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Best Home Improvement Loans December 2023

A home improvement loan is a type of loan specifically created to help you finance renovations, repairs, or other additions to your home. Compare offers from multiple lenders to find the best rates and terms available to help you achieve your dream home.

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Key Facts

  • Free-to-use marketplace with a choice of vetted lending partners.
  • Borrowers are in control and can compare competitive loan options.
  • No prepayment fees and origination fees as low as 0%
  • Max Loan Amount: $100K

Pros

pros iconGreat for Comparing Lenders

pros icon Fast and Easy

pros iconSecure 256-bit encryption

Cons

cons iconFees Vary

cons iconOther Variable Info

cons iconTerms are Limited

Personal Loans Rate and Terms Disclosure: Rates for personal loans provided by lenders on the Credible platform range between 4.60% – 35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 3, 2022, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties..

Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Lenders will conduct a hard credit pull when you submit your application. Hard credit pulls will have an impact on your credit score. Lowest rate advertised is not available for all loan sizes, types, or purposes, and assumes a very well qualified borrower with an excellent credit profile. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680.

Bonus disclosure:
“All bonus payments are by gift card.”

  • $600-$100K Loan Amount
  • 550 Min Credit
  • 6.40-35.99% APR
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Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

“SoFi” is a registered trademark of Social Finance, Inc. SoFi is not affiliated with colleges and universities listed on SoFi.com. Colleges and universities listed on SoFi.com do not endorse, promote or recommend SoFi loan products.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

©2022 Social Finance, Inc. All rights reserved.”

Fixed rates from 8.99% APR to 23.43% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 03/06/23 and are subject to change without notice. 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 and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.Autopay: 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. Autopay is not required to receive a loan from SoFi.Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-25.81% APR
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Key Facts

  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
  • Wide range of term lengths and amounts

Pros

pros iconFast funding time

pros iconGreat reputation

pros iconLow-fee loans

pros iconWide range of term lengths

Cons

cons iconYou need to be a PenFed Credit Union member to get a loan

cons iconDoesn’t disclose all eligibility requirements

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will suit their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also assess brands we are not engaged with).

These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewers’ findings and subjective experience, and product popularity, impact the placement and position of the brands within the comparison table. In the event that we assign ratings or scoring, they are based on the standing in the comparison table or according to the other formula in the event detailed explicitly by us. See our How we Rate page and Terms of Use for information.

The reviews, ratings, and scoring are provided “as is” without guarantees or warranties regarding the information contained on our website, which shall not be considered as endorsement. We do our best to keep the information up-to-date. However, an offer’s terms might change at any time. We do not compare or include all service providers, brands, and offers available in the market. Loan Payment Example: A $35,000 personal loan financed at 4.99% APR would amount to 60 monthly payments of approximately $676.49 each.

  • $600-$50K Loan Amount
  • 690 Min Credit
  • 8.49-17.99% APR
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Key Facts

  • Discounts for Upgrade account owners
  • No prepayment fees
  • Fast funding in 1-4 days

Pros

pros iconOffers a small minimum loan amount

pros iconDeals with credit scores of at least 580

pros iconNo early prepayment fee

pros iconQuick time to funding

pros iconSolid mobile app to manage loans

Cons

cons iconCharges origination fee

cons iconLate fees in place

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% 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 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 1.85% to 9.99% origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. 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. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

Fast Funding Disclosure: *Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

  • $1K-$50K Loan Amount
  • 580 Min Credit
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Key Facts

  • Wide range of loan term lengths.
  • No prepayment penalties.
  • Enjoy additional services Axos offer.

Pros

pros iconNo prepayment penalties

pros icon1-year loan terms available

pros iconFast, 2-day funding

pros iconWide range of loan terms

Cons

cons iconHigh credit score requirements

cons iconOrigination fee

cons iconShorter loan terms

Axos Bank® offers bank products and services. All deposit accounts through Axos Bank brands are FDIC insured through Axos Bank. All deposit accounts of the same ownership and vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and vesting at Axos Bank. For more information, read our FDIC Notice. Axos Bank NMLS# 524995. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month for a total amount of $18,432.

 

  • $5K-$50K Loan Amount
  • 690 Min Credit
Powered by Credible
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Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

LightStream is a part of Truist Bank. While most correspondence will come from LightStream, you might notice the name Truist on certain communications from us. We continue to serve customers across all 50 states, and you do not need to be an existing customer to qualify for a LightStream loan.

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and credit profile. The lowest rates require excellent credit. At least 22% of approved applicants applying for the lowest rate qualified for the lowest rate available based on data from 07/01/2022 to 09/30/2022.

Rate is quoted with an AutoPay discount. AutoPay discount is only available before loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

  • $5K-$100K Loan Amount
  • 660 Min Credit
  • 7.49-25.49% APR
Powered by Credible
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Key Facts

  • Flexible repayment options
  • Great for customers with bad credit score
  • Safe and secure

Pros

pros iconEasy, fast application process

pros iconFunds are disbursed quickly

pros iconBuilds personal credit

Cons

cons iconHigh fees and interest charges

cons iconNo co-signed, joint, or secured loan option

cons iconNo rate discount for automatic payments

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

  • $2K-$35K Loan Amount
  • 580 Min Credit
  • 9.95-35.99% APR

Top Home Improvement Personal Loan Providers 

Credible

Get Personalized Prequalified Rates

550

Min Credit Score

5.20-35.99%

APR. Fixed Rate

6.40-35.99%

APR. Variable Rate

$600-$100K

Loan Amount

1-7 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

Within 5 working days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Great for Comparing Lenders
  • con-icon Fast and Easy
  • con-icon Secure 256-bit encryption
  • con-icon Fees Vary
  • con-icon Other Variable Info
  • con-icon Terms are Limited

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
  • Co-singer / Joint loans
sofi logo
SoFi

Low Rates. No Fees are Required.

680

Min Credit Score

8.99-25.81%

APR. Fixed Rate

8.99-25.81%

APR. Variable Rate

$5K-$100K

Loan Amount

24 to 84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

Same-day funding if approved before 7:00 PM ET days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Personal loan application process is easy and only takes a few minutes to complete
  • con-icon Soft credit check that doesn’t affect your credit score and gives you personalized rates
  • con-icon Fixed and variable rate loans available ranging from $5,000 to $100,000
  • con-icon No late or origination fees required
  • con-icon Excellent customer support team
  • con-icon Online autopay comes with a discount on interest
  • con-icon Exclusive benefits for members (ex. networking events and access to financial advisors)
  • con-icon Unemployment Protection feature comes with a temporary payment pause (up to 12 months)
  • con-icon No prepayment penalties
  • con-icon May take up to 4 days to receive funds after approval (longer than other online lenders)
  • con-icon High eligibility requirements (ex. good credit and sufficient income)

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans

690

Min Credit Score

8.49-17.99%

APR. Fixed Rate

8.49-17.99%

APR. Variable Rate

$600-$50K

Loan Amount

6 months to 6 years

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

None

Origination Fee

None

Prepayment Fee

1-2 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Fast funding time
  • con-icon Great reputation
  • con-icon Low-fee loans
  • con-icon Wide range of term lengths
  • con-icon You need to be a PenFed Credit Union member to get a loan
  • con-icon Doesn’t disclose all eligibility requirements

Loan Purpose

drop-down-btn
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Other

Loan Type

drop-down-btn
  • Unsecured Personal Loans

What is a Home Improvement Loan?

A home improvement loan is an unsecured personal loan created to finance renovations, repairs, or enhancements to a residential property. A home improvement loan can help homeowners renovate a kitchen or add an extension, upgrade plumbing or electrical systems, or make energy-efficient improvements. Lenders offer loans up to $100,000. Home improvement loans are usually lump sums that are repaid in monthly installments over a period of two to twelve years.

Home Improvement Loans: Key Terms to Know

  • APR: The annual percentage rate, which is the total cost of the loan expressed as a percentage of the amount borrowed.
  • Loan term: The length of time it takes to repay the loan.
  • Loan amount: The maximum amount of money that can be borrowed.
  • Collateral: An asset that is pledged to the lender in case the borrower defaults on the loan.
  • HELOC: A home equity line of credit, which is a revolving line of credit that uses the borrower's home equity as collateral.

Home Improvement Loan: How it Works

To get a home improvement loan, you will need to provide the lender with some information, such as your income, your credit score, and the purpose of the loan. The lender will then decide whether to approve your loan and what interest rate to offer you. Once your loan is approved, you will receive the money in a lump sum. You will then use the money to pay for your home improvement project and start making monthly payments to the lender once the loan funds are disbursed. The terms of your home improvement loan will vary depending on the lender and the type of loan you choose. However, most home improvement loans have a repayment term of 5 to 15 years.

Home Improvement Loan APRs

APRs on home improvement can range from 4.60% up to 35.99%. The interest rate charged depends on many factors, and different home improvement loan providers charge different rates. Bear in mind that the following items will be key in determining what APR you are charged:

  • Credit history – high credit scores mean lower APRs
  • Income history – higher income means lower APRs
  • The amount borrowed – a lower amount means lower APRs

Home improvement loans tend to be short to medium-term in length. If you are looking to borrow a large amount of money, a different loan type may be more suitable. The average kitchen and bathroom remodel costs north of $20,000, so it’s best to consider all your options before settling on a home improvement loan.

sofi logo
SoFi

Low Rates. No Fees are Required.

680

Min Credit Score

8.99-25.81%

APR. Fixed Rate

8.99-25.81%

APR. Variable Rate

$5K-$100K

Loan Amount

24 to 84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

Same-day funding if approved before 7:00 PM ET days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Personal loan application process is easy and only takes a few minutes to complete
  • con-icon Soft credit check that doesn’t affect your credit score and gives you personalized rates
  • con-icon Fixed and variable rate loans available ranging from $5,000 to $100,000
  • con-icon No late or origination fees required
  • con-icon Excellent customer support team
  • con-icon Online autopay comes with a discount on interest
  • con-icon Exclusive benefits for members (ex. networking events and access to financial advisors)
  • con-icon Unemployment Protection feature comes with a temporary payment pause (up to 12 months)
  • con-icon No prepayment penalties
  • con-icon May take up to 4 days to receive funds after approval (longer than other online lenders)
  • con-icon High eligibility requirements (ex. good credit and sufficient income)

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
Credible

Get Personalized Prequalified Rates

550

Min Credit Score

5.20-35.99%

APR. Fixed Rate

6.40-35.99%

APR. Variable Rate

$600-$100K

Loan Amount

1-7 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

Within 5 working days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Great for Comparing Lenders
  • con-icon Fast and Easy
  • con-icon Secure 256-bit encryption
  • con-icon Fees Vary
  • con-icon Other Variable Info
  • con-icon Terms are Limited

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
  • Co-singer / Joint loans

690

Min Credit Score

8.49-17.99%

APR. Fixed Rate

8.49-17.99%

APR. Variable Rate

$600-$50K

Loan Amount

6 months to 6 years

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

None

Origination Fee

None

Prepayment Fee

1-2 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Fast funding time
  • con-icon Great reputation
  • con-icon Low-fee loans
  • con-icon Wide range of term lengths
  • con-icon You need to be a PenFed Credit Union member to get a loan
  • con-icon Doesn’t disclose all eligibility requirements

Loan Purpose

drop-down-btn
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Other

Loan Type

drop-down-btn
  • Unsecured Personal Loans

Home Improvement Loans Pros and Cons

Pros  Cons
No collateral required: This means you don't have to put up your home or other assets as security for the loan. Higher interest rates: Personal loans typically have higher interest rates than other types of home improvement loans, such as home equity loans or HELOCs.
Fast funding: You can typically get the money you need within a few days, which is faster than other types of home improvement loans. No tax benefits: You cannot deduct the interest you pay on a personal loan for home improvement on your taxes.
Fixed monthly payments: This makes it easier to budget for the loan and ensure that you can afford the payments.

Short repayment terms: Compared to other financing options, home improvement loans have relatively short repayment terms.

Who Can Get a Home Improvement Loan?

The requirements for who can get a home improvement loan vary depending on the lender. However, you can expect to provide the following information during the application process:

  • Proof of income and employment
  • Proof of ID
  • Proof of address

After the lender has reviewed your information, it will decide whether to approve your application. Most online applications for home improvement loans are processed instantly.

How to Get a Home Improvement Loan?

Getting a home improvement loan typically involves several steps. It is easy to apply for a home improvement loan. If you think getting a home improvement loan is the best choice for you, just follow the process outlined below.

  1. Determine your home improvement needs: Assess the scope of the project and calculate the estimated cost. This will give you a better idea of the loan amount you'll need.
  2. Check your credit score: You are more likely to be approved for a loan with a good credit score. You can request a free credit report and review it for errors or issues that could negatively affect your credit score. If necessary, take steps to improve your credit score.
  3. Establish your budget: Work out how much money you need for your home improvement project and how much you can afford to repay each month.
  4. Research the market for the best home improvement loans available: We have compared the top home improvement loans available, so you may want to consider the home improvement loans shown on this page.Look for competitive interest rates, flexible repayment terms, and favorable loan terms.
  5. Identify your preferred lender and prepare to apply: Gather the necessary documents, such as proof of ID, address, and income, and details about your home improvement project before you start the application. Check with the lender to confirm the specific documents they require.
  6. Complete the application form and hit submit: Most home improvement loan applications are decided upon instantly, so there shouldn’t be a wait to see if your application is successful.
  7. Start your home improvement project: Once you've completed all the paperwork, you'll receive the loan funds. Begin your home improvement project as planned, using the funds to cover the costs.

Home Improvement Loan Alternatives

If you are looking to borrow a small amount of money for a short to medium-term period, home improvement loans are a great way to generate finance. However, there are other different methods to raise funds for home improvements that you can consider.

  • Home Equity Line of Credit (HELOC): HELOC is available if you own a house and have sufficient equity in the property. Unlike home improvement loans, HELOC uses your house as collateral. You only pay interest on the amount you borrow, and APRs usually are lower than personal or home improvement loans.
  • Cash-out refinance: This option sees you refinance your mortgage for more money than you owe. You can then use the excess amount of the mortgage for home improvement purposes.
  • Government grants and schemes: Depending on the state you live in, government funding may be available if your home improvement relates to improvements in energy efficiency. Contact your local government if anything is available.
  • Credit cards: If the amount for your home improvement is small, you can consider funding the project with your credit card. Make sure you have funds available to pay off the balance on a timely basis, however, as credit cards charge high interest rates.

Conclusion

If you want to improve an area of your home but don’t have funds available to do so, a home improvement loan is worth your consideration. Our comprehensive guide outlines the key factors to consider and highlights some of the best home improvement loans available. We’ve also outlined other options to ensure that you make the most informed choice.