Best Bathroom Remodel Financing Loans in September 2024

Remodeling your home could be a smart move that benefits you both now and in the future. According to Remodeling by JLC’s 2024 Cost vs. Value Report, homeowners who undergo midrange bathroom remodeling projects recoup an average of 73.7% of their costs through resale value increases. 

As a result, midrange bathroom remodels currently offer one of the highest returns on investment (ROIs) of all interior home improvement projects.

If you’re looking to remodel but can't pay out of pocket, consider a remodel loan. Multiple personal loan lenders offer financing for home improvement projects, and you don't need to have home equity to qualify. 

Compare bathroom remodel financing rates in September 2024

Best bathroom remodel loans

LightStream: Best home improvement loans and low rates

BHG Financial: Best for large personal loans

SoFi: Best overall

Best Egg: Best for high close rates if pre-approved

OneMain Financial: Best bad credit personal loans

Zable: Best for short-term loans and same day funding

Methodology

Credible evaluated the best bathroom remodel loans based on customer experience, interest rates and origination fees, loan amounts, funding times, loan terms, discounts, the availability of secured loans, whether cosigners are accepted, and more. 

Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

How much does a bathroom remodel cost?

The average cost of a bathroom remodel in the U.S. is $32,741 in 2024, according to Angi. However, the average range across the country starts at $13,765 and goes up to $45,944. Your costs can vary based on a wide range of factors, such as what you plan to upgrade, the materials you choose, and if you hire professional help.

To give you a better idea of what you can expect budget-wise, here’s a look at the average costs of common bathroom remodeling projects.

Source: Angi

If you don’t want to pay for your project out of pocket, you can look into financing but should weigh the extra costs that come with it. For example, if you take out a $12,500 loan with a 12% interest rate and a three-year term, you’ll pay $2,446 in interest over the life of the loan through monthly payments of $415. 

6 ways to finance a bathroom remodel

1. Personal loan

Best for high loan amounts and long repayment terms

Personal loans are installment loans designed to cover personal expenses, such as home improvement projects. They are typically unsecured, meaning you don’t have to provide collateral, but if you have a bad credit score (a FICO score below 580), a secured personal loan or getting a personal loan with a cosigner could help your chances of approval. 

Personal loan amounts can range anywhere from $500 to $50,000 or more, and tend to have APRs between 6.99% and 35.99%. Some lenders also charge origination fees, which can be less than 1% or up to 12% of the loan amount, depending on the lender. After receiving the loan, you’ll repay it through fixed payments over a set term.

Check Out: Best Personal Loans With No Origination Fee

2. Home equity loan

Best if you have sufficient equity and are ok using your home as collateral

A home equity loan allows you to borrow against a portion of the equity you’ve built in your home. For example, if your home appraises for $400,000 and you owe $200,000, you would have $200,000 in equity. However, most lenders only let you borrow up to around 80% of your home’s appraised value, less than the amount you owe on your mortgage.

So, in this case, you’d subtract your outstanding mortgage balance of $200,000 from $320,000 (80% of $400,000) to get the amount you could potentially borrow: $120,000. Upon approval, the lender would send you a lump sum that you would repay, plus interest, through fixed payments over a period of years. Home equity loan terms are typically available up to 30 years.

Because of the appraisal process, home equity loans can take weeks to more than a month to close.

Compare: Personal Loan vs. Home Equity Loan

3. HELOC

Best for variable interest rates

A home equity line of credit (HELOC) lets you borrow against a portion of your home equity. However, instead of getting a lump sum loan upfront, you’re given access to a credit line for a draw period — often up to 10 years. When the draw period ends, you enter the repayment period. Lenders may require a balloon payment or allow monthly payments over a set term. 

With HELOCs, you can withdraw funds as needed and will only pay interest on what you borrow. Additionally, the payments are often interest-only during the initial draw period. On the downside, HELOCs may come with upfront closing costs, variable interest rates, and expensive back-end payments.

Compare: HELOC vs. Personal Loan

4. Cash-out refi

Best for a single monthly payment 

A cash-out refinance involves replacing your current mortgage with a larger one. After you pay off your original mortgage, you can use the remaining funds for your bathroom remodel or other expenses.

Cash-out refi loans can be a good fit if you want to tap into your home equity but prefer one monthly mortgage payment over two. They also make sense if you can get one with an interest rate that's lower than the current rate on your mortgage. This might be the case if you've improved your credit or if interest rates have come down since you first got your mortgage.

Lenders typically charge closing costs, which range from 2% to 5% of the loan amount, and the closing process can take a month or longer.

5. Credit card

Best for potential rewards and 0% APR promotions

If you have a card with available credit, you could use it to pay for bathroom remodel expenses. However, credit cards are best used for short-term financing that you can pay off within the card's grace period (usually one billing cycle) or within a 0% APR promotional period (up to 21 months or more, depending on the card). 

This is because credit cards tend to have higher interest rates than the other credit products on this list. For instance, the average APR for credit cards is 21.59%, compared to 12.49% for a two-year personal loan, according to the Federal Reserve. 

It can also be difficult to get approved for a credit line large enough to cover a full bathroom remodel or a 0% APR card. You're most likely to qualify if you have an excellent credit score (a FICO score of 800 or higher) and financial profile.

Check Out: Best Credit Cards

For example, the Citi Custom Cash Card is a no-annual-fee rewards card with a 0% intro APR on purchases for 15 months. It also offers 5% cash back on up to $500 per month in home improvement store spending (if it's your top spending category), and 1% cash back on all other purchases.

6. FHA 203(k) home improvement loan

Best for homeowners with FHA-approved lenders

The FHA 203(k) home improvement loan program was designed by the U.S. Department of Housing and Urban Development (HUD). It allows you to finance up to $35,000 or more into your mortgage to repair, improve, or upgrade your home. 

You can use it when buying a new home or refinancing your existing one. However, among other requirements, you must plan to make at least $5,000 in eligible repairs or improvements to qualify. You can learn more about the program on the HUD website. 

How to apply for a loan

If you’re interested in applying for a loan or credit line to finance the costs of a bathroom remodel, the process will depend on the credit product you choose. 

For example, if you’re interested in a personal loan, you can request quotes through the websites of individual lenders or all in one place through Credible. 

Once you have a handful of quotes, identify the key features to review: the loan amount, APR, fees, term, monthly payment amount, and overall cost. Then, compare the quotes side by side to find the best deal. 

If you find a loan you want to get, notify the lender and complete the final steps. Most will request to perform a hard credit check, which will temporarily affect your credit score, and ask for documents to verify your identity, income, employment, and address.

Learn More: How To Apply for a Personal Loan

Is a bathroom remodel tax deductible?

The money you spend on remodeling a bathroom isn’t typically tax deductible. However, through the 2025 tax year, you may be able to deduct the interest on a home equity loan or HELOC if you use the loan funds for qualifying home improvements. If you’re interested in going this route, it’s best to consult a tax professional regarding whether you qualify. 

FAQ

Can you finance a bathroom remodel?

Yes, you can finance a bathroom remodel. Personal loans, credit cards, home equity loans, HELOCs, and other options can all be used to finance home improvements. 

How to save money remodeling a bathroom

You can save money when remodeling a bathroom by taking steps such as leaving the layout the same, and opting for prefabricated kits over custom builds. 

Further, it can help to DIY things when you can, and choose standard materials and finishes. The biggest costs are shelving and cabinets, showers and tubs, and hiring a general contractor, so you’ll want to look for ways to save in those areas.

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