How to Fund Home Renovation Projects

Whether you’re looking to customize the property to upgrade the style and functionality or the house needs to be improved due to age and damage, renovating a home is something that most homeowners will do at some point. The idea of recreating a space to suit your needs and interests is exciting, but there’s no secret that it’s also expensive. If you’re worried about how you’ll get the necessary funding you need to renovate your home, here are some solid suggestions.

Refinance Your Mortgage

If you’ve been in the home long enough to have accumulated some equity it may be worthwhile to refinance your mortgage. A cash-out refinance is one in which you would apply for a larger loan that would pay off your old one. You could use this lump sum to pay for the renovations. There are stipulations and associated costs that go into refinancing, so make sure this is something you can afford.

Short-Term Loan

If your home renovation project isn’t too expensive, but you still don’t have the funds upfront you could also apply for a short-term loan. Most online lenders that offer cash loans don’t require a bunch of paperwork. They also won’t demand that you have great credit or collateral. You could get several hundred dollars and work out a payment arrangement in which you’d pay the loan back in installments.

Borrow from Retirement

If you have a pension or retirement account and need a sizeable amount to complete your home renovation project, you could apply for a loan. Eligibility requirements and stipulations are generally a lot easier than going with a traditional bank. Keep in mind, however, you’ll need to pay the loan completely within a small time frame (it will also need to be repaid immediately if you lose your job). Failure to do so could result in early withdrawal penalties and other associated fees.

Get a Side Gig

If you don’t like the idea of borrowing money, you can also consider getting a side job that will help boost your savings for a home renovation. There are plenty of side gigs you could start with very little investment and reap big returns. You could start a blog, do ridesharing, become a delivery driver, or even a secret shopper. Just make sure you’re actually putting the money you earn into a savings account.


Many home renovation projects can be done on your own or with the help of friends and family. As paying for man-hours is often the bulk of the bill, you can eliminate that cost altogether by learning how to do some things on your own. However, it is important to make sure you know what you’re doing or you’ll only make matters worse – and more expensive.

It’s true, creating a home that you love (that’s also healthy and safe) can be expensive. Be that as it may, you can renovate your property however you’d like with the right financial resources. Whether you need a few hundred bucks or several thousand dollars, the above ideas will help you generate the funds you need to get started on your projects sooner rather than later.