Home remodeling costs and how to finance them are always top of mind when it comes to planning a remodel project.
On this page, we link out to a collection of posts exploring the costs of remodeling and the various ways there are to pay for them. Thus far, we have addressed these subjects in somewhat general terms.
How to finance your renovation project
There are many ways to pay for a remodel or renovation project. We discuss them in the post we have linked to. And some of them can be used in combination.
First, there is the free or “sweat equity” method. At the other end of the spectrum is the “all cash” method. In between are the various financing methods.
Financing methods These include the various ways in which you can use the existing equity in your home. Examples of this are the home equity loan, the home equity line of credit, and the cash-out refi.
Methods to bring in new financing include the FHA 203k loan. This is a purchase and renovation loan but can also be used to refinance and renovate.
Then there is the Fannie Mae Homestyle loan, the HUD Title 1 loan, energy efficient mortgages, the HIP loan, the personal loan, and some special-purpose loans designed to help seniors stay in their homes and to help rural residents and disabled veterans.
We also touch on the use of zero-interest credit cards to help with a remodeling project.
Hidden costs of remodeling
In this post, we reveal the main ways in which the cost of your remodel project can go odd the rails in unexpected ways.
We show you how to anticipate and budget for the contingencies that may get thrown at you by Murphy’s Law.
These include changing your mind, unexpected structural modifications, code issues, defects in the mechanical and electrical systems, the rectification of mistakes by the original builder, termite and water damage, boarding your pets, involuntary dining out and stays in hotels, higher insurance and property taxes, and more.