Budgeting for a custom home or planning a renovation doesn’t have to feel like a guessing game.
With a few smart home renovation and custom home planning tips and the right team by your side, you can start with confidence and clarity. Whether you're dreaming of a new build in the Texas Hill Country or reworking the home you already love, knowing your options is the first step.
Let’s break down what it takes to budget and plan as you're preparing to set up consultations and iron out the details.
Here's a quick overview of what we're covering today:
Know Your Priorities Before You Set a Budget
Understand the Real Costs of Remodeling or Building a Custom Home
Financing Options for Remodeling
Financing Options for Building a Custom Home
1. Know Your Priorities Before You Set a Budget
Before you dive into spreadsheets or search up the latest home renovation tips, take a step back and get clear on what matters most to you. Your goals will shape every decision, so it’s worth sitting down and asking the right questions early on.
If You’re Planning a Home Renovation, Start by Thinking About:
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What’s not working in your current home?
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Are you remodeling for lifestyle or resale value?
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Do you plan to stay in your home for the next 5, 10, or 20 years?
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Which rooms need the most attention?
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What are your top “must-haves” vs “nice-to-haves”?
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Will you need to move out during construction?
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Are you ready for the remodeling process, or are you still wondering, "Where do I start when remodeling a house?”
If You’re Budgeting for a Custom Home Build, Ask Yourself:
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How big does the home need to be to support your lifestyle?
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What’s your ideal layout (single-story, open concept, etc.)?
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Which features are non-negotiable—outdoor kitchen, home office, guest bedrooms?
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Do you already own land, or will you need help finding and assessing a lot?
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What’s your timeline for designing and building?
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Have you explored the benefits of building a custom home over buying?
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Are you clear on your custom home budget and financing options?
Taking the time to answer these questions upfront gives your design-build team a solid foundation to build on both creatively and financially. At Hill Haven Homes, we help our clients sort through the noise, define their vision, and set a plan that fits their life (and their budget) from day one.
2. Understand the Real Costs of Remodeling or Building a Custom Home
Let’s talk numbers—because no matter how dreamy your vision is, a solid home renovation plan or house construction budget is what keeps it all moving forward.
One of the biggest mistakes homeowners make is underestimating what it really takes to bring a project to life. From demolition to drywall, fixtures to final clean-up, the details add up fast.
A custom home budget usually ranges from $700K to $1.35M in the North San Antonio area, while remodeling can vary quite a bit depending on your home’s age, square footage, and scope. And it’s not just about materials and labor—your home construction budget or remodel plan should also account for design fees, permits, selections, site prep, and a contingency fund for the unexpected.
You can also check out our comprehensive cost guides for remodeling projects and how much to expect to invest in a custom home, but here's a few costs to give you an idea of what it might cost.
Here’s a Quick Overview of Average Remodeling Costs in the San Antonio Area:
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Kitchen remodels in San Antonio often range from $75K to $125K+
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Primary bathroom remodels typically cost $30K to $75K+
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Whole home renovations or large home additions remodeling projects can reach $250K to $650K+
When budgeting for a new home construction, you’ll also need to factor in land, site work, and utility connections. It’s a lot—but with the right team and plan, it’s completely manageable.
3. What Is the 30% Rule for Renovations?
When you're mapping out a remodel, the 30% rule is a great place to start. It suggests that you allocate no more than about 30% of your home’s value—or total project budget—for design upgrades or renovations.
How It Applies to Renovations
If your home is valued at $800,000, a renovation budget around $240,000 is a solid benchmark. This is especially helpful for larger projects like a full kitchen remodel, bathroom updates, or home additions remodeling—all of which can significantly boost value.
Why It Matters
It’s easy to underestimate how quickly selections add up, especially when you're dreaming big. The 30% rule keeps your budget realistic, helps avoid surprise overages, and leaves room for meaningful choices.
4. Financing Options for Remodeling or Building a Custom Home
When you're planning a major remodel or designing your dream home from scratch, financing is often a big part of the equation. Let’s look at the most common loan types, how they work, and what you’ll need to qualify.
Remodeling Loan Options
Home Equity Loan
A home equity loan lets you borrow against the equity you've already built in your house. It’s ideal for larger remodels like a kitchen overhaul or whole-home update.
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How it works: You receive a lump sum upfront and repay it over time at a fixed rate.
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Benefits: Predictable payments and interest may be tax-deductible.
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What you’ll need: Good credit, a solid amount of equity, and proof of income.
Home Equity Line of Credit (HELOC)
HELOCs are flexible, revolving credit lines that work like a credit card with a borrowing limit based on your home equity.
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How it works: Borrow as needed during the draw period; interest-only payments possible during this time.
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Benefits: Great for phased remodels or smaller, ongoing improvements.
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What you’ll need: Strong credit score, equity in your home, and stable income.
Home Improvement Loan
These are unsecured personal loans specifically designed for remodeling projects.
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How it works: You borrow a fixed amount and repay over a set term.
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Benefits: No equity required; quick approval.
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What you’ll need: Good to excellent credit and consistent income.
Cash-Out Refinance
This option replaces your existing mortgage with a new one at a higher amount, giving you the difference in cash.
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How it works: The difference between your old mortgage and the new one goes to your remodel.
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Benefits: Can lower your rate if current mortgage rates are favorable.
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What you’ll need: Home equity, good credit, and documentation for the remodel project.
Custom Home Construction Loans
New Construction Loan
Designed specifically for building a custom home, this short-term loan covers the cost of construction.
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How it works: You’ll draw funds in stages as work is completed.
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Benefits: Only pay interest on what you use; rolls into a long-term mortgage when construction is done.
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What you’ll need: Strong credit, detailed construction plans, builder contracts, and a down payment (typically 20%).
Construction-to-Permanent Loan
This is a two-in-one loan that simplifies the custom home building process.
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How it works: Funds your build and then converts into a standard mortgage.
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Benefits: One closing, one set of fees, one lender.
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What you’ll need: Detailed project plans, signed builder agreement, strong credit, and upfront documentation.
Land Loan (if purchasing land separately)
If you haven’t bought your lot yet, you may need to secure land financing before you start construction.
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How it works: Funds the purchase of raw land before construction begins.
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Benefits: Allows you to move quickly when the right property becomes available.
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What you’ll need: Down payment (often higher than standard loans), good credit, and a plan for building.
Need Help Planning Your Remodel or Custom Home in San Antonio?
At Hill Haven Homes, we know budgeting isn’t the most exciting part of building or remodeling, but it is one of the most empowering.
With the right plan in place, you’ll feel more confident, more prepared, and more excited about every decision ahead. Our team is here to help you think through the big stuff and the little details so nothing catches you off guard, starting with choosing a trustworthy contractor.
Let’s turn your budget into a roadmap for creating a space that truly fits your life. Ready to chat through your options? We’re just a call or a click away.
