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4 Ways to Finance Home Improvements


Rehabbing properties and remodeling whether for profit or just to impress your friends isn’t always cheap so where can you find affordable ways to finance your projects?

1. Store Cards

Store cards are one of the easiest types of financing to get approved for even if your credit isn’t perfect. DIY heroes will find all types of deals from no interest for 24 months (plenty of time to flip a house and pay it off) and 10% off of flooring at Home Depot to financing appliances or furniture at Sears or Rooms to Go for staging.

2. Your Contractor

If you are bringing in the professionals for more serious jobs when rehabbing properties you will find that many offer their own financing. Make sure you read the paperwork carefully and know if a lien will be put on your home. Shop around for the best deals too. If you are really lucky you may find a contractor willing to accept partial payment once you are finished and have resold your homes.

3. Rehab Loans

Rehab loans are available both when purchasing properties which need work as well as for remodeling a home you already live in. Investors may find the best synergy with rehab specific lenders who understand their businesses. Though FHA 203 (k) home loans are great for the average homeowner who wants to pump up the value of their properties or who are finally ready for that much needed makeover. A FHA 203 k refinance could essentially make your rehab pay for itself by lowering your overall payments at today’s lower interest rates, even if you are borrowing more cash.

4. Home Equity Loans

Those who have equity in their homes or have recently purchased homes for cash could find the best rates for financing when rehabbing properties comes in the form of home equity loans. However, note that a line of credit will give you more flexibility.

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