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Best Home Improvement Loans to Consider in 2024
Homeowners may sometimes need an expensive repair or identify an opportunity to renovate their home. Home improvement projects are often costly, but a home improvement loan can help you get a lump sum of cash and repay it over time.
Written by:Lindsay Frankel
The term home improvement loan typically refers to an unsecured personal loan used for home improvements, as opposed to a home equity loan, which has a longer approval process and is secured by your residence. Many lenders offer high borrowing amounts, flexible terms, and low interest rates for home improvement loans. They come with fixed rates and fixed monthly payments, so it’s easy to plan for repayment. Our team of financial experts reviewed and ranked more than 30 online lenders to help you make a decision about the best funding option for you.
Top Picks for Best Home Improvement Loans
- Credible - Best for Comparison Shopping
- SoFi — Best for Hardship Protection
- PenFed — Best Credit Union
- Upstart — Best for Bad Credit or No Credit History
- LightStream — Best for Large Loans with Long Repayment Terms
- Marcus by Goldman Sachs — Best for Flexibility
- Upgrade — Best for Joint Applications
Because personal loans can have a big impact on your finances, it’s important to spend a little time reviewing your options to make sure you’re not overpaying. Also, it’s usually worth comparing your rates across multiple lenders to ensure you’re getting the best deal for your credit history and financial situation.
Our team of financial experts ranked lenders based on our ratings methodology for personal loans and found the best home improvement loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.
Best Overall
Figure — Best for Secured Options
APR.
5.75% to 22.87%
Loan Amount
Up to $50,000
Min. Credit Score
600+
Key Features
- Autopay discount of 0.25%
- Prequalify without hurting your credit score
- Large loan amounts available
Pros & Cons
- Low starting APRs on both products
- Fast funding
- Easy online application
- Excellent customer service reviews
- No prepayment penalties
- Origination fee on personal loans
- Minimum 620 credit score for HELOC (720 in Oklahoma)
- Only 2 term choices for personal loans
Overview
In addition to offering unsecured personal loans of up to $50,000, Figure offers home equity lines of credit of up to $400,000 with relatively fast funding time for homeowners working on more extensive renovations.
Main Features
With Figure, you can apply for a personal loan between $5,000 and $50,000 with a term of 36 or 60 months. APRs range from 5.75% to 31.44% with an Autopay discount. There’s a 0% to 5% origination fee. You can get your funds as soon as the next day. Figure doesn’t disclose minimum requirements for its personal loan product, but in order to apply for a HELOC you must have a minimum credit score of 620. If you live in Oklahoma, you’ll need a 720, and if you’re using an investment property or applying for at least $200,000, you’ll need a 680. Credit lines start at $15,000 and go up to $400,00. You can choose a 5, 10, 15, or 30-year loan term and rates start at just 3.5%. You’ll receive your funds as soon as five business days after approval.
Figure is a great option for borrowers who want to use the equity in their home to secure a revolving line of credit for home improvement purposes. The Figure personal loan is worth comparing as well, though the most creditworthy borrowers may find fewer fees elsewhere.
Discover — Best for Good Credit
APR.
5.99-24.99%
Loan Amount
$2,500-$35,000
Min. Credit Score
660+
Key Features
- No origination fees
- Nine month deferment period
- Direct payments to creditors with debt consolidation loans
Pros & Cons
- Funding as soon as the next day
- APRs start at just 5.99%
- No origination fee
- No prepayment penalties
- Flexible repayment terms up to 84 months
- Extended customer service hours
- Late payment fee
- No co-signed or joint applications
Overview
If you have good or excellent credit, you can qualify for low rates at Discover, a lender that offers home improvement loans up to $35,000 with very few fees that can be used for any home-related cost.
Main Features
With Discover personal loans, you can borrow between $2,500 and $35,000 for any home improvement project and receive the funds as soon as the next day. Terms range from 36 to 84 months and APRs range from 5.99% to 24.99%. There are no origination or application fees and no prepayment penalties, but Discover may charge a late payment fee of $39. However, you can change your due date up to two times over the life of your loan. Discover doesn’t disclose a minimum credit score, but you’ll need at least $25,000 in annual income to qualify.
For those who can qualify, Discover personal loans come with flexible terms, low rates, fast funding, and few fees. They’re an excellent option for borrowers commencing a home improvement project and can be used for any home-related purpose.
Upgrade — Best for Joint Applications
APR.
5.94% to 35.97%
Loan Amount
$1,000-$50,000
Min. Credit Score
Not disclosed
Key Features
- Funding as soon as the next day
- Can be approved with fair credit
- Variety of discounts on rates
Pros & Cons
- A variety of discounts, including a rate discount for checking customers
- No prepayment penalties
- One-day funding
- Flexible repayment terms
- Low minimum borrowing amount
- Allows joint applications
- High origination fee
- High maximum APR
- Limited customer support hours
Overview
Many lenders only allow individual borrowers, but Upgrade allows you to apply with a co-borrower and considers credit information for both applicants. This can make it easier to qualify for a larger amount or better rates, but keep in mind that both borrowers will be responsible for repayment. Upgrade also has a rewards checking program and offers great loan discounts for customers. The flexible repayment terms also make this lender ideal for home improvement loans.
Main Features
Upgrade provides home improvement loans in amounts between $1,000 and $50,000 with flexible repayment terms between 24 and 84 months. There’s an origination fee between 2.9% and 8%, which will be deducted from your loan proceeds, and APRs range from 5.94% with Autopay to 35.97%. There are no restrictions on home improvement loans and you can receive your money as soon as the next day. Upgrade charges a late payment fee of up to $10 but doesn’t penalize you for paying off your loan early. The lender doesn’t disclose its minimum credit score or income requirements, but is known to be more lenient with fair credit borrowers than some other lenders.
For borrowers looking to apply jointly and choose between a variety of repayment terms, Upgrade’s home improvement loans are an appealing option.
AmOne — Best for Loan Comparison
APR.
4.37%-35.99%
Loan Amount
$100-$50,000
Min. Credit Score
550+
Key Features
- Variety of personal and business loans
- Fast application process
- Loans are available for borrowers with low credit scores
Pros & Cons
- See rates from top lenders with one application
- Home improvement loans up to $50,000
- Specialists available to assist during extended hours
- Options for people with a variety of credit scores
- Fast funding as soon as the next day
- Low APRs available to creditworthy borrowers
- Not a direct lender. Terms and requirements vary
- No live chat
Overview
For borrowers who need a reliable and easy way to compare APR estimates from a handful of lenders, AmOne is our top pick for a loan comparison platform. That’s because there are no minimum requirements, the application process is super intuitive, and customer support is top-notch.
Main Features
Since AmOne is a loan comparison platform, rates, terms, fees, and borrowing amounts are going to depend on the lender you are matched with. However, you can borrow up to $50,000 from send lenders, and there’s no minimum credit score or income requirements to satisfy before applying. Depending on the lender, you may be able to get your funds 24 hours after approval. AmOne performs a soft credit check to match you with lenders, so using the service won’t impact your credit score.
AmOne is a great place for borrowers to start their search for home improvement loans, especially if you’re not sure what you can qualify for. While it’s difficult to assess your options without applying, the process is quick and easy and won’t hurt your credit.
Marcus by Goldman Sachs — Best for Flexibility
APR.
6.99% to 19.99%
Loan Amount
$3,500-$40,000
Min. Credit Score
660+
Key Features
- No origination fees or late fees
- Customizable monthly payment
- No prepayment penalties
Pros & Cons
- Customizable terms
- Relatively low APRs
- No fees of any kind, even late fees
- On-time payment reward
- No prepayment penalties
- No cosigners or joint accounts
- Fair credit borrowers may not qualify
- Funding time can be relatively lengthy
Overview
Marcus offers home improvement loans for borrowers who want some payment flexibility, providing nine different term choices, the option to change your due date, and an on-time payment reward that allows you to skip a payment down the road if you’ve kept a positive payment history.
Main Features
You can borrow between $3,500 and $40,000 from Marcus for any home improvement and pay back the loan in your choice of nine terms, which makes your monthly payment highly customizable. Terms range from three to six years. APRs range from 6.99% to 19.99%, you can save 0.25% APR when enrolling in Autopay, and there are no fees whatsoever. It takes about one to four business days to receive your funds once you’re approved. Marcus doesn’t specify minimum requirements, but only the most creditworthy borrowers will qualify for the lowest rates. If you make your payments on-time for 12 months, you’ll have the option to defer payment for a month, which can be helpful during tough times.
Marcus by Goldman Sachs home improvement loans are ideal for borrowers who anticipate the need for flexibility with regards to how much and when they pay.
LightStream — Best for Large Loans with Long Repayment Terms
APR.
2.99% to 19.99%
Loan Amount
$5,000-$100,000
Min. Credit Score
Not Disclosed
Key Features
- Funding as soon as the same day
- Allows joint applications
- No origination fee
Pros & Cons
- Low rates starting at 4.99% with Autopay
- Flexible terms from 24 to 84 months, depending on amount
- No fees whatsoever
- No prepayment penalties
- Rate beat program
- 30-day loan experience guarantee
- No prequalification option
- Good or excellent credit needed for approval
- High minimum borrowing amount for longer term loans
Overview
LightStream offers large home improvement loans up to $100,000 with flexible repayment terms as long as 240 months and some of the lowest starting rates in the industry. LightStream personal loans can be used for any home improvement purpose, including pool and solar installation. This lender is best for creditworthy borrowers working on larger projects.
Main Features
You can borrow between $5,000 and $100,000 for your home improvement project from LightStream and choose a term between 24 and 240 months. However, for terms lasting longer than 84 months, you must borrow at least $25,000. Rates for home improvement loans start at 4.99% with Autopay and go up to 16.49%. There’s no origination fee or any other fees of any kind. To qualify, you’ll need several years of credit history with good payment history, enough savings or assets, and stable and sufficient income, though LightStream doesn’t disclose a hard minimum credit score or salary amount. Since there’s no option for a soft credit pull, we don’t recommend applying unless you have a score of at least 660.
Lightstream is a great fee-free home improvement loan option for creditworthy borrowers and offers a ton of flexibility with regards to repayment terms. The lender is best for homeowners undertaking expensive projects that require a longer repayment period.
Upstart — Best for Bad Credit or No Credit History
APR.
3.09% - 35.99%
Loan Amounts
$1,000-$50,000
Min. Credit Score
600+
Key Features
- Loans can be funded in one busines day
- Prequalification with a soft credit check
- Accepts borrowers with fair credit
Pros & Cons
- Most customers get funds the next business day
- Open to borrowers with poor credit and no credit history
- Rates starting at just 5.22%
- Excellent customer service reviews on Trustpilot
- No prepayment penalties
- May charge an origination fee
- Late payment fee
- Only two term choices
Overview
You can apply for a personal loan from Upstart even if you are credit invisible or have a score as low as 300. You can prequalify without hurting your credit and get your funds fast once you’re approved. The lender offers home improvement loans for any home-related repair or renovation up to $50,000.
Main Features
You can borrow anywhere from $1,000 to $50,000 for your home improvement project from Upstart and choose a three or five-year repayment term. APRs range from 5.22% to 35.99%. The minimum credit score is only 300 and borrowers with insufficient credit history to generate a score are also welcome to apply. However, you can’t have any bankruptcies or delinquent accounts and your debt-to-income ratio can’t exceed 50% (45% in some states). Depending on when you sign your loan offer, you’ll get your funds the next business day or within two business days.
Upstart is an ideal home improvement lender for borrowers with less-than-perfect credit. Even creditworthy borrowers may want to check their rate with Upstart. However, since there are only two term choices, just be sure the monthly payment will work for you before you apply.
PenFed — Best Credit Union
APR.
4.99% to 17.99%
Loan Amount
$600-$50,000
Min. Credit Score
Not disclosed
Key Features
- Low interest rates
- No origination fees
- You can apply with a co-borrower
Pros & Cons
- Low cap on APRs
- No origination fee
- No prepayment penalties
- Next-day funding
- Pre-qualification option
- Joint applications allowed
- Secured options available
- Low minimum borrowing amount
- Little payment flexibility
- No discounts
- Membership required
Overview
PenFed offers home improvement loans with next-day funding, affordable rates, and no prepayment penalties. However, you’ll need to be a member of PenFed to get a personal loan from the credit union, so it’s best for borrowers who are also looking for a checking or savings account or who want in-person assistance with applying for a loan.
Main Features
You can borrow anywhere from $600 to $50,000 with APRs ranging from 4.99% to 17.99% and with a repayment term of up to 60 months. There are no origination fees or prepayment penalties, but there is a late fee of $29. You can get funding in one to two business days after verification. PenFed doesn’t report a minimum credit score or income requirements, but you’ll need excellent credit to qualify for the best rates.
PenFed is a great option for borrowers looking for low rates on a home improvement loan less than $50,000. If you don’t mind the membership requirement, you’ll enjoy several benefits to using PenFed for your home improvement financing.
SoFi — Best for Hardship Protection
APR.
6.99% to 21.78%
Loan Amount
Up to $100,000
Min. Credit Score
680+
Key Features
- No origination, prepayment, or late payment fees
- Joint applications accepted
- Offers .25% discount for autopay
- Borrowers up to $100,000
Pros & Cons
- Flexible terms from 24 to 84 months
- No fees of any kind
- No prepayment penalties
- Borrow up to $100,000
- Unemployment protection
- Forbearance for natural disasters and national emergencies
- Higher starting rates for longer term loans
- Low approval odds for fair credit borrowers
- $5,000 minimum borrowing amount
Overview
SoFi offers personal loans with no fees and low rates, especially to creditworthy borrowers. SoFi is also one of the few lenders to offer unemployment protection to borrowers with accounts in good standing.
Main Features
SoFi offers personal loans for home improvement in amounts ranging from $5,000 to $100,000 with repayment terms ranging from 24 to 84 months. APRs range from 5.74% to 21.78%, which includes a 0.25% Autopay discount and a 0.25% direct deposit discount. Once your loan has been in good standing for nine months, you’ll be eligible for unemployment protection, which allows you to pause your payments if you lose your job through no fault of your own. SoFi does not specify minimum requirements, but many third party sources report that you’ll need good or excellent credit to be approved. Funding time isn’t as quick as some other lenders, but you’ll receive your money within a few business days of being approved.
SoFi’s large loan amounts are ideal for homeowners taking on large projects who want added protection in case of hardship. However, fair credit borrowers may not qualify.
Credible - Best for Comparison Shopping
APR.
2.49% to 35.99%
Loan Amount
$600-$100,000
Min. Credit Score
560+
Key Features
- Checking rates does not affect credit score
- Best rate guarantee
- Allows you to compare loans from top-rated lenders
- Loan amounts up to $100,000
- No hidden fees
- Easy online application
Pros & Cons
- Competitive interest rates
- No hidden fees or prepayment penalties
- Low credit accepted
- Flexible repayment terms
- Excellent customer service
- Not a direct lender
- Rates will vary by lender
- Some lenders may charge late fees
Overview
Credible understands the work that goes into a home improvement project. Rather than spending valuable time looking for a loan, let Credible do that for you. With one easy online application, you’ll be matched to home improvement loan lenders that you qualify for. Rates are competitive, and depending on the lender you choose, funds can be in your account within 24 hours.
Main Features
Credible offers home improvement loans from $600 to $100,000, with rates starting at 4.60%. Credible is not a lender but a loan marketplace connecting you with reputable lenders within minutes. There are no hidden fees and low credit is accepted. To apply for a home improvement loan with Credible, simply fill out their easy online application. You’ll be matched with lenders you qualify for, and from there you can choose your loan amount, rate, and lender. If approved, you’ll sign for the loan and may receive funds as soon as the next business day.
Credible offers large loan amounts you can use for any home improvement project, flexible repayment terms, and competitive rates. Best of all, they do the comparison shopping for you, allowing you to focus on making improvements to your home. Customer service with Credible is excellent, so don’t be afraid to reach out with any questions or concerns you have.
How to Choose the Best Home Improvement Loan
As you compare lenders that offer home improvement loans, there are several important factors to consider. We evaluated our picks based on the following:
- Loan features: Make sure the lender offers the amount you need with a term length you can afford. And pay attention to any restrictions on loan use that would prevent you from using the proceeds for your home improvement project.
- Interest rates and fees: Consider the full range of APRs and see if you can get a rate estimate. Don’t forget to consider fees like origination fees and prepayment penalties as well.
- Application process: Make sure you understand the process and understand when a hard credit check will be required. If you prefer to transact online, make sure the lender has a quick and easy online application process
- Qualification process: It doesn’t make sense to apply for loans you can’t qualify for, so eliminate any options that require a higher credit score or income than you have. Some lenders may have membership requirements or location restrictions as well. If you want to apply with a co-signer or co-borrower, be sure to narrow down your choices to lenders that allow co-signed or joint applications.
- Customer support: Look at the methods of reaching customer support and their operating hours. Make sure it will be convenient for you should you ever need assistance.
- Online user reviews: Independent review sites like Trustpilot can give you an idea of whether customers are satisfied with a particular lender. It’s okay if a lender has a few negative reviews, but serious complaints from a large share of customers is a red flag.
- Perks and bonuses: Some lenders may offer hardship protection programs or more payment flexibility than others. Choose the features that are important to you. Pay attention to the online tools and the transparency of the company’s website as well.
Main Features of The Best Home Improvement Loans
PenFed4.4
Rocket Loans 4.4
Upgrade4.7
AmOne 4.7
Marcus by Goldman Sachs 4.2
Discover4.7
SoFi4.6
Upstart 4.5
Figure4.7
LightStream4.3
- Est. APR - 4.99% to 17.99%
- Min. Credit Score - Undisclosed
- Loan Amount - $600 to $50,000
- Loan Term - Up to 60 months
What Is a Home Improvement Loan?
A home improvement loan is any type of credit issued by a lender for the purpose of home improvement. Typically, it refers to an unsecured personal loan that is repaid in fixed installments. But you may also hear the term “home improvement loan” in reference to a home equity loan or home equity line of credit that is being used to fund a home improvement project.
How Does a Home Improvement Loan Work?
With a typical unsecured personal loan used for home improvement, you apply for the amount you need to finance your project. You’ll receive the funds in a lump sum, minus any origination fee. You’ll then repay the loan in fixed monthly payments of principal and interest. Over time, you’ll pay more than the amount you received upfront, but you’ll have the privilege of having access to the cash right away.
Common Uses of Home Improvement Loans
Home improvement loans can be used for almost any home renovation, installation, or repair. Below are some common projects that are well-suited for a home improvement loan. We’ve included the average cost of each project from HomeAdvisor’s 2021 True Cost Report to help you estimate how much you’ll need to borrow.
| Project | Average Cost |
| Bathroom Remodel | $13,401 |
| New Flooring | $4,680 |
| Kitchen Remodel | $35,317 |
| New Roofing | $9,375 |
| Deck or Porch | $7,994 |
| New Cabinets | $5,832 |
| New HVAC | $5,371 |
| New Windows | $9,131 |
| Home Addition | $52,157 |
| New Siding | $13,974 |
| In Ground Pool | $49,245 |
| Solar Panel Installation | $25,100 |
How to Get a Home Improvement Loan
- Decide how much you need to borrow. Look at average costs for projects in your area or get a quote from a contractor.
- Choose a few lenders from this list that you can qualify for based on your credit score and income. Make sure they offer the amount and repayment term you need.
- Check your rate with each lender that offers a pre-qualification option. Or, use a loan comparison site like AmOne to view rates from multiple lenders in one spot.
- Choose the lender that offers the lowest rate and terms that meet your needs.
- Formally apply for the loan offer of your choice, submitting additional documentation as required.
- Read the fine print, make sure you’re happy with your final rate, and electronically sign your loan documents to accept the funds.
- Wait for the money to be deposited into your bank account, which could happen the same day or take up to a week, depending on the lender.
Home Improvement Loan Rates
The average interest rate on all 24-month personal loans is 9.09%, according to the Federal Reserve, but rates can vary substantially depending on your credit score, term, and borrowing amount. According to the most recent personal loan data from Credible, borrowers paid the following average rates based on their credit score:
| Credit Tier | Avg. APR (3-Year Loan) | Avg. APR (5-Year Loan) |
| 780+ | 8.89% | 11.38% |
720-779 | 12.02% | 14.01% |
| 680-719 | 16.35% | 17.84% |
| 640-679 | 22.06% | 22.17% |
| 600-639 | 26.62% | 28.19% |
| Less than 600 | 30.64% | 29.32% |
Types of Home Improvement Loans
The uses for home improvement loans are nearly limitless, but here are some of the most common types of home improvement loans:
- Kitchen Remodel Loans: Since these projects can get pretty pricey, we recommend going with a lender that offers large loan amounts and long repayment terms, such as SoFi, LightStream, Upstart, or Upgrade. A HELOC from Figure could also make sense, especially if you’re completing the remodel in multiple smaller projects with different contractors.
- Bathroom Remodel Loans: Any lender on our list would be an appropriate choice for a bathroom remodel. It may be a good idea to compare rates with AmOne.
- Roof Loans: Roofing prices can vary greatly depending on the size of your home, so just make sure you apply with a lender that can offer you enough funding.
- Pool Loans: Installing an in-ground pool is expensive, so a lender like LightStream that offers high borrowing amounts, low rates, and long terms will be your best bet.
- Deck Financing: While the price of these projects can vary, the cost of a new deck or porch will likely fall into the loan limits of any of the lenders on our list. Aim for the lowest possible APR.
- Solar Installation: Most lenders on our list can fund a solar installation, so look for the lowest rate and a monthly payment you can afford.
Home Improvement Loan Pros and Cons
Pros
Unsecured, so you won’t risk losing an asset
Few restrictions on use
Faster than equity-backed forms of financing
Repay in predictable, fixed monthly payments
Cons
Higher rates than a home equity loan or HELOC
Received as a lump sum upfront, which could be a drawback if you don’t know how much you’ll end up needing to borrow
Can be more difficult to qualify for than secured financing
Other Types of Home Improvement Financing
If an unsecured home equity loan doesn’t seem like the right fit for your household, there are a few other forms of financing you may consider:
- Home Equity Loan: A home equity loan is an installment loan secured by the equity you’ve built in your home. It’s great for expensive projects because you can borrow up to 85% of your available equity. You repay a home equity loan in fixed monthly installments, and you’re likely to qualify for a lower APR since the loan is secured. However, keep in mind home equity loans come with closing costs and it can take a while to get the funding you need.
- HELOC: A home equity line of credit is a revolving credit line secured by the equity you’ve built in your home. You can borrow from it as needed during the draw period, and then make monthly payments, typically with variable interest, during the repayment period that follows. HELOCs come with low rates and are especially helpful for homeowners who can’t afford to begin repayment right away.
- Cash-Out Refinance: This is a type of refinancing that replaces your current mortgage with a new loan for more than you previously owed. You get the difference as cash, which you can use to remodel or repair your home. You’ll begin making monthly payments on the new mortgage right away.
Conclusion
If you need cash to renovate or repair your residence, there are plenty of financing options to choose from. If you want to avoid a lengthy process with a ton of paperwork, you might prefer the convenience of an unsecured personal loan for your home improvement needs. To help you narrow down your options, we evaluated dozens of lenders to choose the best 10. We suggest comparing your individual rate with a few different lenders on this list before applying to the home improvement lender of your choice. That brand new roof, pool, or deck could be closer than you think.
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About the Author
Lindsay Frankel
Lindsay Frankel is a Denver-based freelance writer specializing in personal finance. She covers topics such as loans, insurance, credit cards, budgeting, and more.
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