Thinking About Home Renovations?
When planning a home renovation, one of the biggest things to think about is cost. The price will depend on how big your project is and what kind of space you’re updating.
Large renovations can get expensive, and many homeowners choose to pay for them with a home renovation loan. You can apply for this type of loan if you’re updating your current home, buying a new one, or refinancing your mortgage.
Full Home Renovation
A full home renovation (rehab) means updating several rooms in your house. The total cost will depend on how many rooms you’re remodeling and how much work each one needs. Be sure to estimate the cost for each room to get a clearer total.
Average total cost: $20,000 – $180,000
Average cost per square foot: $20 – $200
Gut Renovation
A gut renovation is a complete rebuild where you strip the home down to the frame and replace most of it. This type of project often includes permits, labor, and material disposal, which can increase the total cost.
Average total cost: $100,000 – $200,000
Average cost per square foot: $60 – $150
Is Renovating Worth It?
Ask yourself if the renovation is necessary. Fixing broken items or replacing outdated, inefficient appliances is usually worth it.
You can also look at the return on investment (ROI)—how much value the renovation adds to your home. Projects like kitchen updates or improving curb appeal often have the best ROI.
How to Get Started With a Renovation Loan
If you want to finance your renovation, start by:
Reviewing your finances: Check your credit score, income, debt-to-income ratio, and savings. Lenders will want proof of income, tax returns, and details about any assets you own.
