Financing Guide

How to Finance Your Home Project

Common ways home owners pay for larger renovation projects, and how to compare them.

📌 Cost Insights
  • A HELOC or cash-out refinance typically offers the lowest interest rate, since your home is collateral.
  • Personal loans fund faster but usually carry a higher rate.
  • Some companies on HomePolo offer financing directly — look for the financing badge on a company's profile.
  • Always compare the total cost over the loan term, not just the monthly payment.

Home equity line of credit (HELOC) or cash-out refinance

These typically offer the lowest interest rates since your home secures the loan, making them a common choice for larger projects. The tradeoff is that your home is the collateral, so it's worth being confident in your repayment plan before committing.

Personal loans

A personal loan funds faster and doesn't use your home as collateral, but usually carries a higher interest rate than a HELOC or cash-out refinance. It can be a good fit for a mid-size project you want to start quickly without the paperwork of a home-secured loan.

Contractor or manufacturer financing

Some companies on HomePolo offer financing directly — look for the financing badge on a company's profile, or ask directly during your quote. Terms vary a lot, so compare the total cost of the loan, not just the advertised monthly payment.

How to Save Money

  • Compare APR, not just monthly payment, across every financing option you're considering
  • Ask whether a 0% promotional rate reverts to a higher rate after a set period, and read the fine print
  • Get your project quote finalized before applying for financing, so you know the actual amount you need
💡 Pro Tip: Always compare the total cost of financing over the full loan term, not just the monthly payment — a lower monthly payment can sometimes mean a longer term and more total interest paid.

Frequently Asked Questions

What's the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit you draw from as needed; a home equity loan is a lump sum with fixed payments. Both use your home as collateral.
Do I need good credit to get contractor financing?
It varies by lender and program — some promotional financing has flexible requirements, while others require strong credit for the best rates.
Is it better to pay cash if I can?
If you can comfortably afford it without depleting your emergency savings, paying cash avoids interest entirely, but many homeowners prefer financing to preserve liquidity.

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