In Minnesota and Wisconsin, a remodel is usually paid for with savings or a home equity loan or line of credit; FHA 203(k), HUD Title I and Minnesota Housing's Fix Up Loan are other routes. Original Medicare won't pay for grab bars or a bathroom remodel, but state Medicaid waiver programs and the VA's HISA benefit can fund accessibility work.
Loans that pay for a remodel
Home equity is the usual route. In NAR's 2025 Remodeling Impact Report, 54% of homeowners who remodeled paid with a home equity loan or line of credit, 29% used savings and 10% used credit cards. The Consumer Financial Protection Bureau explains the difference: a home equity loan pays you one lump sum, while a line of credit lets you draw money as you need it, usually at an adjustable rate, and either one is a second mortgage if you already have a mortgage (CFPB).
| Option | How it works | Good fit for |
|---|---|---|
| Home equity loan | One lump sum against your equity, fixed or adjustable rate | A single project with a known price, like an addition or kitchen |
| Home equity line of credit (HELOC) | Draw as you go up to a limit; rates are usually adjustable | A basement or a remodel done in stages |
| FHA 203(k), Limited | Adds repairs and improvements to a purchase or refinance mortgage | Minor remodeling and non-structural repairs |
| FHA 203(k), Standard | Same, for major rehabilitation, with a HUD-approved consultant | Structural work or a house that needs a lot |
| HUD Title I | Lender's property improvement loan, insured by HUD | Repairs and improvements that make the home more livable |
| Minnesota Housing Fix Up Loan | Fixed-rate loan through a participating lender | Minnesota repairs and improvements; accessibility loans have no income limit |
HUD's 203(k) program rolls the repairs into the mortgage when you buy or refinance. The Limited version covers minor remodeling and non-structural repairs, and the Standard version covers major rehabilitation and structural work and requires a HUD-approved 203(k) consultant (HUD 203(k)). HUD's Title I program insures private lenders' loans for improvements that protect or improve a home's basic livability (HUD Title I). In Minnesota, the state housing agency's Fix Up Loan goes through participating lenders and covers work from furnaces and windows to accessibility changes (Minnesota Housing).
For a home addition or a finished basement, the right loan depends on your equity, your current mortgage rate and whether you'd refinance anyway. A lender or HUD-approved housing counselor can compare them for your numbers. Whichever route you take, the lender will want an itemized scope and price, which is what a flat written quote gives you.
What Medicare will and won't pay for
Original Medicare pays for durable medical equipment, like walkers, wheelchairs and commode chairs, but not for changes to the house. Medicare's own coverage list denies grab bars as a "self-help device" that's "not primarily medical in nature," and denies bathtub seats and raised toilet seats as comfort or convenience items (CMS coverage list). A walk-in shower, a tub-to-shower conversion or a bathroom remodel changes the house itself rather than supplying equipment, so it falls outside that benefit too.
Medicare Advantage plans must cover the same categories of equipment as Original Medicare, and some add supplemental benefits on top. Medicare's equipment booklet says your plan's Evidence of Coverage document describes its cost-sharing and any supplemental benefits (Medicare.gov), so read it, or call the plan, before you assume a grab bar or shower seat isn't covered.
Minnesota, Wisconsin and VA help for accessibility work
Minnesota. The Department of Human Services' Consumer Directed Community Supports manual lists home modifications as a covered service for people on the Elderly Waiver, Alternative Care and the BI, CAC, CADI and DD disability waivers. The lead agency, your county or tribal nation, authorizes the funding and checks the contractor's qualifications, the work has to meet building codes and be inspected, and a modification can't add square footage beyond what an accessible bathroom needs (Minnesota DHS).
Your case manager is the person to ask. If you're not on a waiver, Minnesota Housing's Fix Up Loan program summary says its accessibility loans have no income limit and cover ramps, grab bars, handrails, stair lifts, wider doorways and bathroom fixture changes (Fix Up Loan summary).
Wisconsin. Family Care, which the state describes as a Medicaid long-term care program for older adults and adults with disabilities (Wisconsin DHS), counts home modifications as a benefit, including ramps, stair lifts and kitchen or bathroom modifications, and the managed care organization must approve every service before the member receives it (Family Care benefit package). IRIS, the self-directed option, lists environmental accessibility adaptations, meaning home modifications, and the place to start for either is your aging and disability resource center (Wisconsin DHS IRIS).
Veterans. The VA's HISA benefit pays for medically justified changes to a veteran's primary home, owned or rented, such as roll-in showers, lowered counters and sinks and permanent entry ramps. The benefit has a lifetime limit, and the application (VA Form 10-0103) goes in with a prescription from a VA physician, an itemized cost estimate and a photo of the area (VA HISA).
Each program sets its own eligibility, and approval comes before the work, so don't start a project on the assumption that it'll be reimbursed. For the upgrades themselves, see aging-in-place bathroom upgrades and our safety and mobility work.
Remodel programs, contractor financing and red flags
Every program in this guide starts with a lender, your county, a Family Care or IRIS agency, or the VA. If an ad says a remodeler can get you a bathroom paid for by a program, ask which program it is and check with that agency directly.
The Federal Trade Commission's warning signs of a home improvement scam include pressure for an immediate decision, a demand to pay everything up front or in cash, a contractor who asks you to get the permits, and a suggestion that you borrow from a lender the contractor knows. Its advice is never to take financing through a contractor without shopping and comparing loan terms (FTC).
Get the scope and price in writing before work starts. The FTC also notes that a contract signed in your home should include your right to cancel within three business days.
Can you finance a bathroom remodel?
Yes. More than half of the homeowners in NAR's 2025 remodeling survey paid with a home equity loan or line of credit, and FHA 203(k), HUD Title I and, in Minnesota, the state's Fix Up Loan are other options through lenders.
Compare rates and terms from more than one lender before you sign, and don't take a loan arranged by a contractor without shopping it. For accessibility work, check Medicaid waiver, Family Care or VA programs first.
Does Medicare pay for grab bar installation?
Original Medicare doesn't. Its coverage list denies grab bars as a self-help device that isn't primarily medical, and it treats bath seats and raised toilet seats as convenience items. A Medicare Advantage plan may offer supplemental benefits that help, so read your plan's Evidence of Coverage or call the plan.
Minnesota's waiver programs, Wisconsin's Family Care and IRIS, and the VA's HISA benefit can also pay for bars and other home modifications.
Does Medicaid pay for grab bars or home modifications?
It can, through long-term care programs rather than regular medical coverage. In Minnesota, DHS's Consumer Directed Community Supports manual lists home modifications as a covered service on the Elderly Waiver, Alternative Care and the BI, CAC, CADI and DD waivers, with your county or tribal lead agency authorizing the funding.
In Wisconsin, Family Care and IRIS both list home modifications such as ramps, stair lifts and bathroom changes; in Family Care the managed care organization approves a service before you receive it.
What is the best way to finance a home addition?
Usually it's a home equity loan, a line of credit or a refinance that rolls the project into the mortgage, such as an FHA 203(k) Standard loan for major work. A lump-sum loan suits a fixed-price addition, while a line of credit suits work done in stages.
Talk to more than one lender, and have a flat quote ready so they can see the full scope.
Need a number for your lender or program? Send photos and what you want done, or call or text (715) 919-7956, and we'll put the scope and a flat price in writing you can hand to them. For the bigger projects, see bathroom remodeling.
Next steps. The details of the job are on our bathroom remodeling page, with prices in How Much Does a Bathroom Remodel Cost in Duluth, MN? Based in Duluth, serving Superior.
Keep reading: Is a Remodel Worth It in Duluth? Kitchen, Bath, Basement and Replacing a Toilet or Faucet in Duluth: Measure First.