Financing a home renovation in Maryland

Option 1: 0% promotional financing (best for $5K–$60K projects)

Available through contractor-partnered lenders. Typical terms: 0% interest for 12, 18, or 24 months on qualified balances. Minimum credit score around 680.

Best for projects you can pay off inside the promo window. If you can't, the back-rate (often 18–25%) makes this expensive.

Option 2: HELOC (best for $30K–$150K projects with home equity)

Home Equity Line of Credit — variable rate, draw funds as needed, pay only on what you use. Interest typically 2–3% above prime.

Best for projects of variable scope or phased work. The flexibility comes at the cost of variable-rate exposure.

Option 3: Cash-out refinance (best when refinancing your primary mortgage anyway)

Refinance the primary mortgage and take out cash above the existing balance. Locks in fixed rate on the entire mortgage including renovation funds.

Best when current mortgage rate is materially above market. If your mortgage is at 3% and current rates are 6%, cash-out refi typically does not pencil.

Option 4: Renovation construction loan (best for $150K+ projects)

Specific loan product for major renovation. Funds disbursed in stages as work completes. Refinances into permanent mortgage at completion.

Best for additions, whole-home renovations, or any project where the renovation will materially increase the home's value.

How to choose

Project under $25K → 0% promotional or pay cash.

Project $25K–$80K with home equity → HELOC.

Project $25K–$80K without home equity → 0% promo or unsecured term loan.

Project $80K–$150K → HELOC if you have equity; renovation construction loan if you don't.

Project $150K+ → renovation construction loan.