Bathroom Remodel Financing

The cost to remodel a bathroom ranges from a few thousand dollars to $20,000 or even more. If you don't have enough cash or home equity to update your bathroom, don't worry. You can use a bathroom remodel loan to transform a master bathroom, power room, guest bathroom, or kids bathroom into a room you’re proud to call your own. Our team of financial experts reviewed and ranked more than 30 online lenders that offer bathroom remodel loans to help you get funded.

Not all bathroom remodel loans are created equal. That’s why our experts considered certain factors when choosing the best options. Here’s a brief overview of each one.

• Loan Features: There’s no denying bathroom remodels are expensive. That’s why we gave extra points to lenders that offer large loan amounts and flexible loan terms. Of course, we made sure they allow borrowers to use their loan proceeds on home improvement projects.
• Interest rates and fees: High interest rates and fees like origination fees, late fees, and prepayment penalties can quickly increase the overall cost of your bathroom remodel loan. Our experts made it a point to choose lenders with competitive rates as well as minimal to no fees.
• Application process: A bathroom remodel is a lot of work so an easy, online application process that includes a prequalification tool to help you compare offers without any impact to your credit score is ideal. 
• Qualification process: We believe that bad credit shouldn’t stop you from remodeling your bathroom but good credit should reward you with favorable rates and terms. For this reason, we looked at lenders with both lenient and stringent eligibility criteria.
• Customer support: Since bathroom remodel loans usually come with longer terms, excellent customer support via phone, email, online chat, and other channels is key. 
• Online user reviews: Online reviews on independent review sites like Trustpilot and Better Business Bureau (BBB) gave us non-biased insight into each lender’s reputation and customer satisfaction ratings.
• Perks and Bonuses: We were strong advocates of lenders who offer extras like hardship assistance, credit score monitoring, repayment flexibility, and unemployment protection.

Best Personal Loans to Finance Bathroom Remodel - Full Overview

What is a Bathroom Remodel Loan?

A bathroom remodel loan is what it sounds like: a personal loan that’s intended to finance a bathroom remodel. You’ll receive a lump sum of money upfront and can use it toward the labor and material costs associated with a bathroom remodel.

While there are many bathroom remodel loans on the market, most of them are unsecured, meaning they don't require collateral or an asset you own. In addition, they usually come with fixed interest rates and set monthly payments you can budget for in advance.

How Much Does it Cost to Finance a Bathroom Remodel?

A number of factors will determine how much you’ll pay to finance a bathroom remodel. Most homeowners in today’s day and age, however, can expect to shell out anywhere from $6,000 and $20,000 or even more. Of course, it all depends on how complex your project is, the size of your bathroom, whether you do it yourself or hire a contractor, the materials and fixtures you choose, and where you live.

How to Get a Bathroom Remodel Loan

If you’d like to take out a bathroom remodel loan, follow these steps.

• Check your credit: First and foremost, find out where you stand creditwise. This way, you’ll have an idea of what types of lenders and loans to consider. You can go to AnnualCreditReport.com and pull your credit reports from all three credit bureaus for free. If you find any errors or inaccuracies, dispute them as they might be dragging down your score.
• Compare lenders: Once you know how you’re doing on the credit front, compare lenders that offer bathroom remodel loans you can likely get approved for. Our list of the best bathroom remodel loans above is a great place to start. We’ve done the heavy lifting for you so you might as well take advantage of it.
• Prequalify: If possible, prequalify with a few lenders that pique your interest. By doing so, you’ll be able to check your bathroom remodel financing offers without hurting your credit. Prequalifying can make it a breeze to find the ideal loan for your unique situation.
• Read the fine print: Before you sign on the dotted line and commit to a loan, read the loan terms carefully and ask the lender for clarity if something doesn’t make sense. Pay attention to the interest rate, fees, and perks.
• Apply: If you decide to move forward with a particular bathroom remodel, fill out the lender’s application and submit any required documentation, like a government-issued ID, pay stubs, bank statements, and tax forms. Fortunately, most lenders will allow you to apply online quickly, from the comfort of your own home or office.

Pros and Cons of Financing a bathroom remodel with a personal loan

Before you use a personal loan to finance a bathroom remodel, consider these benefits and drawbacks.

Pros

• No risk of losing your house: A personal loan doesn’t require you to borrow against your home’s value. This means the lender won’t foreclose on your house if you can't make your payments.
• Fast funding: Most lenders that offer bathroom remodel loans will distribute your money via direct deposit the same day you apply, within 24 hours, or in a few business days. You won’t have to wait weeks or months to receive your funds and begin your project.
• Low fees:  While personal loans often come with origination fees, they don’t have all of the closing costs that are common with home equity loans and HELOCs. These include  application fees, appraisal fees, annual fees, title insurance fees, and more.

Cons

• Interest rates can be high: Since personal loans are usually unsecured, they typically charge higher interest rates than home equity loans and HELOCs. If you don’t have the best credit, they can be difficult to afford.
• Lower maximum loan amounts: Compared to other financing options, personal loans won’t allow you to borrow as much money. This can be an issue if you have plans for a very expensive, ultra luxury bathroom remodel.
• No tax benefits: If you use a home equity loan or HELOC for home improvements,  you may be able to deduct the interest you pay from your tax bill. Unfortunately, there are no tax benefits to using a personal loan for bathroom remodels.

Other Bathroom remodel financing options

If you decide that a personal loan isn’t right for you, consider these alternative ways to finance your bathroom remodel.

• Home equity loans or home equity lines of credit (HELOCs): If you own your home and have built some equity in it, a home equity loan or HELOC may make sense. A home equity loan can provide you with a lump sum of money upfront while a HELOC serves as a revolving credit line you can pull from at any time, up to a set credit limit. Just keep in mind that both of these options come with fees and closing costs that can increase your overall cost of borrowing.
• FHA Title 1 loans: Insured by the Federal Housing Administration (FHA), an FHA Title 1 can come in handy if your bathroom remodel will make your home more livable or energy efficient. As long as you meet certain debt and payment history requirements, you may lock in a low interest. The main downfall of this option, however, is that FHA Title 1 loans are capped at $25,000 for single-family homes.
• Credit card with 0% intro offers: Some credit card issuers offer cards with 0% introductory offers, meaning you can avoid interest fees for a certain period of time, which is usually between 12 and 18 months. If you know you’ll be able to repay your balance before the intro period comes to an end, this option may make sense. But since bathroom remodel costs are often unpredictable, it might not be realistic.
• Store and company financing: These days, many home improvement stores and companies offer credit you can use for home improvement projects, like bathroom remodels. Before you go this route, read the terms and conditions carefully to make sure you can afford it.

Bathroom remodel financing tips

No matter how you decide to finance a bathroom remodel, keep these tips top of mind.

• Be clear about your needs: Lenders want to know what you intend to do with the loan proceeds. When you apply for financing, make sure you explain that you plan to use the funds for a bathroom remodel. Make it clear that the loan will help improve your home and increase its value.
• Ask for a specific amount: While it’s tempting to ask for more money, doing so can lead to a denial. Do your homework and estimate how much your bathroom remodel will actually cost you beforehand so you know how much to ask for. Remember to factor in costs for both materials, labor, and fixtures.
• Check your credit: Most financing options largely depend on your personal financial health. If you check your credit score, you’ll have a good idea of what types of loans and/or other financing options are within reach. In general, a credit score of at least 660 should open the doors to many opportunities.
• Understand your home equity: Your home equity is the difference between what you owe on your mortgage and what your home is currently worth. Even if you don’t take out a home equity loan or HELOC, a lender may still want to know that number so it’s smart to calculate it before you fill out any applications.

Turn Your Dream Bathroom Into a Reality with Bathroom Remodel Financing

There is no shortage of benefits to remodeling your bathroom. Not only will you be able to increase your home value, you’ll improve your overall quality of life. However, unless you have thousands of dollars in cash at your disposal, you’ll likely need to lock in financing to get the job done. Fortunately, there are plenty of bathroom remodel loans that can allow you to do just that. Best of luck with your bathroom remodel!