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How To Pay For Finishing A Basement – Various Options You Can Use

Whether your family is growing quickly or you just got word your in-laws are moving in, sometimes a basement renovation can’t wait until you have the cash saved up. Fortunately, there are many other options you can use to fund a basement renovation without having the cash on hand. Here are a few different methods you may want to utilize if your renovation can’t wait.

Personal Loan

One of the first solutions that may pop into your brain when you consider the question ‘ how do I pay for finishing a basement ‘ is a personal loan. You can grab one of these loans from your local bank or an online lender. This type of loan tends to be the most flexible as you can simply get a lump sum of money deposited into your checking account. Then, you can use the money to purchase materials or pay a remodeling company to do the basement renovations.


A HELOC or home equity line of credit is a common type of financing that homeowners look to when renovating their home. A HELOC will allow you to take out a line of credit based on the existing value of your property. This can be a great option as you can see how much your maximum line of credit is before locking yourself into a monthly payment. Then, you can utilize just the amount of credit that the project costs without having to pay interest on any extra funds, such as you would with a traditional home equity loan or personal loan.

Home Projects Loan

Many big box stores and large banks are offering what is known as a home projects loan. These loans are solely given to update an existing home. You can find these available in both loan formats and lines of credit, depending on which lender you decide to use. If you’re working with a contractor, be sure to ask them about home project loans as many will have vendors they work with regularly. With these types of credit options, you simply have either a fixed loan payment for a set term or a variable loan payment with a line of credit.

Credit Cards

While you know that you should avoid credit cards due to their high-interest rates, there are some times when they can be helpful. If you just can’t wait to do your basement renovations, then you may consider opening a new zero percent credit card. Many credit card companies are offering promotional periods of up to two years with zero percent financing for purchases. If you can pay off the credit card before the promotional period expires, then this could be a viable option for you.

Finishing your basement may be a necessity right now. Without the cash to pay for your renovations, it can seem like you don’t have many other options for how to pay for finishing a basement. The truth is that you have an abundance of options available to you. The above are just some of these options. It’s a good idea to take some time and assess which option is going to fit your financial state the best. Remember that while you may need that basement finished now, that doesn’t mean you should set yourself up for a bad financial state in the future.