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We often hear that you should put 20% down when purchasing a home. That means the down payment for a $250,000 house would be $50,000. But not everyone has that much cash lying around.

Luckily, nowadays you can get a conventional mortgage by putting significantly less money down. In fact, some first-time homebuyers can buy a house with as little as 3% down. For a $250,000 home, that’s only a $7,500 down payment. And if you qualify for a VA loan (backed by the U.S. Department of Veterans Affairs), you may be able to purchase a $250,000 house with 0% down. Even better: Anyone who hasn’t owned a primary residence in the last three years is usually considered a first-time buyer.

Below, we’ll explore how to calculate the down payment on a $250,000 house, plus what you should budget for monthly mortgage payments and how to get approved for the mortgage.

How Much Income Do I Need to Afford a $250K Home?

On average, you’ll need to earn about $76,000 before taxes to afford a $250,000 home, but this can vary significantly. Why? How much income you need for a $250K house depends on several factors, including your other debts, your credit score, the length of the home loan, property taxes, homeowners insurance costs, and other fees:

•   Other debts: Lenders don’t look purely at your income when deciding to approve you for a mortgage; rather, they look at your income in relation to your debts. Typically, you need a debt-to-income ratio of 36% or less to qualify for a mortgage, but this can vary by lender. If you have significant debts (credit cards, student loans, auto loans, etc.), you’ll need to make more money to ensure you meet a lender’s DTI requirements.

•   Your credit score: Your credit score impacts your interest rate. A lower credit score means a higher interest rate — and a higher monthly payment to budget for.

•   The length of the loan: A 30-year loan term means your mortgage is spread out over 360 payments, which makes them smaller and more manageable on a lower income. However, if you get a 15-year mortgage, your monthly payments will be considerably larger, meaning you’ll need a higher income to afford them.

•   Property taxes: In addition to paying back your loan, you’ll also have to pay property taxes every year. Make sure you factor in these taxes when calculating how much money you need to make to afford a $250,000 home.

•   Homeowners insurance costs: You aren’t just budgeting for the cost of the house. You also need to think about the cost of living in general. You’ll need to leave room in your budget for the homeowners insurance you’ll have to carry, for example. The cost of homeowners insurance depends on factors such as where you live and the size of your home.

•   Other fees: Some lenders roll certain loan fees (such as appraisal fees and closing costs) into the mortgage. If you opt for a lender that does so, it can increase your monthly loan payment.

Recommended: Best Affordable Places to Live in the U.S.

How Much Is the Down Payment for a $250K Home?

The down payment on a $250,000 home depends on the type of mortgage loan you get. Traditionally, experts recommend putting 20% down ($50,000 for a $250,000 home); this is ideal for a conventional mortgage, as putting 20% down means you don’t need to pay for private mortgage insurance (PMI).

However, not everyone can afford to put 20% down. Here’s a look at various mortgage types and the minimum down payment on a $250,000 home for those who qualify as a first-time homebuyer:

•   Conventional mortgage: As low as 3% to 5% ($7,500 to $12,500)

•   FHA (Federal Housing Administration) loan: As low as 3.5% ($8,750) for buyers who meet credit score requirements

•   VA loan: As low as 0% for qualifying borrowers and homes

What Are the Down Payment Options for a Home Worth $250K?

The down payment options for a $250,000 home are varied, from as little as 0% down through a VA loan to as much as 100% (i.e., paying cash for the house). Which option you choose depends on how much you have saved up and the type of home loan you’re applying for.

Here are a few things to keep in mind:

•   FHA loans: You can qualify for a government-backed FHA loan with as little as 3.5% down. However, the credit score needed to buy a house with a mortgage through the Federal Housing Administration is 580. You may be able to qualify with a lower credit score, but you have to put at least 10% down (that’s $25,000 for a $250,000 home).

•   PMI: If you don’t want to pay private mortgage insurance on your conventional mortgage, you need to put at least 20% down ($50,000). That said, you might be able to qualify with as little as 3% down, although in that case PMI will be part of the deal.

•   Monthly payments: The larger your down payment on a $250,000 home, the smaller your monthly payment will be.

What Does the Monthly Mortgage Payment Look Like for a $250K Home?

There’s no one single monthly mortgage payment you should expect for a $250,000 home, as it depends on several key factors, such as the interest rate, how much money you put down, property taxes and homeowners insurance (which are often added to the monthly mortgage bill), and the loan term.

The table below shows some estimated payments based on how much is the down payment for a $250,000 house, the length of the loan, and the interest rate — but these are examples only. You can use a mortgage calculator to estimate the more exact monthly mortgage payments for a $250,000 home based on your unique situation. Remember that if you purchase at one interest rate, you can always do a mortgage refinance if rates drop significantly.

What to Do Before You Apply for a $250K Mortgage?

Before applying for a $250,000 mortgage, focus on getting your finances in order. Here are a few ways to improve your approval odds and keep the monthly payment affordable:

•   Pay down existing debts: Reducing other debts can help boost your credit score and lower your DTI ratio. These both improve your approval odds and make it easier to afford a monthly mortgage payment.

•   Save money: Open a high-yield savings account and start saving up for a down payment. The more you save for a down payment, the lower your monthly mortgage payment will be.

•   Get preapproved: When you’re ready to start shopping, seek preapproval for your max budget (such as $250,000). Going through this process will give you a pretty solid idea of what you can afford.

Recommended: Average Monthly Expenses for One Person

Should I Get Preapproved Before Applying for a Mortgage?

Getting preapproved is helpful in many ways:

•   Completing the mortgage preapproval process will let you know whether you’re likely to be approved for the cost of the house you want to purchase. If $250,000 is the top of your budget, see if a lender will be willing to lend you that amount (with the down payment you’re willing to pay).

•   Mortgage preapprovals signal to sellers that your offer is legitimate and can help you get your offer accepted, particularly if the housing market is competitive.

Just remember that preapproval is different from prequalification. A preapproval involves a hard credit check, so only get a preapproval if you’re serious about buying and plan to make an offer soon. A lender can tell you how long a preapproval is good for before you apply.

How to Get a $250K Mortgage

Here’s how to get a mortgage for a home priced around $250,000. In fact, these basic guidelines hold true whether you need a modest mortgage or a jumbo loan:

1.    Figure out your finances: Make sure you have enough money for the down payment, and look into down payment assistance programs if necessary. Focus on improving your credit score before searching for lenders.

2.    Research lenders: Compare several lenders (both online and in person) to see which has the lowest rates and fees.

3.    Apply for preapproval: You can likely do this over the phone or online. You’ll need to upload a fair amount of documentation, including pay stubs, tax returns, proof of identification, bank statements, and more.

The Takeaway

The down payment for a $250,000 house depends on the type of mortgage you’re applying for — and the monthly mortgage payment you’re comfortable making. But some first-time homebuyers can get approved for as little as 3% down (that’s $7,500 on a $250,000 house). Finding a mortgage lender with a competitive interest rate and low fees can also keep your costs down.

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.

FAQ

How much should I make to afford a $250,000 house?

The amount of money you should make to afford a $250,000 house depends on several factors, including your other debts, your credit score, the cost of homeowners insurance and property taxes, and the size of your down payment. That said, a salary of around $76,000 a year will help you afford a $250,000 mortgage.

What credit score is needed to buy a $250,000 house?

The credit score needed to buy a house worth $250,000 depends on the type of mortgage you are applying for. Conventional mortgages often require a credit score of 620 or higher. You can qualify for an FHA loan with a score as low as 500 if you put 10% down. VA loans require a minimum credit score of 620. USDA loans usually require a credit score of 640.

How much is a $250K mortgage per month?

The monthly mortgage cost for a $250,000 home loan can vary greatly, depending on the size of the down payment, the interest rate, the length of the loan term, property taxes, and homeowners insurance costs. Budget anywhere from $1,000 to $2,000 a month, though in some cases, it could be even higher or lower.

Photo credit: iStock/Valentyna Yeltsova

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.

SOHL-Q225-145

Buying a new home requires managing a lot of moving parts, from mortgage preapproval to closing. Even after an offer is accepted, buyers and sellers are still at the negotiating table. If closing costs or surprise expenses become too much for the buyer, a seller concession could help seal the deal.

Although seller concessions can work to a buyer’s advantage, they are neither a guaranteed outcome nor a one-size-fits-all solution for every real estate transaction.

To determine if seller concessions are the right move from a buyer’s perspective, here are some key things to know, including what costs they can cover and when to consider asking for them.

Note: SoFi does not offer seller concessions at this time.

What Are Seller Concessions?

Seller concessions represent a seller’s contribution toward the buyer’s closing costs, which include certain prepaid expenses and discount points. A seller concession is not the equivalent of a price reduction; nor is it received as cash or a loan discount.

Closing costs usually range from 2% to 5% of the loan principal on your mortgage. When that’s combined with a down payment, the upfront expense of buying a home can be burdensome, especially for first-time homebuyers.

Buyers can ask for concessions on the initial purchase offer or later if the home inspection reveals problems that require repairs.

Although this can be a helpful tool to negotiate a house price, there are rules about eligible costs and limits to how much buyers can ask for.

Recommended: Homebuyer Guide

What Costs Can Seller Concessions Cover?

A buyer’s closing costs can vary case by case. Generally, buyers incur fees related to the mortgage loan and other expenses to complete the real estate transaction.

There are also types of prepaid expenses and home repairs that can be requested as a seller concession.

Some common examples of eligible costs include the following:

•   Property taxes: If the sellers have paid their taxes for the year, the buyer may be required to reimburse the sellers for their prorated share.

•   Appraisal fees: Determining the estimated home value may be required by a lender to obtain a mortgage. Appraisal costs can vary by geography and home size but generally run between $300 and $400 for a single-family home and a conventional loan.

•   Loan origination fees: Money paid to a lender to process a mortgage, origination fees, can be bundled into seller concessions.

•   Homeowners insurance costs: Prepaid components of closing costs like homeowners insurance premiums can be included in seller concessions.

•   Title insurance costs: A title insurance company will search to see if there are any liens or claims against the property. This verification, which varies widely in price, but generally costs between 0.1% to 2% of the loan principal, protects both the homeowner and lender.

•   Funding fees: One-time funding fees for federally guaranteed mortgages, such as FHA and VA loans, can be paid through seller contributions. Rates vary based on down payment and loan type.

•   Attorney fees: Many states require a lawyer to handle real estate closings. Associated fees can run from about $750 to $1,250 or more, based on location.

•   Recording fees: Some local governments may charge a fee to document the purchase of a home.

•   HOA fees: If a home is in a neighborhood with a homeowners association, there will likely be monthly dues to pay for maintenance and services. A portion of these fees may be covered by the seller.

•   Discount points: Buyers may pay an upfront fee, known as a discount point, to lower the interest rate they pay over the life of the mortgage loan. (The cost of one point is typically 1% of the loan amount and may lower your mortgage rate by as much as 0.25%.)

•   Home repairs: If any issues emerge during a home inspection, the repair costs can be requested as a seller concession.

Closing costs can also be influenced by the mortgage lender. When shopping for a mortgage, evaluating expected fees and closing costs is a useful way to compare lenders. Factoring in these costs early on can give buyers a more accurate idea of what they can afford and better inform their negotiations with a seller.

Recommended: How Much Are Closing Costs on a New Home?

Rules and Limits for Seller Concessions

Determining how much to ask for in seller concessions isn’t just about negotiating power. For starters, the seller’s contributions can’t exceed the buyer’s closing costs.

Other factors can affect the allowable amount of seller concessions, including the type of mortgage loan and whether the home will serve as a primary residence, vacation home, or investment property.

Here’s a breakdown of how concessions work for common types of loans.

Conventional Loans

Guidance on seller concessions for conventional loans is set by Fannie Mae and Freddie Mac. These federally sponsored enterprises buy and guarantee mortgages issued through lenders in the secondary mortgage market.

With conventional loans, the limit on seller concessions is calculated as a percentage of the home sale price based on the down payment and occupancy type.

If it’s an investment property, buyers can only request up to 2% of the sale price in seller concessions.

For a primary or secondary residence, seller concessions can add up to the following percentages of the home sale price:

•   Up to 3% when the down payment is less than 10%

•   Up to 6% when the down payment is between 10% and 25%

•   Up to 9% when the down payment is greater than 25%

FHA Loans

FHA loans, which are insured by the Federal Housing Administration, are a popular financing choice because down payments may be as low as 3.5%, depending on a borrower’s credit score.

For this type of mortgage, seller concessions are limited to 6% of the home sale price.

VA Loans

Active service members, veterans, and some surviving spouses may qualify for a mortgage loan guaranteed by the Department of Veterans Affairs. For buyers with this type of mortgage, seller concessions are capped at 4% of the home sale price.

VA loans also dictate what types of costs may qualify as a seller concession. Some eligible examples: paying property taxes and VA loan fees or gifting home furnishings, such as a television.

Recommended: Guide to Buying, Selling, and Updating Your Home

Seller Concession Advantages

There are a few key ways seller concessions can benefit a homebuyer. For starters, they can reduce the amount paid out of pocket for closing costs. This can make the upfront costs of a home purchase more affordable and avoid depleting savings.

Reducing closing costs could help a buyer make a higher offer on a home, too. If it’s a seller’s market, this could be an option to be a more competitive buyer.

Buyers planning significant home remodeling may want to request seller concessions to keep more cash on hand for their projects.

Seller Concession Disadvantages

Seller concessions can also come with some drawbacks. If sellers are looking for a quick deal, they may view concessions as time-consuming and decline an offer.

When sellers agree to contribute to a buyer’s closing costs, the purchase price can go up accordingly. The deal could go awry if the home is appraised at a value less than the agreed-upon sale price. Unless the seller agrees to lower the asking price to align with the appraised value, the buyer may have to increase their down payment to qualify for their original financing.

Another potential downside is that buyers could ultimately pay more over the loan’s term if they receive seller concessions than they would otherwise. If a buyer offers, say, $350,000 and requests $3,000 in concessions, the seller may counteroffer with a purchase price of $353,000, with $3,000 in concessions.

The Takeaway

Seller concessions can make a home purchase more affordable for buyers by reducing closing costs and expenses, but whether it’s a buyer’s or seller’s market will affect a buyer’s potential to negotiate. A real estate agent can offer guidance on asking for seller concessions.

FAQ

How do you explain seller concessions?

Seller concessions are the costs and fees that a seller may agree to pay on behalf of a buyer to sweeten the deal. These could include expenses like property taxes, appraisal fees, loan origination fees, homeowners insurance costs, attorney fees, title insurance fees, recording fees, funding fees, HOA fees, mortgage point costs, and even repair costs.

Can seller concessions exceed closing costs?

Seller concessions cannot be greater than closing costs. The maximum amount of seller concessions you can get with a given mortgage depends on a number of factors, including the type of loan it is, but the amount will never exceed the amount of the closing costs.

What is the most a seller can pay in closing costs?

The maximum a seller can pay in closing costs depends on the type of mortgage that’s involved. For a conventional loan, the maximum for an investment property is 2% of the sale price. For a primary or secondary residence, it depends on the down payment: up to 3% when the down payment is less than 10%; up to 5% when the down payment is between 10% and 25%; and up to 9% when the down payment is more than 25%. The amount sellers can pay in closing costs is capped at 6% for FHA loans and 4% for VA loans.

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.

SOHL-Q225-172

Whether you’re a first-time homebuyer or you’re thinking about putting your home on the market, it’s critical to know the value of the property. Property valuation also comes into play in home financing, property taxes, real estate investing, and home insurance. But who does the valuation, and how do they determine the value of a home?

The answers to both questions will depend on the situation. Read on to learn more about property valuations, including what they are and why they matter.

What Is a Property Valuation?

Broadly defined, a property valuation is a method of determining how much a property is worth for purposes of pricing it for sale, qualifying for a mortgage, or determining a property tax bill.

Someone selling their home, for example, may use a property valuation to determine how much their house is worth and how much they can charge on the open market.

If you are applying for a mortgage, the lender will typically have a home appraisal done to determine if the price you are paying for the house reflects its actual fair market value. Insurance companies and local tax authorities also do property valuations.

Typically, property valuations are done by an independent third party, such as a licensed appraiser. The lender, buyer, seller, tax authority, and insurer generally cannot have any relationship with the appraiser so that the valuation is unbiased.

The value of a property is determined by many factors, including its location, its size, the condition of the inside and outside of the building, and the current real estate market.

Types of Property Valuations

There are several different types of property valuations. Here are some of the most common you may encounter.

Appraised Value

When you are looking to qualify for a mortgage to buy a home, your lender will usually need to know the appraised value of the house you want to buy. The appraised value of a home is determined by a licensed appraiser who thoroughly evaluates the property’s size and features, market conditions, and comparable sales data. Typically, a lender will offer a loan for no more than 80% of the home’s appraised value (though some lenders and loan programs will allow you to borrow more).

💡 Quick Tip: When house hunting, don’t forget to lock in your mortgage loan rate so there are no surprises if your offer is accepted.

Assessed Value

The assessed value of your home is used in determining your property taxes. Depending on where you live, a municipal or county tax assessor will perform a property value assessment based on a number of factors, which may include sales of similar homes, square footage, current market conditions, and findings from a home inspection.

Local tax officials will use your home’s assessed value to calculate your property taxes. The higher your home’s tax-assessed value, generally the higher your property taxes will be. It is important to note that assessed values may not always accurately reflect the property’s market value, as they can vary depending on the jurisdiction’s assessment practices.

Recommended: Are Property Taxes Included in Your Mortgage Payments?

Fair Market Value

Fair market value of a property refers to the price at which the property would change hands in the open market between a willing buyer and a willing seller, with neither party under any pressure to buy or sell. Put another way, it’s the amount for which you could expect to buy or sell a property based on the current real estate market. This value is considered the most objective and widely used in real estate transactions.

Recommended: The Top Home Improvements to Increase Your Home’s Value

Actual Cash Value and Replacement Cost Value

Actual cash value and replacement cost value are methods used by home insurance companies to determine how they will pay out when you file a claim. Actual cash value takes into account depreciation and wear and tear when determining a property’s value. Replacement cost value estimates the cost of rebuilding or replacing a property with a similar one, considering current construction costs.

What If You Get a Low Appraisal?

If you’re buying a home and the lender’s appraised value is as much as the agreed-upon price or more, the lender will likely move forward with the home loan, assuming that the other aspects of the property and your application are in order.

If the appraisal comes in under the agreed-upon price, the lender may reduce the amount of the loan it’s willing to offer.

At that point, you or the sellers can dispute the appraisal with the lender or ask for a second look. If the value is still too low, there are a few different routes:

•  You can try to get the seller to reduce the price.

•  You can agree to contribute the difference in cash.

•  You and the seller may agree to split the difference.

If the purchase agreement contains an appraisal contingency, you are protected in the case of a low appraisal. This means that If you can’t get the seller to adjust the price or come up with the difference in cash, you can walk away from the sale and get your earnest money deposit returned to you.

Property Valuation Methods

There are different ways to assess the value of a property. Which method will be used will depend on the situation.

Sales Comparison Approach

The sales comparison approach determines a property’s value by comparing it to recently sold properties with similar characteristics in the same area, also known as “comps.” Appraisers make adjustments for differences in size, condition, and amenities to arrive at an estimated value. The sales comparison approach is the one most often used by real estate agents in determining the value of a property for sale.

Income Approach

The income approach is primarily used for investment properties that result in a stream of income, such as rental apartments or commercial buildings. It estimates the property’s value based on its income potential, taking into consideration factors such as expense statements, rental rates, vacancy rates, and market conditions.

Cost Approach

The cost approach evaluates a property’s value by estimating the cost required to rebuild or replace it on its current plot of land. This appraiser determines the replacement cost by considering the cost of materials and labor, then subtracts depreciation and adds in the value of the land to determine the property’s worth. This method is often used by insurance companies.

Automated valuation models (AVMs) are software programs that use data about other properties and sales combined with mathematical or statistical modeling to arrive at an estimate of the value of a property. There are commercial AVM providers, including Equifax®, as well as free AVMs available online, such as Zillow’s “Zestimate.”

Because AVMs are based on existing data, the property valuations they produce are only as good as the information available. An AVM may be inaccurate if the data is outdated or incorrect. While they can be speedy and convenient, at least for the time being, AVMs have not eliminated the need for appraisals or inspections.

The Takeaway

Understanding property valuations is essential for navigating any kind of real estate transaction, whether you are on the buying, selling, investing, or financing side of the deal. There are many different types of home valuations, including appraised value, assessed value, fair market value, actual cash value, and replacement cost value. There are also different ways of doing property valuations, such as the sales comparison approach, income approach, and cost approach. For a quick valuation, you can even use an online computer-generated valuation tool or AVM.

Whatever approach you take, a property valuation can help you confidently make informed decisions and negotiate effectively in the real estate market.

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.

FAQs

How do you determine the value of a property?

The value of a property is typically determined by an independent licensed appraiser who considers factors such as the property’s location, size, condition, amenities, and recent comparable sales data in the area.

What are the 4 ways to value a property?

The four primary ways to value a property are: the market comparison approach, which compares the property to similar recently sold properties in the same area; the income approach, in which the value is estimated based on the property’s income potential; the cost approach, which involves evaluating the cost to replace or rebuild the property on the same land; and the appraised value, in which the value of the property is determined by a qualified appraiser through a comprehensive evaluation.

How does valuation work?

Valuation of a home typically involves having an appraiser inspect the property, analyze relevant data, and apply appropriate valuation methods (such as the market comparison approach or cost approach, for instance). Appraisers will generally assess factors such as location, condition, amenities, recent sales, and market trends to determine the property’s value. A comprehensive report is then prepared, detailing the value, data, and reasoning behind the valuation. Valuation serves as a crucial step in real estate transactions, providing objective estimates of property worth.

*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 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-Q225-184

Is your bedroom cluttered, depressing, and lacking warmth and coziness? If so, perhaps it’s time for a bedroom remodel, an awakening of a room that can range from paint to structural changes.

If you’re a homeowner looking to spice up or calm down your bedroom, know that bedroom remodels can have a return on investment of 20% to 45%, according to Angi, the home improvement site, as of mid-2025.

The steps you can take to renovate rooms aren’t too onerous and can often be done without the help of a contractor or other professional. Let’s take a look at the cost to remodel a bedroom, bedroom remodel ideas, and how to pay for a bedroom remodel.

How Much Does It Cost to Remodel a Bedroom?

The typical bedroom costs $20,000 as of mid-2025, according to Angi. However, the amount of money you put into a bedroom remodel depends on what you’re trying to achieve. Do you simply want to change up your décor, including your bed, bedside tables, and desk? Or do you want to paint the room a different color and add some window treatments?

You may also be looking at more extensive changes, such as ripping up carpeting and putting in new flooring, installing new windows, or building custom cabinetry in your closet.

The good news is that most bedroom remodels are less costly than renovations that entail taking down walls, rewiring electrical systems, and installing pipes, though some bedroom remodels may call for these types of tasks.

With a bedroom remodel, you’re less likely to be doing major construction that requires hiring licensed professionals like a carpenter, plumber, or general contractor. And even if you have to rely on the services of a vendor, there are likely other aspects of the project you can tackle yourself.

Recommended: The Top Home Improvements to Increase Your Home’s Value

Simple Bedroom Remodel Ideas

Decluttering is a tried-and-true way to visually open up a room. That means organizing books and magazines, laundry or piles of clothes, and furniture. Here are some other ways.

Painting

What color will turn your current space into your dream bedroom? Some of the major brands and independent companies offer online color consultations. And then, if you feel up to the task, you can avoid hiring a painter by painting your walls yourself.

You’ll want to take stock of the current trim and match a color to it. You’ll also want to consider how the room changes color depending on the time of day. Sometimes a room that looks white in the evening can take on a yellowish tint during the light of day.

You’ll want to make sure you have all the equipment you need to get the work done efficiently and well. This includes paintbrushes, a paint roller and pan, rags, sandpaper, and drop cloths.

The great thing about paint is, if you feel you’ve done a poor job in spots, you can always paint over it.

Flooring

What you do with your floors is going to depend largely on personal taste. Your choices include wall-to-wall carpeting, wood or wood-engineered flooring with or without area rugs, and tile or ceramic flooring, which works best in humid climates.

You’ll want to think about how your flooring will complement the rest of the room, including furniture. You’ll also want to take your comfort into consideration. Carpeting, for example, muffles sound, while wood flooring does not.

Some people don’t like walking barefoot on anything besides carpet, for example, while others prefer the look of bare floors.

Cost may also come into play here as wood flooring is generally more expensive than carpeting, $6 to $25 per square foot. Carpeting typically runs $3.50 to $11 a square foot, HomeAdvisor notes.

Furnishings

While some homeowners may want to keep the bedroom furniture they’re currently using, others choose to sell or donate what they have and start over.

If you’re in the latter group, you’ll want to consider the paint and flooring you’ve chosen when looking for a new bed and headboard, bedside tables, desk, and dresser.

Looking online for bedroom remodel ideas can be a low-cost way to design your bedroom décor, with many blogs and websites linking to online retailers for easy purchase.

Social media sites like Houzz and Pinterest have scores of photos and boards delineated by room, color, and style to help you brainstorm.

If your budget allows, this might be an area to bring in the help of an interior designer. An interior designer may be able to see things you don’t, such as whether you need a large desk for working from home, a bench at the end of the bed for sitting, or a changing table if you plan to grow your family in the near future.

On a tight budget? Many people find cheap furniture online, at flea markets, and from freecycle resources. Refinishing it, painting it, or otherwise freshening it up can be a fun, affordable, hands-on way to update a bedroom.

More Extensive, and Expensive, Bedroom Remodels

While bedroom remodels are typically less wide-ranging than those of a kitchen or bathroom remodel, you may opt for larger changes that can drive up your cost.

These include altering the function and structural design of a room, which may require the use of a professional.

Structural Changes

If you own a home or are looking to buy a property, the lack of an ensuite bathroom might be a big deal. Maybe you’d like to be able to pad into the bathroom in the middle of the night without tiptoeing through the hallway.

Depending on the layout of the bedroom and the rooms near it, this may necessitate turning a closet into a bathroom or building a door through a wall that conjoins your bedroom with that hallway bathroom.

Either way, you’re probably looking at hiring a plumber, carpenter, electrician, and contractor. While this type of remodeling affords you more options than sticking with your current footprint, it comes with added costs to be aware of.

Lighting and Fans

Adding recessed lights requires the work of a licensed electrician, who may have to work around obstacles like heating ducts, and will charge for both installing and wiring each light.

Ceiling fans, while pretty and useful, will likely also require hiring a professional installer to burrow through your ceiling, connect to electricity, and complete the necessary patchwork afterward.

Recommended: Guide to Buying, Selling, and Updating Your Home

Paying for It

Creating a budget and payment plan is key, no matter the size of your bedroom remodel. Some changes are so small that homeowners can pay upfront.

Those with more extensive remodels might use a home equity loan or home improvement loan. These allow you to tap into the value of your home and use the funds to finance your bedroom remodel. They typically have comparatively low interest rates, since they are secured loans with your property as collateral, but obtaining them can take a little while.

Another option would be a home improvement loan. These are a kind of personal loan, which allows you to obtain a lump sum of cash and then pay it back over time with interest. This is usually a fixed-rate personal loan, and the term extends from one to seven years in most cases.

Recommended: Personal Loan Calculator

The Takeaway

A bedroom remodel currently costs $20,000 on average. This price reflects more than just a coat of paint and a new lighting fixture, so it is possible to do the job on a tighter budget and transform your space into a dream bedroom. It could also improve the value of your home. To pay for a bedroom renovation, you might use savings, consider tapping your home equity, or take out a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much is the typical bedroom remodel?

The average bedroom remodel costs about $20,000 as of 2025, but it’s possible to spend much less or more, depending on the scope of your project.

How long does it take to renovate a bedroom?

Depending on the extent of the work you are doing, it could take a weekend, several weeks, or even months, if structural changes are part of the plan. It’s a highly individual process.

How can you finance a bedroom remodel?

To finance a bedroom remodel, you might dip into your savings, tap home equity, or take out a personal loan. Credit cards should typically be your last resort due to their high interest rates.

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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.

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Buying property is a way to invest outside the stock market. Owning a rental can offer key benefits to homebuyers, including a potential stream of passive income and the possibility for real estate to grow in value.

When debating whether to invest in the home-buying process, the difference between a single family or multifamily home can matter.

Each home type comes with pros and cons, which investors may want to chew on before opting for a specific real estate investment.

Here’s a look at the major differences between single family and multifamily investment properties.

What Is a Single Family Home?

Single family homes are stand-alone structures with their own lot. They don’t share common space with another unit.

Generally, they’re meant to house one tenant or a family. In the real estate world, single family homes differ from attached properties, like condominiums or townhouses.

Those considering investing in a single-family home could start the process in much the same way as when buying a primary residence, enlisting the help of a real estate broker or home loan lender.

Below are some factors investors may want to think through when looking into single family properties:

Affordability of Buying

When an investor is deciding how much house to afford, single family homes are typically priced lower than multi-unit constructions.

Because they’re designed with one family or individual in mind, single family homes are generally smaller in size — and less square footage (and floors) can mean lower listed prices on the property.

Other costs, such as utilities, don’t necessarily add to the price of investing in a single family house. Rental agreements typically require tenants to pay all or nearly all of the utilities costs for a home.

In a multifamily unit, the landlord may have to shoulder more costs, such as the cost of electricity used in common spaces.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Fewer Tenants Can Mean Less Conflict

In multifamily units, landlords may be called in to resolve all sorts of conflicts between tenants. For example, landlords may have to mediate tensions if a neighbor is noisy or has a loud pet.

A single person or family living in a single-family unit lessens the chance for conflict between tenants. (In rare cases, landlords may deal with conflicts between single family tenants and neighbors in nearby buildings, though.)

Additionally, tenants who live in a stand-alone home may be more likely to treat the buildings as their own, taking better care of the house and lot.

They may closely monitor the condition of the whole home, letting landlords know when there are maintenance issues to take care of.

Reduced Maintenance Costs

Speaking of maintenance, single family units typically require less upkeep than multifamily buildings.

In a multi-unit property, things can get complicated. Landlords may be dealing with different sets of appliances or diverse tenant schedules, for example.

If something goes wrong in one unit, it may affect other units at the same time. For instance, in a multifamily building, plumbing or wiring may need to be replaced in multiple units at the same time.

Multifamily units are larger, so problems that feel more manageable in a single family home can become a bigger deal when scaled up.

Investors may want to compare the different costs (and logistics) of exterminating termites in a small home vs. a bigger multi-unit building (where numerous tenants may need to be relocated temporarily), to name one possibility.

Property Value Appreciation

Single family homes tend to be in higher demand than multifamily residences, which could mean the property is more likely to gain in value. Single family homes are priced largely based on supply and demand.

The more people want them, the higher home appreciation may go up. (Naturally, demand is just one factor among many that can impact a home’s valuation.)

Multifamily buildings, on the other hand, are priced in part on the condition of the buildings. One extra factor in calculating the value of a multifamily building is the potential rent revenue that this sort of property can bring in. If rents go up in the area, the value of the building can rise accordingly. (The opposite is also true.)

Cash Liquidity

There may come a time when a landlord wants to sell. Landlords might no longer want to deal with tenants, or they may need to access the equity wrapped up in their rental property.

Because of the high demand, sales for single family homes tend to be faster, providing investors with potentially easier access to their invested cash.

What Is a Multifamily Home?

Multifamily homes are buildings that have more than one unit and can house more than one family, such as apartment buildings. They could also be a duplex or a triplex.

Below is a list of factors investors might want to think about when deciding whether to pursue purchasing a multi-unit building:

More Rental Income

A multifamily building can be more expensive upfront to buy than a single family home. However, each unit in the building might produce rental income for the owner.

When combined, these rents can total more than the single revenue from a stand-alone house. Opening up multiple streams of income is one of the main reasons investors opt for multifamily properties.

Fewer Vacancy Issues

When a single family home is vacant, the owner’s rental income stream dries up completely. Owning a multiple family building can mitigate this risk of lost income when a tenant leaves or breaks the lease. If one unit is vacant, even for an extended period, other units might still bring in regular rental income.

Economies of Scale

In some ways, property management costs can be simpler for multifamily homes, especially when it comes to economies of scale. For example, say a landlord needs to replace the roof on a 10-unit building. The cost of replacement may be lower, per unit, than if a landlord needs to replace the roof on just one single family home.

Recommended: Guide to Buying, Selling, and Updating Your Home

Diverse Investment Options

Multifamily buildings can offer more property options to investors, too. Potential landlords might invest in anything from small duplexes to large apartment buildings with dozens of units.

Investors can take a more passive role in multifamily investments, as well. Real estate syndication allows a group of investors to pool their resources to buy more expensive buildings than they could afford on their own.

Investments like these used to be the purview of the very wealthy. Since the passage of the JOBS Act in 2012, real estate crowdfunding has increasingly become a more popular option. Buildings funded in this way are generally managed by a professional management company and profits are passed along to investors.

Multi-family investors might want to pursue shares of a Real Estate Investment Trust (REIT). REITs invest in multifamily properties. They trade much like regular stocks, which makes them easy to buy and sell (offering investors more liquidity).

Investors in REITs have no contact with the day-to-day operations of the underlying investment properties. REITs could be a better fit for long-term investors who aren’t aiming to buy and then resell quickly.

💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

Financing a Real Estate Investment

Financing an investment property is a little bit different than financing a first or second home, whether it’s a single family home or a multifamily building. As with the buying of a first house, investors may want to check credit scores and review their financial assets before applying for a mortgage loan.

Potential buyers should also examine their debt-to-income ratio, which shows lenders how much debt borrowers have acquired compared to their income. Lenders review this as one among many factors when evaluating mortgage applications.

It’s likely that prospective buyers of investment properties may need to put down at least 15-20% of the property’s listed value — but it’s not uncommon for lenders to ask for a down payment of 25-35%.

Single family homes can be financed with a conventional mortgage. However, because investment properties pose more risk to loan lenders, interest rates are typically higher than they would be for primary or secondary residences.

Loans for single family houses, duplexes, triplexes, or fourplexes, collectively known as “one-to-fours,” don’t differ very much. In other words, investors looking to buy a building up to four units can do so with a conventional loan.

Loans for apartment buildings with more units, however, may be a bit more complicated. Lenders may consider factors such as:

•   Debt service coverage (cash flow relative to debt)

•   Net income generated by the property (revenue minus expenses)

•   Loan-to-value ratio (the loan amount compared to the value of the property)

There are different, federally backed apartment building loans that certain investors may want to consider, including:

•   Fannie Mae Apartment Loans offer loans of as little as $1 million with 20% down. Fannie Mae offers conventional loans and specialty loans, such as green financing or senior housing.

•   Freddie Mac Apartment Loans offer loans beginning at $1 million, including conventional loans, small balance loans, targeted affordable housing loans, and senior housing loans.

•   Bank Balance Sheet Loans are loans that banks keep in-house. Both traditional and online banks may offer these loans, which they do not repackage and sell to government-sponsored enterprises, such as Fannie Mae or Freddie Mac. The loans remain on the banks’ balance sheets. These loans don’t require owners to live in the same community as the building they’re buying. They are becoming less prevalent, but some banks still offer them.

•   FHA Apartment Loans, aka HUD 223(f) loans, start at $2 million. They’re insured by the U.S. Department of Housing and Urban Development (HUD), and they are available for the purchase of buildings with five or more units.

The Takeaway on Comparing Mortgage Options

Purchasing a rental property, whether a single family home or a multi-unit building, could be one way to diversify an investment portfolio. A mortgage loan from a private lender may help investors to purchase a stand-alone rental home or multifamily building.

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.

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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.

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