Searching for a construction loan? Be wary of financing offered by a home improvement contractor. Dishonest mortgage brokers and contractors sometimes work together to take advantage of homeowners. Make sure you understand what kind of financing you are being offered. For example, is it an unsecured home improvement loan, a second mortgage, or a refinancing? To protect yourself, shop around for financing from lenders not associated with the contractor. Ask a lawyer or housing counselor to review the financing terms with you. Look at some of the links on this page so you can compare their loan package to those of the local banks.