How to Finance Your Renovation in the Philly Market

Whether you're remodeling a kitchen in Queen Village or updating a full home in Ardmore, understanding your financing options can make all the difference. Renovations in the Philadelphia region can add serious value to your property — but they require careful planning and smart funding.

At Lapstone, we work with homeowners across the Philly market who want high-quality renovations without financial guesswork. Below, we’ve broken down some of the most effective ways to finance your renovation project in 2025.

1. Home Equity Loan or HELOC

If you’ve built equity in your home, a home equity loan or line of credit (HELOC) is often the most affordable financing method.

• A home equity loan provides a lump sum with fixed interest rates — ideal for large, one-time projects like full kitchen remodels or additions.

• A HELOC offers flexible borrowing over time, which can help with phased renovations.

Many Philadelphia-area banks and credit unions offer competitive rates for homes in popular zip codes like 19147 (Bella Vista), 19103 (Rittenhouse), and 19003 (Ardmore).

2. Renovation Loans

Renovation-specific loans like the FHA 203(k) or Fannie Mae HomeStyle® are tailored for home upgrades.

• These loans allow you to finance both the purchase of a home and its renovation — ideal for fixer-uppers.

• They require working with a licensed contractor (like Lapstone) and submitting a detailed scope of work.

We frequently coordinate with lenders to provide the documentation needed for these programs.

3. Cash-Out Refinance

With interest rates shifting, some homeowners are opting for a cash-out refinance to fund major improvements.

• This option replaces your existing mortgage with a new one for a higher amount — giving you cash for renovations.

• It works well if your current interest rate is high and you want to restructure your mortgage while upgrading your home.

Many homeowners in Lower Merion and Center City have used this option to finance full-home updates.

4. Personal Loans

For smaller projects or quick updates — like powder room refreshes or flooring upgrades — a personal loan can offer fast funding without leveraging your home.

• Fixed terms and no collateral required

• Often funded in days

Keep in mind that rates are typically higher than home equity loans or secured financing.

5. Contractor Financing

At Lapstone, we connect clients with trusted third-party lenders who offer direct renovation financing.

• Fast approvals

• Flexible terms

• No equity needed

This can be a smart choice if you’re ready to start work immediately and prefer simplicity.

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Tips Before You Finance:

• Get multiple quotes and estimates (we offer detailed, itemized scopes)

• Understand your ROI — kitchen and bath renovations in the Philly area consistently recoup 60–75% of their value

• Always work with a licensed and insured contractor (Lapstone is both)

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Thinking about a renovation in the Philadelphia region?

→ Schedule a call with Lapstone today and let’s explore your project — and your financing options.