Business Loans

Tailored commercial financing with amounts up to $500K1,2 and flexible terms of up to 12 years1

Debt consolidation loan

Turn business debts into one fixed and affordable monthly payment

Existing business investment loan

Upgrade and expand your current business to increase your bottom line

New business opportunity loan

Buy into a business or develop passive income opportunities

Working capital loan

Boost your liquidity to finance all of your business needs and initiatives 

Personal Loans

Customized consumer financing with amounts up to $200K1 and flexible terms of up to 10 years1

Debt consolidation

Turn personal debts into one fixed and affordable monthly payment

Home improvement

Remodel your kitchen and bath, add a pool, or make other upgrades to your space

Other ways to use your funds

Pursue multiple goals with one comprehensive financial solution 

April 4, 2022

How do home improvement loans work?

How home improvement loans work

home improvement loan¹ works by providing you with the money you need to complete an upgrade, repair, or other renovation on your home.

There are three main steps in the process of taking a home improvement loan.


  1. Determining how large of a loan you’ll need based on the projects you want to complete
  2. Finding out where to get the funding and submitting an application
  3. Paying the loan amount back


We’re going to dive into each of these steps to give you a better idea of what they entail.

How to determine the home improvement loan amount you need

To figure out your ideal loan amount, you can take these simple steps:


  1. Find a good contractor who specializes in the type of home improvement work you need
  2. Contact them to get a quote for labor and supplies
  3. See how much of your own money you can or would like to put towards the project
  4. Subtract the amount you have on hand from the total


The important thing to remember is to consider all costs. Let’s use a kitchen remodel as an example. You don’t just need to pay for countertops and cabinets. There is also the cost of:


  • Labor to install everything
  • Paint for the walls
  • A backsplash
  • New light fixtures
  • And more


For your home improvement loan to work for your needs, consider these costs before getting a quote.

Now that you have an idea of the loan amount needed to complete your project let’s look at where to get the funding.

Where to get your home improvement loan

Financing your project may be easier than you think. There are numerous ways for you to get funding for home improvements.


  • Getting a personal loan from lenders like us
  • Borrowing from a friend or family member
  • Using the equity from your mortgage
  • Using personal credit cards
    • These can be helpful for smaller projects that fit within your credit limit


Each option has variables to consider—from interest rates, repayment periods, potential collateral requirements, and more. It is important for you to decide which is right for your situation.

The good news is that, at BHG Money, our home improvement loans don’t require personal collateral, and they offer extended repayment terms* and affordably low monthly payments.

Starting the loan application process is as simple as calling our team or estimating your monthly payment in as little as 30 seconds using our online Payment Estimator.

Paying the loan amount back

The last step in the process of how a home improvement loan works is paying the loan back. When you apply for a loan, you receive a repayment term. Repayment terms vary by lender, so you may want to consider what length of time is best for your situation before securing financing.

For example, an extended repayment term, like those offered at BHG Money, can make monthly payments low and easy to manage. Meanwhile, short-term loans may come with higher monthly payments that eat up a larger amount of your fixed budget.

Once you’ve finalized your repayment terms, you’ll need to make a payment each month to keep up with your loan and eventually pay it off. Missing payments or making payments late could adversely impact your credit score, among other consequences.

That is how a home improvement loan works. If you’re in the market for financing or just want to talk to a specialist to find out what our financial solutions could do for you, contact our team today at 866.280.5476. You can also get a quick glimpse at how low your monthly payment could be by using our online Payment Estimator below.

*Terms subject to credit approval upon completion of application. Loan sizes and interest rates vary and are determined by applicant’s credit profile. Call for complete program details. For California residents: Consumer and commercial loans are made or arranged pursuant to the California Financing Law, License No. 603-G493.

*Personal loans not currently available in Illinois or Maryland.

1Consumer loans funded by one or more participating lenders. Equal Housing Lenders. Equal Housing Lenders