Log in


PO Box 490, St. Albans Bay, VT  05481

Phone: 802.876.6200



How do You Finance Your Remodeling Project?

If you’re thinking about plans for home improvements, funding the project does not have to be a nightmare or a huge headache. The Homebuilders and Remodelers Association has affiliate members to help with this process.

Home renovation  and construction financing allows prospective homeowners to use the same loan to buy the home and finance renovations  or simply finance a renovation project on your existing home.

A renovation that adds value to your property can be worth every penny. You’ll just need to figure out how to pay for it. Here are a few ways to come up with the money:

1. Renovation Loans

A renovation loan can be used to provide the financing needed to either purchase or renovate a home. These loans are excellent if you have found a fixer upper that can use work to make it the home of your dreams. This type of loan is ideal for those that want to do a major home improvement project. A renovation loan will take into consideration the current value plus consider the renovation added value in a new overall property value. In both cases, funds can be used to update the kitchen, install a new roof, update baths, update appliances, add a room, etc...

2. Refinancing Your Mortgage

You might also consider a cash-out refinance to tap some of your home’s equity. Lenders will generally let you borrow enough to pay off your current mortgage and take out more cash, up to 80% of your home’s value.

In most cases, a cash-out refinance is only appropriate if you’re improving your home in ways that will increase its value.

3. Obtain a Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) is another way to borrow against the value of your home, but unlike a refinance, it doesn’t pay off the original mortgage. Instead, you get a line of credit — usually up to 80% of your home’s value, minus the amount of your home loan. HELOCs come with a draw period and repayment period. During the draw period, which often lasts about 10 years, you can spend the money in your credit line. Your monthly payments would cover mostly the interest and a little bit of the principal on any outstanding balance. During the repayment period, which typically lasts around 10 years, your monthly payments would likely be higher because they’d include more principal.

Consumer Resources

Please Support our Annual Association Sponsors!

VBRA Annual Sponsors

Silver Sponsors



Bronze Sponsor

© 2019 Vermont Builders & Remodelers Association, PO Box 934, Williston, VT 05495
Powered by Wild Apricot Membership Software