How to Finance a Home Renovation With or Without Equity

Renovating a home in Los Angeles opens the door to meaningful improvements in comfort, value, and long-term financial gain. Whether you are upgrading for your own lifestyle or preparing to sell, financing is one of the first and most important decisions. Particularly in a market as competitive and expensive as Southern California, choosing the right financing strategy can hone your budget, reduce risk, and help you complete your project with confidence.

With so many ways to finance a renovation, it pays to compare loan types, learn how they work, and get valuable real-world insight from homeowners in similar situations as yours. Here, we’ll look at renovation solutions that work alongside or even replace traditional financing options for those who want stronger outcomes without taking on additional debt.

Understanding Home Renovation Financing

Let’s start by looking at renovation financing. This simply refers to any method used to pay for upgrades, repairs, or improvements to a home. In Los Angeles and the surrounding area, where both property values and construction costs run high, the right financing choice can determine the scope of a project or its return on investment.

Financing options generally fall into two categories:

• Secured financing connected to home equity
  
• Unsecured financing based on your credit and income
  

Some homeowners also choose renovation programs that eliminate out-of-pocket costs, such as Revive’s Renovate to Sell or equity-friendly alternatives like Sell360.

What Are Home-Improvement Loans?

A home-improvement loan is exactly what it sounds like: a way to fund a renovation project. These loans may be unsecured and rely on your credit profile, or secured through home equity (which often results in lower interest rates). Home-improvement loans work for projects of all sizes, and give homeowners predictable repayment terms. Both options fund renovations, but equity-based products generally allow larger loan amounts and better terms.

Common Uses of Renovation Loans

Los Angeles area homeowners use renovation financing for upgrades that can increase both enjoyment and resale value when executed strategically. In SoCal, these typically include: 

• Kitchen remodels
  
• Bathroom remodels
  
• Deck additions
  
• Roof replacements
  
• Landscaping
  
• Solar panel installation
  
• Swimming pools
  

Case Study: Meet Travis

Compass real estate agent Travis Buhl partnered with Revive to help a client with limited financing options maximize equity before relocating. Revive invested $87,730 in cosmetic updates, including flooring, paint, bathroom upgrades, and softscaping, raising the home’s value from $1.25M to $1.5M. The result: $162,270 profit, 185% ROI, and a 20% commission increase.

Financing a Home Renovation with Equity

If you have built equity in your home over the years, you can access some of the most cost-effective financing tools available. Let’s review: 

Home Equity Line of Credit (HELOC)

A HELOC provides a revolving line of credit secured by your home. You borrow what you need and repay as you go. It’s ideal for phased or flexible renovation plans.

Home Equity Loan

A home equity loan offers a lump sum with fixed terms. This works well for defined scopes such as a full kitchen remodel or roofing project.

Cash-Out Refinance

A cash-out refinance replaces your current mortgage with a larger one and converts a portion of your equity into cash. This is useful when interest rates are favorable or when a project requires significant funding.

Refinancing Your Mortgage

Even without withdrawing cash, refinancing can reduce monthly payments and free up money for renovation savings or unsecured loans.

Case Study: Meet Jared

Jared inherited a midcentury Los Angeles home he needed to sell quickly but profitably. Working with agent Dave Chu and Revive’s Sell360 program, a full interior and exterior renovation elevated the property’s value from $1.5M to $2.255M, producing $200K+ in profit and a 50% commission increase. Jared was able to both honor his family home and give it a polished, market-ready transformation.

Financing a Home Renovation Without Equity

No equity? This doesn’t mean no renovation. There are a few alternative paths available for homeowners to complete improvements.

Cash Savings

Using savings avoids interest and fees, although it requires thoughtful planning.

Personal Loans

Personal loans offer fast approval and predictable payments. Interest rates can be higher, but they work well for medium-sized projects.

Credit Cards

Credit cards may be helpful for smaller expenses or materials. Promotional rates can be useful, but interest accumulates quickly.

Borrowing from Friends or Family

This option can provide low-cost flexibility. Just be sure to clearly document expectations.

Rental Lease Financing for Landlords

Landlords sometimes use projected rental income to qualify for financing that supports upgrades intended to raise rental value.

Government-Backed Loans

These programs support homeowners or buyers who need to renovate without relying on existing equity, allowing repairs, modernization, or rehabilitation within structured mortgage products.

• FHA Title 1 Loan
  
• FHA 203(k) Rehab Loan
  
• Fannie Mae HomeStyle Renovation Loan
  

Rebates and Tax Credits

Energy-efficient upgrades, solar panels, and other improvements may qualify for state or federal incentives and can significantly reduce total project costs.

Renovate to Sell 

Revive’s Renovate to Sell is another option for homeowners who want to complete renovations but do not want to use equity loans, personal loans, or credit cards. Revive covers the renovation costs and manages the full process. Homeowners repay the renovation amount only after the home sells. This creates a financing-free renovation path that avoids interest, eliminates upfront payments, and gives homeowners access to professional contractors and design support. 

Sell360

Homeowners who want to unlock their home’s value without taking on new debt or managing a renovation can turn to Revive’s Sell360 program. Revive purchases the property, completes upgrades, sells the home, and issues two payments to the original owner: one upfront and one after the sale. This approach provides immediate liquidity, professional renovation support, and the opportunity to benefit from the home’s improved value without loans, credit checks, or out-of-pocket costs.

Case Study: Meet Tina 

In Orange, California, real estate agent Tina Tan and Revive Property Advisor Jameson Hanson partnered with Revive to overcome a tight homeowner budget. Revive fronted $209,216 for comprehensive updates, including flooring, paint, outdoor upgrades, pool repairs, and refreshed kitchens and baths, creating standout appeal. The home sold for $2.55M, producing $640,784 in net profit, a 306% ROI, and a 50% commission increase for Tina.

How Home Renovation Loans Work

Before choosing the right financing path, it helps to understand how renovation loans actually work. Most options fall into two groups. Some provide a fixed amount repaid over time, while others offer flexible access to funds throughout your project. Knowing the difference will help you match your financing approach to the scope, timing, and complexity of your renovation. In a competitive real estate market like Los Angeles, knowing how these loans work also highlights why programs like Revive’s Sell360 and Renovate to Sell can be appealing alternatives, making it possible to complete strategic upgrades without loan applications, credit checks, or upfront capital.

Installment Loans

Installment loans provide a fixed amount repaid over a set term. These include home equity loans, personal loans, or cash-out refinance structures.

Lines of Credit

Lines of credit, such as HELOCs, create flexibility during multi-stage projects.

Steps to Get a Renovation Loan

1. Check your credit score
   
2. Review your home equity
   
3. Compare financing options
   
4. Submit an application
   
5. Repay the loan
   

Comparing Home Renovation Loan Options

When evaluating renovation financing, look beyond the loan type and understand the true cost of borrowing. Factors like APR, loan amount, term length, and additional fees all shape how affordable a financing option will be over time. Secured loans often offer lower rates and higher limits, while unsecured options tend to cost more. Monthly payments, closing costs, and annual fees also add up quickly. 

APR

Lower APRs are common with secured loans. Higher APRs appear in unsecured loans and credit cards.

Loan Amount and Term Length

Secured financing usually allows larger loan amounts. Terms vary from five years to thirty years.

Monthly Payments and Fees

Closing costs, annual fees, and interest rates shape the total cost of borrowing.

Case Study: Meet Matthew 

Matthew C. needed to sell his home within two months and wanted to get it in the best condition to do so at the highest price possible. Partnering with real estate agent Lisa Mailhot and Revive, a 33-day cosmetic refresh updated kitchen and baths, flooring, lighting, and paint. The transformed property sold in 22 days, delivering on Matthew’s timeline and giving him an added $30,395 in profit.

Pros and Cons of Home Renovation Loans

If you’re a pro-con kind of person, it can help to look at the options simply. 

Pros of a Home Renovation Loan

• Increase home value
  
• May provide tax benefits
  
• Allow immediate improvements
  

Cons of a Home Renovation Loan

• Add debt
  
• Put your home at risk if secured
  
• Can be costly with high interest rates
  

Tips for Planning and Budgeting Renovations

Set a Realistic Budget

Get quotes and build a buffer for unexpected costs.

Consider ROI

In competitive markets like Los Angeles and the surrounding area, we’ve seen time and time again that strategic renovations have strong returns. Kitchens, bathrooms, flooring, and curb appeal often add the most value.

Decide Between DIY and Hiring Pros

Professional oversight is essential for complex projects. Both Revive’s Sell360 and Renovate to Sell programs provide licensed contractors, dedicated oversight, and renovation management to minimize surprises.

Case Study: Meet Jack 

A dated 1978 Los Angeles home inherited by owner Jack C. needed modern upgrades and hands-on project management. Real estate agent Lorin Ruttenberg partnered with Revive to execute a full-scale renovation, transforming a distressed property into a high-value listing. The result: more than $1M in profit, a 200% ROI, and a significant commission increase, fully achieving Jack’s goal of maximizing his family home’s equity.

FAQs

How do home renovation loans differ from personal loans?
Home equity loans are secured by the property and often have lower interest rates. Personal loans are unsecured and rely on credit.

Which loan type is best for large projects?
Secured loans such as home equity loans and cash-out refinances tend to offer better rates and higher limits. Revive’s Sell360 and Renovate to Sell also work well for large projects since they require no upfront payments.

What credit score do I need for financing?
Requirements vary by lender. Home equity financing focuses on equity and debt-to-income ratios. Unsecured loans require stronger credit. Revive programs require no credit qualification.

Are there tax benefits to renovation loans?
Some loan interest may be deductible. Energy improvements sometimes qualify for tax credits.

Conclusion

Financing a renovation in the Los Angeles area depends on your goals, financial profile, and timeline. Home equity loans, cash-out refinances, and HELOCs offer strong rates for homeowners with equity. For those without equity, personal loans and government-backed programs can create pathways to renovation.

For homeowners who want to maximize value without taking on debt, Sell360 and Renovate to Sell offer practical alternatives. They bring expert guidance, professional renovations, and predictable outcomes that help homeowners unlock the full potential of their property.

Whichever path you choose, compare your options carefully, understand your budget, and plan for contingencies. Smart renovation decisions build long-term value and set your home up for its strongest future.