.	Source page checked 2026-11-02
Shop around	Never agree to financing through your contractor without shopping around and comparing loan terms.	Source page checked 2026-11-02
Know the terms	Never agree to a loan without understanding its terms and knowing whether you can make the payments.	Source page checked 2026-11-02
Don't sign	Don't sign a document you haven't read, that is in a language you don't understand, or that has blank spaces. Don't let anyone pressure you to sign.	Source page checked 2026-11-02
Your deed	Never transfer your deed to anyone without talking to an attorney or someone else you trust.	Source page checked 2026-11-02
If there is a problem	First try to resolve it with the contractor. Follow phone calls with a certified letter, return receipt requested, and keep copies.	Source page checked 2026-11-02

Checked 2026-11-02. General information, not legal advice. Rules change — confirm with the source. Report an error.