Riding the Wave - California homeowners are on a new wave of home financing

An inside look at the trend of California homeowners using new financing options to create their dream home


Imagine you could finally get that new bathroom, kitchen or roof that you always wanted, but have been putting off because of lack of funds. It turns out that most California homeowners are not waiting, and neither should you.

The facts back it up

If you thought the recent reno-revolution was just a figment of your imagination, think again. A recent report from the Joint Center for Housing Studies of Harvard University says that in 2018, Americans spent a record $340 billion on home remodeling, which was an increase of over $25 billion from the previous year.

There is an even bigger increase of over $50 billion expected for 2019, and California is leading the U.S. as the state with the highest increase.

The most trending renovations in California

  • Kitchen remodeling
  • Bathroom remodeling
  • Whole-house remodeling
  • Roofing
  • Siding
  • Garage Conversion
  • ADU

How exactly are all these homeowners getting the funds to improve their homes? The California renovation wave is being fed, for the most part, by a surge of new as well as previously known financing options.


Find out if you are eligible for PACE roof financing

5,428 have already checked and 78% were eligible

The paths that lead to your dream home

Home improvement loans from banks or credit unions

Although this option has been around for a while, competition among banks has recently led to better terms and lower interest rates. This has become one of the best ways to finance your project if you’re looking for an option that's quick, easy and secure.

Personal Loans

These are new, unsecured loans that you can get approved fairly quickly. Once approved, you should get the funds almost immediately. The interest rates are mostly fixed, but some offer variable rates. The return period for personal loans usually spans between 1 and 7 years. The two main things you need to know are: how much you want to borrow and, more importantly, how much you can afford to pay back each month.

Home Equity

These are home improvement loans that allow you to borrow up to a certain percentage of your home's value minus what you owe on your mortgage. This option is easy to qualify for and requires no money down. It’s best suited for borrowing larger sums with relatively low interest rates as well as for longer terms - which makes it the most popular option for a major project.

Contractor Packages

Many contractors offer financing packages to customers who may be unable to pay the full cost of a project upfront. This method is convenient as you can pay over a specified period of up to 12 years. Many contractors will also offer an interest-free option.

home designerFamily cooking in the Kitchendream home

Government supported programs

Property Assessed Clean Energy financing, or PACE as it’s known, is a government supported loan program for financing energy efficiency and improvements on private property.

PACE offers the following advantages

  • Prequalification in under 30 minutes
  • 100% financing
  • 0 money down
  • No payments for up to 1 year
  • Up to 25 years to pay back
  • Evaluation based on your home’s equity
  • Repay with your property taxes
  • No minimum FICO required

This is a great option that offers homeowners a way to finance their project even with a low credit score and with the ability to pay it back through their property taxes.

Tax Exemptions

Many home improvements qualify for federal, state and local tax exemptions.

  • Energy efficiency and generation
  • Medically required improvements
  • Renovations funded by home improvement loans
  • Capital investments
  • Capital gains
  • Local property exemptions

ROI Advantages

An important financial benefit to consider when contemplating a remodel is the significant rise in property value that you gain when improving your home. In many cases, the rise in property value is equal to or higher than the cost of the remodel.

The new experts

One of the most surprising trends in California is that homeowners are finding their ideal financing option by asking an expert – no, not their office buddies. It turns out that home improvement professionals are also home improvement financing experts who are well versed in all the different options and are in the best position to guide you through them in an unbiased way.

Don't waiver - catch the wave

If there's a part of your home you’ve been thinking about upgrading or remodeling, then it’s time you ride the remodeling wave that's taking California homes to new heights.