Personal Finance
Need Cash For Renovations? If You’re A Homeowner, This Might Be Your Best Option Yet
Skip the high-interest loans. Here's how you can fund that big upgrade — without piling on debt or touching your mortgage.
Dreaming of a better kitchen, bathroom or home office — but overwhelmed by rising costs and high-interest loans? You’re not alone.
The good news: more homeowners are exploring flexible alternatives to traditional loans — options that let you tap into your home’s value without refinancing your mortgage. Before you commit to a loan with high monthly payments, here’s what to know.
Renovations Aren’t Cheap — But Paying For Them Doesn’t Have To Hurt
Whether it’s a kitchen upgrade or a full home office buildout, most renovation projects can cost tens of thousands of dollars. Between materials, labor, permits and unexpected expenses, the price can easily soar. On average, home renovations can cost anywhere from $20,000 to $89,000 depending on the scope of work.
That kind of price tag might feel out of reach — but it doesn’t have to be. You don’t have to wipe out your savings or lock into steep monthly payments to make your renovation happen.
Traditional Ways To Fund Home Renovations
As a homeowner, you’ve likely heard about common ways to tap into your home equity or access other forms of credit. Here’s what each option could mean for your finances — and what to watch out for.
- If you need funding over time: A home equity line of credit (HELOC) is a revolving line of credit that lets you borrow against your equity as needed, typically over a 10-year draw period. Monthly payments may start out as interest-only but eventually include both interest and principal — and they can increase over time, especially if rates rise.
- If you want a lump sum: A home equity loan, also known as a second mortgage, provides a set amount at a fixed interest rate. It’s another monthly payment to manage, and qualifying usually requires strong credit and solid equity. Missing payments can put your home at risk.
- If you want to refinance and cash out: A cash-out refinance replaces your existing mortgage with a new, higher one — and you pocket the difference in cash. While this may lower your monthly payments, it restarts your loan term and often comes with closing costs that add up quickly.
- If you don’t want to touch your home equity: Personal loans offer a lump sum without using your home as collateral, and credit cards give you access to revolving credit. But both typically come with high interest rates and strict repayment terms, which can put a strain on your budget.
Before you take on new debt or increase your monthly bills, it’s worth exploring all your options — including a flexible equity sharing home loan.
A Smarter Alternative: Keep Your Mortgage, Lower Your Payments, Fund Your Renovation
If you’re looking to avoid refinancing your home, you may want to consider a smarter option: Unison’s Equity Sharing Home Loan — a way to access up to $400,000 in cash for renovations while keeping monthly payments significantly lower than a traditional second mortgage.
Here’s how it works: You receive a lump sum now to put toward your renovation goals. In exchange, you agree to share a portion of your home’s future appreciation with Unison. Rather than making full principal and interest payments right away, you’ll make interest-only payments for 10 years — giving you more breathing room in your monthly budget. Depending on your agreement, you may even be able to defer some of those interest payments.
When the term ends — typically when you sell, refinance or buy out the loan — you repay the original amount, plus a share of your home’s appreciated value. If your home loses value, Unison may share in that loss too, providing added peace of mind in an unpredictable housing market.
Why It Could Be The Right Fit For Your Renovation Plans
If you’re comfortable with your current mortgage and monthly budget but need extra funds to update your space, this approach offers a way to get it — without starting over or adding pressure.
It’s especially appealing if:
- You plan to stay in your home for several more years
- You expect your property value to rise
- You want to renovate now, not “someday”
- You prefer low monthly payments to help manage costs
And if you change your mind? You can exit the agreement early — without prepayment penalties.
Ask Yourself: What’s the Best Way To Put My Equity To Work?
With so many funding options available to homeowners, it’s important to understand both the risks and benefits of each. Before moving forward, take a moment to consider:
- Your timeline. Will you be in your home for the next five to 10 years, or is a move on the horizon?
- Your budget. Do you need a lump sum now, or would more flexible access to cash over time be a better fit? Are there other expenses you’ll need to plan for?
- Your comfort level. Can you comfortably take on additional monthly payments? Are you open to sharing a portion of your home’s future value in exchange for cash now?
- Your long-term impact. Could missing interest payments put your home at risk? Will this affect your credit or financial stability down the line?
- Your plan. Do you have a clear plan for how you’ll use the funds to improve your home and boost its value?
If you’re unsure of your next move, talking with a loan expert or exploring your options online can help clarify what makes the most sense — and give you a better sense of how much you might qualify for.
Ready to renovate without the financial pressure? Learn how Unison’s Equity Sharing Home Loan could help fund your next project — and get a personalized estimate today.
Disclaimer: This article is sponsored by Unison and provides general consumer information only. It is not financial, legal, or investment advice. Consult a qualified professional before making decisions about home equity products. Borrowing against home equity involves risks, including increased debt, potential loss of equity if property values decline, and foreclosure if payments are not made. Unison’s Equity Sharing Home Loan requires a minimum FICO score of 680, at least 30% home equity, and other eligibility criteria; repayment includes the original amount, deferred interest, and a share of future home appreciation. Terms and availability vary by location. Contact Unison for details. This article contains links to third-party websites, which we do not endorse or control. Access these links at your own risk. Statements about home value appreciation are forward-looking and based on assumptions; actual results may vary.
