If you’re thinking of sprucing up your home, evidently, you need financing for the purpose. To be frank, every renovation project, small or big, requires a lot of resources. On that note, we’ve gathered the top financing options you can choose from if you wish to enhance your house.

1. Home Equity Loan

Presumably, this is the first option for most people who intend to refurbish their homes. This type of loan implies borrowing money, against the current value of your house, without taking into account the renovations. Typically, you won’t be able to borrow the entire value of the house. Plus, without mortgage insurance, you might be able to borrow up to 80 percent of the house’s outstanding value.

Still, you should bear in mind that the refurbishment expenses might be costlier in comparison to the equity you have built in your house. So, that is worth considering, as well.

2. Personal Loan

Another viable alternative is getting a personal loan. This type of financing is available to most borrowers, and you may choose to get secured or unsecured financing, depending on your specifications. Even so, you should bear in mind that the interest right might be higher than in the case of home equity loans.

3. Credit Card

This option is worth considering only if the refurbishment project you have in mind is of small proportions. That’s primarily because the interest rates are rather high. Nonetheless, if you need a small sum of money, it might be worth it, considering that most loans include establishment, administration and other fees that, eventually, add up.

4. Bridging Finance for Home Refurbishment

Furthermore, taking out a bridging loan could make your renovating plans possible. It is a quick, convenient solution to access financial help, for funding your refurbishment plans. In other words, you can complete your work in a given timeframe, and repay the loan after you’re finished. This is also an excellent alternative if you intend to sell the property after renovating it.

5. Home Equity Line of Credit (HELOC)

When you apply for a home equity line of credit, as opposed to getting all the money at a given time, you have a line of credit, which works similar to a credit card. This alternative makes sense if you don’t require a lump sum, and you’re planning to renovate your house over an extensive time frame. Or, perhaps you want to have access to money, without needing to take it all out at once.

Bear in mind that the interest rates are adjustable with this kind of loans. As a result, the rates may fluctuate to your advantage or disadvantage. The good side is that there aren’t any closing costs involved.

On a final note, before applying for whichever of these loans, you should ensure that you meet the lender’s criteria. This is the safest way to prevent filing numerous applications and having to deal, afterward, with rejections, which would harm your credit score. So, make sure you bear this in mind since this is the key to have your loan application easily approved: qualifying for it!