Using household-level survey data, this study investigates households’ latrine preference and financing mechanisms for improved latrines in the Ningo-Prampram district in the Greater Accra region of Ghana. Descriptive and inferential analyses are employed for data analysis and reporting. The results of the study show that a majority of the sampled households practice open defecation due to lack of funds and space for an improved latrine. Most of the households prefer the flush/pour-flush to the piped sewer system latrine or the ventilated improved pit (VIP) latrine. About half of the households prefer to use own funds via savings or ‘susu’ to build their latrines, and very few prefer funds from the financial institutions (FIs), albeit the FIs are interested in providing loans for household latrines. Empirical results from a binary logistic model show that there is some relationship between households’ latrine financing decisions and their socioeconomic and community characteristics, such as gender, education, household composition, income, tenancy, type of defecating practiced and type of community. The study recommends the need to educate households to consider ‘cheaper’ and more feasible latrine technologies, and also adopt joint-resource mobilization strategies for their latrines. There is also the need to educate the households on the possibility and conditions for alternative sources of funds for improved latrines. Policy efforts by the government and other stakeholders toward a sustainable uptake of improved sanitation should also consider the household and community factors that may influence a household’s latrine preference and financing decision.