Best Home Improvement Loans in April 2025

If you need a home improvement loan, an unsecured personal loan can provide up to $100,000 within days of your application (even the same day in some cases). You’ll get a fixed interest rate and fixed monthly payments, and can pay the money back over a few to several years. 

Compare the lenders below — LightStream is our top pick — to find the best home improvement loan for you, and consider the different types of home improvement financing available. Plus, discover average interest rates for home improvement loans based on your credit profile.

Best home improvement loans

The lenders below offer the best personal loans for home improvement. These options are best if you need quick funding, don’t have home equity, or don’t want to use it as collateral. 

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?

Home improvement loans come in different types: Home equity loans and home equity lines of credit (HELOCs) are backed by the equity in your home, while personal loans and credit cards are typically unsecured. There are advantages and disadvantages with each type. 

Government-backed loans

The Federal Housing Administration (FHA) and the U.S. Department of Veterans 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.
• Single Family Repair Loans and Grants: The USDA offers loans and grants up to $40,000 and $10,000, respectively, which can be combined for up to $50,000. Grants have a lifetime limit of $10,000 and don’t need to be paid back unless you sell your home within 3 years; loans have a fixed 1% interest rate and 20-year repayment period. Grants must be used to fix health and safety hazards, while loans can also be used to modernize or improve your home. You must live in a rural area and meet very-low income requirements to qualify. For grants, you must also be age 62 or older.

Related: How Do Personal Loans Work?

Tips on comparing personal loans for home improvement

Choosing the type of home equity loan

If you have home equity and good credit, you have a lot of options to finance home improvements, renovations, or repairs. If you don’t have home equity, your choices are simple: You could use a credit card or personal loan.

So how do you decide which type of home improvement loan is best? Narrow it down with our decision tree:

Comparing loan features

Once you’ve narrowed down to the type of loan you want or if you’re weighing multiple loan types, consider the following features between them:

• APR: The loan’s APR accounts for the interest rate and any upfront fees, like an origination fee. A lower APR is better, but keep the loan’s repayment term in mind. A longer term could cost you more in interest even with a low APR relative to a shorter term with a higher APR. 
• Repayment terms: As noted, the repayment term impacts the loan’s cost — a longer term generally means higher overall interest charges. However, a longer-term loan can keep monthly payments affordable. It’s usually best to choose the shortest term with monthly payments you can comfortably afford.
• Available loan amounts: If you’re planning a major home renovation, say one that costs over $100,000, you could be limited to getting a home equity loan. Some personal loan lenders, like Navy Federal, offer personal loans up to $150,000 for home improvements. Otherwise, compare lenders to find which ones offer the loan amount you need.
• Fees: Origination fees can reduce the amount of money you receive as they’re often taken out of the loan proceeds upfront. Make sure you borrow enough to cover your home project after any origination fee is deducted. 
• Tax deductibility: You generally can’t deduct the interest on a personal loan or credit card even if the money is used for home improvement, repairs, or renovations that substantially improve your home. On a home equity loan or HELOC, however, you typically can. 
• Eligibility requirements: Check what minimum credit score each lender requires and whether you meet minimum income requirements. 
• 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.

Check Out: How To Compare Personal Loans: A Step-by-Step Guide

Current home improvement loan rates 

Borrowers who were approved on the Credible personal loan marketplace received the following average interest rates for home improvement loans. 

Common home improvement uses and costs

Below are some common home improvement projects and their average costs, based on the Remodeling 2024 Cost vs Value report.

Pros and cons of personal loans for home improvement

Pros:

• Unsecured: Typically unsecured, so there's no risk of foreclosure.
• Quick application and funding: Easy application process and quick funding, often within a few business days.
• No home equity requirement: Suitable for those without home equity or who don't want to use it as collateral.
• Cash lump sum: Can provide a lump sum of cash upfront.
• Fixed rates: Fixed interest rates and fixed monthly payments make budgeting easier.
• Flexible loan amounts: May be able to borrow up to $100,000 or even more, depending on the lender.
• Flexible repayment terms: Repayment terms can be flexible, from a few to 20 years, depending on the lender.
• Lower rates than credit cards: Personal loans have lower average interest rates than credit cards — by almost 10 percentage points for two-year loans, according to Fed 2025 data.  

Cons:

• Higher interest rates than secured options: May have higher interest rates than secured loans like home equity loans.
• Lower loan amounts than secured loans: Loan amounts may be lower compared to home equity loans.
• High rates for fair/bad credit: If you’re approved for a loan with bad credit or fair credit, your rate could be north of 30% APR.
• Not tax-deductible: Unlike home-equity backed loans, interest paid on personal loans is generally not tax-deductible. 
• Upfront fees: Some lenders may charge an origination fee, which can be deducted from the loan proceeds.

How to get a personal loan for home improvement

Once you’ve decided the type of loan you want to get and compared lenders, the process is fairly straightforward. 

1. Apply for the loan: Have supporting documents ready like pay stubs, bank statements, a government-issued identification, and possible proof of residency. At this stage, most lenders will conduct a hard credit check, which could temporarily lower your score by up to 10 points. 
2. Respond to lender requests: Once you’ve initiated the application process, the lender may have additional requests. For instance, if you’re getting a home equity loan, you may need to schedule a home appraisal. However, if you’re getting a personal loan, you could be approved the same day you apply without additional requirements.
3. Review the loan agreement: If you’re approved for a loan, review the documentation carefully before signing. It could be different from any prequalification quotes you received. Confirm the monthly payment amount, start date, term of payments, APR, interest rate, upfront fees, and loan amount are as anticipated. 
4. Sign documents, await funding: Funding is usually fairly quick once you’re approved, with many lenders providing same- or next-day funding. 
5. Use the loan proceeds as intended: In most cases, you’ll have agreed in the loan document to use the money for home improvements. It’s important to comply with any loan use stated.

Learn More: How To Get a Personal Loan in 6 Steps