Tips for Financing a Home Renovation

a pink house with a red roof

When you are a homeowner, it may seem like you have new renovation ideas all of the time. It can be tempting to renovate or add new technology to your home. You may also feel better with a modern security system. With the touch of a keypad, you can keep your home and family safe.

It’s exciting to renovate and add useful new safety features and tech like Lutron homeworks to your home. But, how will you pay for it? Even homeowners with higher incomes may struggle to finance multiple renovation projects a year.

Here are few tips on financing a high-tech renovation to give you the smart home of your futuristic dreams.

Find a hard money loan.


If you are going to use the home as collateral, you can get what is called a hard money loan. But, finding the right lender your first challenge. You want to find a firm that has your interests in mind, and who can provide you with a suitable loan for your upcoming project.

Northwest Private Lending, which has made over $600 million in private loans to the people of Oregon and Washington, would be the ideal place to turn if you live in either of these states


The benefit of a hard money lender is that they put the customer first, whether they are a real estate investor or a borrower looking to pay for a home automation system, new construction, or other home improvements. As a homeowner, going with a private money lender such as Northwest instead of conventional lenders could get you the money you need faster.

Usually, you need at least 35 percent equity in the property to secure such a loan. Investopedia offers a primer on the whats, whys, and hows of hard money loans, so make sure to understand the fine print before you apply for a hard money loan.

If you’re a homeowner looking to finance a project like a state of the art security operating system or a new garage door, opting for hard money lenders Oregon seems a no-brainer. These projects will add long-term value to your home, making the hard money loan more than worth it.

Credit cards


No matter how efficient a loan process might be, if you are the type who dreads paperwork of any kind, you could look to financing your home renovation with a credit card.

However, you should always consider the interest rate for the card and how soon you are likely to pay the debt off. The interest rate may affect how expensive the renovations are. The good news is that there are so many credit card offers out there that offer a 0% interest rate for the first year. If you are confident in your ability to pay it off in a year, this could be a really affordable option for a lofty renovation cost.

Government grants


Are you looking to make a renovation that involves energy efficiency? In both the United States and the United Kingdom, government grants are often available to improve the energy efficiency of your home.

Starting in September, the government will give £5,000 in vouchers to homeowners in England for energy-efficiency improvements, such as installing loft, floor and wall insulation, or double-glazing, says MoneySavingExpert.

The vouchers will be worth about two-thirds of the cost of the energy-efficient improvements up to a maximum of £5,000 per household. In the United States, people who are not able to access traditional means of financing for home improvement might be eligible for government grants, says Government Grant Information Services.

State and local governments often offer similar grants as well. Research your local area to see what type of grant you may be eligible for.

Whether taking out a loan, using a credit card, or getting a government grant, payments for most home improvement are usually money well spent as they tend to improve the quality of one’s life and the value of the home. Don’t wait until you’ve saved up enough cash, start your renovation dreams today by finding the funding source that works for you!