Even though it gives you amazing benefits, home renovation is expensive. This pricy project will make your home look better, help your family feel healthier and more comfortable, and also achieve a better price once you decide to sell. However, paying for all that work is not always easy, with an average of $60,000 homeowners commonly spend on renovations. Luckily, you’re in the right place. We’ve come up with smart ways to pay for home renovations and ensure this project is not a financial burden for your family.

Before you go any further…

…make sure you’ve got the right budget plan for your renovation process. Renovation payment can go pretty high if you’re not careful. So, no matter which one of the smart ways to pay for home renovations you choose, make sure you do the calculations first. Estimate your renovation costs and add about 15-20% percent for all those unexpected tasks that may come up.

Cash savings

Let’s begin with the seemingly easiest way to fund your home renovation project. Cash is a great option if you save for these purposes in advance. More importantly, you also need to have a separate fund for some other emergency scenarios. Using your only fund to renovate can exhaust your savings and cause additional problems in case you have other emergencies. Paying everything with cash is a great way to avoid additional debt, and makes the process faster. However, if you’re reading this post, cash is probably not a realistic option, as most people don’t have such a huge amount saved for these purposes. So, let’s continue with some other smart ways to make renovation possible.

Cash is the easiest way to pay for home renovations – in case you have it. alt.tag:rolled cash

Home-remodeling loans are basically free

HIP or Home Improvement Program is surely one of the most popular payment methods. Your county can subsidize the interest on your remodeling loan, which helps you save a couple of thousands of dollars. However, you should know that there might be some requirements about getting this grant, but they are not difficult to meet. Also, one of the cons would be the limitation in terms of how big your loan will be, as well as the type of work you’ll do. But, if you qualify for this type of help, be sure not to miss it!

A home equity loan

Another great way to fund your renovation is surely a home equity loan. This smart way to pay for home renovations offers you lower interest rates, and the ability to take out a loan against the equity of the property. It’s great for bigger projects you do around the house, which can also make you spend more than previously planned. So, if you need the easiest solution for your kitchen to help you not break your bank, maybe this payment method would be a great choice.

Historic preservation

Historic homes surely need renovations more than newly-built houses. However, many historical districts offer fund renovation programs that help history homeowners preserve the condition of the old houses.

Making your home energy efficient and saving money

If your renovation project includes work related to insulation, energy-efficient heating system, new doors or windows, etc., you might be able to get a more affordable loan. To make our environment healthier, some counties will offer programs for those who want to make their homes more eco-friendly.

Credit cards

This option is for those who don’t plan any huge projects around the house. Using your credit card is best for refinancing some smaller revamping. It’s great to use a zero-interest credit card as you can do some smaller renovations without paying any interest. The main benefit of this option is that your money is available on the shortest notice. However, a major drawback is surely overspending. In case you use this for a larger project and fail to pay the balance back, you will have to deal with some of the highest interest rates. Therefore, be sure to use this option wisely – only if you’re sure you can pay it back on time.


If you have a minimum of 20% equity in your home, you might be eligible for the refinancing program. Cash-out refi gives you the ability to get a new loan instead of your old one that allows you to pay off the mortgage and have some money left for renovations. This means you won’t have any additional monthly payments, but you will pay your loan longer. However, be sure not to start any projects before you close on the new loan, as you’ll have to get your home appraised.

HUD’s 203(k) insurance programs

HUD’s 203(k) insurance programs are best for those who don’t have more than 20% equity on their home. Even though the application process can be complex, these programs cover renovations of all sizes and can be pretty helpful. Luckily, you can hire a consultant to guide you through the process and make it easier.

Save money when moving house, too

Make sure you move into a freshly-renovated home with zero waste and great savings. Help your budget with getting affordable moving services, using packing supplies you already have in your home, and decluttering before you move. Remove everything you no longer use, donate the items that are in good condition and take care of your food to ensure minimum waste. These smart moving tips will ensure you relocate faster and pay less for the moving services.

Ask friends or family to help you

If you’re planning some smaller home improvements that don’t require special skills or tools, maybe asking friends or family to assist can help you save more. A DIY project can also be included in smart ways to pay for home renovations – but you need to be careful. Avoid risky projects and treat your helpers with some great food and refreshments!

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