5 Best Ways To Pay For a Home Renovation Project

Sometimes, finding the funds for your home renovation is the most challenging part of the whole process. You may have a stellar idea and a suitable contractor, but none of it is very helpful without the cash. It is the money that plays the most significant role, and if it’s not there, you will not get very far with your project.

As money is the lifeblood of your home renovation, you should secure the necessary funds for it. Luckily, if you are short on cash, you can use other ways to gather the money for your renovation, including taking a personal loan, home equity line of credit (HELOC), or using a credit card. Here are some of the best ways to pay for a home renovation project.

Personal Loans

If you want to get a personal loan for your renovation project, you have two options: a secured personal loan and a signature loan. The former is the best choice for those who have less than perfect credit scores. On the other hand, a signature loan is an enticing option if you have an excellent credit score.

A signature loan is an unsecured personal loan. It means that you don’t need to put up any collateral to get approved for it. This fact makes it the best choice for those who have an excellent credit history – because you can start from zero.

The most significant downside of secured personal loans is that they usually come with higher interest rates than signature loans. As such, most people typically search for low-rate personal loans before they opt for taking a secured personal loan. Unfortunately, people with a lower credit score end up paying more.

Home Equity Line of Credit (HELOC)

A home equity line of credit is another good way to pay for your home renovation project. You can use the credit line to draw money from your home’s value. In most cases, HELOCs require a minimum down payment, but if you have enough equity in your house, you can draw money from your home’s value to complete your renovation project.

For example, if your home is worth $100,000 and you have $50,000 in equity in it, you can take out a HELOC for $50,000. The good news is that HELOCs have a variable interest rate, and the payments are not usually fixed.

Home Renovation

Credit Cards

You can also use a credit card to pay for your home renovation project. Some people open up a new credit card especially for home renovations, and choose cards that give bonus points or discounts on home improvement items, or are store-specific. Many large construction supply companies will have special rates or cash-back rewards programs for certain credit card holders.

Not all credit cards have a cash-back rewards program. However, some cards will give their users rewards points if they spend money on remodeling projects — this is a great way to pay for these projects with credit cards and earn rewards at the same time. Additionally, some cards are interest-free for the first few months.

You can also use a store credit card if you plan to shop at certain stores frequently to get the purchases on the card tax-free. However, make sure that you pay off the balance every month to avoid getting charged extra interest.


Using cash is the most straightforward way to pay for your home renovation. If you have some savings, you can use them to buy all the appliances you need, cover the labor costs, etc. If you choose this method, you do not have to worry about paying additional fees or interest. Instead, you can instantly fund your project and get on with it right away.

Good methods to save up some cash include getting a side job, cutting down on unnecessary expenses, and investing. Some people try to get some cash by having a garage sale, or getting rid of all of the things that have been piling up in your storage or garage on Gumtree. After you gather the funds you need, you can use them to finance every home improvement project you like.

We know that the majority of home improvement projects aren’t paid for with cash – and if you have this option, you probably wouldn’t be reading this article.

Home Equity Loan

If you have enough home equity, you can take a home equity loan. It differs slightly from a home equity line of credit, as it offers a lump sum upfront. After you decide to take this type of loan, you will have to make fixed payments until you pay it back in full with interest.

Home equity loans have fixed interest rates. It means that you will have to pay the same amount of interest over the years. It can be beneficial because you will always know how much you need to pay every month. It will save you from sudden spikes in interest rates, but you will end up paying more if interest rates go down.

5 Best Ways To Pay For a Home Renovation Project


Finding the right way to pay for a home renovation project can be challenging. Nevertheless, there are lots of ways to do it. The best thing you can do is think about your options and decide on the most comfortable way to approach your situation.

Remember that every solution we mentioned has its own pros and cons. For example, while a home equity loan offers predictable monthly payments, taking a low-interest unsecured personal loan might be even more beneficial in your case.

Moreover, keep in mind that you can always choose to postpone your home renovation and save up some cash for it. Do what feels right for you, and you should never regret your decision.

Does your home need renovation? How do you know?

Just because you got bored with your house’s façade isn’t enough of a reason for you to proceed with renovation work. Don’t get carried away and take a look at the essential elements that tell that your house is in much need of renovation.

5 Best Ways To Pay For a Home Renovation Project

Your free space is too much/not enough

When a family member moves away, your space may become empty. As a result, you will need to reconsider the décor. When kids go to college, it’s common for parents to rent their rooms or give new functions to their bedrooms. You can also try rearranging the furniture to solve the space problem.

There’s also the situation when you don’t have enough free space—it’s common for young families who have grandparents moving in for help. Outgrowing your current house isn’t a fun experience and you can build an extra room or move houses.

Space isn’t functional anymore

Even if your house is big, you could still be dealing with crampedness. For example, your kitchen could be spacious, but an island too close to the countertop will make the island too narrow and useless.

It’s the same for other rooms in your home. Clutter alters the functionality of a closet and room, so make sure you’re using the storage space as efficiently as possible.

The roof leaks

Even if a house fire is as bad as it sounds, house floods can be just as destructive. As a matter of fact, they can cause more cause even more severe damage to property. Many house owners forget that it’s not only broken pipes in the basement or bathroom that cause flooding; a damaged roof can do that too.

A roof in bad condition is the most obvious sign that you need to renovate your home. Shingles that fall off the dislocated flashing and discolored shingles are all signs that you shouldn’t postpone home renovations or at least roof repairs.

Replacing the roof is an expensive job and you might want to consider a low-rate home improvement loan. You should always think about where you will get the money from for the home renovation. Make sure you choose the renovation time when you are most solvent.

The floor shows signs of wear

When we talk about the floor giving away, we don’t mean the whole structure gives away. We refer to the floor covering that is a telltale sign of the house’s condition. The kitchen and bathrooms are places where tiles will become displaced. The exposure to moisture in these rooms is constant; the humidity will eat away the grouting.

Floor surfaces in bedrooms, living rooms, and other rooms don’t wear out that soon as they’re typically made with hardwood. With proper installation and maintenance, these floors will last for decades. Don’t forget that wood is sensitive to water damage and even minor flooding can cause severe damage. Replacing the flooring will be the only solution.

You can expand the durability of your floors with carpeting. For areas with high pedestrian traffic, floor mats are mandatory. It’s a lot cheaper to get a new rug than replace the whole flooring.

The paint on the façade chips

The shade of paint inside the house won’t fade as soon as on the outside surfaces. The paints of the façade are exposed to various weather conditions, strong ultraviolet light, etc. In winter, snow and frost can also chip away the paint and alter your façade’s appearance.

Once the paint chips off the façade, you are only a few months away from renovating the façade. Most of the time, you will only need to repaint the outer walls. Apply a fresh coat of paint on the front door so that your house looks more appealing.

You need to replace the bathroom fixtures

Fixtures in a home are an efficient indicator of what to expect in the house. The bathroom’s condition tells a lot about the building and furnishing of the house.

You can always turn this to your advantage and update the whole bathroom, not only the fixtures. Begin with installing underfloor heating and new floor tiles. Remove the old tub and turn it into a walk-in shower. Add several LED lights around the vanity unit and set up a towel warmer as well. Some chromed fixtures and a couple of plants can do magic in the bathroom.

Lights are outdated

The electrical grid is installed both vertically and horizontally in your home. Therefore, it can tell you a lot about the condition of your house. Black spots on old incandescent light bulbs are signs that they need replacement. Look for LED lights as they represent the most practical and energy-efficient option right now.

Additionally, if the lights are flickering, the electrical grid needs repairing. If it’s faulty, you may have to replace the light bulb socket. On the other hand, ask a certified electrician to help you if you have a problem with the fuse box or inside the walls.

The house looks old

There’s nothing wrong with an old-looking house—retro looks are charming that way! However, if all accessories inside, doorknobs, mirror frames, etc., are golden, your household is outdated.

A remodeling project to modernize your home includes replacing the railings, door handles, bathtubs, knobs, shower fixtures, faucets, etc. The best part about updating the house is that you won’t need to hire a contractor. With the right tools and a good set of skills, you can replace them on your own.

Hinges are squeaky

Dry hinges will get squeaky, but you can quickly solve it with some oiling. A bit of lubricant will be efficient. However, if your door handles and doorknobs develop the same problem, oiling isn’t going to be enough.

Apart from the annoying sound, squeaking hinges, door handles, and knobs can be dangerous when failing and locking someone inside a room. You will need to replace the door handles, which aren’t very expensive. You can find doorknobs for $5. However, you should ask yourself if your house needs repairs too.

You have a termite infestation

Vermin and insects around the house mean that the materials used for your house’s structure have given way. One infestation that should hurry you to the professionals is a termite infestation. The tiny pets prey on altered wood. Termites crawling up the woodwork is one obvious sign that you can no longer wait on the renovation.

Frequently Asked Questions

What is cheaper: renovating or building new?

Nine times out of ten, it’s more affordable to renovate than build new. However, if you plan to renovate an ancient building, you might get a better deal by building instead of renovating.

Is it possible to renovate a house for 100K?

According to Home Advisor’s data for renovation spending, it seems that most homeowners should expect to spend anywhere between $100,000 and $200,000 on an entire home renovation.

How much will you pay to renovate a 1,000 sqft house?

Expect to pay around $19,000 to renovate a 1,000 sq.ft. House. Renovation work for houses of 3,000 to 4,000 sq. ft will cost you around $90.000.

How long will it take to remodel a house completely?

Typically, a small house remodel will take between 7 and 10 months from beginning to end. Of course, we talk about situations when everything goes by the book. Renovating a large house can take between 9 to 15 months and even longer than that if there are problems with the city permits.

Is it worth renovating your house or not?

You need to run the numbers first. If the renovation costs more than adding to the resale price, you might look for other solutions than renovating. While you’re checking out houses, you should make a list of necessary repairs and add them to the resale price. Subtract it from the estimated house’s market value after remodeling to see the numbers.

About Amanda

I love to buy a lot of products for the home, and dissect them out. I split them into duds and winners, and share the findings here on my site. As a reader of my site, I'm aiming for your next purchase to be an informed and inspired one.

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