SoFi

Consider the standard unsung driveway at most U.S. homes. Could it pave the way to something better? While the primary function of driveways is usually parking, they can also offer recreation space for children and pets, increase property values, and enhance curb appeal.

Both building and maintaining a driveway are costs of owning a home that could benefit from financial planning and weighing options for materials, location, and design. Here’s a breakdown of key driveway ideas to help make your home improvement dream a reality.

1. Choosing a New Surface

Figuring out what material to use is a logical starting point when approaching new driveway ideas.

The chosen surface will affect the project’s cost in terms of the material itself, labor to install it, and how it will be maintained for years to come. The local climate is another factor to consider, as it plays into the durability and drainage of certain surface materials.

Let’s take a closer look at the pros, cons, and considerations for some popular driveway surfaces, including what to budget for.

Asphalt

Asphalt is a leading material used for roads and driveways alike for several reasons. The smooth finish to asphalt can present a polished look that is also easy to clean. At the same time, it offers good traction for vehicles, which is a big plus for sloped driveways in particular.

Asphalt comes with some downsides, too. The leading concerns stem from frequency and cost of long-term maintenance, as resurfacing is recommended every two years. Runoff is another potential issue, but adding drainage and landscaping to capture water can help remedy the environmental impact.

The local climate can play a role in picking a material, too. Generally, asphalt is better than other surfaces in colder climates. Specifically, it is advantageous for snow plowing and handling freezing temperatures and ice. Think of it as a way of winterizing your property.

On average, asphalt costs from $7 to $13 per square foot, and much of the price can be attributed to the labor and heavy machinery required.

Concrete

Given its prevalent use in public sidewalks, it may come as no surprise that concrete is also a popular material for driveways.

On the positive side, concrete driveways can be installed quickly, offer good traction, and may last for several decades with proper maintenance, such as annual resealing to prevent cracks. Concrete is also well suited for warmer climates because it doesn’t hold heat as long as asphalt.

Conversely, concrete is not the cheapest material and can be prone to runoff, which is a concern for homeowners in regions with heavy precipitation.

Concrete driveways may range from $4 to $15 per square foot, with an average cost of $6 per square foot, according to HomeAdvisor. Factors that may increase costs include removing an existing driveway or adding reinforcement, which may be necessary if heavy vehicles like RVs are present.

Concrete requires less machinery and is safer to work with than asphalt, so construction-savvy homeowners with smaller driveways may opt to install the component concrete slabs themselves to see further savings.

If concrete doesn’t sound like the ideal aesthetic, there are options to customize a driveway to your liking. Spruce-ups include using stained or tinted concrete, adding a decorative stone border, and integrating a patchwork of unpaved greenery, which can also help with drainage.

Recommended: Home Renovation and Remodeling Cost Calculator

Gravel

Gravel may vary in composition and rock type, but generally speaking, it can be thought of as a mixture of loose stone. It is a common material used in pathways and playgrounds but can be applied to driveways as well.

Of all the surface options, gravel is typically the cheapest and most DIY-friendly. The cost varies by the need to clear land and type of stone, but the expected price is roughly $1 to $2 per square foot without serious excavation.

Though gravel driveways can require some topping up and reconfiguration as stones move around, it is incredibly durable and does not need costly maintenance.

Gravel may be well suited for a rustic aesthetic in rural areas, but it may be less appropriate or feasible in more urban areas and housing developments. Furthermore, gravel may not lend itself to shoveling and plowing snow from the driveway without clearing away stone.

To determine the total gravel needed, a general rule of thumb is to have at least 4 inches of coverage, though more may be necessary for extra drainage.

Stone and Brick

Stone and brick have been used for roads and as building materials for centuries.

Using stone and brick for a driveway can create a historic and refined appearance and raise the property value. Also, the ability to integrate patterns, design elements, and colors into the stone or brickwork can complement the design of a home more than other materials might.

Beyond the visual appeal, the materials can endure for decades, and maintenance can be done one stone or brick at a time instead of resealing or paving the entire surface.

The primary drawback of stone or brick driveways is cost of materials and installation. Depending on the quality of stone or brick, expect to pay between $10 and $30 per square foot. Higher-end stones can fetch a significantly heftier price tag.

Permeable Pavement

Recent advances in engineering have made permeable paved surfaces an affordable reality for parking lots, roadways, and driveways.

Permeable pavement can come in several forms, including porous asphalt and pervious concrete. The pores drain water to the stone bed below, helping the water filtrate toxins naturally instead of running off to pollute waterways via storm drains.

The majority of benefits of asphalt and concrete apply, but permeable pavement can be slightly more expensive to install and needs to be vacuumed with professional-grade equipment every one or two years to remove debris and sediment from the pores. Often, permeable-pavement companies offer vacuuming and inspection services after installation.

In addition to the environmental benefits, homeowners may be eligible for tax rebates and other financial incentives from their local government for pursuing the greener option.

For instance, Palo Alto, California, has a rebate of $1.50 per square foot of permeable pavement installed.

Recommended: 7 Important Factors That Affect Property Value

2. Landscaping

Whether updating a driveway or building a new one, driveway ideas extend beyond the surface itself. Landscaping can be tied in with the project to beautify the space and reduce runoff.

Depending on how ambitious the project is, you may be able to handle part or all of the landscaping yourself. While this is an opportunity to have fun and be creative, maintenance is another important consideration.

For example, choosing perennial plants that regenerate each year and shrubs that will not quickly outgrow the space could add color and greenery without putting hedge trimming and spring planting on your to-do list.

Planting perennial species that develop deep root systems, such as black-eyed Susan and bee balm, can increase the garden’s ability to hold water and prevent flooding. This could also mitigate one of the most common home repair costs — foundation repair. In some cases, those repairs could cost up to $40,000.

3. Adding Lighting

Changing up the lighting in and around the driveway area can create a more stylized setting, as well as enhance safety and functionality for entering and leaving the home.

When choosing the type of lighting, you may want to consider the upfront cost of the unit and operational expenses of electricity and replacement. LED lights are a sustainable and cost-effective driveway idea for the long run, thanks to greater efficiency and a longer lifespan than incandescent and CFL bulbs.

Installing a combination of accent and overhead lighting allows the option to adjust the setting with the flip of a switch. Syncing the lighting with either motion sensors or timers can lower the electric bill and reduce light pollution to keep the neighbors happy.

4. Building a Gate

Topping off a driveway improvement with a gate is another way to highlight a home’s curb appeal and improve safety.

Gates may provide peace of mind by giving control of who enters the home. They can also help ensure that children and pets have a safe area to play in without worry of them venturing into the street.

Convenience and safety can also be added by prominently featuring the house number on the gate or pillar structure, which may help visitors and emergency services find the home more easily.

Spatial considerations, such as distance to the road, driveway width, and landscaping, will influence whether a sliding or swinging gate or vertical lift gate makes the most sense.

5. Maintaining the Driveway

A driveway is an investment, and taking proper care can help retain its value and reduce maintenance costs over time.

Depending on the type of driveway, here are some general measures to stay on top of upkeep:

•   Seal the driveway as recommended to prevent cracks.

•   Remove weeds from cracks in the surface.

•   Clean and fill cracks.

•   Fill in pothole depressions caused by heavy vehicles.

For colder climates, taking care of ice is important for personal safety and driveway maintenance alike. Removing snow promptly and spreading sand, salt, or a de-icing agent helps with traction and prevents ice from forming in driveway cracks.

Checking Local Permitting and Zoning

Local governments and homeowner associations (HOA) may have zoning and permitting guidelines that dictate where a driveway can be placed and what it can look like.

A zoning requirement could specify that a driveway must be at least 5 feet from the property line or that an expansion of an existing driveway requires zoning board approval.

HOA rules can be stricter and more specific. They might govern the type of surface material, adjacent landscaping, and ability to install a gate.

Checking that your desired improvements comply with such regulation could save time, money, and frustration.

Paying for Driveway Improvements

Deciding how to pay for driveway improvements is another important step. Like most home repairs, fixing the driveway could become more expensive as the problem gets worse.

Unexpected repair costs can do a number on a monthly budget. In fact, only 4 in 10 Americans would pay a $1,000 surprise expense from their savings, borrowing that money instead.

If you fall into this category, you still have options. Instead of depleting your savings account or pushing it off for future credit card payments, personal loans could spare you the high interest rates.

For revamping or building a driveway, a home improvement loan is another option to consider.

SoFi offers home improvement loans that don’t require home equity as collateral. Additionally, fixed-rate payments can help keep you on track and align with your budget.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Saving up enough money for a down payment on your first home is a major life goal. But sometimes it feels like the goalpost is always moving. How much do you need to save for a down payment, exactly? Friends say they put down 10%. Your parents talk about a 20% benchmark. And some programs allow borrowers to put down just 3%.

Bottom line: There are traditional numbers that many people stand by, but these days, the old guidelines don’t always apply. And that’s a good thing, given that at the end of 2023, the median home listing price in the U.S. was $384,683, according to Zillow. Twenty percent of that —almost $70,000 — is a substantial chunk of change for most people.

This article will demystify how different down payment amounts can impact your mortgage choices and help you better identify the home mortgage loan that bests fit your financial scenario to put you on the road to owning your own home.

Why Does a 20% Down Payment Seem like the Magic Number?

If you’re thinking about buying your first home, you’ve likely heard that a 20% down payment has traditionally been the standard. Generally speaking, putting down this much on your new home helps lenders view you as a less risky borrower, which may ultimately help you get a better deal on your loan terms.

In addition, having this significant chunk of equity in the home allows for value fluctuations and the borrower is less likely to find themselves underwater or upside down on their mortgage in a declining market.

Plus, with a 20% down payment, you won’t have to buy private mortgage insurance (PMI). PMI protects the lender in case of loan default but it can cost anywhere from 0.140% to 2.33% of your total loan amount annually depending upon many factors. (Don’t confuse PMI with MIP, which is the Mortgage Insurance Premium required by the Federal Housing Administration on its FHA loans.)

And then there’s the most obvious perk of a 20% down payment: Putting more money down up front means that you’ll owe less, which normally equates to lower monthly mortgage payments and less interest charged over the life of the loan.

But let’s face it: Even if you’re making a decent — heck, a pretty awesome — salary, saving up 20% of the total cost of a home can be difficult, especially if you’re paying rent, juggling student loans, and trying to reach other long-term goals, including saving for retirement. That’s likely why many buyers put down less than 20%. In the 2023 National Association of Realtors® Profile of Home Buyers and Sellers report, first-time homebuyers financed an average of 92% of their home’s cost and repeat buyers financed 81% of the purchase price.

There may be some very valid reasons why it would be beneficial for you to put down less than 20% on your dream house. Again, it will depend on your exact financial circumstances and long term goals, but it could be worth considering the following:


💡 Quick Tip: SoFi’s Lock and Look ⁺ feature allows you to lock in a low mortgage financing rate for 90 days while you search for the perfect place to call home.

Preserving Your Nest Egg

Putting 20% down on a home might force you to rely heavily on funds you’ve worked hard to save, and liquidating these funds, even for an investment like a home, may not always be in your best interest.

Allocating a big chunk of change to a house before you’ve covered your other important life expenses — such as an emergency fund equal to at least three months of expenses — may not be the most prudent option for you in the long run. (You’ll also want to make sure you keep in reserve funds for closing costs and any moving expenses and furnishing expenses associated with purchasing a home.)

And then there’s retirement savings: You may be able to borrow money to pay for school, to buy a new car, and to buy a home, but you definitely can’t borrow money to pay for your retirement. So you may want to consider alternatives before you dip too deeply into your retirement savings.

While you can withdraw qualified funds up to $10,000 from a traditional or Roth IRA without penalty to buy your first home, there are still taxes to consider. With a traditional IRA, you have to pay taxes on the amount you withdraw, but with a Roth IRA, no taxes will be due if you’ve had the account for at least five years. Taking the $10,000 could help you in the long run, especially if you expect income boosts as you make strides in your career.

If you are considering putting other financial goals on hold in order to buy your home, it might make sense to take a step back and look at your overall financial profile. This could help you see what makes the most sense for your circumstances. Our in-depth first-time homebuyer guide extensively covers such topics.

Protecting Your Other Big Financial Goals

By putting less money down on your home, you’ll likely be able to make more headway on other short-term financial goals, such as paying off student loans and credit cards, as well as your long-term goals, such as saving up for retirement.

You may also be able to invest more, which could help you grow your hard-earned cash. If you have other important financial goals that need achieving, you may want to consider waiting until you’ve reached them before buying a home, or you could choose to put less money down so that you don’t have to abandon your other financial objectives.

Exploring Your Down Payment Options

If you’re considering putting down less than 20%, it is a good idea to try plugging different down payment amounts into a home affordability calculator to see how they affect your monthly payments. Also take a look at your monthly income vs. your ongoing monthly expenses — which could include car payments, insurance premiums, credit card bills, and any other debts.

Mortgage lenders, whether banks or mortgage brokers, are required to figure out a borrower’s ability to repay the loan before making it. So you can also get prequalified for a home loan in order to see what type of interest rate and borrowing power a lender might feel you qualify for based on your income, expenses, and estimated down payment.


💡 Quick Tip: Don’t have a lot of cash on hand for a down payment? The minimum down payment for an FHA mortgage loan is as low as 3.5%.1

The Right Down Payment Percentage is Personal

Everyone’s financial picture looks different, so if you find yourself in a situation where you can’t afford to put down a full 20% but still want to purchase a home, there are numerous options. If you’ve done your homework and gotten prequalified, you know how your down payment might affect your loan terms. You can also look into whether or not you are eligible for a VA loan, backed by the U.S. Department of Veterans Affairs, which allows for 100% financing? Or perhaps you qualify as a first-time homebuyer, which may allow for as little as 3% down? (You might be surprised to learn that if you haven’t owned a primary residence in the last three years, you are considered a first-time homebuyer.)

An FHA loan could also be an option. Borrowers with FICO® credit scores of 580 or more may qualify for a down payment of 3.5%. You will have to pay the FHA mortgage insurance premium (MIP), mentioned above, but it could be worth it, especially if putting down a smaller down payment allows you to get in the housing market instead of paying high rent, or own in a place where home prices seem to be on an upward trajectory.

The Takeaway

When searching for the perfect home, you’ll want to shop around in order to find your best fit — there’s no one size fits all. The same is true of your down payment percentage. But rest assured, although a 20% down payment might be tradition, it’s hardly a loan requirement, and there are many home loans that will allow you to put down less than 20% — and many financial circumstances in which a lower down payment amount is the right choice.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL0124026

If you’re preparing to join the ranks of homeowners, whether you are just starting to daydream about it or are actively scanning listings, it’s important to understand the costs involved. You’ll probably hear a lot of talk about mortgage rates as you enter this realm, and, while your home loan will certainly be a critical expense, it’s just one of the things to budget for.

Here, you’ll learn about all the expenses involved in owning a home, from that mortgage to home maintenance; from homeowners insurance to utilities. Equipped with this intel, you’ll be better prepared for the true cost of having your very own place and making sure you’re ready for your big purchase.

Costs of Purchasing Your Home

When you think of buying a home, you may well be focused on accumulating that bundle of cash known as the down payment. But there are more costs associated with buying your home than simply that expense.

The down payment is probably the largest initial cost you’ll take on, but don’t be blindsided by the additional fees you’ll need to pay. You can find out how much home you can afford with a home affordability calculator or keep reading to learn about the typical costs associated with owning a home.


💡 Quick Tip: Don’t overpay for your mortgage. Get a competitive rate by shopping around for a home loan.

Down Payment

Historically, the magic number for a down payment has been 20% of the home’s value. If you’re thinking that’s impossibly steep, take a deep breath. The median down payment on a conventional loan recently clocked in at about 6% among first-time homebuyers. And conventional home loans can be had with as little as 3% to 5% down.

So 20% may no longer be standard, but, if you put down anything less, you may pay private mortgage insurance (PMI) on top of your monthly mortgage.

PMI can make it possible for many buyers to put down a more affordable down payment while protecting the bank’s investment if you were to default on the loan. The downside of PMI is the additional payments you’ll need to make each month until you are eligible to remove this insurance from your mortgage payment. Typically, PMI is canceled when your principal balance reaches 78% of the home’s original value (meaning the purchase price).

As you think about how much of a down payment to make, it could be tempting to make as large a payment as possible to help minimize your monthly mortgage payment and avoid PMI. Keep in mind that doing so can leave you little wiggle room financially for the additional costs associated with your home down the line. If you make a large down payment, it can help to have money reserved as an emergency fund and for unexpected home repairs.

Closing Costs

Your down payment won’t be the only thing due on closing day. In addition to the down payment, you’ll be expected to cover closing costs. Closing costs typically cover things like:

•  Title insurance

•  Title search fees

•  Appraisal costs

•  Escrow or attorney fees

•  Surveying

•  Lender fees

Closing costs can vary based on factors such as the purchase price of your property, but you can expect to pay an estimated amount somewhere between 3% to 6% of your loan amount in closing costs.

Home Ownership Costs

You may think that being a homeowner involves affording the down payment on a house and the monthly payment of principal and interest on your mortgage, but there’s more to be prepared for. Here are some extra costs you may want to save and budget for.

Mortgage Payment

Your monthly mortgage payment could be just the funds paid to the bank, a combination of principal and interest, or it could be a few different payments rolled into one single bill. Your mortgage payment might include some or all of the following:

•  Principal: This is the repayment of the initial loan you took out to purchase the home. Paying the principal is paying off the remaining balance of what you owe on your home to your lender.

•  Interest: Depending on the terms of your mortgage, the interest could be fixed or variable. You are paying this every month for the privilege of borrowing the funds to buy your home. It’s one of the ways banks make money.

•  Property Tax: If your mortgage has an escrow account, a portion of your mortgage payment may go towards your annual property tax bill. Property tax is paid to your local government and usually goes towards funding public schools, public works, libraries, parks, city government, and maintenance. The amount of property tax you’ll pay is calculated as a percentage of the value of your property. The percentage varies by location. Some homeowners may pay this separately, directly to their town.

•  Insurance: If you’re paying into escrow, you’ll probably pay a portion of your homeowners insurance policy each month instead of a lump sum once a year. You’ll work with your insurance provider to determine the coverage of the policy, but standard home insurance typically provides protection against certain unexpected events, like damage caused by a fire or a break-in. Policy specifics will vary.

•  PMI: If your initial down payment was under 20%, you may be responsible for PMI, as described above. This payment can be anywhere from 0.2% to 2% of your loan amount per year.

💡 Quick Tip: One answer to rising house prices is a jumbo loan. Apply for a jumbo loan online with SoFi, and you could finance up to $2.5 million with as little as 10% down. Get preapproved and you’ll be prepared to compete in a hot market.

Utilities

Unlike a rental where you may only pay for gas and electricity, when you own a home, you’re on the hook for all utilities, which can include water, gas, heat, electricity, sewer, and trash/recycling. Utilities will vary based on your location, as well as the size of your home, but the national monthly averages are as follows:

•  Electricity: $117.46

•  Water: $45.44

•  Broadband internet: $59.99

•  Gas: $61.69

•  Waste services: $66.20

•  Phone: $114.

These figures vary based on area and activity, but taking steps to save energy on heating and cooling could lower your monthly bills. Depending on where you live, utility providers might offer an option to set a fixed rate for the year, so you’ll pay the same amount each month instead of paying a bill that varies with the change in the seasons (say, soaring in the summer as people switch on the air conditioning).

Improvements & Repairs

Your dream home might just be a few renovation projects away, but remember to factor the cost of those updates into the true cost of owning your home. Not only that, but strategic improvements can greatly increase the resale value of your home.

The cost of home improvement projects vary widely based on what you’re working on. A recent survey by Houzz found that the median cost for a home renovation was $22,000 in 2022.

Maintenance

Home maintenance entails the general upkeep of things like your property’s systems, structures, and appliances.

Upkeep costs can be more predictable than some repairs. One rule of thumb says to budget 1% to 4% of your home’s value for annual maintenance. A variety of these projects might be DIY-ed, but you’ll want to budget in the cost of tools and supplies.

You can’t predict the exact lifespan of your appliances and home systems, but a general idea can make it easier to anticipate future costs. When you buy your home, take note of how old the appliances and other systems are, so you can have a better idea of when you’ll need to replace them.

For example, a refrigerator could last between 10 and 18 years, but you might benefit in terms of energy efficiency by replacing an old power-guzzling appliance sooner. Consider the outside structure of the house as well, such as the roof, siding, and gutters. It may be helpful to get a quote from a contractor for any larger repairs or renovations you plan to complete so you can factor that into the costs of owning a home.

Recommended: The Cost of Buying a Fixer-Upper

The Takeaway

The time and money required to own and maintain a home can be considerable. There are the monthly costs, which can involve mortgage, insurance, property taxes, and utilities, as well as annual maintenance. Plus, sooner or later, you are likely going to have to replace an appliance, repair a roof, or otherwise update your home.

Understanding and estimating the costs of owning a home can be an important step before joining the ranks of homebuyers. It can also impact what size and sort of mortgage you get and from which lender. That’s an important area to wrangle your costs as you think about your overall budget.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL1023253

Despite what the name might suggest, a homestead exemption isn’t some kind of dusty old prospector or settler law. Many states have these statutes on the books; they are designed to protect a primary residence from creditors in a bankruptcy filing.

If the Smiths file a Chapter 7 bankruptcy, how much equity they can protect with an exemption will be one of the factors determining whether they will be able to keep their home.

In a Chapter 13 bankruptcy, they won’t lose their home, but they will have to pay creditors an amount equal to the value of the property they can’t protect with an exemption, or their disposable income, whichever is more.
Before declaring bankruptcy, it’s best to consider the alternatives.

This guide will provide an overview of homestead exemptions as applied to bankruptcy, state by state.

What Is Homestead Exemption?

If you’re wondering what a homestead exemption is, it’s a provision in a state’s law that can legally protect a home from creditors in situations such as declaring bankruptcy or enduring the death of a homeowner’s spouse.

In these ways, a homestead exemption can both literally provide you with shelter (a roof over your head) and protection financially, possibly avoiding a situation in which you must lose your residence. That said, this exemption will not prevent foreclosure if a homeowner defaults on their mortgage.

You may be curious about what is the Homestead Act and if it’s the same thing as homestead exemption. They are two different things: The Homestead Act was an 1862 law that granted 160 acres of Western land in the U.S. to anyone who promised to farm it. It was designed to settle the West and drive economic growth.

What States Have a Homestead Exemption?

It’s easier to name the states that don’t have a homestead exemption than those that do since the vast majority of them offer this protection.

Currently, the only states without specific homestead exemptions are New Jersey and Pennsylvania. If you live in one of those states, then you have an idea of where you stand on potential shields with homestead exemptions — although other state and even federal homestead exemption provisions may potentially assist anyone, in any state.

If you live in any of the other 48 states, know that there are many more asterisks to hunt for, depending on your situation and financial plans.

Even if you live in a state that offers homestead exemptions, you may want to find ways to save money on your mortgage. These strategies, such as refinancing a home loan or requesting a new tax assessment, can help you weather financial storms by reducing your monthly payments.

Recommended: Understanding Bankruptcy: Is It Ever the Right Option?

Which State Has the Best Homestead Exemption?

It is true that some states are more favorable than others for seeking the exemption. But no state is literally “best” to homestead in. Many individual factors are worth weighing in your assessment of what — and where — is advantageous.

Before reading the following, an asterisk: Because homestead exemptions are protections for primary residences, you cannot claim an exemption on an investment property or vacation home.

Some states allow bankruptcy filers to use federal bankruptcy exemptions instead of the state exemptions.

The federal homestead exemption amount is calculated every three years. For the period from April 1, 2022, to March 31, 2025, it allows you to protect up to $27,900 of the equity in your home. In cases where you and your spouse file taxes separately, do not live together, maintain separate homesteads, or (according to at least one court) do not have a direct financial connection with each other, each spouse can claim a separate homestead, up to the amount allowed by an individual.

Also, most states allow a “wildcard” exemption, which allows you to protect any kind of property from bankruptcy proceedings. This can be of particular help if one or more of a debtor’s other exemptions falls short of protecting their equity. A wildcard exemption amount can be divided among multiple items.

As of April 1, 2022, the federal wildcard exemption is $1,475, plus up to $13,950 of any part of the federal homestead exemption that has not been used.

Since there’s so much variability in local, regional, and state codes and how they define the homestead exemption, it’s wise to consult local authorities or websites detailing the law’s specifics when you are in a situation that may trigger these laws.

Here’s a rundown of what you might call homestead states that offer some of the strongest protections via exemptions. “Strongest” here is being interpreted as either affordances for high exemptions or greater flexibilities in the law — but other factors, such as cost of living, should also be a consideration:

1. California. California has two systems for the homestead exemption. Under one system, homeowners can exempt up to $600,000 of equity in a house. In the other system, they can exempt up to $31,950 of home equity. Determining what you can access requires research and/or legal counsel.

2. Florida. Under the Florida exemption system “homeowners may exempt an unlimited amount of value in their home or other property covered by the homestead exemption. However, the property cannot be larger than half an acre in a municipality or 160 acres elsewhere.” The exemption can also be claimed by the spouse or children of a deceased owner.

3. Iowa. An unlimited value in one home or a one-unit apartment can be sought in protection. The property must be in a city or town and is limited to one-half acre or 40 acres elsewhere.

4. Kansas. An unlimited amount of value can be sought in protection, but homeowners are limited in the amount of land they can protect. Homeowners can protect up to 1 acre of property if they live within city limits or up to 160 acres of farmland.

5. Minnesota. You can protect up to $450,000 of equity in your home and land or up to $1,125,000 of equity if your land (up to 160 acres) is used for agricultural purposes.

6. Oklahoma. Residents can exempt the entire value of their homes, but the homestead can’t be larger than a half acre if you live in a city, town, or village or up to 160 acres if you live elsewhere. (If you use more than 25% of the total square footage of your property for business, your exemption is limited to $5,000.)

7. Rhode Island. The exemption applies for up to $500,000 of equity.

8. South Dakota. If your home is less than 1 acre in a town or 160 acres in any other type of area, all of your equity is exempt.

9. Texas. For residences on 10 acres or less in a city, town, or village or 100 acres or less in the country, Texas offers an unlimited homestead exemption.

10. Washington. This state’s generous homestead exemption varies depending on the county the homeowner lives in, from $172,900 in Ferry to $729,600 in King County, where Seattle is.

Recommended: Getting Approved for a Personal Loan After Bankruptcy

Homestead Exemptions in Other States

Here’s all the rest of the states and what homestead exemptions they offer:

1. Alabama. The Alabama Department of Revenue indicates that at the state level, homestead exemptions have a maximum value of $16,450. It only applies on land area that is not more than 160 acres.

2. Alaska. Homeowners may exempt up to $72,900 of their home or other property covered by the homestead exemption.

3. Arizona. Homeowners can exempt up to $250,000 for a house and the land it’s on, a cooperative or condominium, a mobile home and the land it’s on, provided the person lives in the dwelling.

4. Arkansas. You can seek an unlimited amount of equity in 80 rural acres or one-quarter of an urban acre.

5. Colorado. Up to $75,000 of equity in a home or other property, such as a mobile home, is protected. The amount increases to $105,000 if the homeowner, spouse, or dependent is disabled or 60 or older.

6. Connecticut. The state of Connecticut protects up to $75,000 of equity in real property, a co-op, or a manufactured home occupied at the time of filing bankruptcy. The exemption rises to $125,000 if a creditor is collecting for hospital costs.

7. Delaware. Exempts up to $125,000 in real property or a manufactured home that was used as a principal residence.

8. Georgia. Homeowners may exempt up to $21,500 of their home or other property covered by the exemption (the amount increases to $43,000 for married filers). They can also apply $10,000 of any unused portion of the exemption to another property they own — a “wildcard” exemption.

9. Hawaii. If you’re the head of a household or over 65, you can exempt up to $30,000 of equity. If you’re not the head of the family, you may protect up to $20,000 of equity in your home.

10. Idaho. A filer can protect up to $175,000 in equity in a home or mobile home.

11. Illinois. Protects up to $15,000 in equity in your home, which includes a farm, mobile home, lot with buildings, condominium, or cooperative.

Recommended: How Often Can You Refinance Your Home?

12. Indiana. A debtor can exempt up to $19,300 in real estate or personal property used as a residence. In addition, if you are married and filing jointly, that figure rises to $38,900.

13. Kentucky. Up to $5,000 of equity can be claimed.

14. Louisiana. Homeowners are allowed to exempt up to $35,000 of home equity, and more if their debts were due to what’s considered a catastrophic or terminal illness or injury.

15. Maine. Up to $80,000 of equity in property used as a residence can be claimed. The amount can be increased to $160,000 in equity if you have a minor dependent residing with you, or if you are 60 or older or disabled.

16. Maryland. Exempts residential property value up to $25,150 (husband and wife may not double).

17. Massachusetts. The state automatically protects up to $125,000 in home equity, and up to $500,000 for those who file and receive the increased exemption (this amount also applies to the elderly or disabled).

18. Michigan. Each homeowner and their dependents can exempt up to $40,475 in a property covered by the homestead exemption. If the homeowner is 65 or older or disabled, the exemption amount increases to $60,725.

19. Mississippi. An exemption of up to $75,000 of equity in the real estate you live in can be claimed, as long as the property is less than 160 acres.

20. Missouri. You can exempt up to $15,000 of equity in the real estate in which you live or will live, and spouses who file a joint bankruptcy can double the exemption.

21. Montana. Up to $350,000 in equity can be protected as applied to up to 320 farm acres, a quarter of a city acre, or one residential acre outside a municipality.

22. Nebraska. Up to $60,000 can be protected on a home, provided the owner is either a head of household, married, or over age 65, and the property does not exceed 160 acres.

Recommended: How Much Does It Cost to Refinance a Mortgage?

23. Nevada. Up to $605,000 in equity in a home can be claimed.

24. New Hampshire. You can protect up to $120,000 in equity.

25. New Mexico. Up to $60,000 of equity in your home can be protected; that increases to $120,000 being available to spouses who co-own property.

26. New York. The homestead exemption amount varies greatly depending on the county. If the property is in the counties of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester, or Putnam, the exemption is $179,950. If the property is in the counties of Dutchess, Albany, Columbia, Orange, Saratoga, or Ulster, the exemption amount is $149,975. For any other county in the state, the exemption amount is $89,975.

27. North Carolina. Homeowners may exempt up to $35,000 of their home or other personal property. Homeowners who are 65 or older whose spouse is deceased may exempt up to $60,000, provided the property was previously owned by the debtor as a tenant by the entirety or as a joint tenant with rights of survivorship.

28. North Dakota. Homeowners can protect up to $100,000 of equity in their home when declaring bankruptcy.

29. Ohio. The state allows for the protection of up to $145,425 of equity as part of the homestead exemption. Spouses who file a joint bankruptcy may double that amount.

30. Oregon. A property owner may be exempt up to $40,000. Married couples, however, may be exempt up to $50,000.

31. South Carolina. The state’s law protects up to $63,250 in equity in a home or real estate used as a residence, with spouses who file a joint bankruptcy being able to double the exemption.

32. Tennessee. Homeowners can exempt up to $5,000 of equity — and that amount goes up to $7,500 for joint owners and $25,000 if there’s at least one minor child who is a dependent. People 62 and older can exempt up to $12,500 of equity in their home—$20,000 if married, and $25,000 if the spouse is also 62 or older.

33. Utah. Homeowners may exempt up to $43,300 to protect their home, provided it is their primary personal residence.

34. Vermont. An exemption up to $125,000 of the equity in a home, condo, or mobile home can be claimed; it can’t be doubled, however, in cases of joint bankruptcy filing.

35. Virginia. This state allows for protection of $5,000 of real estate or personal property as a “wildcard” exemption. That number doubles to $10,000 if the individual is age 65 or older.

36. West Virginia. Homeowners may exempt up to $35,000 of their home or other property. That figure increases to $70,000 if you are married, you and your spouse both own the property, and you file bankruptcy together.

37. Wisconsin. A single person can protect up to $75,000 of equity in a home; spouses can double the amount to $150,000.

38. Wyoming. In this state, up to $20,000 of equity in a home can be shielded from bankruptcy. This can double if you are married, you and your partner own the property together, and you file for bankruptcy jointly.

Still with us? If you don’t see a state listed above, that means it’s one of the two (New Jersey or Pennsylvania) that doesn’t offer any homestead exemptions for use in a bankruptcy filing.

The Takeaway

Homestead exemption rules can help protect your home in instances of a bankruptcy filing and can be very helpful during a difficult time. These guidelines differ greatly by state, but are worth investigating. If you can’t keep your head above financial water, these exemptions may allow you to keep your home.

Refinancing a mortgage may also provide some relief to a struggling homeowner. In addition to offering an array of mortgage loans, SoFi also can help you refinance at competitive rates and with a hassle-free process.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q424-150

Whether you’ve just moved into a new home or want to breathe new life into your current one, refacing cabinets in your kitchen could really transform the space.

Cabinet refacing involves changing the cabinet exterior surfaces only, and can cost significantly less than a full cabinet replacement. How much will it set you back? The cost to reface kitchen or bathroom cabinets ranges from roughly $4,000 to $10,000, with the national average coming in at around $7,000.

Read on to learn what factors affect refacing costs, how to keep a cabinet makeover project within your budget, and how to get started.

Average Cost of Cabinet Refacing

Cabinet refacing allows you to give your kitchen a refresh at a significantly lower price tag than a full kitchen remodel. The exact cost will depend on the materials you choose, the size of the room, labor costs, and where you live. However, the cost typically runs between $4,273 and $10,056, or an average of $7,158.

If you have a small kitchen, DIY the project, and choose budget-friendly materials, you could spend a lot less than the average cabinet refacing cost. On the other hand, if you have a large kitchen, hire a contractor, and go with top-of-the-line materials, you could spend significantly more.

Recommended: 20 Small Kitchen Remodel Ideas & Designs

Cabinet Makeover Costs by Budget

The good news is that you can give your cabinets a refresh on virtually any budget. Here’s a look at what you can accomplish at different price points.

Budget: Under $1,000
If you’re looking to spend less than $1,000, you can likely reface the cabinets in a small kitchen yourself using laminate veneers. However, you may need to keep the original hardware.

Budget: $1,000 to $5,000
With more wiggle room in your budget, you may be able to hire a contractor to reface your cabinets using laminate or wood veneer, and also replace the hardware. However, you may not be able to add accessories like a built-in wine rack or under-cabinet lighting.

Budget: $5,000 to $10,000
With this budget, you can likely hire a contractor to install high-end wood veneer and hardware, plus add cabinet accessories, even for a large kitchen. With a smaller space, you may be able to reface your cabinets with solid wood.

Budget: $10,000 to $15,000
If you can spend $10,000-plus on the project, you should be able to hire a contractor to install new solid wood doors and drawer fronts, choose luxurious hardware, and add fancy accessories. You might also be able to add a couple of custom cabinets to match your newly upgraded cabinets.

Recommended: 9 Ways to Keep Inflation From Ruining Your Kitchen Reno Budget

Reasons to Reface

Refacing old cabinets can give your kitchen an updated look for 30% to 50% less than a full cabinet replacement. This makes it an appealing option for homeowners looking to do a kitchen renovation on a budget. What’s more, there are a wide range of resurfacing options to choose from, so you can likely find a look that fits your kitchen design vision. The process is also faster and more environmentally friendly than a remodel.

Keep in mind, however, that refacing might not be the best option if the existing cabinets are damaged or you need a better kitchen layout. While refacing can make your kitchen look and feel brand new, it won’t change its layout or functionality.

Standard Options for Refacing

When you reface cabinets, there are four common types of finishes you can choose from. Here’s a look at each option.

Plastic Laminates

You can also reface cabinets with plastic laminate. The laminate is cut to size and applied to the cabinet boxes and doors using a special adhesive. This is one of most budget-friendly refacing options, ringing in between $1,000 and $3,000. However, plastic laminate is not as resistant to chipping and cracking as other refacing materials.

Wood Veneer

Wood veneers give you the look of wood cabinets without the high cost. They come in thin sheets designed to mimic standard species of wood, such as oak, cherry, maple, and ash, and run between $2,500 and $6,000. While wood veneer is stronger than laminate, it’s not as durable as real wood.

Rigid Thermofoil (RTF)

Rigid thermofoil laminate is another budget-friendly refacing choice. It’s made of plastic (Formica or melamine) but looks like wood and requires little care. Just keep in mind that the melamine version of RTF is not recommended for hot or humid environments. Refacing with RTS can run roughly $1,000 to $3,000.

Solid Wood

Solid wood refacing material is the priciest option but also the longest-lasting and easiest to repair. A solid wood refacing project can run anywhere from $5,000 to $10,000. However, the cabinets will look high-end and the doors and drawers will be extremely durable.

Other Factors that Affect the Cost of Refacing

When coming up with your budget for a cabinet makeover, there are some other costs and upgrades you may want to factor in. Here’s a look at add-ons that can level up your kitchen refresh.

•   Hardware replacements Replacing all the hardware on your cabinets can cost anywhere from $100 and $1,000, depending on the material and style.

•   Crown molding Depending on the materials used and the labor involved, installing crown molding can run around $700 to $2,100.

•   Under-cabinet lighting Having strip, built-in, or puck lights installed under your cabinets can run $200 to $300 per light. If your budget is tight, you can get peel-and-stick lights for as little as $20 to $30.

•   Glass If you want to add glass inserts to some, or all, of your kitchen cabinets, plan on spending an extra $100 to $300 per linear foot of glass you add.

•   Handy accessories If you’re interested in adding some extras, such as a built-in spice rack, built-in wine rack, pull-out trash can, or a lazy Susan, you’ll need to add some additional funds to your refacing budget.

Getting Started

If you are ready to move forward with refacing, it can be a good idea to shop around and get estimates from at least three contractors.

As you interview potential installers, be sure to ask about their experience with cabinet refacing and if they’re insured and licensed. You may also want to ask the following questions:

•   What kind of refacing material do you recommend for this area?

•   How long will this project take?

•   Can I use my cabinets as soon as you’re done?

•   How long will the refacing last?

•   Do you make any changes to the interior of the cabinets?

•   Does the estimate include handles and drawer pulls?

•   Will you remove the doors and drawers to work on them at your shop or do all the work at my home?

•   Can you use hardware that I’ve already purchased?

•   Can you add features like crown molding, under-the-cabinet lighting, or glass inserts?

•   Do you offer a warranty, and if so, what does it include?

Recommended: 10 Steps for the Perfect Bathroom Remodel

Financing Your Home Improvement

While a cabinet makeover can give your kitchen a face-lift for an affordable price, you’ll still need to come up with a significant sum of cash to cover the cost of materials and labor. If you’re eager to get going but don’t have enough money on hand, you may be able to finance the project using a home improvement loan.

A home improvement loan is essentially a personal loan designed to be used to pay for home upgrades and renovations. Available through banks, online lenders, and credit unions, these loans are typically unsecured (meaning your home isn’t used as collateral to secure the loan). You also don’t need to have any equity built up in your home to be approved. Instead, the lender decides how much to lend to you and at what rate based on your financial credentials, such as your credit score, income, and how much other debt you have.

Once approved, you receive a lump sum of cash up front you can then use to cover the cost of refacing your cabinets. You repay the loan (plus interest) in regular installments over the term of the loan, which can range from five to seven years.

If you think a personal loan might work well for your cabinet makeover project, SoFi could help. SoFi’s home improvement loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL0623010