A personal loan for home improvement provides the cash you need for your home renovation project without using your home as collateral. The best home improvement loans also come with low rates and fees, fast funding, and flexible terms. LightStream is our top pick due to the lender's high borrowing limits, industry-low rates, and extended repayment terms, but you'll need good credit to qualify.
Why trust Credible

The Credible editorial team is independent and unbiased — lending partners do not influence our editorial content. From rates and fees to customer experience, our expert editorial staff analyzed 899 personal loan data points across 31 lenders to simplify comparing personal loans. Using data-driven methodologies, we scored criteria that are important to you. This approach allows us to objectively rank personal loans so you can find the best loan for your situation. To learn more, read our methodology below.
Compare rates on home improvement loans
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
- Same-day funding available
- High maximum loan amount
- No origination fee
cons
- Good credit required
- No prequalification process
- Not available in Vermont
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
- Secured loans available
- Low minimum income requirement
- Scored second in J.D. Power's Consumer Lending Satisfaction Study
- Funds in 1-3 business days
- High close rate on loans through Credible platform
cons
- Origination fees
- No discounts
- Not available in DC, IA, VT, or WV
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of all Credible partner lenders and non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
pros
- Large loan amounts available
- Autopay and direct pay discounts
- Same day funding
- Long loan terms available
cons
- Not transparent about minimum credit score requirements
- 5,000 minimum loan amount
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
pros
- Eligible applicants can borrow up to $200,000
- Considers borrowers with fair credit
- Long repayment terms
cons
- Not available in IL, ND, and MT
- No discounts
- Minimum annual income requirement of $100,000
- Funding takes at least five days
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
- Same-day funding available
- High maximum loan amount
- No origination fee
cons
- Good credit required
- No prequalification process
- Not available in Vermont
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
- Secured loans available
- Low minimum income requirement
- Scored second in J.D. Power's Consumer Lending Satisfaction Study
- Funds in 1-3 business days
- High close rate on loans through Credible platform
cons
- Origination fees
- No discounts
- Not available in DC, IA, VT, or WV
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of all Credible partner lenders and non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
pros
- Large loan amounts available
- Autopay and direct pay discounts
- Same day funding
- Long loan terms available
cons
- Not transparent about minimum credit score requirements
- 5,000 minimum loan amount
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
pros
- Eligible applicants can borrow up to $200,000
- Considers borrowers with fair credit
- Long repayment terms
cons
- Not available in IL, ND, and MT
- No discounts
- Minimum annual income requirement of $100,000
- Funding takes at least five days
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewBest home improvement loans
There are several options for financing home improvements. Home equity loans and home equity lines of credit (HELOCs) are backed by the equity in your home; they may have higher loan amounts and lower interest rates but can take weeks or longer to get, and there's a risk of foreclosure. Credit cards may be an option for smaller projects, but rates are high unless you get a promotional offer (though 0% APR terms often max out at 21 months). The government also offers home improvement loans if you can qualify.
The lenders below offer the best personal loans for home improvement. These options are best if you don't have home equity or don't want to use it as collateral, or want an easy application process and quick funding.
Best home improvement loan
Loan Amount
$5,000 to $100,000

Same-day funding available

High maximum loan amount

No origination fee

Good credit required

No prequalification process

Not available in Vermont
Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best for excellent credit
Loan Amount
$1,000 to $50,000

Fair credit borrowers eligible

Autopay and direct pay discounts

Can fund in as little as 1 business day

Mobile app

Secured loans available

High maximum origination fee

Cosigners not accepted on home improvement loans

Low J.D. Power ranking
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best for excellent credit
Loan Amount
$5,000 - $100,000
Min. Credit Score
Does not disclose

Large loan amounts available

Autopay and direct pay discounts

Same day funding

Long loan terms available

Not transparent about minimum credit score requirements

5,000 minimum loan amount
Overview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Best debt consolidation loans for bad credit
Loan Amount
$1,000 to $50,000

Borrowers with bad credit considered

$25,000 annual income requirement

Autopay and direct pay discounts available

Can fund in one business day

High APRs

Potentially high origination fees

Not available in Iowa
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Loan Amount
$2,000 to $50,000

Secured loans available

Low minimum income requirement

Scored second in J.D. Power's Consumer Lending Satisfaction Study

Funds in 1-3 business days

High close rate on loans through Credible platform

Origination fees

No discounts

Not available in DC, IA, VT, or WV
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best for large personal loans
Loan Amount
$20,000 to $200,000

Eligible applicants can borrow up to $200,000

Considers borrowers with fair credit

Long repayment terms

Not available in IL, ND, and MT

No discounts

Minimum annual income requirement of $100,000

Funding takes at least five days
Overview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, credit card refinancing
Fast personal loans for all credit types
Loan Amount
$1,000 to $50,000

May fund in 1 business day

No minimum credit score requirement on lender site

Low minimum APR

Trustpilot score of 4.9/5 stars

May charge a high origination fee

No discounts offered
Overview
Upstart has one of the lowest available APRs of all Credible partner lenders and non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Methodology
Credible evaluated 31 lenders and over 800 data points to find the best personal loans for home improvement. Our expert team considered interest rates, loan amounts, funding times, collateral requirements, repayment terms, and eligibility criteria, such as prequalification rates, credit score and income minimums, and approved loan purposes. We chose the best lenders based on the following weighted categories:
- Rates and fees: 18%
- Loan terms: 18%
- Customer experience: 17%
- Eligibility: 14%
- Customer satisfaction: 10%
- Efficiency: 10%
- Options for poor credit and no credit: 9%
- Discounts: 4%
Each data point was sourced and verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.
What are home improvement loans and how do they work?
A home improvement loan is money you borrow from a lender and repay over time, often via monthly installments that include a portion of the money you borrowed plus interest. Some loans also come with other fees. The lender provides you with the cash you need, so you can pay your contractors, purchase appliances, or buy materials to renovate your home.
Some contractors also offer financing in partnership with third-party lenders or credit unions, sometimes with an interest-free period. But you should compare options from direct lenders as well. If you choose contractor financing, the lender will pay the contractor directly, and you'll repay the lender over time.
There are several types of home improvement loans, and they each work differently. Options include home equity loans and HELOCs, credit cards, personal loans, and government-backed loan programs.
Ways to finance home improvement projects
Below are some of the loan types you can use to finance a home renovation. Bear in mind that requirements vary by lender, and some loan types may not be available to new homeowners with insufficient equity.
Personal loans
Personal loans are typically unsecured installment loans. Companies lend you a lump sum, and you repay it, plus interest and fees, over a set period. The loan amount, loan term, interest rate, and amount you receive depend primarily on your income and credit profile.
- Loan amounts and repayment terms: Generally, loan amounts can range from under $1,000 to over $100,000, and loan terms range from one to seven years or more. For example, Lightstream lets you take out a 20-year personal loan to pay for home improvements.
- APRs: The average APR on a 24-month personal loan is 12.33%, according to the most recent data from the Federal Reserve. APRs generally range from 7% to 36%, and origination fees (when charged) can be as high as 12% of the loan amount.
- Collateral: Unlike home equity loans and HELOCs, personal loans don't typically require collateral. That means there's no risk of foreclosure, according to Teri Williams, President and COO at OneUnited Bank.
- Funding and approval: There are other benefits as well. "The application process for a personal loan is typically less burdensome and faster because it does not require the lender to appraise the value of your home to determine if there is sufficient equity to support a home equity loan or HELOC," explains Williams.
Home equity loans
Home equity loans, also called second mortgages, are secured installment loans backed by the equity you have in a home. Like personal loans, you receive a lump sum amount. But lenders require an appraisal of your home to assess its current fair market value and then will determine the amount you can borrow based on their loan-to-value (LTV) guidelines.
- Loan amounts and repayment terms: Loan amounts depend on how much equity you have, your interest rate, the monthly payment you can afford, and the lender — you can often borrow up to 85% of your home's equity. Loan terms generally range from five to 30 years.
- APRs: Like a first mortgage, home equity loans have interest charges and closing costs. The APR you get will depend on your credit profile, but home equity loan rates may be below 8% if you have very good credit.
- Collateral: Since home equity loans are secured by your property, failure to repay the loan can result in foreclosure.
- Funding and approval: The approval and funding process can take a month or more.
Home equity lines of credit
HELOCs, like home equity loans, are backed by the equity you have in your home.
- Loan amounts and repayment terms: You can often borrow up to 85% of your home's equity. However, instead of a lump-sum loan that's repaid over a set term, HELOCs give you access to a credit line that you can use as needed for a set term — typically 10 years.
- APRs: APRs may be slightly higher than home equity loan APRs.
- Collateral: Since HELOCs are secured by your property, failure to repay the loan can result in foreclosure.
- Funding and approval: The approval and funding process could take several weeks.
During the draw period, you can withdraw funds up to your credit limit, and lenders may only charge you interest on the outstanding amount. Once the draw period ends, the repayment period begins, which generally lasts up to 20 years.
Some HELOCs don't have closing costs, while others may charge an origination fee or other upfront fees. If your property value decreases during the draw period, the lender may not allow you to borrow more money.
Cash-out refinance loans
Cash-out refinance loans involve taking out a new, larger loan to replace your existing mortgage and cashing out the difference.
- Loan amounts and repayment terms: You can often borrow up to 80% of your home's value. A cash-out refinance has closing costs, a new interest rate, and a new term (typically 30 years).
- APRs: Slightly higher than mortgage refinance rates (without cash out).
- Collateral: Like other loans that require a home appraisal, your home is on the line if you miss payments.
- Funding and approval: Like other loans that require a home appraisal, a cash-out refi could take weeks or longer to close.
Since a cash out refinance replaces your original mortgage and extends the repayment period, you could end up paying much more interest over the life of the loan.

Important
The Consumer Financial Protection Bureau warns that a cash-out refinance may have a higher interest rate and increase the risk of foreclosure.
Credit cards
For smaller home improvement projects, a credit card can be an excellent tool.
- Loan amounts and repayment terms: Since credit cards are a revolving form of credit, like HELOCs, you don't have a set repayment schedule and can borrow against your credit limit on an ongoing basis. Borrowing limits are often lower than other loan types, and not all contractors accept credit cards.
- APRs: The average APR for a credit card is 21.76%, according to the Federal Reserve. But some credit card issuers offer an introductory 0% APR for up to 21 months. Some store-branded credit cards also offer interest-free promotions — for example, if you're redecorating, you could avoid interest for up to 2 years with the Wayfair credit card.
- Collateral: Most credit cards are unsecured.
- Funding and approval: Approval is quick and you could make purchases the same day you apply with a virtual credit card.

Warning
Watch out for deferred interest promotions on store cards. If you don’t pay the balance off in full during the promotional period, you could own back interest on the entire amount borrowed one the promotional period expires.
Government-backed loans
The Federal Housing Administration (FHA) and the U.S. Department of Veteran Affairs (VA) insure home loans offered by private lenders, which may have easier qualification requirements and lower closing costs.
The U.S. Department of Agriculture (USDA) also offers direct loans and grants to low-income, rural homeowners. Several loan programs can help homeowners who need cash for home improvements, including:
- Title I Property Improvement Loan: Title I loans are home improvement loans backed by the FHA that can be used for specific purposes, such as making your home more livable or accessible. You don't need to refinance to get a Title I loan. These loans are typically secured by the property, but loan amounts less than $7,500 may be unsecured.
- Government-backed cash-out refinance: If you meet the requirements, you can get a cash-out refinance loan backed by the FHA or the VA.
- 203(k) Rehabilitation Mortgage Loan: The FHA offers two loan programs you can use to buy or refinance a property that needs repairs or improvements. 203(k) loans require more oversight than a cash-out refinance, and you can only use the funds for approved home improvements.
- 504 Single Family Repair Loans and Grants: The USDA offers grants to fix health and safety hazards as well as direct loans with a 1% fixed interest rate that you can use for modernization or improvements. You must live in a rural area and meet very-low income requirements to qualify.
Tips on comparing personal loans for home improvement
As you research lenders offering personal loans for home improvement, consider the following features:
- Eligibility requirements: If you have fair or poor credit, your options will be limited. Consider lenders that specialize in serving borrowers with credit issues, such as Upstart or Avant. Also, consider whether the lender has minimum income or maximum debt-to-income ratio requirements. If you have excellent credit and a high income, you'll likely have access to any lender.
- Loan amounts: Some lenders offer larger loan amounts than others. For example, LightStream offers personal loans up to $100,000, and BHG Financial offers loans up to $200,000, although the amount you qualify for depends on your credit score. Many home improvement projects are expensive, so make sure to choose a lender that offers the amount you need.
- Repayment terms: Many personal loan lenders offer repayment terms between one and seven years, but some lenders offer extended terms for home improvement loans. For example, LightStream may offer terms of up to 20 years for some loan amounts. A longer term can be helpful if you need a large loan and you have a tight budget.
- Rates and fees: Some lenders offer lower APRs than others. It's a good idea to prequalify with a handful of lenders or use a loan marketplace to compare your individual rate estimates with different lenders. If you have good credit, you may even qualify for a personal loan with no fees.
- Lender reputation: Check customer reviews on third-party sites like Trustpilot to determine if borrowers are generally happy with their experiences, and make sure the lender you choose is licensed in your state.
Current home improvement loan rates
Interest rates on personal loans for home improvement vary depending on your credit score, loan amount, and repayment term. The table below shows the average rate borrowers pay in each credit tier based on prequalification data from the Credible loan marketplace.
Common home improvement projects and costs
You can use a personal loan for almost any household expense, from installing new lighting to remodeling your kitchen. Below are some of the most common home improvement projects and their average costs, based on the 2024 Cost vs Value report from Remodeling Magazine.
You can also use a personal loan to make energy efficiency upgrades to your home. If you do, you may qualify for a tax credit or home energy rebate to reduce the cost. Low-income homeowners may also qualify for the Weatherization Assistance Program. Some states also have special programs for residents.
Pros and cons of personal loans for home improvement

Pros
- Lower interest rates than credit cards
- Predictable monthly payments
- Don’t require collateral
- Funding within a few days
- Can be used for almost any expense, including cash-only purchases

Cons
- May have higher rates and shorter repayment terms than secured loans
- Increase your debt balance
- Good credit needed for the best rates
- Late or missed payments may harm your credit
How to get a personal loan for home improvement
- Organize your finances: Check your credit score and determine your monthly budget for debt repayment.
- Research lenders: If you decide to apply for a personal loan, narrow down your options by comparing requirements, repayment terms, loan amounts, and other factors. Find lenders that offer home improvement loans for your credit profile and annual income.
- Prequalify: Check your rate with multiple lenders to compare APR estimates, loan amounts, and terms. Not all lenders allow you to prequalify directly on their site. For example, to prequalify for a Lightstream loan, you'll need to do so via a personal loans marketplace like Credible.
- Formally apply: Choose the loan option that meets your needs and proceed with the formal application. Upload requested documents, suvh as that prove your identity, income, and address.
- Sign your loan documents: Read your loan agreement and make sure you're content with the final rate and monthly payment. E-sign necessary documents to initiate the funds transfer to your bank account.
FAQ
How big of a home improvement loan can I get?
Open
Personal loans typically come in amounts up to $50,000, but some lenders offer $100,000 or more. However, you may not qualify for the maximum, depending on your credit score, income, and other factors.
If you're applying for a home equity loan, the amount you can get depends on the share of your home that you own outright, known as your home equity. Many lenders allow you to borrow up to 80% of that amount. The VA allows cash-out refinance loans up to the full value of your home, while you may be able to borrow up to 80% of your home's appraised value with a conventional cash-out refinance.
Meet the expert:
Lindsay Frankel
Lindsay Frankel has been in personal finance for over eight years. Her work has been featured by MSN, CNN, FinanceBuzz, and The Balance.