Min. credit score
7.99% to 29.99%
$7,500 to $50,000
3 or 5 years
3 or 5 years
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
- 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
- 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
Before you use a personal loan to finance a bathroom
remodel, consider these benefits and drawbacks.
- 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.
- 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
- 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
- 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
- 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
- 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
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!