Best for: Homeowners with 20%+ equity who want flexibility

A HELOC is a revolving line of credit secured by your home. You borrow what you need, when you need it — like a credit card, but with much lower interest. You only pay interest on what you actually draw, not the full credit line.

Typical terms: 10-year draw period (interest-only payments) + 20-year repayment. Interest rates currently 7-9% (2026). Borrow up to 85% of your home's value minus what you owe.

✓ Pro: Flexible — draw as you go. Only pay interest on what you use. Interest may be tax-deductible if used for home improvement.

✗ Con: Variable rate can increase. Your home is collateral. Requires good credit (680+). Closing costs $500-$2,000.

Best for: Homeowners who know their exact project cost and want a fixed rate

You borrow a lump sum against your equity and repay it in fixed monthly payments over 5-30 years. The rate is fixed, which makes budgeting easy.

Typical terms: Fixed rate, 5-30 year term. Interest rates currently 7-8.5% (2026). Borrow up to 85% LTV.

✓ Pro: Fixed rate = predictable payments. Lump sum is ideal when you know exact costs. Interest may be tax-deductible.

✗ Con: Less flexible than HELOC — you take the full amount upfront. Closing costs similar to HELOC. Two mortgage payments.

Best for: Homeowners whose current mortgage rate is higher than today's rates

You replace your existing mortgage with a new, larger one and take the difference in cash. This works well if you bought when rates were high and rates have since dropped — or if you have substantial equity.

Typical terms: 15 or 30-year fixed. Current 30-year rates ~6.5-7.5% (2026). Borrow up to 80% LTV.

✓ Pro: One payment (new mortgage replaces old one). Potentially lower your overall rate. Large amounts available. Interest tax-deductible.

✗ Con: Closing costs $2,000-$5,000. Resets your mortgage clock. Only makes sense if new rate is lower than old rate. Long process (30-45 days).

Best for: Buyers purchasing a fixer-upper, or homeowners with lower credit scores

The FHA 203(k) wraps your mortgage and renovation costs into a single loan. It's government-backed, so credit requirements are lower. You can finance up to 110% of the home's after-renovation value.

Typical terms: 15 or 30-year fixed. Rates typically 0.5-1% higher than conventional. Minimum credit score 580. Requires FHA-approved 203(k) consultant.

✓ Pro: Lower credit requirements. One loan for purchase + renovation. Can finance up to 110% of after-renovation value.

✗ Con: More paperwork. Requires FHA consultant (adds cost). Mortgage insurance required. Not available for luxury upgrades — only necessary repairs and improvements.

Best for: Smaller projects ($5,000-$50,000) or homeowners with little equity

Personal loans aren't tied to your home, so there's no risk of foreclosure. Approval is fast (often same-day), but rates are higher because the loan is unsecured.

Typical terms: 2-7 year term. Interest rates 8-18% depending on credit. Borrow up to $100,000. No closing costs.

✓ Pro: Fast approval. No home equity required. No closing costs. Your home isn't at risk.

✗ Con: Higher interest rates than HELOC/equity loans. Shorter repayment terms = higher monthly payments. Interest not tax-deductible.

Best for: Homeowners who want a simple, one-stop process

Some contractors (including us, through our financing partners) offer payment plans directly. The contractor handles the financing paperwork, and you make monthly payments. It's the simplest option — one company, one point of contact.

Typical terms: 1-10 year term. Rates vary by partner (typically 6-16%). Often 0% intro APR for 12-18 months on smaller projects.

✓ Pro: Simplest process — contractor handles everything. Often promotional rates available. Can combine with other financing.

✗ Con: Rates may be higher than HELOC. Not all contractors offer it. May require minimum project size.

Best for: Very small projects ($3,000-$15,000) with a clear payoff plan

Some cards offer 0% APR for 12-21 months on purchases. If you can pay off the balance before the intro period ends, this is effectively free money. But if you don't, the deferred interest can be brutal.

Typical terms: 0% APR for 12-21 months, then 18-29% variable. Requires good-to-excellent credit (700+).

✓ Pro: 0% interest if paid within intro period. No application process (if you already have the card). Rewards points on spending.

✗ Con: Dangerous if not paid off in time. Deferred interest can add thousands. High rates after intro period. Low credit limits.

Best for: Homeowners who've been planning and saving

Paying cash means no interest, no monthly payments, no risk to your home. But in LA, where a mid-range kitchen remodel runs $35,000-$55,000 and ADUs start at $80,000, most homeowners combine cash with one of the options above.

✓ Pro: No interest. No payments. No risk. Maximum negotiating power with contractor.

✗ Con: Drains savings. May delay project while you save. Not realistic for most LA-scale renovations.