Grace Enfield, Content Writer
The cheapest way to borrow money for home improvements is to ask for a loan from a friend or family member. If you borrow money from someone you trust, there is a good chance that their terms will be better than if you get a conventional loan or use a credit card. You can see other cheap ways to borrow money for home improvements below.
Cheap Ways to Borrow Money for Home Improvements
- Borrow from friends or family members
- Cash-out mortgage refinance
- Home equity loan
- Home equity line of credit
- Government loan (e.g. HUD/FHA loan)
- Credit card
- Home improvement loan
Keep in mind, if you want to get a loan or a new credit card to finance your home improvements, you’ll need to have a high credit score and income to get the best terms.
If you’re interested in a personal loan, you may be able to pre-qualify before you officially apply, which will help you narrow down your search to the cheapest options you have a good chance of getting approved for. You can use the free pre-qualification tool on WalletHub to see if you pre-qualify with multiple lenders at once.
Finally, it’s worth noting that even though borrowing money to improve your home may seem appealing, saving your money is the cheapest way to pay for your home improvements. If you use money you've saved for your home improvements, you won't have to make interest payments or be subject to expensive fees.
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