Quick Answer: A home equity loan for renovation offers predictable monthly payments and a fixed interest rate. It’s a strong choice for homeowners planning larger projects with clear costs and a long-term payoff.

Choose the Right Renovation Financing for You

Home renovations can make your space more comfortable, functional and valuable. But paying for upgrades often takes more than savings. Financing options vary, and the best choice depends on your budget, timeline and comfort level. One option for many homeowners is to consider a home equity loan for renovations.

What is a Home Equity Loan

A home equity loan lets you borrow against the equity you’ve built in your home. You get the money as a lump sum, usually with a fixed interest rate and steady monthly payments over a set term. That predictability helps you budget, especially for projects with a defined scope and cost, and gives peace of mind during longer timelines or uncertain economic conditions.

Many homeowners wonder how much equity they need to qualify for a loan. Most lenders require at least 15%–20% equity remaining after borrowing, but even if you’re below that, you can still explore other financing options.

Use a Home Equity Loan for Big Projects

Home equity loans often work best for larger renovations that add long-term value, such as kitchen remodels, room additions or structural upgrades. They’re ideal for homeowners with steady income who plan to stay in their home long enough to enjoy the improvements.

If you know your total renovation cost upfront, a lump-sum loan can help you stay on budget and prevent overborrowing. And if you’re curious about alternatives, a home equity line of credit (also known as a HELOC) provides the flexibility to borrow as needed, while personal loans and credit cards may be easier to access but often come with higher interest rates.

What to Know Before Using Home Equity

With a home equity loan, your home is collateral. That means if your financial situation changes or home values drop, keeping up with payments could become challenging. Borrow carefully, understand your long-term commitment, and plan for contingencies.

You may also wonder about tax benefits: interest may be deductible if the loan is used to improve your home. Consult a tax professional to confirm what applies to you.

Work with a Credit Union That Supports You

We offer lower rates, personalized guidance and local decision-making, which means fewer surprises and more support along the way. We can help you choose the right loan for your project, compare alternatives and plan a budget that works.

Ready to plan your renovation? Call us at 702-228-2228 to explore financing options designed for you and your home.