A home renovation loan is an unsecured personal loan you can use for home improvement projects. A renovation loan lets you borrow money for kitchen or bathroom remodeling, upgrading outdoor space, or adding a new room. This way, you can improve your home without waiting to save money.
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Finding the best renovation loan can be tricky. You want good terms, low rates, and a process that's not too complicated. That's why our team of financial experts ranked the best personal loans based on our rating methodology to help you get funded.
This rating 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.
Allows you to compare loans from top-rated lenders
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
Credible is a loan marketplace that matches you with the best personal loans for home renovation. With one simple online form, you'll find multiple home renovation lenders that suit your needs. Interest 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 5.40%. There are no hidden fees, and the minimum credit score is 600. To apply for a home renovation loan with Credible, fill out an easy online application form. 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 improving your home. Customer service with Credible is excellent, so don’t be afraid to reach out with any questions or concerns you have.
LendingTree is a loan aggregator that allows you to pick the best personal loan option for home renovation. This can help save you time applying for loans across several websites. Their comparison tool only requires basics about your loan total, annual income, location, and tax information before it shows you a list of prospective lenders. You can also specify how soon you need funding, starting at around two days.
Main Features Since LendingTree pairs borrowers and lenders, the loan terms and amounts vary between lenders. You can consider these factors in your initial screening to reduce the chance of matching with lenders that don’t suit your needs. This can help reduce the amount of time you need to spend chasing down the best offer.
Interest rates range between 5.99% to 35.99%, depending on the lender you choose. You can borrow up to $50,000 for any home renovation project, and the minimum credit score is 350. The repayment terms are between 12 to 144 months. LendingTree tries to match you with the right funding partners based on your qualification criteria.
LendingTree is a good option for renovation loans because of their long track record and the size of their affiliate network. Their services make it easy for applicants to compare loans in one place, all based upon criteria and personal information you provide. Keep in mind that LendingTree asks for a considerable amount of information as part of their process. You may find yourself selected for other credit offers from their affiliates.
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
SoFi offers personal loans with no fees and low rates for borrowers with good and excellent credit scores. SoFi is also one of the few lenders to offer unemployment protection to borrowers with accounts in good standing.
SoFi offers personal loans for home renovations ranging from $5,000 to $100,000 with repayment terms ranging from 24 to 84 months. APRs range from 8.99% to 23.43%, 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. To qualify, you need to have a minimum credit score of 680, which makes it the best choice for good or excellent credit. Funding time isn’t as quick as some other lenders, but you’ll receive your money within a few business days of approval.
SoFi’s large loan amounts are ideal for homeowners taking on large renovation projects and want added protection in case of hardship. However, fair credit borrowers may not qualify.
LightStream — Best for Large Home Renovation Loans
Flexible terms from 24 to 84 months, depending on amount
Funding as soon as the same day
Min. Credit Score: 660
Pros & Cons
No fees whatsoever
No prepayment penalties
Rate beat program
30-day loan experience guarantee
Allows joint applications
No prequalification option
Good or excellent credit needed for approval
High minimum borrowing amount for longer term loans
LightStream offers large home renovation loans up to $100,000 with flexible repayment terms as long as 84 months and some of the lowest starting rates in the industry. LightStream personal loans can be used for any home renovation project, including kitchen and bathroom remodeling or pool installation. LightStream is best for creditworthy borrowers working on larger projects.
LightStream enables you to borrow anywhere between $5,000 and $100,000 for your home renovation project. You can choose a repayment term between 24 and 84 months. Rates for home renovation loans start at 7.99% with Autopay and go up to 24.99%.
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 an ideal option for fee-free home renovation loans for borrowers with good credit. The lender offers flexible repayment terms. The lender is best for homeowners undertaking expensive projects that require a large loan amount with a longer repayment period.
Open to borrowers with poor credit and no credit history
Rates starting at just 3.22%
Excellent customer service reviews on Trustpilot
No prepayment penalties
May charge an origination fee
Late payment fee
Only two term choices
Upstart is an artificial intelligence (AI) lending platform that enables you to borrow money with fair terms and affordable options. Unlike some of the other lenders, Upstart is open to borrowers with poor credit. However, those with good credit will have access to lower rates and higher loan limits. Upstart’s digital lending experience automates much of the application and loan process for personal loans.
Upstart enables you to borrow anywhere from $1,000 to $50,000 for your home renovation project. You can choose either a three or five-year repayment term. APRs range from 3.22% to 35.99%. The minimum credit score is only 600 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 ideal for fast loan approval and for borrowers with less-than-perfect credit. Creditworthy borrowers should also check Upstart since they will get favorable terms and rates. However, since there are only two term choices, be sure the monthly payment will work for you before you apply.
A variety of discounts, including a rate discount for checking customers
No prepayment penalties
Flexible repayment terms
Low minimum borrowing amount
Allows joint applications
High origination fee
High maximum APR
Limited customer support hours
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. Keep in mind that both borrowers will be responsible for repayment. Upgrade also offers great loan discounts for customers and has a reward checking program.
Upgrade provides home renovation 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 8.94% with Autopay to 35.97%.
There are no restrictions on home renovation 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 various repayment terms, Upgrade’s home improvement loans are an appealing option.
As you compare home renovation 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.
Qualification process: 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.
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
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.
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.
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 Renovation Loans
Est. APR - Starting at 5.40%
Min. credit score - 600
Loan Amount - $600 to $100,000
What is a Home Renovation Loan?
A home renovation loan is a financial product designed to fund home improvement projects. These loans can cover kitchen or bathroom remodels, room additions, pool installations, or outdoor upgrades. Instead of saving for years to afford a home improvement, borrowers can obtain this loan and repay it over a set period of time, making home improvements more immediately accessible.
How Do Home Renovation Loans Work?
A home renovation loan works much like any unsecured personal loan. You apply for the amount you need to finance your home renovation 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.
How to Get a Home Renovation Loan
Securing a home renovation loan can be straightforward if you know the necessary steps. Here are seven key actions to take to ensure you successfully obtain a loan for your home improvement project:
Check Your Credit Score: Before applying, ensure your credit score is sound as it significantly influences the loan terms you'll receive. High scores usually translate to better loan terms.
Understand Various Loan Options: Research home renovation loan options like personal loans and home equity loans to identify the best fit.
Compare Rates: Look at various lenders for the most favorable interest rates and terms.
Prepare Documents: Ready your income proof, tax returns, and renovation details for the loan application.
Apply for a Loan: Choose a lender with suitable terms and submit your application.
Wait for Approval: Lenders need time to review your application, usually a few days to weeks.
Review and Accept Terms: If approved, review the loan terms before signing.
The average interest rate on all 24-month personal loans is 11.48%, 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:
Avg. APR (3-Year Loan)
Avg. APR (5-Year Loan)
Less than 600
Pros and Cons of Home Renovation Loans
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
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
Alternatives to Home Renovation Loans
If an unsecured personal 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—this is a type of 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.
HELOC—lets you draw against your home's equity. It's more flexible because you can borrow as you go, and you only pay interest on the amount you use.
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.
Credit Cards—if the project is small, you might consider using a credit card. Some offer 0% APR for a promotional period, which could be a good deal if you can pay it off before the rate increases.
Government-Backed Loans—certain government programs such as FHA 203(k) loan, offer loans for specific home improvements, like energy-efficient upgrades.
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 renovation 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.
Are Home Improvement Loans Tax Deductible?
Unsecured personal loans used for home improvement purposes are not tax deductible. However, interest paid on home equity loans and home equity lines of credit that are secured by your home is deductible if the funds are used to “buy, build, or substantially improve” the property that backs the loan. For more details, see IRS Publication 936.
How Much Can You Borrow with a Home Improvement Loan?
Most lenders offer home improvement loans between $1,000 and $50,000, but some lenders offer loans up to $100,000. You’re not likely to find an unsecured loan for more than that, so consider a home equity loan or HELOC if you need more cash for your project.
Can I Borrow More on My Mortgage for Home Improvement?
It’s possible to borrow more than a property appraised for with the intent of improving the property. One option is to apply for a 203(k) loan through an FHA-approved lender. You can either borrow the amount you need for the purchase and remodel under one mortgage or use the loan to finance a remodel on a residence you previously purchased. The U.S. Department of Housing and Urban Development has strict eligibility requirements for these loans, however. Other options include the VA renovation loan, USDA renovation loan, Fannie Mae HomeStyle renovation loan, and Freddie Mac CHOICERenovation loan.