Bathroom Remodel Financing in 2026: Best Loans & Smart Tips

Planning a bathroom remodel in 2026?  You're not alone.  More homeowners across Colorado are investing in bathrooms that feel more like retreats—and for good reason.  A well-designed bathroom can add comfort, style, and serious value to your home.

But before you start picking out shower walls or custom vanities, there’s one big question to answer: How are you going to pay for it?

With midrange remodels averaging over $25,000 (and high-end projects going well beyond $40,000), understanding your financing options is one of the smartest steps you can take.  The good news?  You’ve got more choices than ever—each with its own pros, cons, and ideal use case.

Here’s a simple breakdown of the most common financing paths—so you can choose the one that fits your project and your peace of mind.

Your Finance Options

1.  Home Equity Loan

A home equity loan lets you borrow against the equity you’ve built in your home.  This is a popular choice for homeowners who’ve built up value in their home over the years.  A home equity loan gives you a lump sum you repay over time with a fixed interest rate.

✅ Pros:

• Predictable monthly payments
• Lower interest rates than credit cards or personal loans
• Interest may be tax-deductible (but you’ll need to check with your CPA)

⛔ Cons:

• Your home is used as collateral—missed payments could lead to foreclosure
• You’ll pay closing costs
• Reduces your available home equity for future borrowing

Best for:  As NerdWallet comments, this option is best for homeowners with solid equity and a clear repayment plan who can afford to wait for the underwriting and possible appraisal process to be completed.

2. HELOC (Home Equity Line of Credit)

Home equity lines of credit (HELOCs) are growing in popularity as a home improvement finance option.  Similar to a home equity loan, you’re borrowing against the equity you’ve built up over time. However, because they’re secured loans, home equity loans, and HELOCs often have lower interest rates than personal loans.

Think of a HELOC like a credit card tied to your home’s equity. You borrow only what you need, when you need it.

✅ Pros:

• Only pay interest on what you use
• Flexibility for phased remodels or changing costs
• Fewer upfront fees than home equity loans

⛔ Cons:

• Variable interest rates can climb over time
• Your home is on the line if you default
• Reduces your future borrowing power

Best for: As BlockRenovation points out in their financing guide, this option is better suited for homeowners who want flexible access to funds during an ongoing or uncertain project.  If you’re in your 40s with two kids and planning to stay in your home another 10+ years, a HELOC might offer the flexibility you need.

🎯 One of our Colorado clients used a HELOC to finance a bathroom remodel.  With two kids in middle school and rising material costs, the flexibility to borrow only what they needed—when they needed it—kept the project on track without straining their budget.

3. Cash-Out Refinance

As with the two options above, this creative financing option has grown in popularity in recent years.  A cash-out refinance is a type of mortgage refinance where a homeowner replaces their existing mortgage with a new, larger loan, and then receives the difference between the new loan amount and the outstanding balance of the old loan in cash.  

✅ Pros:

• Potential for a lower interest rate (depending on the market)
• Access to a larger lump sum
• Interest may be tax-deductible for qualifying remodels

⛔ Cons:

• You’ll restart your mortgage term (or extend it)
• Closing costs apply to the full loan amount
• Could cost more in the long run if your current mortgage rate is already low

Best for: This particular finance option is best when homeowners can lock in a lower rate than their current mortgage.  (Renofi, 2025)

4.  Personal Loan

Personal loans are installment loans designed to cover personal expenses, such as home improvement projects.  These unsecured loans are fast, flexible, and don’t require using your home as collateral, which protects your assets in the event of default.

✅ Pros:

• No risk to your home
• Fixed interest and monthly payments
• Funds are often available within days

⛔ Cons:

• Higher interest rates, especially with lower credit scores (FICO score 580 or below)
• May include origination fees
• Smaller borrowing limits than equity-based loans

Best for: Homeowners (or renters) with strong credit who need quick cash and long repayment terms, without using home equity.

5. Credit Cards

Truth be told, credit cards aren’t ideal for full remodels—but for smaller upgrades or material purchases, they can be useful.  We recommend using 0% APR promotions, if available to you.

✅ Pros:

• No collateral required
• Can earn points or cash back
• 0% APR offers can save interest (if paid off on time)

⛔ Cons:

• High regular interest rates after the promo ends
• Carrying a balance can hurt your credit score
• Not designed for large projects

Best for: As NerdWallet points out, these cards work best for minor DIY projects, upgrades or short-term financing you can pay off fast.  

6.  Contractor Financing

Some remodelers, including national chains like Re-Bath and local companies like us at HomePride, partner with third-party lenders to offer financing directly through their sales process.

✅ Pros:

• Fast and convenient application
• Potential for promotional terms (0% interest or no payments for several months)
• No home equity required

⛔ Cons:

• Terms vary by contractor and lender
• You may need strong credit to qualify
• Always compare offers before signing

Best for: This is a great option for homeowners looking for convenience and quick approvals bundled into their remodeling plan.

Note:  HomePride’s financing partners were vetted for transparency and homeowner-first terms—so you’re never caught off guard.

7.  Paying with Cash

As the old saying goes, “cash is king”.  Got savings set aside?  Paying in full is the most straightforward—and least expensive—option.

✅ Pros:

• No debt, no interest, and potential for added discounts
• Encourages budgeting within your means
• Doesn’t impact your credit
  
  

⛔ Cons:

• Depletes emergency or investment funds
• No opportunity to earn credit-based rewards or leverage financing offers

Best for: Homeowners with healthy savings who prefer to avoid monthly payments and interest.

8.  Government Financing Programs

For qualifying projects, programs like the FHA Title 1 loan can provide affordable financing for home improvements.

✅ Pros:

• Designed for essential repairs and accessibility upgrades
• May offer lower rates than other options
• Often available to those with fair credit

⛔ Cons:

• Strict eligibility and use requirements
• May require your home as collateral

Best for: Homeowners making safety or code-related upgrades who qualify for assistance, as outlined by the HUD.  

Note: If you're preparing your home for aging in place, consider exploring Title I financing or ADA-compliant remodeling support.

Picking the Right Financing Strategy

How to Zero In on the Best Option for Your Bathroom Remodel

Project Size
Is this a full gut renovation or just a facelift?

• Big remodels—like knocking down walls or replacing plumbing—often call for home equity loans or even cash-out refinancing to access larger amounts with lower rates.
  
  
• Smaller updates—such as swapping out vanities or retiling—can usually be covered with personal loans or credit cards with promo rates.
  
  

Credit Score
Your credit score is like your financial reputation.

• Excellent credit (typically 740 and up)? You’ll unlock the lowest interest rates on loans and lines of credit.
  
  
• Fair to good credit? You may still qualify, but rates and terms might not be as favorable—so it’s worth shopping around.
  
  

Home Equity
Have you owned your home for a while—or seen your property value jump?

• If you’ve built up home equity, you’ve got access to some of the cheapest financing available, like HELOCs (home equity lines of credit) or home equity loans.
  
  
• These use your home as collateral, which can be a powerful tool—just make sure you’re comfortable with the risk.
  
  

Timeline
Need funds this week—or can you wait a bit?

• Personal loans or credit cards can fund in just a few days.
  
  
• Home equity loans or refinancing can take a few weeks to process due to appraisals and paperwork. Plan accordingly, especially if contractors need deposits soon.
  
  

Risk Tolerance
Not all financing feels the same—and that’s okay.

• Secured loans (like HELOCs) offer low rates, but your home is on the line.
  
  
• Unsecured loans (like personal loans or credit cards) may have higher rates, but no collateral is required.
  Pick the option that lets you sleep well at night while staying within your budget.
  
  

Example: What Will This Cost Me?

Let’s say you're financing a $30,000 bathroom remodel with a 12% APR personal loan. Here's how that could shake out:

• 4-Year Term: Around $790/month, with total repayment close to $38,000
  
  
• 7-Year Term: Around $530/month, but you’ll pay closer to $44,500 over time
  
  

🧠 What this means:
Shorter terms = higher monthly payments, but less interest in the long run.
Longer terms = more breathing room month-to-month, but you’ll pay more overall.  It’s all about what fits your budget and your goals.

Common Mistakes to Avoid

✅ Choosing a 0% APR card but missing the deadline, and having to pay the accrued interest
✅ Using a high-interest personal loan without checking the credit impact, which could affect other lending opportunities.
✅ Not comparing contractor financing with outside lenders to ensure the best rate and terms for you

Final Tips Before You Sign Anything

• Estimate your budget:  Know what you can truly afford while having piece of mind
• Get Multiple Offers: Shop lenders just like you’d shop tile—comparison matters.
• Look for Hidden Fees: Origination fees, prepayment penalties, and closing costs can add up fast.
• Prequalify When You Can: Many lenders offer soft credit checks so you can compare rates without hurting your score.
• Budget for the Unexpected: Remodels rarely go 100% as planned.  Leave room in your budget.

Ready to Start Your Remodel?

Financing your bathroom upgrade doesn’t have to be complicated.  With the right strategy, you can achieve the bathroom you’ve always wanted—without draining your savings or adding to your stress.

Start Your Dream Bathroom—Without the Financial Stress

At HomePride, we make it easy to remodel with confidence.  Whether you're looking for quick approvals, flexible monthly payments, or zero-interest options, we’ve got financing solutions to fit your budget.  With over 2,000 bathroom remodels completed across Colorado, we’ve helped hundreds of homeowners navigate the financing process with clarity and peace of mind.  Our team can help you determine which financing route best suits your timeline, credit score, and long-term goals.

 👉 Explore Our Financing Options

Or contact us today for a personalized remodeling plan, including financing options tailored to your needs.  (Financing terms vary by lender—even within HomePride’s partner network.)

Looking for More Information?

For more insights and to compare current rates, visit these trusted resources:

• NerdWallet: Bathroom Remodel Loans Guide
  
  
• Block Renovation: Bathroom Remodel Financing
  
  
• RenoFi: Bathroom Remodel Financing Explained
  
  
• Credible: Best Bathroom Remodel Loans

These guides can help you explore loan options in more detail, compare current rates, and select the best fit for your budget and timeline.