5 Ways to Afford That Remodel You’ve Always Wanted

Last Updated on April 12, 2022 by Kravelv

While you may have loved your home when you first moved in, you’ve probably found yourself itching to do some updates since then. However, the biggest thing that tends to stop homeowners from making the changes they really want is usually the task of paying for all that remodeling. Well, don’t let money stand in your way. Here are five suggestions to help you afford the remodel that you’ve been wanting to do.

Personal Loan

Apart from getting a credit card, personal loans tend to be the next easiest type of financing to obtain. Many lenders will approve you for a personal loan regardless of what you want to use it for. As long as you have a consistent income and a fairly decent credit score, you can apply for a personal loan. As a general rule, good to excellent credit usually means that you have a credit score of at least 690. The better your score, the wider your borrowing options, and the more likely you are to get that new hardwood floor! So start to build up credit. The easiest way is by paying off your credit card every month. If you have a bad credit score, some online payday loan lenders would still accommodate you without doing a background check.


If you have lived in your home for any decent amount of time, you likely have built up a solid amount of equity. This equity can be refinanced through various mortgage programs so that you can turn it into cash. That cash can allow you to afford that remodel that you’ve been dreaming of. In most cases, you can enjoy the same monthly payment you’ve been paying for your house and just add a longer repayment period for your mortgage loan. This is a good way to finance a remodel because it won’t make you adjust your spending habits to pay it back. In other words, you won’t feel the sting of having to save to put aside money to pay off the loan, since it’s the same amount per month that you were paying before.

Zero Percent Credit Card

While your initial thoughts may be that you’re not putting a remodel on your credit card, you may want to reconsider. Credit cards are useful as they essentially act as pre-approved loans. There are so many great offers out there for new credit card signers. Things like zero percent APR for two years and sign-on bonuses of 500 dollars or more can be very beneficial. You must go into this type of financing with a clear plan for paying back the remodeling costs. For example, if you get a credit card that offers zero interest payments for two years, you can simply break down the cost of your home remodel to figure out what you’d owe each month. Just ensure you can have the balance easily paid off before the promotion ends.

Renovation Loan

Doing renovations on your home should increase its value. Because of this, you can opt for a renovation loan that allows you to borrow against the future value of your home after the repairs are done. These loans are fairly newer to the market and come at a higher rate than others. However, they tend to be more flexible and easier to obtain for those who have fair or poor credit scores. These loans are solely awarded off of the after-renovation value of your home instead of your personal credit history. Because of this, they are a good option for those who are new to the business of getting and paying off loans. Make sure you set a schedule for payments, and use this loan as a way to build up credit for more loans later.

Contractor Loans

It’s not uncommon for your local contractors to offer some sort of financing for remodeling jobs. Many have realized that by helping to easily connect you with a funding source, they get more remodeling jobs to do. So, talk with some local contractors in your area to see what sort of loans they can offer you and at what rates. A good relationship with local contractors has the added benefit of helping you potentially get later remodels at a competitive price.

Affording a remodel for your home doesn’t have to be a major challenge or something that requires you to dip into your savings. There are various options out there for you to take advantage of to afford those new granite countertops or recessed hallway lighting features. The above five suggestions should provide you with a least a few feasible options that you can utilize to pay for your home remodel. So get planning!


Author Bio:

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan

Kravelv is a full time digital marketer and part time furniture and cabinet maker. During his free time he would like to create something out of recycled woods, this varies from toys, furnitures plant boxes etc. Follow him on Twitter | Pinterest | Facebook