If you want to buy a fixer-upper or update your house with a home renovation project, you may be wondering how to fund the necessary changes. Although this may seem like a daunting task, there are several ways you can acquire the money to turn your vision into a reality. Here are a few practical options to consider.

How to Finance Your Home Renovation

1. Apply for a Home Equity Loan

Secure the renovation fund by borrowing against your property’s equity. Home equity loans typically offer large sums at one time for financing sizable renovation projects, like outdoor kitchens. Often referred to as second mortgages, these loans feature lower interest rates than credit cards and personal loans.

2. Refinance the Mortgage

Refinance your mortgage if the interest rate has lowered. This tactic lets you pay less each month, giving you more money to put toward a renovation project. A cash-out refinance provides another option, and you’ll replace the current loan for a new one that’s higher than what you owe. Doing this allows you to pay off your mortgage and have extra funds for your renovation or remodel.

3. Get a Home Equity Line of Credit

This option works similarly to a credit card. Unlike a home equity loan where you receive a lump sum, a line of credit lets you borrow against a set amount and pay it back. Once you pay all your debts, you’ll have access to the full range of credit again. This type of loan is secure because it’s backed by your property so that you won’t pay high-interest rates like standard credit lines.

4. Ask About a Hawaiian Conventional Renovation Loan

Discuss this type of renovation mortgage loan with your financial institution if you want to buy a fixer-upper. Unlike other types of loans, it doesn’t involve paying for private mortgage insurance, and you can put down 20% to reduce the mortgage payments. The funds can be used to pay for any home renovation projects that increase property value.

Once you’ve secured the funds for your project, contact the team at Homeland Construction on Oahu, HI. These professionals will help you turn your home renovation plans into reality, whether you want to update one room or the entire house. View a gallery of their past projects online, and call (808) 690-1153 or (808) 372-2470 to get a free estimate.