How to Finance Your Home Remodel in 2025
Get Financing for Remodel Projects in 2025 – Your Complete Guide
A home renovation is a major investment, but finding the right financing option can make it easier to upgrade your space without financial strain. Whether you’re planning a kitchen remodel, home addition, or full-house renovation, there are multiple financing options to help fund your project. Check our in house option at the end.
The cost of a home remodel varies based on the project’s size, materials, labor, and complexity. On average:
- Kitchen remodel: $20,000 – $75,000+
- Bathroom remodel: $10,000 – $40,000
- Home additions: $50,000 – $250,000
- Flooring upgrades: $5,000 – $20,000
- Painting projects: $3,000 – $15,000
Since costs can fluctuate based on location, material choices, and labor rates, it’s important to secure a financing option that fits your budget and long-term goals.
Best Ways to Finance a Remodel in 2025
1. Home Equity Loan (Best for Major Renovations)
- Borrow against your home’s equity.
- Fixed interest rates.
- Best for projects over $25,000.
2. Home Equity Line of Credit (HELOC) (Best for Ongoing Projects)
- Works like a credit card, allowing you to withdraw as needed.
- Lower interest rates than personal loans.
- Best for multi-phase or flexible remodels.
3. Cash-Out Refinance (Best if Interest Rates Are Low)
- Replace your existing mortgage with a new, larger loan.
- Receive cash for renovations while keeping a single payment.
- Best when interest rates are favorable.
4. Personal Loans (Best for Quick Approvals & Smaller Projects)
- No home equity required.
- Higher interest rates than secured loans.
- Loan amounts typically $5,000 – $100,000.
5. Credit Cards with 0% APR (Best for Small-Scale Upgrades)
- Best for minor remodels under $10,000.
- Some cards offer 0% interest for 12-18 months.
- Avoid using credit cards for large projects due to high long-term interest.
6. Government Grants & Loans (Best for Eligible Homeowners)
- FHA 203(k) Loans – Combine home purchase and remodel costs into one mortgage.
- VA Renovation Loans – Available for eligible veterans.
- Energy Efficiency Rebates – Incentives for eco-friendly upgrades.
How to Choose the Right Financing Option
How to Choose the Right Financing Option✅ Assess Your Budget: Determine how much you can comfortably afford per month.
✅ Compare Interest Rates: Look for low APRs and fixed-rate options.
✅ Check Your Credit Score: Higher scores get better rates and terms.
✅ Consider Loan Terms: Shorter loans = higher payments but less interest.
Sources & Further Reading
📌 NerdWallet: Best Home Improvement Loans for 2025
📌 Bankrate: Home Equity Loan vs. HELOC Guide
📌 HUD: FHA 203(k) Loan Information
Schedule a Consultation Today
Schedule a Consultation TodayLooking for financing advice for your remodel? Click here to schedule a consultation and let’s explore the best options for your project.
Our in house partner to finance your project is GreenSky, apply here.