How to Finance Home Renovation: A Step-by-Step Guide

Couple Looking at Home Construction Outside Wondering How to Finance Home Renovation

How to Finance Home Renovation: A Step-by-Step Guide


Whether you have an existing home that needs some updating or you have your eye on a new house, home renovations are a homeowner’s way of making their house feel like home. However, major home improvements will cost a lot of money, and finding affordable ways to pay for home renovations can be difficult for many homeowners. Luckily, if you’re looking for how to finance a home renovation, the process doesn’t have to be as challenging as it sounds.

There are numerous ways to pay for your home renovation. But before you start tearing down walls, choosing new paint colors, or scheduling contractors, it’s critical to understand your options to find a solution that works for your dreams and, most importantly, your wallet.

Below, we’ll provide you with a step-by-step guide to how to finance a home renovation while staying within your budget, the various types of options and the benefits of each, and how RJ Turner Remodeling can help simplify the entire process.

Keep reading below to learn more about how RJ Turner Remodeling can help you discover how to finance a home renovation in three easy steps.

What is Home Renovation Financing?

If you have your heart set on a home that has a low asking price but requires extensive repairs, home renovation financing may be an option worth considering. Home renovation financing is a simple way for homeowners or homebuyers who want more control over equity in their property to pay for home remodeling or home improvement projects but need more cash to finance the renovations or repairs.

Unlike other mortgages, this alternative does not require using your home as collateral. Instead, financiers determine your loan amount based on the projected home value after repairs, and interest rates are determined by earnings and credit standing. 

Ultimately, this home equity loan option allows you to borrow a lump sum of money to pay for home renovations and is a good choice for those who want to take advantage of the increased equity in their home as a result of the remodel.

How to Finance a Home Renovation with RJ Turner Remodeling in 3 Easy Steps

Home renovations are one of the most important aspects of home ownership. Regardless of the renovations you want to make to your home, financing could help you get the project started sooner than you think. However, tackling it can be a complicated and confusing topic without proper research or resources for personal loans.

Deciding how to finance a home renovation can be a complicated process. Home renovations require meticulous planning, precise cost estimates, and realistic expectations. While there are several ways to finance a home renovation, RJ Turner Remodeling offers a customized home renovation process that ensures superior customer service and satisfaction. 

Here’s how RJ Turner Remodeling can help you finance your home improvement project in three simple steps:

Step 1: Initial Visit

Before beginning your home renovation project, a contractor from RJ Turner Remodeling will meet with you to learn your project goals and budget. The purpose of ordering your items by priority or separating them into “needs” and “wants” is to help you figure out what’s most important for your renovation project.

From conceptualizing the final appearance of your home, outlining basic floor plans, explaining the materials required, and the overall scope of your home renovation, this initial meeting will walk you through the pre-construction process. With this information, you can distinguish between critical areas that require attention and those that are optional.

Afterward, measurements and photographs will be taken to start the design process for your home renovation. Once the design has been finalized, RJ Turner Remodeling will discuss the home remodeling process; introduce you to the rest of the team; provide you with a rough estimate of the renovation, and offer you a pre-construction agreement contract.

If you’re wondering how to finance home renovations, RJ Turner’s experienced team is here to guide you through the process. 

Step 2: Project Timeline

After signing the agreement, clients will work with the design and architecture team to visualize their home renovation and choose renovation materials based on aesthetics and budget. Afterward, the Trade Partner will go to the job site to obtain the costs and estimated time to complete the scope of work.

Upon approval of the scope of work and a signed agreement, RJ Turner Remodeling will create a preliminary schedule and review the proposed timeline with the client once the budget has been set to ensure your project is completed on time. Then, a final proposal will be submitted, and clients will receive a final contract to begin work on the home renovation.

Step 3: Obtain Permits and Begin Renovations

Permits are essential for completing a smooth renovation. After the final contract has been signed, RJ Turner Remodeling will obtain legal permits to begin your home renovations. During this step, RJ Turner Remodeling will submit the proposed renovation designs to the appropriate local jurisdiction and review the designs with the permit officials, answer any questions they may have about the project, and make any necessary changes to the overall design.

If your renovation plan includes new additions construction, permits will be part of the pre-construction agreement, and RJ Turner Remodeling will apply half of the pre-construction agreement costs to the overall construction cost once you’ve chosen RJ Turner Remodeling to complete your home renovation.

Once this final step of planning has been completed, RJ Turner Remodeling will begin working on your exterior remodeling, bathroom renovation, or kitchen remodel

Types of Home Improvement Loans

Once you’ve chosen how to finance your home renovation project, several types of loans are available. Each loan has its own benefits and drawbacks. Here is a quick overview of the most common types of home improvement loans.

Some financing options include home equity loans, a home equity line of credit, cash-out financing, personal loans, unsecured personal loans, or a home improvement loan. 

  • Home equity line of credit: A home equity line of credit (HELOC) allows homeowners to borrow against the equity they have in their home. A HELOC is a revolving line of credit with lower interest rates than many other types of financing, making it ideal for home renovations because it allows you to borrow only what you need when you need it.
  • Cash-out refinancing: If your renovation project will increase the value of your home, you may be able to use the increased equity in your home as collateral for a cash-out refinancing loan. You can use the funds from this type of loan for almost any purpose, including home renovations.
  • Personal loans: A personal loan is an unsecured loan that does not require collateral. It is based on your creditworthiness and is used for one-time needs, such as home renovations. Personal loans typically have higher interest rates than other types of financing and can be challenging to qualify for if you don’t have the required income and credit score.
  • Home improvement loan: A home improvement loan is a loan specifically designed for home renovation projects. It may require collateral, such as the equity in your home, but typically has lower interest rates than other types of financing.

Shopping around for the best terms and rates is essential regardless of how you finance your renovation project. Take your time and compare different loan options to ensure you get the best deal for your needs.

At RJ Turner, we’ve teamed up with Acorn Finance to allow customers to pre-qualify with no impact on their credit scores, select an offer, finish the application online, and receive funding. A streamlined personal loan process will help you get started on home improvements with a monthly budget and monthly payment that works for you. 

Learn More About How RJ Turner Remodeling Can Help You Finance Your Home Renovation

Home renovations are not always simple or cheap, but they are often worth the value when you see the end result. We hope this in-depth, step-by-step guide helped you learn more about how to finance home renovations and give you the information needed to start renovating the home of your dreams. 

If you’re looking to learn more about how to finance a home renovation but need help figuring out where to begin, RJ Turner Remodeling can help.

RJ Turner Remodeling understands how important home ownership is and how having the perfect home makes all the difference. As a result, RJ Turner Remodeling approaches each home renovation project with a customer-focused process and provides best-in-class quality and service to create meaningful spaces for you and your family.

With a team of highly-trained and experienced professionals, when you work with RJ Turner Remodeling, you can be sure you are hiring a quality-driven team that will transform your house into your dream home. If you are considering a new home purchase, want to make renovations, or want to improve the overall value of your current home, contact RJ Turner Remodeling today to learn more about how to finance home renovation with a team of value-driven professionals.



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As a part of our family, you can rest assured our team will leave your home better than we found it.