Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.
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What To Know First
A home improvement loan can help you finance a project that will improve or repair your home. You may take one out to remodel your kitchen, replace your roof, finish your basement, or do anything else to your indoor or outdoor space. To apply for a home improvement loan, you’ll need to find the right lender for your situation and fill out its application.
To select the top personal loan lenders, Bankrate considered factors that help consumers decide whether a lender is a good fit for them, such as credit requirements and minimum APRs. We sought lenders with low fees and a range of loan amounts for borrowers with varying budgets and credit profiles. We also looked for conveniences like online applications and fast funding.
In addition, the lenders featured here were evaluated for notable features like customer discounts and flexible repayment options.
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
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* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 7% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. For a well-qualified customer, a $10,000 loan for a period of 48 months with an APR of 24.34% and origination fee of 7% will have a payment of $327.89 per month. (Actual terms and rate depend on credit history, income, and other factors.) Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. If the origination fee is added to the financed amount, interest is charged on the full principal amount. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.
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Use your loan through Upgrade to pay on high interest credit cards, make a large purchase, finish that home improvement project, or almost any life event!
* Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.93%. All personal loans have a 5.25% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 in your account and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early .
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Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. "Best Egg" is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of "Best Egg" refer to "the Best Egg personal loan", "the Best Egg Secured Loan", and/or "Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan," as applicable.
The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank's policies. Loan amounts range from $2,000 - $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99% - 35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99% - 5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.
You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
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Fixed rates from 6.99% APR to 22.23% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 6/15/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
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"This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements."
9 out of 10 customers would recommend Prosper to friends or family*
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For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.
Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
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*A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC.
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The Bankrate guide to choosing the best personal loan for home improvements
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When shopping for the best home improvement loan, look for the lowest interest rate, an affordable repayment term and low to no fees. Loan details presented here are current as of the publication date. Check the lenders’ websites for the most up-to-date information. The top lenders, listed below, are selected based on factors such as APR, loan amounts, repayment terms, credit requirements and broad availability.
Overview:LightStream’s unsecured personal loans are big enough for major home projects and come with competitive rates for qualified borrowers.
Why LightStream is best for long-term financing: The online lending arm of Truist (formerly SunTrust Bank) offers terms as long as 12 years for home improvement loans.
High maximum loan amount
Good to excellent credit required
High minimum loan amount
Undisclosed eligibility requirements
Who the lender is best for: LightStream is best for borrowers with excellent credit who are most likely to qualify for the lender’s lowest rates.
Impact on home improvement: If you are looking to finance a bigger project that will take longer to pay off, LightStream could be the way to go. With no fees, low APRs and long repayment terms, LightStream allows borrowers to stretch out the life of their loan without accruing too much interest.
Time to receive funds: Borrowers can expect to receive funds as soon as the same day they are approved.
Fees: LightStream does not charge any additional fees.
Additional requirements: LightStream does not disclose eligibility requirements on its website.
Overview: SoFi, an online-only lender, offers personal loans for home improvements ranging from $5,000 to $100,000.
Why SoFi is best for unemployment protection: SoFi’s Unemployment Protection Program temporarily pauses your payments if you lose your job.
Range of repayment terms
Low maximum APR
Good to excellent credit required
Not available in Mississippi
High minimum loan amount
Who the lender is best for: SoFi is best for borrowers taking on a big home improvement project. The lender’s maximum loan amount of $100,000 and repayment terms from 2 to 7 years allow borrowers to budget for a larger project like installing a swimming pool or doing a major repair.
Impact on home improvement: SoFi is a great option for a home improvement loan, with no additional fees, low APRs and a range of repayment options.
Time to receive funds: Borrowers can expect to receive funds within a few days of approval.
Fees: SoFi does not charge any additional fees.
Additional requirements: Borrowers must have a minimum credit score of 680 to qualify.
Overview:Marcus by Goldman Sachs is an online lender that offers unsecured personal loans for home improvements. You do not have to have a relationship with Goldman Sachs to apply.
Why Marcus by Goldman Sachs is best for minor home improvement projects: You can borrow as little as $3,500, which is good for minor fixes around the house.
Mobile app available
Option to defer payment without interest
No co-signers allowed
Limited loan amount range
Undisclosed eligibility requirements
Who the lender is best for: Marcus by Goldman Sachs is best for good to excellent credit borrowers who are more likely to qualify for the lender’s lowest rates.
Impact on home improvement: Marcus offers a smaller range of loan amounts than others on this list, making it well-suited for smaller projects. The lender does not charge any fees and caps its APRs at 19.99 percent, lower than many lenders.
Time to receive funds: Borrowers can expect to receive funds in as few as 3 days after approval.
Fees: Marcus by Goldman Sachs does not charge any additional fees.
Additional requirements: Marcus by Goldman Sachs does not disclose eligibility requirements on its website.
Overview: Best Egg home improvement loans allow you to finance big expenses like building a new deck, replacing your garage door and remodeling your kitchen.
Why Best Egg is best for consumers with little credit history: Borrowers with little credit experience and a FICO credit score of just 600 may be able to qualify for a home improvement loan with Best Egg.
Low minimum APR
No prepayment penalty
No rate discounts
Who the lender is best for: Best Egg is best for borrowers who are working on a medium-sized project. This lender offers loans from $2,000 up to $50,000, a good range for something like a basement remodel or remodeling a bathroom.
Impact on home improvement: Best Egg offers quick funding, a reasonably low starting APR and a range of loan amounts that cover most home improvement projects. This lender does charge an origination fee and its maximum APR of 29.99 percent is a bit high. If you can qualify for Best Egg’s lowest rates, it could be a great option for a home improvement loan.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after approval.
Fees: Best Egg charges an origination fee of 0.99 percent to 5.99 percent, a $15 late fee and a returned payment fee of $15.
Additional requirements: Borrowers must have a minimum credit score of 600 to qualify.
Best lender for consumers with little credit history
Overview: LendingClub is a peer-to-peer lender that offers loans of up to $40,000 for home improvement projects. You can apply online and get a loan quote without a hard pull on your credit report.
Why LendingClub is best for emergency home repairs: LendingClub lets you borrow as little as $1,000, which is convenient if the hot water heater or clothes dryer conks out and you’re short of cash.
Joint applications allowed
Quick application process
Option to change payment date
High maximum APR
Who the lender is best for: LendingClub is best for good to excellent credit borrowers who will qualify for the lender’s lowest APRs. The maximum APR of 35.89 percent is quite high, so bad to fair credit borrowers should make sure they are comfortable with their APR before signing off on a loan.
Impact on home improvement: LendingClub offers a quick process and is accessible to all borrowers since it is a lender matching platform. While LendingClub allows you to get the money you need quickly, it does come with several fees and a relatively high range of APRs. These factors could make your monthly payments more expensive.
Time to receive funds: Borrowers can expect to receive funds as soon as four days after approval.
Fees: LendingClub charges an origination fee of 3 to 6 percent and a late fee of 5 percent or $15.
Additional requirements: Borrowers must have a minimum credit score of 660, as well as a maximum debt-to-income ratio of 40 for individual applications and 35 for joint applications.
Best lender for consumers with below-average credit
Overview: Home improvement loans through Upstart allow you to finance home improvement projects like home renovations or unexpected home expenses, such as a roof repair.
Why Upstart is best for consumers with below-average credit: Consumers with tainted credit still might be able to qualify for unsecured home improvement loans with Upstart, a lending platform that partners with banks to make personal loans.
No prepayment penalty
Low minimum loan amount
Limited repayment term options
No rate discount for autopay
Who the lender is best for: Prosper is best for borrowers who have good to excellent credit. This lender’s minimum credit score of 640 is restrictive for bad credit borrowers and its maximum APR of 35.99 percent is fairly high. Fair credit borrowers should be wary of high interest rates.
Impact on home improvement: Prosper offers a decent range of loan amounts that should cover most small to medium home improvement projects. It does charge an origination fee and APRs can be high, so borrowers should make sure they are comfortable with the monthly payments before signing on.
Time to receive funds: Borrowers can expect to receive funds in as few as one to three business days after approval.
Fees: Prosper charges an origination fee of 2.41 percent to 5 percent, a late fee of 5 percent or $15, and an insufficient funds fee of $15.
Additional requirements: Borrowers must have a minimum credit score of 640 to qualify.
Overview:Prosper was founded in 2005 and is a pioneer in the digital lending marketplace. It is a peer-to-peer lender, which matches investors with borrowers. Prosper offers fixed-rate unsecured personal loans to borrowers with fair to excellent credit. Prosper’s home remodeling loans let you make renovations like building an outdoor deck or a room addition.
Why Prosper is best for online-only experience: The paperless application process is quick, and borrowers receive their funds within three business days on average.
No prepayment penalty
Joint applications allowed
Option to change your payment date
No co-signers allowed
Who the lender is best for: Upstart is best for borrowers who need emergency funding for a home project. Upstart funds loans as soon as the day after approval and is accessible to borrowers from all credit brackets. If you find yourself in need of emergency funds, Upstart could be the way to go.
Impact on home improvement: While Upstart is accessible to all borrowers, it does charge several fees and has a high maximum APR of 35.99 percent. Borrowers should make sure they can make the monthly payments before signing off on a loan.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after approval.
Fees: Upstart charges an origination fee up to 8 percent, a late fee of 5 percent of the unpaid balance or $15 (whichever is greater), and a returned check fee of $15.
Additional requirements: Borrowers must have a minimum credit score of 580 to qualify in most states.
Current home improvement loan rates
Average home improvement loan rates currently range from around 3 percent to 36 percent. While the rate you're quoted depends on many factors, the most important is usually your credit score; the higher your credit score, the lower your rate. Many lenders provide their minimum credit score requirements, as well as the credit score needed to receive the lowest rate. However, even if your score is closer to the minimum, it's still worth going through prequalification, as lenders may also factor in things like your annual income, debt-to-income ratio and employment status when determining your rate.
What is a home improvement loan and how does it work?
A “home improvement loan” is usually an unsecured personal loan used to pay for home repairs and improvements. An unsecured loan does not require you to put up an asset, like your house, as collateral. Loans can range from $1,000 to $100,000 and typically have a fixed interest rate and a fixed monthly payment. They are available from traditional banks, credit unions, online lenders and peer-to-peer lenders.
When you're approved for a home improvement loan, you receive all funds up front, which you can then use to make your renovations. As soon as funds are disbursed, you'll enter the repayment term, which can last anywhere from one to 15 years. During this time, you'll make regular fixed payments on the loan, paying back the principal plus interest.
Types of home improvement loans
There are several kinds of loans you can use to make home improvements. The most common are:
Personal loans: These unsecured loans, which are featured on this page, can be used for any purpose. Interest rates are based on your credit score, and you don’t have to provide collateral. This may be a good option if you want to avoid using your home to secure a loan.
Home equity loans: These are lump-sum loans that are often used for home-related projects and needs. Your home is used to secure the home equity loan. Because of this, you can usually expect a lower interest rate than with a personal loan, but if you miss payments, your home could face foreclosure.
Home equity line of credit (HELOC): A HELOC is a revolving line of credit secured by the equity in your home. You can take money out for home-related expenses as needed, rather than as a lump sum. Your home is used as collateral for a HELOC, and you’ll score lower interest rates because of it.
Common reasons to use a home improvement loan
A home improvement loan is flexible. You can use it to cover the cost of just about any project that will improve your home or repair any problems that exist. Some examples of common projects include:
Since home improvement loans come with fixed interest rates, you can enjoy predictable payments.
You may be on the hook for fees such as origination fees and late fees. This can increase the overall cost of your loan.
Some home improvement loans have high APRs, which may cost you thousands of dollars in interest.
If you borrow more than you can afford, you risk steering yourself into a cycle of debt.
How to find the best home improvement loan rates
To land the best home improvement rate, you can:
Shop around: Not all lenders are created equal. Do your research and compare lenders so you can choose the ideal option for your budget and credit.
Get prequalified: See if you prequalify for a loan with various lenders. This way, you can easily compare rates and terms.
Get a co-signer: If you have less than stellar credit, a co-signer may make sense. They can help you secure a loan with an interest rate that you may not qualify for on your own.
Improve your credit score: A higher credit score can lead to a lower rate. If your score is on the low side, work to improve it before you apply for a loan.
Choose a shorter loan term: Generally speaking, the shorter loan term you choose, the lower rate you’ll receive. If you do go with a shorter term, make sure you can afford the monthly payments.
Frequently asked questions about home improvement loans
Can a home improvement loan increase my home's value?
Doing home improvement projects makes it less likely that you’ll have to pay for expensive repairs down the road. When you replace your roof and gutters, for example, you protect your home from water damage. Some projects add more value to your home than others.
Some home improvement projects are expensive but add little value to your property. Comparing the cost of the project to its value can help you determine your asking price when it’s time to sell.
Garage door replacement (93.8 percent of cost recouped).
New manufactured stone veneer (92.1 percent of cost recouped).
Minor kitchen remodel with midrange finishes (72.2 percent of cost recouped).
Are home improvement loans tax deductible?
Personal loans for home improvement are not tax deductible because they're not secured by your home. Home equity loans and home equity lines of credit, on the other hand, use your home as collateral for the loan. Because of this, you may be able to deduct the interest paid on a home equity loan or HELOC if the funds were used to "buy, build or substantially improve" the home that was used as collateral.
How much can you borrow with a home improvement loan?
Because home improvements do not use your home as collateral, you're typically not limited by the amount of equity you have in your home — the amount you can borrow is instead determined by the individual lender. Most lenders offer loan amounts from $1,000 to $50,000, though some let you borrow much more.
Can I borrow more on my mortgage for home improvement?
While it's not possible to add on to your existing mortgage, you can borrow money for home improvements through what's known as a cash-out refinance. With a cash-out refinance, you'll take out a new mortgage for a greater amount than what you currently owe. You'll then receive the difference in cash, which can be put toward home improvements. Because you'll be taking out an entirely new mortgage with new terms and a new interest rate, a cash-out refinance is only a wise move if you can get a better interest rate than what you're paying on your current mortgage.