Best Bathroom Remodel Financing & Loan Options

When should I use a personal home improvement loan for my bathroom remodel?

Besides the kitchen, the one room we Americans use most frequently in the household is the bathroom. It’s no wonder that bathroom renovations are one of the most common home improvement projects. 

The National Association of Realtors 2017 Remodeling Impact Report found that bathroom remodels rank among the highest in bringing personal joy and satisfaction from a home remodeling project.

Outdated features and small bathrooms people can’t stand anymore are among the main reasons homeowners reported engaging in bathroom remodeling projects. 2016 U.S. Houzz Bathroom Trends Study. 

But sometimes bathroom renovations are a necessity. Aging, ill, or disabled household members may need a more functional bathroom space to meet their needs. Leaking pipes or outdated fixtures waste resources and can result in elevated utility and maintenance costs, water damage, mold, and toxic hazards. Fire, flood, and natural disasters can also precipitate an emergency need for bathroom restoration.

How much does a bathroom remodel cost?

As with all home remodeling projects, the costs for a bathroom remodeling project can vary widely. The National Association of Remodeling reports that the average cost of a bathroom remodel in the U.S. ranges from $9600 to $11,000, ($23,000 for high-end remodels).

Does a bathroom remodeling project provide a good return on investment?

If you are considering selling your home or building up the equity of your home, bathroom remodels done right can yield a 50% return on your investment. Factoring in the increased ability to attract buyers, you may find it’s a project you can’t overlook.

Can You Finance Finishing a Bathroom?

Given the current financial climate, not all homeowners have the cash on hand or collateral they need to start bathroom restoration and remodeling. Luckily, there are several financing options you can choose from to secure a bathroom remodeling loan and get your project off the ground.

What Is a Bathroom Renovation Loan?

Bathroom remodeling loans are personal loans used for home improvement upgrades, restoration, additions, and complete remodeling. Personal loans are just one of the many options available for financing home improvement projects around your house. 

What is the best way to finance home improvements?

Not all home improvement financing options are the same. Personal home improvement loans rank among the most popular for bathroom remodels, but there are other financing options available for you to consider:

Personal Loan – money borrowed from a lender, bank, or credit union to make improvements to your home.

Pros – Personal loans can be either secured or unsecured. Unsecured personal loans allow people to obtain the financing they need based on their income and credit history. The loan is a fixed amount of money, with a fixed interest rate and a fixed term for repayment (generally 2-5 years). These benefits make it easier to plan and budget for your project and allows you the ability to prepare for and schedule your monthly payments. Another plus for personal loans is that the application process can be short,  24-72 hrs, and simple, without a lot of tedious documentation.

Cons – Lenders do not require the security of collateral for unsecured personal loans and therefore regard them as higher risk loans. To offset that risk, Lenders typically set higher interest rates for personal loans than what you might receive if you obtain a home equity line of credit. Because it’s a fixed amount, sometimes unexpected completion costs can exceed your financing budget.

Best Bathroom Remodel Financing Lenders


APR range 4.99% - 16.79% w/AutoPay1
Available loan terms 24 to 144 months1
Loan amounts up to $100,000
Time to fund As soon as the same day**
Fees Origination fee: None
Late fee: None
Prepayment fee: None
Credit needed 660+
Income needed n/a
Soft Credit Check? Varies
Best for Borrowers with good credit, long credit history, co-signers, debt consolidation, home improvements
Click “Check Rates” to apply to LightStream

» MORE: LightStream Personal Loans Review


APR range: 5.99% to 16.99% APR (with AutoPay)
Available loan terms: 24-84 months
Loan amounts: $5,000—$100,000
Time to fund: Typically 7 days
Origination fee: None
Credit needed: 680+
Income needed: $50,000+
Soft Credit Check? Yes
Best for: Young professionals and graduates, good credit
Click “Check Rates” to apply to SoFi

» MORE: SoFi Personal Loans Review

Home Equity Line of Credit – Also known as  HELOC, is credit extended to you by a lender, secured by the equity in your home. Once obtained, homeowners have a revolving line of credit to use for project expenses. Like a credit card, you can pay all of it or some of it monthly. Unlike a credit card, because they are secured second mortgages, the interest rates are among the lowest. But there is some risk. Since your home is used for collateral, If you are unable to make your payments, you could lose your home. 


APR range Starting at 4.99%
Available loan terms Up to 30 years
Loan amounts Borrow up to $150,000
Fees Low origination fee
Credit needed Minimum credit score 600
Best for Major Purchases, Home Improvements or Consolidating Debt
Click “Check Rates” to apply to Figure

» MORE: home equity review

Credit Card – There are a few things to keep in mind before funding your home improvement project using a credit card. If your remodel is reasonably low-cost, and you can take advantage of an introductory 0% financing offer, this may be an option for you to consider. Generally speaking, credit card financing comes with a lot higher risk. Keep in mind that interest accrues every month, driving up the final cost of your renovations considerably.

Are you ready to go for it?

Bathroom upgrades and renovations will likely bring increases in both your satisfaction and in the equity of your home. Use this information to support your research in obtaining the right funding solution for you. Before you sign the bottom line, be sure to consider both the hard costs and the financing costs of your project to be clear about the long-term financial impact. 

Compare Personal Loans

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