How much can I borrow to renovate my house?

You can borrow anywhere from $5,000 - $100,000+ to renovate your house, depending on several factors, including the financing option you choose, your credit history and the equity you have in your home. Common financing options are unsecured personal loans, home equity loans, home equity lines of credit and cash-out refinancing.

Types of Renovation Financing & How Much You Can Borrow

1. Home improvement loan

   A home improvement loan is an unsecured personal loan used to finance your renovations. Home improvement loans are offered by banks, online lenders and credit unions. They don’t require any form of collateral, and you can borrow up to $100,000, depending on factors such as your credit score, income and existing debts.

2. Home equity loan

   Home equity loans allow you to borrow against the value of your home, minus what you owe on the mortgage. They typically let you borrow up to 80% to 85% of your home equity. These loans are secured by your home, meaning you could lose the property if you fail to make payments on the loan.

3. Home equity line of credit (HELOC)

   A HELOC also allows you to borrow against the equity in your home, but unlike a home equity loan, a HELOC is a line of credit, so you can borrow money as you need it. A HELOC is also secured by your home, so you could have your property seized if you fail to make the payments. HELOCs allow you to borrow as much as 80% to 90% of the value of your home, minus what you owe on the mortgage.

4. Cash-out refinancing

   Cash-out refinancing replaces your current mortgage with a new one and allows you to convert the equity you have in your home to cash, which can then be used to renovate your house. Typically, you can borrow up to 80% of the home’s value with a cash-out refinance.

5. FHA Title I loan

   An FHA Title I loan is a government-backed loan that is designed to help homeowners finance their renovations. The unsecured loans have a maximum loan amount of $7,500. The maximum amount you can borrow with a secured FHA Title I loan is $60,000, depending on the purpose of the loan and the type of property.

In most cases, the value of your home will be an important factor in how much you can borrow to make renovations, as you’re typically borrowing against the home’s equity. If you don’t have enough equity in your home or you don’t want to risk losing the home in the event you’re unable to pay the bills, an unsecured personal loan could be a great option to finance your renovations.

For more information, check out WalletHub’s picks for the best home improvement loans. You can also pre-qualify with multiple lenders at once using our free pre-qualification tool.