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Home Remodeling Financing

How to Finance Your Remodel in Prescott, AZ

HELOC, home equity loans, personal loans, and contractor financing — your options explained clearly so you can make the decision that fits your situation.

Financing Your Remodel

You Have More Options Than You Think

A kitchen remodel in Prescott typically runs $25,000–$65,000. A full master bath transformation runs $20,000–$65,000. For most homeowners, that's not a check you write out of savings — and you shouldn't have to. There are several financing routes available for home improvement projects, each with different rates, timelines, and qualification requirements.

Infinity Kitchen and Bath is not a lender, and we don't markup our prices to cover financing costs. What we can do is explain the options clearly, help you understand what each involves, and connect you with lending partners we've worked with. This page is our honest, no-marketing-fluff guide to the most common ways Prescott homeowners finance kitchen and bathroom remodels.

The best financing option depends on how much equity you have in your home, your credit profile, how quickly you need to start, and whether you prefer predictable payments or maximum flexibility. Read through the options below, then call or text us — we're happy to discuss what makes sense for your specific project and financial picture.

Quick Comparison

Option Best Rate? Equity Needed? Speed
HELOC ★ Best Yes 2–6 weeks
Home Equity Loan ★ Low Yes 2–6 weeks
Personal Loan Moderate No 1–7 days
Cash-Out Refi ★ Low Yes 4–8 weeks
FHA 203(k) ★ Low No 45–90 days
Your Options

The Five Most Common Ways to Finance a Remodel

01

HELOC (Home Equity Line of Credit)

A HELOC is a revolving line of credit secured by the equity in your home. It works like a credit card — you draw what you need, when you need it, and pay interest only on the amount drawn. Interest rates are typically variable and tied to the prime rate, but they're usually among the lowest available for home improvement financing because your home is the collateral.

For a phased remodel — kitchen now, bathrooms next year — a HELOC is often the ideal tool. You open the line once, draw for the kitchen project, pay it down, then draw again for the next phase without applying for a new loan. Most Arizona lenders will approve a HELOC in two to six weeks. You'll generally need at least 20% equity in your home and a credit score of 620 or higher, though better rates start at 700+. The primary risk is that the rate is variable — if rates rise, your payment rises. This option is generally recommended for homeowners with meaningful equity and stable income.

02

Home Equity Loan (Second Mortgage)

A home equity loan gives you a lump sum at a fixed interest rate, repaid over a set term — typically 5 to 20 years. Unlike a HELOC, the rate is locked at closing, so your monthly payment doesn't change. This predictability is valuable when you're budgeting a large, single-phase project like a complete kitchen overhaul or a master bath transformation.

The trade-off: you borrow the full amount upfront, even if the project spans several months and you don't need all the cash immediately. Rates are typically slightly higher than HELOC draw rates but are fixed. Qualification requirements are similar: meaningful home equity, stable income, and a credit score of 620+. Home equity loans are best for homeowners who know their exact project cost, want payment certainty, and prefer not to manage a revolving line of credit.

03

Personal (Unsecured) Home Improvement Loan

Personal loans for home improvement are unsecured — your home is not collateral. That means approval is faster (sometimes same-day through online lenders), and you don't need significant equity. The trade-off is higher interest rates: typically 8–25% APR depending on your credit, compared to 6–9% for equity-secured products. For a $25,000–$40,000 remodel, the rate difference can add up over a 5–10 year term.

Personal loans make the most sense when you've owned your home less than five years and haven't built significant equity, or when you want to avoid putting your home up as collateral. They're also useful for smaller projects ($15,000–$25,000) where the rate premium is less significant in absolute dollars. Shop multiple lenders — rates and terms vary widely. Credit unions serving Yavapai County often offer competitive home improvement loan products for members.

04

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new, larger mortgage and gives you the difference in cash. If you owe $200,000 on a home worth $350,000, you could refinance to a $260,000 mortgage and receive $60,000 in cash for renovations. The benefit: you pay mortgage rates on the remodel funds, which are the lowest available. The downside: you restart your mortgage term, pay closing costs (typically $3,000–$7,000), and extend the timeline significantly (4–8 weeks to close).

Cash-out refinancing made the most sense during the 2020–2021 period of historically low rates. For homeowners who locked in sub-3% rates, using a cash-out refi today at current rates may not be financially optimal — you'd be repricing your entire mortgage balance at a higher rate. This option warrants a careful conversation with your lender about the long-term cost impact before proceeding.

05

FHA 203(k) Renovation Loan

The FHA 203(k) is a government-backed mortgage that bundles home purchase and renovation costs into a single loan. It's primarily used when buying a fixer-upper property — you finance the purchase price plus the estimated renovation costs in one loan, and the contractor is paid directly from the loan escrow as work progresses. For existing homeowners, there's a limited version (Standard vs. Streamline) that can fund renovation work.

The FHA 203(k) has lower down payment requirements and is accessible to borrowers with credit scores as low as 580. The drawback is complexity and time — the program requires a HUD-approved consultant, specific contractor documentation, a lengthy underwriting process (45–90 days minimum), and work must meet FHA requirements. It's a powerful tool in the right circumstances, but for a straightforward kitchen or bathroom remodel on an already-owned Prescott home, simpler options are usually faster and less restrictive.

Through Infinity

Contractor Financing Partners

Infinity Kitchen and Bath works with third-party home improvement lending partners to offer financing directly through our company for qualified applicants. This means you can get approved and start your project without a separate trip to a bank or credit union.

Our lending partners offer fixed-rate installment loans for home improvement projects typically ranging from $5,000 to $100,000, with terms of 24 to 144 months. Rates vary based on credit profile and loan amount. Same-day decisions are available in many cases. This is not in-house financing — we connect you with the lender and you deal directly with them for the life of the loan.

Ask about financing options during your free consultation. We'll provide you with information on current programs, and you can apply with no impact to your credit score during the initial check. If you're approved, you can start your project immediately — no waiting on a bank's appraisal or underwriting timeline.

Tips Before You Borrow

  • Get your full project cost first. Apply for financing based on a real contractor quote, not an estimate. Our free consultation gives you a real number before you approach a lender.
  • Add a 10% contingency. Unexpected conditions behind walls are real. A 10% buffer in your financing amount prevents the project from stalling mid-build.
  • Shop two or three lenders. Rates vary meaningfully. Even 1.5% APR difference on a $40,000 loan over 10 years is roughly $3,000.
  • Understand the draw schedule. Contractors typically require a down payment and progress draws — not a single upfront payment. Your lender should align the draw schedule with the project milestones.
  • Check your home equity before you start. If you have 30%+ equity and good credit, a HELOC is likely your cheapest option and worth the 3–4 week wait.
Common Questions

Remodel Financing FAQ

Can I finance a kitchen remodel with no equity?
Yes — through an unsecured personal loan or contractor financing. Rates will be higher than equity-based products, but you don't need home equity to qualify. Many online lenders offer home improvement loans up to $50,000 with same-day approvals based on creditworthiness alone. If you've owned your home less than three years or bought at a high price with a small down payment, this is likely your primary non-cash option.
What credit score do I need to finance a remodel?
For equity-based products (HELOC, home equity loan), most lenders want a minimum of 620, with better rates starting at 700+. For personal loans, 640 and above is generally required for reasonable rates; below 640 you'll face higher rates or may need a co-signer. FHA 203(k) is accessible down to 580. Contractor financing programs vary — some accept 580, others require 640+. Pull your credit report at AnnualCreditReport.com before shopping lenders so you know where you stand.
Does Infinity offer payment plans directly?
Infinity Kitchen and Bath does not extend in-house credit. We work with third-party lending partners who offer home improvement financing programs, which we can facilitate during the consultation process. We do not charge a fee for connecting you with a lending partner. Our standard contract requires a down payment at signing and progress payments at defined project milestones, which aligns with how most home improvement loan draw schedules work.
Is financing a remodel a good financial decision?
It depends on the project and the option. Kitchen and master bathroom remodels in Prescott typically return 60–80% of their cost in added home value — not a full return, but meaningful. If you're financing at 7–9% on a well-planned project, and the alternative is living in a dysfunctional kitchen or bathroom for years, the decision often makes both financial and quality-of-life sense. What doesn't make sense is financing a remodel at 18–25% interest on an unsecured loan for cosmetic changes — the carrying cost outweighs the value gain. Talk to us about your specific project and we'll give you an honest read on the value math.

Start with a Real Project Quote

The first step to financing any remodel is knowing the real number. Schedule your free consultation and we'll give you a detailed, itemized quote — so you can approach a lender with a real project cost, not a guess.

Get a Free Estimate Call 928-800-1998