Best Home Improvement Loans in September 2025
Using a personal loan for repairs and renovations means you won’t have to risk using your home as collateral
| Lender | User rating | Best for | APR | Term | Amount | Min. credit score | |
|---|---|---|---|---|---|---|---|
|
Secured loans | 7.99% – 35.99% | 36 to 84 months | Starting at $2k | Not specified | ||
|
Superior customer service | 7.99% – 24.99% | 36 to 84 months |
$2.5k – $40k |
none | ||
|
Large loans with long repayment terms | 6.99% – 21.19% | 24 to 240 months |
$5k – $100k |
Not specified | ||
|
Flexible due dates | 7.99% – 35.99% | 24 to 84 months |
$1k – $50k |
580 | ||
|
Bad-credit borrowers | 7.50% – 35.99% (Test) | 12 to 84 months |
$100 – $1M |
Not specified |
| Lender |
|
|
|
|
|
|---|---|---|---|---|---|
| User rating | |||||
| Best for | Secured loans | Superior customer service | Large loans with long repayment terms | Flexible due dates | Bad-credit borrowers |
| APR | |||||
| Term | 36 to 84 months | 36 to 84 months | 24 to 240 months | 24 to 84 months | 12 to 84 months |
| Amount | Starting at $2k | $2.5k – $40k | $5k – $100k | $1k – $50k | $100 – $1M |
| Min. credit score | Not specified | none | Not specified | 580 | Not specified |
Home improvement loan lenders at a glance
Best For: secured loans
- Uses your home’s fixtures — not the home itself — as collateral
- Best Egg’s secured loan comes with an average APR discount of 20.00%
- Loan specialists available via live chat
- Must make at least $100,000 a year and have a FICO score of at least 700 for the lowest rates
- Riskier than unsecured loans
- May need to wait up to three business days for funds
A secured loan requires collateral. If you can’t pay back your loan, the lender will seize your collateral to make up for its losses. Most home-based secured loans (like home equity loans) use your house as collateral. Best Egg, on the other hand, uses your permanent fixtures (such as built-in cabinets and bathroom vanities).
Although these loans may be less risky than some options, Best Egg will still put a lien on your fixtures until you’ve paid your loan in full. This can make things tricky if you decide to move in the middle of your loan term.
Best Egg uses built‑in home fixtures as collateral but doesn’t require an appraisal. It reviews your credit history and home equity instead.
You must also meet the requirements below to qualify for a Best Egg loan:
- Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
- Administrative: Have a personal checking account, email address and physical address
- Residency: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
- Credit score: 580+
Best For: superior customer service
- Multiple options for repayment assistance if you run into a hardship
- 97% of LendingTree users recommend Discover for a personal loan
- No origination fees
- No APR discounts
- Must have good credit to qualify
Discover offers three repayment assistance plans in case you’re having trouble keeping up with your loan. You could temporarily reduce your monthly payment or defer some of your past amount due to the end of your loan term. For a long-term solution, Discover may let you extend your loan term, giving you more time to pay what you owe.
However, Discover doesn’t offer any discounts for enrolling in autopay (a fairly common practice with other lenders).
You’ll need to meet these eligibility criteria to get a Discover loan:
- Age: Be at least 18
- Citizenship: Have a Social Security number
- Administrative: Have a physical address, email address and internet access
- Income: Minimum income of $40,000 (individually or as a household)
- Credit score: 720+
Best For: large loans with long repayment terms
- Can have up to 20 years to pay off your loan
- No late payment or origination fees
- Might beat a competitor’s rate if you get a better loan offer
- Can’t check rates without taking a ding to your credit
- No payment due date changes
- Can be hard to qualify for
If you’re tackling a big renovation, put LightStream on your radar. Not only does it offer loans as large as $100,000, you could also have a whopping 240 months to repay. That’s one of the longest loan repayment terms on the market.
Keep in mind that LightStream doesn’t offer prequalification. You’ll have to agree to a hard credit hit to see if you’re eligible. However, all hard credit hits count as one, as long as you get your rate shopping done within 14 days.
LightStream will only approve you if you have good to excellent credit. Under the FICO model, good credit starts at 670. Also, most of LightStream borrowers have:
- Several years of credit history with a diverse mix of accounts (credit cards, loans, etc.)
- Retirement and investment accounts, as well as cash in their checking and savings accounts
- Enough income to comfortably cover their current debt
- A positive payment history with few or no late payments
Best For: flexible due dates
- Allows you to change your payment due date as needed
- Can get a secured loan by offering your car as collateral
- Don’t need perfect credit to qualify
- Must pay an origination fee
- Can’t ask application questions via chat
- Can be expensive if you have fair credit
Upgrade is a lending platform that can help you compare offers from its partner lenders. One of its best features is its due date flexibility. Some lenders allow you to change your due date, but usually only once or twice over the life of your loan. With Upgrade, you may be able to postpone as long as your account is current.
Upgrade isn’t the strictest when it comes to credit score. Still, if its lenders do approve you with so-so credit, prepare for higher APRs. Its lenders may also charge you an 1.85% – 9.99% origination fee.
To qualify for an Upgrade loan, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best For: bad-credit borrowers
- One of the lowest minimum credit requirements around
- Lenders may approve you with no credit
- Competitive rates for excellent credit
- Only two options for loan repayment terms
- Might pay a hefty origination fee
- No co-borrowers or cosigners
Upstart uses more than your credit score to determine your eligibility. Your education and employment may also help boost your chances of approval. In fact, if you’re a college student or graduate, you might not need credit at all.
But bad credit loans come at a price. You might have to pay an APR of 35.99%. What’s more, some of Upstart’s partners charge double-digit origination fees (0.00% – 12.00%).
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
What is a home improvement loan?
Home improvement loans are a type of personal loan that you can use to pay for home improvements and renovations. Personal loans are lump-sum, fixed-rate loans that you will repay in monthly installments over a set period of time.
Unsecured personal loans are the most common. They’re best for homeowners who don’t want to put their home on the line with a home equity loan or home equity line of credit (HELOC).
A personal loan that requires collateral is known as a secured loan. Secured personal loans can help with lender approval if you have bad credit.
Home improvement loans pros and cons
Pros
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No collateral
Unlike home equity loans or HELOCs, you won’t risk losing your home if you fall behind on loan payments. -
Consistent monthly payments
Since it has fixed interest rates, your loan payment will be the same each month. -
Fast funding
Many personal loan lenders offer same- or next-day loans. Home equity loans and HELOCs require a home appraisal, which can be a lengthy process. -
Can have lower rates than credit cards
If you have excellent credit (720+), home improvement loan rates are usually cheaper than credit cards.
Cons
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Higher rates than equity-based loans
Personal loan APRs can reach 36% (or higher) if you have bad credit. Home equity loans and HELOCs are usually cheaper because they use your home as collateral. -
No tax benefits
Personal loan interest isn’t tax deductible, but the interest on home equity loans and HELOCs may be. -
Might not be ideal for ongoing projects
If you don’t know exactly how much your project will cost you, it can be hard to know how big of a loan to apply for.
Choosing the best home improvement financing option
Taking out a loan is a big deal. It can be expensive, and unless you pay off your loan early, you could be stuck with debt for years. How you answer the questions below might help guide you to the financing option that makes the most sense for you.
How much money do I need?
Personal loans and home equity loans come as a lump sum. If you run out of money, you can’t borrow again. HELOCs and credit cards are revolving, meaning you can borrow over and over again (up to your credit limit).
You can find a wide range of loan amounts with all three options, and how much you’ll qualify for depends on your credit score, equity and other related factors. Here are some general guidelines.
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I have a medium to large project
You can get more money and a longer repayment term with a home improvement loan or equity-based loan or line of credit. -
I have a small to medium project
A credit card that you can pay off quickly could be more convenient and faster to pay off.
When do I need this financing?
Some home improvement projects can wait. Others require immediate attention so you can mitigate further damage.
Use the below funding timelines as a touchstone, but know that timelines can vary. For instance, adding a co-borrower can entice a lender to approve you. However, an application that includes two people usually takes longer to underwrite than one.
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I need something fixed ASAP
Look for home improvement lenders that fund the same or next day. Also, many credit cards offer instant approval —but to get the card right away, you need to request rush delivery. -
I can wait a few weeks or longer
Equity-based loans and lines of credit may secure you lower rates if you have time for the required home appraisal.
What can I qualify for?
Some loans are easier to get than others. Still, the worse your credit, the higher your interest rates will be. Also, your credit score is only one piece of the approval puzzle. Lenders will also review your DTI ratio, payment history and more.
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I’m working on my credit
You could qualify for a home improvement loan with a 300 credit score, but many lenders require at least 580. -
I have at least good credit
You could qualify for an equity-based loan, line of credit or credit card with a score of at least 620, but some require 660 to 680.
What fees am I willing to pay?
Equity-based loans are often the cheapest when it comes to interest rates. In contrast, home improvement loan rates tend to be lower than credit cards if you have a score of at least 720. All three options can come with fees.
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I’m okay with paying some fees if the loan has a lower rate
Both home equity loans and HELOCs usually come with closing costs that equal 2.00% to 5.00% of the amount you borrow. Plus, HELOCs can have an annual fee, a fee each time you borrow and inactivity charges. -
I’m looking to avoid as many fees as possible
Some (but not all) home improvement loans come with origination fees. These usually range between 1.00% and 10.00% (sometimes higher). Some credit cards can have an annual fee, which averages between $94 to $157, according to the Consumer Protection Financial Bureau (CFPB).
How much risk am I willing to take?
Borrowing money always comes with some risk. Your credit score will take a hit (likely, a dramatic one) if you make late payments or default. Late payments aside, here are some specific risk-related considerations to keep in mind.
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I prefer to play it safe, even if that means higher rates
Since they don’t use your house as collateral, home improvement loans and credit cards might be what you’re looking for. Although your credit score will take a dive if you don’t pay, you won’t be out of house and home. -
I’m willing to take a risk for a cheaper loan
You will lose your home to foreclosure if you don’t pay your home equity loan or HELOC. But because you’re taking some of the risk away from the lender, rates are lower on equity-based loans.
Expert insights on home improvement loans
It is such simple advice, but shopping around really, really matters. Offers can vary widely from lender to lender when it comes to interest rates, repayment duration, loan amounts and even the credit score required to get a loan. Yes, everyone has mile-long to-do lists these days, but comparing offers is absolutely worth your time.
If you’re considering a personal loan for home improvement, Schulz’s advice is to take the time to shop around and compare offers. You could snag a lower rate or better terms with one lender, saving you money over the course of your loan.
How to get a home improvement loan
Let’s say that, after exploring your options, you’ve decided that a home improvement loan is your best bet. Here’s what to do next:
Check your credit score
You can check your credit score for free with LendingTree Spring. Your credit score is calculated based on the activity on your credit report. If something seems fishy, request a copy of your credit report from all three major credit bureaus at AnnualCreditReport.com.
Figure out how much money you need to borrow
Estimate the cost of your home improvement project, accounting for the cost of materials and contractor fees. Don’t overborrow to avoid paying unnecessary interest.
Prequalify with at least three lenders
Many lenders let you prequalify for a personal loan with a soft credit inquiry. This can help you determine eligibility and estimate loan terms without hurting your credit score.
Compare your offers
Once you see what you prequalify for, compare your loan options. You’ll typically want to choose the loan with the lowest APR, since it’ll cost the least to borrow.
Formally apply for your loan
When you apply for your loan, the lender will run a hard credit inquiry. This will bring your credit score down by a few points. After you sign your loan agreement, you could expect your funds in a day or two, but timelines vary by lender.
How to compare home improvement loans
- APR: Your annual percentage rate measures the cost of your loan, including interest and fees. The better your credit score, the lower your APR and the lower your total cost of borrowing. Expect to pay higher interest rates if your credit history has some blemishes.
- Loan terms: Home improvement projects aren’t cheap, so the amount you qualify to borrow is an important consideration. When comparing lenders, be sure that they offer amounts large enough to meet your needs.
- Loan amounts: Your loan term is the amount of time you have to repay your loan. A short-term loan gives you less time to pay off a loan, but it usually cuts down on the amount of interest you’ll pay. A long-term loan gives you more time for repayment but usually results in more overall interest.
- Fees: Some lenders charge an origination fee, a one-time administrative fee that comes out of your loan funds at disbursement. If you want to avoid this fee, look for no-fee personal loans.
- Funding timeline: If you need funding to fix a roof leak or plumbing issue, you probably need money right away. In that case, target lenders that offer emergency loans. Waiting several days for your loan could cause a simple repair to snowball into an expensive ordeal.
Government loans for home improvements
FHA Title 1 loan
You could borrow up to $25,000 to repair your single-family home if you are low to moderate income ($17,500 for manufactured homes). Unlike home equity loans and HELOCs, you only need to use your home as collateral on loans higher than $7,500.
To learn more, check out Using an FHA Title Loan for Home Improvement.
FHA 203(k) loan
Some homeowners refinance their mortgage with an FHA Limited 203(k) loan. This can help you access up to $35,000 to pay for repairs and renovations. You might be able to do some of the work yourself, but you must consult with a licensed contractor as part of the qualification process.
To learn more, check out FHA 203(k) Loan: What It Is and How It Works.
USDA Section 504 Home Repair Program
The Section 504 Home Repair Program issues loans to very low-income homeowners so they can repair or renovate their homes. And if you’re 62 or older, you could get a grant to make your home safer to live in. In either case, you must live in a rural area to qualify.
Alternatives to home improvement loans
A personal loan isn’t the only way to get money for home improvement projects.
With the exception of credit cards, the options below let you borrow from your home’s equity. Home equity is the amount of money your house is worth, minus what you owe on your mortgage.
Home equity loan
Like a personal loan, a home equity loan provides a lump sum of money with fixed APRs. You can typically borrow up to 85% of your home’s equity, but this percentage can vary by lender. Newer homeowners might not find this to be a viable option. You’ll need time to build up enough equity in your home.
This type of loan is secured by your home, meaning your house will serve as collateral. While this can help you access lower loan rates, if you don’t keep up with your payments, you could lose your home.
Home equity line of credit
A home equity line of credit (HELOC) works like a credit card that borrows against your home’s equity. You can borrow money as you need (up to your credit limit). You’ll also only pay interest on the amount you take out. HELOC lenders generally allow you to borrow up to 85% of your home’s equity.
HELOCs come with variable interest rates, so your monthly payments will fluctuate with the market. On the plus side, you won’t have a monthly payment if you don’t borrow.
Credit card
A credit card could be best if you need money on an ongoing basis and don’t want to offer collateral. In some instances, credit cards can also help you skip paying interest.
Most credit cards come with a built-in grace period. As long as you pay your bill in full each month (as opposed to the minimum amount due), interest won’t accrue. And if you qualify for a 0% APR credit card, you won’t have to worry about interest at all. At least, during the introductory period (which typically lasts between six and 21 months).
Frequently asked questions
That depends on your credit score and your risk tolerance. If you’re certain you can pay back your loan, you might consider a home equity loan or home equity line of credit. These generally have lower rates than home improvement loans, but you could lose your house if you fall behind.
Personal loans for home improvement might be a good fit if you have good to excellent credit but aren’t willing to risk your home as collateral. Home improvement loans typically have lower rates than credit cards if you have a 720+ credit score.
Upstart offers home improvement loans to borrowers with scores as low as 300. However, the higher rates that will likely accompany your loan might be a strain on your budget. Use a personal loan calculator to avoid biting off more than you can chew.
A home improvement loan works like a traditional personal loan. Once the lender approves you, it will deposit a lump sum of money into your bank account. Then, you’ll repay it in fixed monthly payments over a predetermined period of time. Since these are typically unsecured loans, you won’t need to provide collateral.
Our methodology
We reviewed more than 30 lenders and companies to determine the overall best eight home improvement personal loans. To make our list, lenders must offer home improvement loans with competitive APRs. From there, we prioritize lenders based on the following factors:
Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.
According to our systematic rating and review process, the best home improvement loans come from Achieve, Best Egg, Discover, LightStream, PenFed, SoFi, Upgrade and Upstart.