Most renovations are not paid for entirely in cash, and how you fund the work affects what you can afford to do. This is a plain overview of the common routes rather than financial advice, and the right answer depends on your circumstances.
Common routes
- Home equity loans and lines of credit, which use the equity in your home as security and typically carry lower rates than unsecured borrowing.
- Cash-out refinancing, which replaces your existing mortgage. Worth weighing carefully against the rate on the mortgage you already hold.
- Contractor financing arranged through the builder, which is usually the fastest to arrange.
- Unsecured personal loans, which are quicker and do not put the home at risk, but generally cost more.
Questions worth asking
- What is the total cost of borrowing over the full term, not just the monthly payment?
- Is the rate fixed or variable, and what happens if rates move?
- Are there fees for early repayment?
- Does the lender require draws tied to construction milestones, and how does that interact with your contractor’s payment schedule?
A note on budgeting
- Build a contingency into the plan. Ten to fifteen percent is a common rule of thumb, and older homes justify the higher end.
- Finance the project you actually want rather than a stripped version you will regret, but avoid borrowing against optimistic resale assumptions.
- Get the scope and estimate settled before finalising the financing amount, so you are not borrowing against a guess.
Related services
Frequently Asked Questions
Do you offer financing?
Yes, financing options are available. We can walk you through what is on the table alongside your estimate.
Should I borrow more than the estimate?
Having a contingency available is sensible. Whether to borrow it or hold it in cash depends on your situation.
Is this financial advice?
No. This is general information from a builder, not from a licensed financial adviser. Speak to a qualified adviser or lender about your circumstances.
More guides for South Florida homeowners
- How Much Does a Kitchen Remodel Cost in Broward County?
- Home Addition vs. Moving: Which Makes Sense in Broward County?
- Bathroom Remodel Cost in South Florida: What Drives the Price
Planning a project in Cooper City or anywhere in South Florida? A. Luzon Construction is licensed, insured and CRC-certified (CRC1334726). Call (954) 833-7933 for a free, detailed estimate, or book a consultation online.
Ready to start your project?
Free, detailed estimates across Cooper City and South Florida. Licensed, insured and CRC-certified (CRC1334726).