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3. A home equity loan is the classic way to finance home renovations. Take out a loan against the equity in your own house. 1  Large amounts of money may be available for large projects like additions. 2  Lower interest rates than personal loans and credit cards. credit card that you pay off at the end of each month. Or a zero-interest that you don't have to pay off for six months or a year. Some homeowners pay off one zero-interest card with yet another zero-interest card, thereby creating a permanent, but risky, no-interest loan. 1  Money available quickly.
Down payment. Your down payment is another important factor in determining how much income youâll need to buy a home. Consider the following loan scenario using a purchase price of $300,000 (assuming no other debts) and the current rates on Zillow Mortgage Marketplace.or every dollar of debt, you will need double that in income. So if you have a $300 car payment, youâll need at least $600 per month or more in income to offset that debt.