A Denver Homeowner’s Guide to Funding Renovations With Equity (Cash Out Refinance, Home Equity Lines of Credit, Home Equity Loans)
- Anthony Weaver
- Nov 21, 2025
- 3 min read
Why Denver Homeowners Are Renovating Instead of Moving
Denver isn’t exactly overflowing with available homes — and the ones that are available tend to come with bidding wars, waived contingencies, and a level of stress that should really qualify for hazard pay. Because of that, many homeowners are choosing to stay put and focus on upgrading the home they already love.
And honestly? It makes sense. Denver’s older housing stock (looking at you, 1920s bungalows and 1970s tri-levels) is full of potential. Homeowners are modernizing kitchens, updating bathrooms, finishing basements, adding ADUs, and refreshing outdoor spaces to match how they live today.
That’s where home equity becomes a powerful tool — especially when renovation costs are climbing across the metro area.
Common Denver Renovation Projects (and What They Cost)
Denver isn’t a “cheap labor and cheap lumber” town anymore. Costs vary by contractor and neighborhood, but here are general trends you can safely reference:
Kitchen remodels: Frequently the most expensive project. Cabinetry, electrical updates, and appliance upgrades stack up quickly.
Bathroom updates: Ranges widely depending on tile, plumbing changes, and finishes.
Basement finishes: Popular because they add usable living space — offices, guest rooms, gyms, playrooms, you name it.
ADUs: A growing trend in Denver, though permitting and zoning can add time and cost.
Exterior improvements: Landscaping, decks, and outdoor living areas have skyrocketed in popularity (and in price) post-2020.
You don’t need exact dollar amounts — just a realistic understanding that Denver labor, materials, and permitting timelines all demand thoughtful budgeting.
When Using Home Equity Makes Sense
Home equity is simply the difference between what your home is worth and what you owe on it. If you’ve owned your home for a few years, there’s a good chance you’ve built equity through appreciation, payments, or both.
Homeowners often tap into equity for renovations because:
Renovations increase comfort and functionality
Upgrades can improve long-term value
Using equity can spread costs over time instead of draining savings
Renovations can make an aging home more efficient and modern
It’s not about borrowing recklessly — it’s about using a resource you already have strategically.
Choosing Between a HELOC and a Home Equity Loan
HELOC (Home Equity Line of Credit)
Good for:
Phased or uncertain-timeline projects
Contractors who collect in stages
Renovations where surprises are likely (which, let’s be honest… is all of them)
Benefits:
Flexibility to access funds as needed (after initial closing draw)
Helpful when costs are not fully set upfront
Home Equity Loan
Good for:
Single, fixed-cost projects
Renovations with predictable bids
Homeowners who prefer a clear, one-time amount
Benefits:
Stable budgeting
Funds delivered in a lump sum
If your kitchen is a one-shot deal, a loan might be cleaner. If you're redoing your basement and planning to tackle backyard improvements later, a HELOC may fit better.
How to Budget for a Denver Renovation (Realistically)
Budgeting is where many projects start to wobble. Build in smart guardrails:
Understand permitting timelines. Denver can move slower than expected—especially on ADUs.
Expect seasonal labor challenges. Spring and summer contractors book up fast.
Keep a 10–20% buffer. This is not pessimism; it’s survival.
Ask for line-item bids. It helps you compare apples to apples.
Watch long lead times. Some materials take months to arrive.
A renovation budget isn’t just about numbers — it’s about planning for reality.
Tips for Hiring Contractors in Denver
Finding the right contractor is half the battle. Keep these tips in mind:
Check local references. Denver has fantastic contractors — and some… questionable ones.
Compare scopes, not just prices. The cheapest bid often leaves something out.
Verify licensing and insurance. Always.
Ask about timelines. Busy season = longer waits.
Review previous Denver projects. Local experience matters.
A good contractor will be honest about costs, timelines, and what you shouldn’t do.
Where Summit Home Equity Fits In
At Summit Home Equity, I help Denver homeowners explore multiple HELOC and home equity loan options through a network of lenders — so you’re not stuck with a single bank’s product or process.
My role is simple:
Help you understand your equity
Offer educational guidance
Compare programs across multiple lenders
Support you through the financing process if you choose to move forward
You stay in control. You get clarity. And you make renovation decisions with confidence.
Final Thoughts
Denver is a fantastic place to build long-term home value, and renovating can make your home more beautiful, more functional, and more aligned with how you live today. Tapping into your home equity is one smart way to fund those upgrades — if it aligns with your goals and budget.
With the right plan, the right contractor, and the right financing approach, your renovation can be an investment you enjoy for years.
Disclosure
Summit Home Equity, Powered by Morty, NMLS 1429243. Equal Housing Lender. Educational purposes only. Not a commitment to lend.
Comments