Bathroom Remodel Financing Options
Explore ways to fund your bathroom remodel, from personal loans and HELOCs to contractor payment plans. Compare rates, terms, and qualification requirements.
Financing Options Compared
Personal Loans: Unsecured loans from $1,000–$50,000. APRs range from 6–36% based on credit. Funding in 1–7 days. Best for: small-to-mid-size remodels when you have good credit and no home equity.
HELOC (Home Equity Line of Credit): Secured by your home equity. APRs 7–10%. Borrow up to 85% of home value minus mortgage balance. Best for: large remodels ($20,000+) when you have significant equity.
Home Equity Loan: Lump sum based on equity. Fixed APRs 6–10%. Terms 5–30 years. Best for: one-time large projects where you know the total cost upfront.
Credit Cards: 0% APR intro periods (12–21 months) available. Standard APRs 18–29%. Best for: small remodels under $10,000 that you can pay off during the intro period.
Contractor Financing: Offered through partners like GreenSky, Hometap. Often 0% APR for 12–24 months. Best for: homeowners who want a single application and fast approval.
Cash-Out Refinance: Replace your mortgage with a larger loan and take the difference in cash. Current rates 6–8%. Best for: large projects when current rates are lower than your existing mortgage.
How to Choose the Right Financing
Step 1: Determine your total project budget using our calculator.
Step 2: Check your credit score (free at AnnualCreditReport.com).
Step 3: Calculate your home equity (home value minus mortgage balance).
Step 4: Compare at least 3 lenders for the best APR and terms.
Step 5: Factor in origination fees, closing costs, and prepayment penalties.
Frequently Asked Questions
What is the best way to finance a bathroom remodel?
The best option depends on your credit, equity, and project size. A home equity line of credit (HELOC) offers low rates for large projects. Personal loans work for smaller remodels without using home equity. Always compare APRs and total repayment costs.
Can I finance a bathroom remodel with bad credit?
Yes, but options are limited. Subprime personal loans, credit cards, and some contractor financing programs accept lower credit scores, though at significantly higher APRs (15–30%). Improving your credit first can save thousands.
Do contractors offer payment plans?
Many contractors partner with financing companies (e.g., GreenSky, Hometap) to offer 0% APR promotional periods or fixed monthly payments. Read the fine print — deferred interest can apply if the balance is not paid within the promo window.
Is a HELOC better than a personal loan for a bathroom remodel?
HELOCs typically offer lower APRs (7–10%) because they use your home as collateral, but they put your home at risk if you default. Personal loans are unsecured, faster to fund, and don't require equity, but APRs are higher (8–20%).