5 Ways Customers Can Pay for Home Improvement

A recent report from the National Association of REALTORs found that 92% of consumers would remodel more if cost were not an issue.1 That is a huge untapped market that can be accessed if you approach these homeowners with affordability in mind. One way to promote home improvement affordability is simply to educate potential customers about the different ways they can pay for their project. Some of the most popular options are below.

Savings

If a customer has the available funds, paying for a project with savings is one of the most affordable options due to the lack of interest and fees. In 2024, 29% of consumers used savings to pay for their home improvement project.1 However, not everyone wants to or can afford to use savings to pay for their project.

Home Equity Loan/Line of Credit

Home equity is the difference between what a home is worth and how much is owed on a mortgage, and this equity can be used as collateral to back a loan or line of credit. A homeowner can typically borrow up to 80 percent of the value of their equity. However, because the home is used as collateral, if payments are missed, the homeowner runs the risk of their home being put into foreclosure.

Credit Cards

According to the U.S. Federal Reserve, 81% of adults had a credit card in 2024.2 This makes credit cards a convenient option to cover smaller home improvement projects or as a short-term option before moving the cost to a lower-interest rate source. However, for larger projects or customers who may not have an ability to pay off that debt quickly, high credit card interest rates can make carrying credit card debt a more costly option for home improvement projects.

Couple paying for their project via tablet

Personal Loans

There are many banks and lenders who can offer your customer a loan to cover their project. This can be an option for customers with strong credit histories who may qualify for a lower interest rate. Customers with more challenged credit histories may have a harder time getting approved or gaining access to more desirable interest rates. Some companies may also charge origination fees or prepayment penalties.

Home Improvement Financing

Home improvement financing can offer some of the most competitive interest rates for upgrades and renovations on a home. Foundation Finance has financing options for customers with FICOs as low as 550 and sends the payment directly to the contractor. We cover a wide range of projects and offer terms up to 240 months, making it easy to meet your customer’s budgeting needs.

Interested in other ways Foundation Finance can help you close your next sale?

Contact us for more info: 1-855-241-0024[email protected].

You can build on us. Enroll in the Foundation Finance dealer network today.

1| National Association of REALTORS, Yun, L., Lautz, J., & NAR Research Staff. (2025). 2025 Remodeling Impact Report. https://www.nar.realtor/sites/default/files/2025-04/2025-remodeling-impact-report_04-09-2025.pdf

2| BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYST EM. (2025). Economic Well-Being of U.S. Households in 2024. https://www.federalreserve.gov/publications/files/2024-report-economic-well-being-us-households-202505.pdf

For dealer use only. Not a consumer advertisement. All credit products are subject to credit approval. Rates, terms, conditions, and promotional programs may vary by dealer and are subject to change without notice.
Note: Use of the terms "Loan," "Lender" and "Borrower" is for ease of reference only. Financings are in the form of retail installment contracts ("RIC").

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