Complete Guide to Financing Major Home Renovation with a High‑Limit Personal Loan

A high-limit personal loan provides substantial financing without requiring collateral, a home appraisal, or an extended approval timeline. Unlike home equity loans or HELOCs, these loans are unsecured—meaning your property remains protected if the project runs over budget or timelines shift.

Key benefits:

• Speed: Funds are typically available in days versus the 30- to 60-day timeline for home equity loans or cash‑out refinances.
• No collateral: Your home remains protected from lender claims, avoiding foreclosure risk.
• Predictable payments: Most personal loans have fixed interest rates, making monthly budgeting simple, unlike HELOCs with variable interest.
• Flexibility: Funds can cover renovation expenses, such as contractor deposits, permits, and materials. The flexible capital can also be used to tackle multiple goals at once, like consolidating high‑interest credit card debt in addition to home improvement.

FYI: BHG Financial specializes in high‑limit unsecured personal loans for high-income professionals looking for substantial funding (up to $250,000¹) with streamlined underwriting and personalized service. Borrowers can prequalify with no impact to their credit score³ receive an approval decision in as little as 24 hours,² and access funds in as few as five days.²

Before you borrow, define the scope of the renovation and set a practical budget. Break planned work into must‑haves and nice‑to‑haves and then collect contractor bids to create an itemized estimate.

Common home renovation costs:

• Major kitchen remodels: $55,000 to $130,000
• Bathroom renovations: $17,000 to $25,000
• Pool additions: roughly $44,000 to $86,000
• Whole‑house remodels: $100,000 or more, depending on scope

Always include a contingency of 10% to 15% to cover hidden issues such as outdated wiring or structural surprises.

A high-limit loan with fast funding lets you lock in contractor pricing and start work without waiting on appraisals or tying up your home equity. You can explore options and calculate your potential monthly payment using BHG Financial’s loan calculators.

Lenders evaluate several factors when determining your eligibility and rate. Knowing what they look for can help you strengthen your application.

Typical indicators:

• Credit score: Good to prime credit scores (690–850) yield the best rates. Average personal loan rates range from 11% to 15% for borrowers with good credit.
• Income: Stable, verifiable income and employment history strengthen approval odds.
• Debt-to-income ratio (DTI): Lenders generally prefer a DTI below 40% for large unsecured loans, though borrowers with substantial incomes may still qualify for credit products despite elevated debt-to-income ratios. This is because higher earners help lenders feel confident that the borrower has enough income to repay the loan, even if the DTI is higher than their preferred level. BHG Financial considers income sources—such as bonuses, commissions, or business ownership—during the approval process.

Tip: Pull your free credit reports from each of the three main credit reporting agencies, Equifax, Experian, and TransUnion, to review for errors and confirm your profile is accurate before applying for a personal loan.

There are several financing solutions that can help fund your renovation. Compare available home improvement financing based on timeline, interest rate, equity, and risk tolerance:

Unsecured personal loans (a faster, fixed financing solution)

Unsecured personal loans require no collateral or home appraisal, fund quickly, and offer fixed monthly payments—key advantages when speed matters (i.e., contractors need deposits). Specifically, unsecured personal loans offer the following:

• Fast approval and funding (often in days compared to weeks).
• Fixed rates, which simplify budgeting and keep monthly payments the same.
• No impact on home equity, unlike traditional home-secured options.
• Flexible use for materials, labor, and permits. Plus, it can be used to consolidate debt and pay down high‑interest credit cards.

BHG Financial’s large unsecured personal loans are among the highest in the industry and offer a streamlined process for borrowers who prefer not to use their home as collateral.

Alternatives: Home equity loans, HELOCs, and renovation‑specific loans

Secured options may have lower interest rates, but the lender usually requires a home appraisal, and you may have to pay closing costs. It also uses your home as collateral, meaning the lender can put a lien on your home if you fail to make payments.

Options for using equity to renovate include:

• Home equity loan: Borrow against the equity in your home and receive a lump sum of money upfront. Like personal loans, the rates on these loans are fixed, but securing funds requires an appraisal, and closing can take 30 to 45 days.
• HELOC: Revolving credit secured by your home. You can draw funds as needed up to a predetermined limit, and you only pay interest on the amount you use. However, rates are variable, so your payments will fluctuate with rate changes.
• Cash‑out refinance: Replaces your mortgage with a new, larger loan to extract equity. This can be beneficial if current interest rates are lower, but you’ll need to pay closing costs and extend the life of your mortgage.

Once your personal loan is approved, treat it like a dedicated renovation fund. This ensures your project stays on budget and on schedule. For example, you might:

• Open a separate account for project spending.
• Track each payment using a digital budget or spreadsheet.
• Schedule contractor reviews at demolition, rough‑in, and pre‑finish stages to approve work by milestone and define timelines.
• Keep receipts and invoices for taxes, insurance, and resale documentation.
• Review your budget regularly as the project progresses.

If costs increase, consider phasing nonessential finishes or using savings for cosmetic elements to avoid additional borrowing. Focus on completing high-impact work first—like kitchens and bathrooms—which can boost resale value and long-term comfort.

It’s important to consider the total cost of borrowing—including interest and fees—when creating your repayment strategy.

Understanding the full picture helps ensure your loan supports your long-term financial goals rather than adding unnecessary strain:

• APR: The annualized cost of borrowing, including interest and fees. As you assess loan options, reviewing APR can give you a true comparison of how much a loan costs across lenders. Even a small decrease in APR can lead to significant savings over the life of the loan.
• Loan term: Typical personal loan terms range from 2 to 7 years, though BHG Financial offers extended terms up to 10 years^1,4. Shorter terms reduce the total interest but increase the monthly payment. Longer terms offer lower, more affordable payments and more breathing room in your budget.
• Monthly payments: Ensure your monthly payment fits within your budget and financial goals, including reserves for unexpected expenses.

To manage repayment, consider setting up automatic payments to avoid missed due dates and potential rate discounts. Make extra principal payments when possible to reduce total interest. With BHG Financial, there are no prepayment penalties, so you can pay off your loan early if your income and budget allow.

To secure a large, unsecured loan, be prepared to document your income and financial stability.

What lenders review:

• Strong credit history, ideally, 690+ for best rates.
• Stable, documented income, verified using pay stubs, W‑2s, tax returns, and/or business statements for the self‑employed.
• Manageable DTI. Under 40% preferred, though borrowers with high income may still qualify with elevated DTIs.
• Supporting documents. Gather your photo ID, bank statements, proof of additional income, and sometimes, project estimates.

Here’s what to expect when applying for a high-limit personal loan:

• Prequalify online: Most personal loan lenders offer prequalification, allowing you to view rate quotes with a soft credit inquiry, which won't impact your credit score like a hard inquiry.³ Compare the loan options and terms—including rates, fees, repayment schedules, and monthly payments—to determine which lender has the best offer.
• Submit documentation: Gather the necessary documentation lenders will need to evaluate your financial health. Submit identifying documents such as proof of income and any project estimates.
• Holistic review and approval: Loan specialists will evaluate your full financial picture, not just your credit score. While approval times vary, most lenders offer fast approvals, often within a day or two.
• Funding: Once approved, the funds will be disbursed to you within a few business days. Formulate a plan to use the money responsibly and make timely payments.

BHG Financial focuses on high‑limit unsecured lending tailored for successful people who need substantial funds without pledging home equity. Our reputation is built on a simple promise: high-limit, fixed-rate loans with concierge-level service.

Key advantages:

• High limits up to $250,000¹ for qualified borrowers, allowing you to unlock funds for major remodels or multiple projects.
• Extended repayment terms up to 10 years,^1,4 which help keep monthly payments low.
• No home appraisal or collateral required, preserving home ownership and avoiding appraisal delays.
• Holistic underwriting that goes beyond credit scores and accounts for complex incomes.
• Fast, personalized service with U.S.‑based loan specialists and efficient online processes.
• Flexibility to fund renovations and consolidate high-interest credit card balances into one lower fixed rate loan, reducing overall interest costs and simplifying your finances.

When your project can’t wait on traditional lenders, BHG Financial provides the scale, speed, and service you need to move forward with confidence. BHG’s process is streamlined and secure. Borrowers can prequalify in minutes with no impact on their credit³ and receive funding within days of approval.²

Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan estimate in just seconds.

How much can I borrow with a high‑limit personal loan for home renovations?

Personal loan amounts vary by lender, credit, and income; many lenders offer loans ranging from $1,000 to $100,000. BHG Financial provides loans up to $250,000¹ for qualified borrowers.

What credit score do I need to qualify for a high‑limit home improvement loan?

Getting a high-limit personal loan is possible—but only for well-qualified borrowers with good to excellent credit (often 690+). Reliable income and a low debt-to-income ratio are also recommended for large loans. Some lenders, including BHG Financial, may be willing to work with applicants with elevated debt-to-income ratios if their income is sufficient to manage the debt responsibly.

How do personal loans compare to home equity loans or HELOCs for financing renovations?

Personal loans are typically faster to secure and don’t require you to use your home as collateral. This makes them a strong option for borrowers who want to start renovations quickly or avoid home appraisals and closing costs. While home equity loans and HELOCs can offer lower interest rates, they involve longer approval timelines (30 to 60 days), variable rates, and the risk of losing your home if you default.

What documentation is required to apply for a personal loan for renovations?

Documentation requirements vary by lender but typically include photo IDs, proof of income (pay stubs, tax returns), bank statements, and employment verification.

How quickly can I receive funding after approval?

Speed depends on the lender, but one key advantage of a personal loan for home renovations is how quickly funds are available. With BHG, borrowers can receive an approval decision in as little as 24 hours and have funds deposited in as few as five business days after approval.² This means you can secure materials, schedule contractors, and start your project without the delays common to home equity loans or cash-out refinances.