How Can You Fund Your Home Renovation? Here Are Some Ideas

Home renovations can be very expensive, but they can also be an absolute necessity!

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Over the course of the last year, a trend of do-it-yourself renovations has swept the globe. With millions unable to work and forced into self-isolation, there has been very little to do. Working on one’s home at a time like this can not only keep you occupied, but it can be very productive. This article will outline how you can fund your home’s renovations:

Take Out an Unsecured Loan

The most obvious method of funding a home renovation is to take out a loan. An unsecured loan is a loan that does not require any collateral. Most unsecured loans will be paid to your bank account on the day of your application’s acceptance. According to this Red Bluff loan officer, Jody Bartley, a loan can be a great way to fund your renovation. In terms of the amount of money you can borrow, some unsecured loans are limited to around $20,000. Anything above that and you may have to put down collateral or provide a guarantor. With that said, it is entirely up to the loan company you are dealing with.

A Bank Loan

Alternatively, you could take out a loan with your bank. If you are a loyal customer and your bank account demonstrates that you can afford to pay back the loan, then you should have no difficulty in acquiring a loan. A bank loan is much more serious, however. If you do not pay your loan back, you can have a repossession order drawn up and the bank will not hesitate in dispatching bailiffs to take back its money. Bank loans usually come at lower rates of interest than unsecured loans but are often paid back over longer periods of time.

Government-backed Loans and Grants

In some instances, you may be entitled to accessing government-backed loans and grants. At the moment, there are two government-backed home improvement schemes that you may be entitled to. There might also be local schemes available to you through your local authority. It is worth looking into the 203(k) Rehabilitation Mortgage Insurance Program and the HUD Title 1 Property Improvement Loan. Both of these have very strict criteria. They are very useful if you are eligible, however. If you are a veteran, you could also be entitled to grants available only to veterans and ex-servicemen and women.

Re-mortgaging Your Home

Another option you have is to re-mortgage your home. When you re-mortgage your home, you essentially take out a loan against your property. If you default and do not pay back this loan, the bank can repossess your house. Re-mortgaging your home is not something to be taken lightly. It requires a lot of thought and planning. Ideally, you should exhaust all other options before deciding to re-mortgage your home, especially if you are nearing the end of your mortgage period. Re-mortgaging your home can be very useful if you need larger amounts of money.

The Bank of Mom and Dad

If your parents are able to, then having them lend you the money for your renovations might be the best solution. Borrowing from family gives you a more flexible return payment plan and also means that nobody will turn up and repossess your house for missing a payment. When you are borrowing from family, you should be delicate and must always honour your payment arrangements. It is very easy to destroy a relationship by not paying back relatives from whom you have borrowed money. Do not make false promises that you cannot keep in terms of repayments.

Asking a Friend

If your family cannot help you, then maybe a friend can. All of the rules around borrowing from your family apply to your friends as well. When approaching your friends to borrow money, you should be delicate. If you know that they will give you the money but that in the long run, they would suffer, then do not ask. Only borrow from friends who you are confident can afford to lend to you. You could also suggest signing a contract, in which you will promise to repay them by a specified date.


If you have any investment accounts, then you might want to cash out to pay for your renovation. If you have the money there, then why not use it? Some financial experts say that it is better to take a loan out than to raid your savings or investments. This is silly. Instead of accumulating a life’s worth of debt to fund your renovation, why not draw from investments to pay for it? You will have to rebuild your investment portfolio, but you will not be constrained by debts in the future. If you have any gold or silver, you might also want to sell that.


If you own any land or property, you should consider selling it to fund your renovation. Keeping in line with our last point, if you are able to pay for the renovation yourself, why put yourself in debt? With that said, if you have a lucrative rental property, then it would be foolish to sell it and it might be easier to take out a loan and pay back your debt through the property’s return. If your property or land is not making you money and is just sitting there, then you may want to give selling it some thought.


You could consider asking your employer for an advance. In many cases, if you have proven yourself to be a faithful and dedicated employee, your boss should have no issues in giving you an advance on your paycheque. However, you will likely not receive enough to fund a renovation. If you have some savings put to one side and need a little top-up, then an advance from work could be a good option.

Budget and Plan

When you do manage to find the money for your renovation, budget and plan carefully. A lot of people’s renovations flop because they do not think carefully. Try to save money where you can and draw up a comprehensive plan covering every aspect of your renovation.

Home renovations are a great way to keep yourself occupied and to raise the price of your home. With all of the suggestions made here, you should have no problem funding your renovation moving forward!