Using a HELOC for a kitchen remodel

Kitchens are paid in stages and almost always run over. A HELOC handles both better than a lump-sum loan.

Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated October 28, 2026

Size the line

Take the contractor's bid and add 15%–20%. Cabinets, appliances and surprises behind the walls are where budgets break. Unused room on a HELOC usually costs nothing.

A typical draw schedule

Pay invoices from the line as they arrive and keep every receipt for your tax preparer.

Before you sign

• Open the line before demolition. Valuation is easier on a finished, livable home.
• Ask whether part of the balance can be locked at a fixed rate when the project ends.
• Avoid paying a contractor more than about a third up front.

What kitchens cost

Costs vary widely by region and finish level. As rough tiers:

• Refresh (paint, hardware, counters, some appliances, no layout change): often $15,000–$40,000.
• Mid-range remodel (new cabinets, counters, flooring, lighting, appliances, same layout): often $40,000–$90,000.
• Full remodel (moving walls, plumbing or gas lines, custom cabinetry): $90,000 and up, and well beyond in high-cost areas like coastal California.

Moving the sink, range or a wall is what pushes a project into the next tier: it brings in plumbers, electricians, engineering and permits.

Payments at different sizes

Timeline and money flow

Open the line before you sign the contract. Cabinet orders often need a deposit and take 6–12 weeks to arrive, so the first big draw usually comes well before demolition. A mid-range kitchen typically takes 6–12 weeks of construction once materials are on site. Plan for a temporary kitchen: a microwave, a fridge and a folding table in another room.

Common budget mistakes

• Choosing appliances last, then discovering the cabinets don't fit them.
• Underestimating electrical: modern kitchens often need new dedicated circuits and a panel upgrade.
• Skipping the contingency because the bid "looks complete."
• Ordering custom pieces before measurements are final.

Related question: Remodel or move?

Questions people ask

Does a kitchen remodel raise my home's value enough to cover the cost?

Usually not dollar for dollar. A midrange kitchen remodel tends to recover only part of its cost at sale, so remodel for how you'll live and borrow an amount you'll repay comfortably.

Can I use a HELOC to buy kitchen appliances?

Yes, a HELOC can pay for kitchen appliances. Built-in appliances count as part of the improvement for tax purposes; freestanding ones may not, which matters if you plan to deduct the interest.

Kitchen checklist

• Layout and appliance choices first.
• Two to three bids.
• 10%–20% contingency.

Also asked

Is a HELOC better than a renovation loan for a kitchen?

Usually, yes, a HELOC is the better fit for a kitchen if your equity covers the budget and your mortgage rate is low. Renovation loans fit when you need to borrow against the future value or are buying a home.

Can I deduct HELOC interest for a kitchen remodel?

Often, yes. HELOC interest on a kitchen remodel can be deductible because a remodel is a substantial improvement, as long as you itemize and stay within the debt limits.

How much does a kitchen remodel add to resale value?

A kitchen remodel usually adds less than it costs. Minor kitchen remodels typically recover more of their cost than major ones, and upscale remodels often recover less than half.

Should I live elsewhere during a kitchen remodel?

Most people don't need to. Set up a temporary kitchen with a microwave, a small refrigerator, a toaster oven and a folding table in another room, and plan simple meals for six to twelve weeks. Major remodels that also touch bathrooms, flooring throughout or the home's electrical service can make staying harder; ask your contractor how long water or power will be off.

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