Bathroom Remodeling Financing – What You Need to Know

Posted by in Loans | Updated on May 30, 2023
At a Glance: There are a number of options that homeowners can take advantage of to finance a bathroom remodeling project, including credit cards, personal loans, construction loans, home equity loans, or cash-out refinancing.

The bathroom is where you retreat at the end of the day to take a hot shower, relax, and change into comfy pajamas. It is your sacred sanctuary, a place where you can enjoy being alone and taking a break from the world for a bit. But to have the peace you desire, your bathroom must look and feel good – and this is something that might require remodeling.

Remodeling allows you to repair the damage and ensures that you end up with a bathroom design that you love and that works better for you. But what do you do when your bathroom needs remodeling, but you don’t have the funds?

You can seek bathroom remodel financing, of course! Let’s see what your options are.

How Much Does It Cost to Remodel a Bathroom?

The costs of your bathroom remodeling project will depend on a series of factors. No two bathrooms will cost the same when it comes to remodeling – each bathroom and home is unique and will require different things. So, just because a relative might’ve spent a certain amount on a bathroom remodel, it doesn’t mean it will be the same for you.

On average, you may expect to pay around $24,424 for remodeling if your bathroom is a midrange one. This is what the Cost vs. Value report from the 2021 Remodeling magazine says. Meanwhile, a project that is larger and more complex may cost you around $75,692 on average. But as mentioned, the actual price for a bathroom will be different for each person.

Now, many people may have enough to invest in the remodel of a midrange bathroom, but paying for an upscale bathroom can be quite challenging. Some people will find it impossible to fund such a difficult project and will give up on remodeling their space.

Fortunately, there are ways to get funds to finance the project and obtain your dream bathroom.

Bathroom Remodel Financing Options

If you want to obtain financial help for your bathroom remodel, there are many alternatives to choose from. Here are some of the most popular financing options for this:

Credit Cards

A credit card is often the best way to pay for any expenses that require urgent money. Home improvements can also be paid for with a credit card. You’d use the card the same way you would for other expenses.

Credit cards are especially useful if all you need is a small remodel on the bathroom. This means you’d only have to use a small amount of money. Thus, it will be easier to pay it back and you’ll be done with the debt much sooner.

That being said, it is not a suitable alternative when you are considering a large remodel of your bathroom. Credit cards have limits, and you may not be able to take out enough money for the project. It will also take longer to pay off and will cost you more in the long run.

Home Equity Loans

Another option that homeowners consider when they have a remodeling project in mind is a home equity loan. Home equity loans or lines of credit are great for people who have enough equity in their house.

You must have lived for long enough in your home in order to have the opportunity to use equity and not lower the scope – many people are having difficulties with this type of financing for this reason. Whether this financing option is suitable for you or not will depend on your equity and the sum you need to borrow.

Cash-Out Refinancing

People also like taking out cash-out refinance, as it’s a very common type of funding for home improvement expenses. Although it’s a convenient method, it also has a few risks. One of them is being unable to borrow the amount you need because you’re not having enough equity.

Unfortunately, the drawbacks don’t stop here. Taking cash-out refinancing can be a burden because you will have to refinance into a fresh interest rate on your main mortgage, which is damaging if your interest rate is already low. In this case, you should only consider refinancing when it will bring down the loan’s interest.

Construction Loans

If you ever ask someone about bathroom remodel financing, they will direct you towards construction loans. With this financing type, you’ll be able to get a loan based on the renovation value of the house, which boosts your borrowing power.

At the same time, these loans are not exactly the best – mainly because they are meant to help with a home’s ground-up construction, not with home improvements.

Personal Loans

Most people think of personal loans when they need to pay for something quick – even if that involves remodeling their bathroom. Because personal loans are available for various things and they are fairly easy to obtain, a lot of homeowners seek them. Moreover, many lenders have these loans available.

As you can imagine, though, these loans have some downsides too. The repayment period is shorter and the interest rates are high, meaning you’ll have to pay more every month.

How to Get a Personal Loan for Bathroom Remodeling

Personal loans are easy to find, so many people go with this option. How can you get one, though? Here are the steps:

  • Look at various lenders and compare them. See which ones have the best rates and offers.
  • Pre-qualify for the personal loan on the Internet.
  • Get all your documents ready, such as bank statements, W2s, pay stubs, and anything the lender asks for.
  • Submit the loan application.

5 Personal Loan Options for a Bathroom Remodel

Have you decided that a personal loan is the right bathroom remodel financing option for you? Here are the 5 best personal loan options:


LightStream is the lender you should go for if you have a more complex remodeling project you need to fund. They let you borrow between $5,000 and $100,000, and there are no fees associated with the loan. You get a rate discount when you set up autopay. All you need is a minimum credit score of 660, enough credit history, enough income, different types of accounts in your history, and no misbehaviors.


If your credit score isn’t excellent but it isn’t exactly bad either, you might want to consider Upgrade. You need a minimum credit score of 560 to qualify, and you can also borrow between $1,000 and $50,000.


SoFi also helps those in need of money for their bathroom remodel, and they offer generous amounts. Loan amounts go from $5,000 to $100,000 and you qualify with a 680 minimum credit score. There’s a nice mobile application, and you get unemployment protection. There are no fees either.

Marcus by Goldman Sachs

When you have an excellent credit score but don’t need too much money for the bathroom project, you can choose Marcus by Goldman Sachs. The minimum credit score requirement is 730, and you can borrow between $3,500 and $40,000. There are no fees, and you get different loan repayment term options.

Wells Fargo Personal Loan

Don’t worry if you don’t have any credit score: you can finance your bathroom remodel with the help of Wells Fargo. There is no minimum credit score requirement, and you can borrow from $3,000 to $100,000. There’s no origination fee, but you have to be an existing customer.

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Final Thoughts

There are many ways to finance a bathroom remodel – you just need to know where to look. Hopefully, this post was helpful, and you can find the right financing option for you.