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How to Finance a Home Improvement Project in Pennsylvania

Pennsylvania State is known for its rich architectural design that represents a diversity of settlement over the years. However, the homes in this peaceful state are among the oldest in the US property market. Homeowners from Pennsylvania thus turn to home improvement projects to enhance their property value.

Every year the demand for home improvement project finance is on the rise. According to a survey conducted by Houzz, a home improvement website, in collaboration with Synchrony reported that one in every three Americans pays for their home improvement projects with a credit card. This translates to 33 %, representing $141 billion spent in the year ending 2017 per this survey’s findings.

Whereas using the credit card is easy and convenient, it may not be the only viable option when it comes to financing a home improvement project. We’ve compiled a list of alternative financing sources that you may consider when looking to finance your home improvement project in Pennsylvania.

Best ways to finance home improvements

Many homeowners may face a dilemma when it comes to finding the best way to finance their home improvement project. The reason for this may lack proper financial knowledge or poor decision making. Without further ado, here are the two main ways to finance a home improvement project.

a.) Cash 

This could be your savings. It is convenient, and interest rate free. Best suited for minor repairs or fixes, which may not exceed $2000. However, it may take a long time to accumulate adequate cash for significant home improvement projects.

b.) Loans

There are two main types of loans that can be used to finance a home improvement project. Each option is further subdivided into two different loan types.

  • Unsecured loans
  • Secured loans.

Unsecured Loans

There are two types of unsecured loans that you can use to finance a home improvement project as listed below:

  • Credit Cards:

    It is the preferred choice of financing a home improvement project by most US citizens. It is straightforward to use, convenient, and only depends on your credit score and the amount you wish to borrow. However, on the flip side, it comes with high-interest rates, making it an expensive option in the long run. This type of loan has variable interest rates.

  • Personal loans:

    This type of loan, like the credit card, is dependent on your creditworthiness and comes with fixed interest rates payable monthly. The loan repayment period is usually between two and five years.

Secured Loans

Secured loans are the alternative means of financing a home improvement project. Unlike the unsecured loans, they have low-interest rates with an extended repayment period of up to 30 years, depending on the loan obtained. Two closely related home equity loans exist:

  • Traditional Home equity loan:

    This loan is paid in whole to the homeowner. The interest rates are equal and repayable monthly over the loan period, which may last up to 30 years.

  • Home Equity Line of Credit:

    This type of equity loan works similarly to a credit card. It comes with a draw period as high as ten years, and a repayment period that may last 30 years. However, it is advisable not to take an equity loan with a long repayment period to improve house aspects such as flooring or roofing that may be modified a couple of times before the repayment is completed.

It is essential to note that secured loans have low-interest rates and offer you large sums repayable after a long period. However, defaulting on these loans may lead to foreclosure of your home.

Pennsylvania Legal Requirements

The State of Pennsylvania requires that licensed contractors be registered with the Pennsylvania Bureau of Consumer Protection and observe all the Home Improvement Consumer Protection Act (HICPA). According to the HICPA Act, a contractor with a $5000 annual turnover must register with the Bureau. Additionally, contractors engaged in home improvement projects worth more than $500 for a consumer in his property or the surrounding land must register with the Bureau and comply with all requirements of this Act.

The Home equity loan used for significant improvements that adds value to your home attracts tax benefits from the IRS. However, you can only qualify for a tax deduction of up to $375,000, provided that your first and second Home Equity Loans do not exceed $750,000.


In summary, homeowners have several options to finance their home improvement projects, as discussed herein. However, there is a need for smart financing. As a general rule, only take a loan, whether secured or unsecured, for home improvement projects that appreciate. Home improvement projects that depreciate like home appliances should be financed in cash. As a homeowner, you must understand that specific loan options like credit cards carry high-interest rates. Therefore, should only be used in emergency cases that require quick fixes.

If you are in DelawarePennsylvaniaWest Virginia, and Maryland, and looking to undertake a home improvement project, whether you are interested in energy-efficient windows or roofing solutions as well as door and siding installation, we’ll help you the funding options. Having worked for over 25 years, we have gathered a wealth of experience in this field. Contact us today to join a network of happy customers satisfied with our excellent workmanship and service delivery.















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