Go Far®Start with a real number, not a guess
Financing conversations go sideways when the budget is a hunch. In the Lynnwood–Seattle market, a full kitchen remodel typically runs about $45,000–$110,000, a full bathroom remodel roughly $20,000–$60,000, a home addition anywhere from $75,000 into the several hundreds of thousands, and a whole-home remodel about $100–$250 per square foot for a full interior renovation. Get an itemized bid first — then pick the money route that fits it.
And one honest note before the options: we are builders, not lenders. Treat this as a map of the routes Washington homeowners actually take, and confirm rates, terms, and qualification with a licensed lender — programs change.
Cash and phasing: the underrated option
Not every remodel needs a loan. Plenty of our projects are paid from savings — and when savings cover most but not all of the wish list, phasing closes the gap: the hall bath this year, the kitchen next, the primary suite after that. A contractor who knows the whole plan can sequence phases so you never pay twice for the same demolition or drywall. Phasing costs a little more in total mobilization but keeps you out of interest entirely.
Home equity: the workhorse
- HELOC (home equity line of credit). The most common route we see for remodels. You draw only what the project needs as it progresses and pay interest only on what you have drawn — a natural fit for progress-payment construction schedules. Rates are typically variable.
- Home equity loan. A fixed lump sum at a fixed rate. Predictable payments, and a good match when you are financing one clearly-scoped project with a firm, itemized price.
- Cash-out refinance. Replaces your existing mortgage with a larger one and hands you the difference. It can unlock the most money in one move, but it reprices your entire mortgage — whether that math works depends heavily on the rate you would be giving up.
Puget Sound homeowners who bought more than a few years ago are often sitting on more usable equity than they realize — home values here have done a lot of the saving for you.
Renovation loans: borrowing against the after value
If today’s equity will not cover the project, renovation-loan programs — the Fannie Mae HomeStyle and Freddie Mac CHOICERenovation family, and FHA 203(k) for those who qualify — let you borrow against the home’s after-renovation value instead. They involve appraisals, draw schedules, and lender inspections, which is one more reason the project needs a detailed written scope before you apply. For large additions and down-to-the-studs renovations, some lenders write construction loans that convert to permanent financing when the work is done.
Personal loans and cards: for small scopes only
Unsecured personal loans close fast and don’t touch your house, but rates run well above home-equity products — they make sense for smaller projects like a tub-to-shower conversion or a powder-room refresh, not a six-figure remodel. Credit cards belong at the margins: appliances you will pay off at the statement, not construction.
What every lender wants from your contractor
Every route above converges on the same paperwork: a licensed, bonded, and insured contractor; a written, itemized scope of work with a firm price; and a payment schedule tied to real milestones. That is how we quote by default — a free, no-obligation estimate with itemized written pricing you can hand straight to your loan officer — and our progress-payment structure maps cleanly onto lender draw schedules. If financing is part of your plan, tell us early: pricing the project first gives your lender a real number to underwrite.