A $15,000 project and a $250,000 project are two completely different financial decisions.
Most people aren’t sitting on enough cash to write a check for a major addition, whole-home remodel or new house. That doesn’t mean the project is out of reach. It means you need to figure out the financing before you figure out the finishes.
These are the common ways homeowners pay for it. Each one has its own page if you want the full picture.
A credit line against the equity in your home that you draw from as the project needs it. Usually variable-rate, and one of the first things I’d ask a bank about if you’re staying put.
GuideAlso borrows against your equity, but as one lump sum repaid over a set term. It suits a project whose budget is already well defined.
GuideReplace your mortgage with a larger one and put the difference toward the project. Look hard at what it does to the rate on your whole mortgage.
GuideHow most new homes get paid for: money released in draws as the work is done, often including loans that roll into your permanent mortgage when the house is finished.
GuideMortgages like Fannie Mae’s HomeStyle roll the purchase or refinance and the renovation into one loan. Worth knowing about if the house you want needs a lot of work.
GuideThe government-backed version of a renovation mortgage, with its own rules on the property, insurance and paperwork. Talk to a lender who handles them before counting on one.
GuideQuicker for smaller projects, but unsecured borrowing usually costs more. For a large remodel, compare the options secured by your home first.
GuideWhat to bring, what to ask, and why the paperwork a lender wants can decide which contractor you hire.
And cash? The simplest option — no application, no appraisal, no draws — as long as using it won’t leave you stretched. Construction has surprises. Life does too.
Smego Construction isn’t a lender and doesn’t sell financing. We don’t take a referral fee and we don’t make anything if you use her. She’s here because she does the job properly.
Not the finishes. The shape of it.
Our calculator will give you a starting range in about a minute.
More than one. Local banks and credit unions especially.
Not the maximum you qualify for. What the payment actually feels like.
In that order.
That’s a much better process than falling in love with a project and trying to figure out how to pay for it afterward. Talking to a lender covers what to bring to that conversation.
This page is general information, not financial advice. Smego Construction is not a lender, mortgage broker or financial advisor, and nothing here is a recommendation about your particular circumstances. Loan products, eligibility and terms change and vary by lender — confirm anything here with a qualified lender before making a decision.
Fifteen minutes on the phone. You’ll have a realistic range before we hang up — and if we’re not the right people for it, I’ll tell you.