Option 1 — HELOC (home equity line of credit)
A HELOC is the most common way homeowners pay for a renovation with equity. Your lender approves a credit line against the equity in your home, you draw on it as the contractor invoices, and you make monthly interest payments during the draw period.
HELOCs work well for homeowners who plan to stay in the home and can comfortably absorb the monthly payment. They don't work well for homeowners who can't qualify (debt-to-income, frozen home value, recent loan activity) or who plan to sell within 12 months — the closing costs and rate-lock penalties on a new HELOC make a short-hold renovation expensive.
Option 2 — Cash-out refinance
A cash-out refinance replaces your existing mortgage with a larger one, with the difference paid out in cash you can use for the renovation. This pulls equity out as a single lump sum at the prevailing 30-year mortgage rate.
Cash-out refinances work in low-rate environments. In a high-rate environment, you may be giving up a good rate on your existing mortgage to pull out equity at a much higher rate — making the renovation effectively cost more than the contractor invoice.
Option 3 — FLYP's pay-at-closing model
FLYP's structure isn't a loan against your existing equity. It's a renovation services agreement repaid from the equity created by the renovation itself. There's no monthly payment, no credit pull, no impact on your existing mortgage.
If you plan to sell within 12 months, this is almost always the cheapest path because you're paying for the renovation with equity that wouldn't have existed otherwise — the lift between as-is sale price and renovated sale price.
How to choose the right structure
Walk through these three questions in order:
- Are you selling within the next 12 months? If yes, FLYP's pay-at-closing model usually wins. No new debt, no monthly payment, work paid from sale proceeds.
- If you're staying, can you qualify for a HELOC and absorb the monthly payment? If yes, a HELOC is usually the cheapest stay-and-renovate path because you only borrow what you draw.
- If you can't qualify for a HELOC or you have a great existing mortgage rate you don't want to disturb, a cash-out refinance is rarely the answer in 2026's rate environment. Look at FLYP, contractor financing, or a personal loan instead.
Frequently asked questions
Can I use my home equity to pay for a remodel?
Yes. The three common structures are a HELOC (credit line against equity, monthly payments), a cash-out refinance (new mortgage, equity paid as lump sum), or FLYP's pay-at-closing model (renovation cost repaid from sale proceeds with no new debt). Each fits a different homeowner situation.
What's the difference between a HELOC and FLYP's pay-with-equity model?
A HELOC is debt — you take on a new monthly payment, you have to qualify, and you owe the lender regardless of whether your home appreciates. FLYP's model is not debt: there's no monthly payment, no credit pull, and repayment is tied to the home's sale rather than to the homeowner's balance sheet.
How much equity do I need for FLYP's pay-at-closing model?
Enough that the renovation cost plus your existing mortgage payoff can settle inside the home's projected sale price with comfortable margin. For most Pacific Northwest homes that means at least 20-30% equity above the existing mortgage.
Does FLYP put a lien on my home?
FLYP's renovation services agreement is documented through standard real estate paperwork that ensures payment at closing, but the renovation is not a traditional mortgage lien against your title. Existing financing remains untouched.