Best Bathroom Remodel Financing Loans in October 2025

Are you considering remodeling your bathroom? Whether you’re looking to upgrade for function, style, resale value, or all of the above, the costs can add up quickly. Fortunately, you don’t have to cover the bill upfront. With bathroom remodel financing, you can break it up into manageable payments over time. Let’s explore how bathroom remodel financing works and where to find the best loan.

How much does it cost to remodel a bathroom?

The cost of remodeling a bathroom varies significantly depending on the specifics of your project, but recent data can give you a ballpark idea of what to expect. Here are a few industry benchmarks to guide your planning: 

• HomeAdvisor by Angi reports the average bathroom remodel costs $12,121 in 2025, with most remodels ranging from $6,639 to $17,621.
• The Journal of Light Construction (JLC) estimated a mid-range bathroom remodel to cost $26,138 in 2025. 
• The Home Depot estimates that guest bathroom remodels cost $14,000 to $20,000, while master bathroom remodels start at $30,000. 

To calculate how much your remodel will cost, identify the changes you want to make and tally up their costs, including materials, labor, demolition, etc. 

Bathroom remodel pricing factors

Bathroom remodel costs vary due to a variety of factors, including: 

• Location: Where you live impacts your remodel costs due to variations in labor costs, material prices, and compliance fees (e.g., required permits and inspections).
• Project scope: Minor remodels are more superficial and affordable, while major updates are more comprehensive and pricey. Partial remodels fall in between.  
• Contractor selection: The type of contractor you hire will significantly impact your costs. The higher the skill level and service tier, the more you’ll pay. 
• Bathroom size: The square footage of the bathroom can impact the cost, as it can mean more updates, materials, and labor.  
• Features: The features you want to add will play a major role in your costs, such as a bathtub, shower, cabinets, countertops, new faucets, or a toilet. The more you want to change or add, the higher the cost. 
• Materials: The quality of your chosen materials also plays a role. You can opt for economy, midrange, or upscale. 
• Damages: If you have damages that need to be repaired, such as water damage from leaks, those can significantly add to your costs. 
• Demolition and preparation: Demolition services expand your project scope. You may also need to pay for junk and debris removal. 
• Plumbing and electrical changes: If changes to your plumbing or electrical systems are required, they can result in much higher costs. 

“The ‘hidden’ costs of remodeling a bathroom come in if you decide to relocate the major items like the shower, sink, or toilet. Once you start to involve the plumbing and framing of the bathroom, the costs will go up significantly,” says Paul Dashevsky, real estate investor and co-CEO of GreatBuildz.

Setting your bathroom remodel budget

When deciding how much to spend, consider the expected return on investment. “The cost of a midrange bath remodel will typically have a return of around 67.2%, while an upscale bath remodel recoups about 60.2%. In that context, upgrading your fixtures, lighting, and storage should be less expensive and more appealing to buyers,” says Alexei Morgado, Realtor in Florida and founder of Lexawise Real Estate Exam Preparation. 

Morgado also stresses the importance of understanding average standards for bathroom remodels in your neighborhood. “When you over-improve your remodel in terms of quality and features, you may not receive much of a return on your investment when you try to sell it,” he says. 

Sarah Thomsen, real estate broker at MODUS Real Estate Denver, adds that the general rule of thumb is to keep your bathroom remodel within 5% to 10% of your home’s value if resale is the goal. “That said, not every upgrade is about ROI. If you're planning to stay in the home for many years, you can justify spending more for personal comfort, especially in areas like walk-in showers, heated floors, or upgraded lighting,” Thomsen says. Just don’t expect to get your money back on those extra upgrades when you sell.

Compare bathroom remodel loans

Let’s take a look at a few personal loan lenders with loan offerings that can be used to finance a bathroom remodel. They all offer loan amount ranges that cover the average cost of a bathroom remodel. However, their eligibility requirements, fees, and loan term ranges differ.

Lightstream is our top choice for financing a bathroom remodel if you can qualify. It has the lowest rates and most flexible repayment terms, and charges no fees. But it also has the strictest eligibility requirements. Prequalify with several lenders to compare quotes to see which is likely to offer the lowest rate, along with the loan amount and repayment term you need. 

Methodology 

Credible evaluated 32 lenders across 1,216 data points to find the best loans for bathroom remodel financing. We feature lenders that offer unsecured loans for home improvement and one or more of the following factors: high loan amounts, low rates, and financing options for fair credit.

Lender star ratings were established based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Tips on comparing bathroom remodel loans

With a range of bathroom remodel loans on the market, shopping around helps to ensure you get a competitive deal. However, it can be overwhelming. As you compare quotes, here are the key factors to note:

• Loan amounts: Look for a loan amount that suits your needs. It needs to be enough to cover your estimated remodel costs. Plus, a bit of a buffer can be helpful for unexpected expenses.
• APR: The annual percentage rate (APR) indicates the annualized cost of a loan, including interest and upfront lender fees. The federal Truth in Lending Act (TILA) requires lenders to publish APRs, which makes it easier to compare costs apples to apples. 
• Fees: Loans often have fees. Note any fees and how you’ll be required to pay them (e.g., upfront, deducted from the loan, rolled into the loan). 
• Loan terms: Lenders offer different repayment terms and, typically, increase the APR on longer terms. Longer terms often mean lower monthly payments but higher overall costs and interest. Look for a lender with a loan term that suits your needs and budget.
• Monthly payment amounts: Make sure the monthly payment amount fits your budget. 
• Overall costs: Calculate the overall cost of any loan you’re considering. Lower is generally better, as long as you can afford the monthly payment. Some borrowers may be better served by a lower monthly payment with a higher overall cost. 
• Collateral: Consider if a lender requires you to pledge collateral to get the loan. Collateral can help you get a lower interest rate, but it will be at risk if you default.  
• Convenience: Consider how easy it is to get a loan from the lender. Can you prequalify without hurting your credit? How long does it typically take to get approved and receive the funds? And what are your options for making loan payments and getting in touch with customer support?
• Reviews: See how the lender fares in online reviews from past customers on third-party sites like Trustpilot and the Better Business Bureau. 

As you review lenders, it can help to make a chart that compares them side by side. Credible does this for you when you prequalify with our partner lenders. Prequalified quotes aren't offers of credit and may differ from rates and terms you're offered after an application, but comparing quotes can help you identify the best overall value for your situation. 

What is a bathroom remodel loan, and how does it work?

A bathroom remodel loan refers to a loan that you take out to cover the cost of remodeling a bathroom. It can come in many forms, such as a personal loan, home equity loan, home equity line of credit (HELOC), cash-out refinance, credit card, or an FHA home improvement loan.

6 ways to finance a bathroom remodel

1. Personal loan

Best for high loan amounts and long repayment terms

Personal loans are installment loans designed to cover personal expenses, such as home improvement projects. They are typically unsecured, meaning you don’t have to provide collateral, but if you have a bad credit score (a FICO score below 580), a secured personal loan or getting a personal loan with a cosigner could help your chances of approval. 

Personal loan amounts can range anywhere from $500 to $150,000 or more, and tend to have APRs between 6.49% and 35.99%. Some lenders also charge origination fees, which can range from less than 1% to as much as 15% of the loan amount, depending on the lender. After receiving the loan, you’ll repay it through fixed payments over a set term.

Check Out: Best Personal Loans With No Origination Fee

Learn More: Personal Loan Term Length: What You Need To Know

2. Home equity loan

Best if you have sufficient equity and are ok using your home as collateral

A home equity loan allows you to borrow against a portion of the equity you’ve built in your home. For example, if your home appraises for $400,000 and you owe $200,000, you would have $200,000 in equity. However, most lenders only let you borrow up to around 80% of your home’s appraised value, less than the amount you owe on your mortgage.

So, in this case, you’d subtract your outstanding mortgage balance of $200,000 from $320,000 (80% of $400,000) to get the amount you could potentially borrow: $120,000. Upon approval, the lender would send you a lump sum that you would repay, plus interest, through fixed payments over a period of years. Home equity loan terms are typically available up to 30 years.

Because of the appraisal process, home equity loans can take weeks to more than a month to close.

Compare: Personal Loan vs. Home Equity Loan

3. HELOC

Best for variable interest rates

A home equity line of credit (HELOC) lets you borrow against a portion of your home equity. However, instead of getting a lump sum loan upfront, you’re given access to a credit line for a draw period — often up to 10 years. When the draw period ends, you enter the repayment period. Lenders may require a balloon payment or allow monthly payments over a set term. 

With HELOCs, you can withdraw funds as needed and will only pay interest on what you borrow. Additionally, the payments are often interest-only during the initial draw period. On the downside, HELOCs may come with upfront closing costs, variable interest rates, and expensive back-end payments.

Compare: HELOC vs. Personal Loan

4. Cash-out refi

Best for a single monthly payment 

A cash-out refinance involves replacing your current mortgage with a larger one. After you pay off your original mortgage, you can use the remaining funds for your bathroom remodel or other expenses.

Cash-out refi loans can be a good fit if you want to tap into your home equity but prefer one monthly mortgage payment over two. They also make sense if you can get one with an interest rate that's lower than the current rate on your mortgage. This might be the case if you've improved your credit or if interest rates have come down since you first got your mortgage.

Lenders typically charge closing costs, which range from 2% to 5% of the loan amount, and the closing process can take a month or longer.

5. Credit card

Best for potential rewards and 0% APR promotions

If you have a card with available credit, you could use it to pay for bathroom remodel expenses. However, credit cards are best used for short-term financing that you can pay off within the card's grace period (usually one billing cycle) or within a 0% APR promotional period (up to 21 months or more, depending on the card). 

This is because credit cards tend to have higher interest rates than the other credit products on this list. For instance, the average APR for credit cards is 21.16%, compared to 11.57% for a two-year personal loan, according to the Federal Reserve. 

It can also be difficult to get approved for a credit line large enough to cover a full bathroom remodel or a 0% APR card. You're most likely to qualify if you have an excellent credit score (a FICO score of 800 or higher) and financial profile.

For example, the Citi Custom Cash Card is a no-annual-fee rewards card with a 0% intro APR on purchases for 15 months. It also offers 5% cash back on up to $500 per billing cycle in your top eligible spending category, which can include home improvement stores, and 1% cash back on all other purchases thereafter.

6. FHA 203(k) home improvement loan

Best for homeowners with FHA-approved lenders

The FHA 203(k) home improvement loan program was designed by the U.S. Department of Housing and Urban Development (HUD). It allows you to finance up to $75,000 or more into your mortgage to repair, improve, or upgrade your home. 

You can use it when buying a new home or refinancing your existing one. However, among other requirements, you must plan to make at least $5,000 in eligible repairs or improvements to qualify. You can learn more about the program on the HUD website. 

Bathroom remodel loan example

Suppose you’re planning a $15,000 bathroom remodel. To cover the costs, you take out a five-year, $16,000 personal loan with an 18% interest rate and a 5% origination fee. After getting approved, you’d receive $15,200 after the $800 origination fee (5% of $16,000). From there, you’d repay the full $16,000 through 60 payments of $406. Over the life of the loan, your total borrowing costs would be $8,378 in interest plus the $800 fee. 

Use a personal loan calculator to calculate loan payments and total interest on a personal loan based on different repayment terms, interest rates, and loan amounts.

Pros and cons of bathroom remodel loans

When deciding if a bathroom remodel loan is right for you, consider the following pros and cons.

Pros

• Affordability: You can split the cost of a bathroom remodel into affordable payments over time.
• Loan variety: A variety of loan types can be used to finance a bathroom remodel, from personal loans to credit cards. 
• Fast access: Some loan types, like personal loans and credit cards, offer quick approval and funding. You can get the funds as soon as the same day.
• Improve your credit score: Taking out a sizable loan and paying it as agreed can help to improve your credit in the long term.

Cons

• Interest: Lenders charge interest on bathroom remodel loans, which will accrue until the loan is paid in full. 
• Fees: Loans may have fees that increase your borrowing costs, such as origination fees on personal loans and closing costs on home equity loans. 
• Risk of default: If your situation changes and you can’t pay off the loan as agreed, you risk credit score damage, losing your collateral (when applicable), collection attempts, and even being sued. 
• Overborrowing temptation: Access to a large loan amount may tempt you to overspend on your bathroom remodel project. 

How to get a personal loan for a bathroom remodeling project

If you’re interested in getting a personal loan for a bathroom remodeling project, here’s how the process works. 

1. Check your credit. 

Eligibility for any loan depends on your credit scores and reports. Before applying, ensure you don’t have erroneous information hurting your reports, and consider taking steps that can quickly improve your scores. For example, paying down credit card balances and adding current bills to a service like Experian Boost can help. 

2. Figure out the amount you want to borrow

Next, figure out how much you need to borrow. This step involves creating a detailed plan for your bathroom remodel. You’ll need to identify each update you want to make and how much it’ll cost, including demolition, cleanup, materials, and labor. Then, tally up the total amount you need for the project. You may also want to include a 10% buffer for unexpected costs. 

3. Find a lender

With a large pool of lenders in the market, finding the best fit requires shopping around, collecting quotes, and comparing the offerings. First, determine which type of loan you want to get. If you’re seeking a personal loan for home improvement, Credible lets you prequalify with 19 lenders through one prequalification form. 

4. Get the loan

Once you identify the winning quote and want to move forward, select it and fill out the full application. The application process often involves allowing a hard credit inquiry and providing proof of income, employment, and identity. Upon approval, you’ll sign the loan contract, and the lender will deposit the funds into your account. You can then use them to fund the remodel.