Best Home Improvement Loans of 2024
If you’ve been wanting to improve and update your home lately but do not have the money to do so, don’t worry. Home improvement loans are here to save you.
You don’t have to worry anymore about any expense relating to home improvements, and DIYs as a home improvement personal loan can help you cover the cost of almost any housework you want to do.
For example, you want to renovate your kitchen or even install a new bathroom. You can use this personal loan to make a type of up-front payment to make changes to your house.
There are many options available on the market to choose from. For that reason, we’ve decided to help you choose the right one for your needs.
Here are the best home improvement loans of 2024.
Overview: Best Home Improvement Loan
Best Home Improvement Lenders: Detailed Insight
SoFi: Lender’s Top Choice
SoFi is one of the best home improvement loans and home equality loans, with a variety of options available to the best applicants.
SoFi is one of the best online lenders when it comes to offering personal loan funds, competitive interest rates, and subsidized loans. Not only that, but it also provides other services such as insurance, personal loans, existing mortgage, and other banking products and services.
You don’t have to pay any origination fees, but you’ll have to show a solid credit report and meet some minimum credit score requirements.
↳ Best Feature?
What makes SoFi Personal Loans stand out from the rest is its unemployment protection option. Not only does it allow you to borrow loans even after you’ve lost your job, but it also helps your search for a job.
You can also put the loan on hold, suspend payments, and put it into abstinence for three months.
↳ Who is it Best For?
It is ideal for people that want to experience home improvement financing even while they have been struggling with having a job and keeping up with their finances.
Click Here to Know More About Home Improvement Loan.
LightStream: Best for Funding in the Long Term
When it comes to a fixed-rate loan, LightStream offers secured loans with long loan terms available to its borrowers.
It has incredibly low-interest rates that start with 3.99%. Not only that, but you can also take a maximum loan amount of $100,000 even if you have fair credit.
You’ll have the loan approval within a day and get the money on the same day.
↳ Best Feature?
The best feature about LightStream Loan is that you can have a loan repayment period of up to 12 years. It is one of the longest loan repayment terms that no one else offers.
In the meantime, you can use the loan to finance home improvement projects without worrying about whether you’ll have to repay everything.
↳ Who is it Best For?
Lightstream loan is ideal for people that want to have low home improvement loan rates without having high monthly payments.
Click Here to Know More About Home Improvement Loan.
TD Bank: Best Brick-and-Mortar Lender
TD Bank is a brick-and-mortar lender that offers low rates on its personal loans to its borrowers.
Although it charges one origination fee, TD Bank offers a completely new and unique service and experience to anyone that wants to take a home improvement loan.
You can use it to pay for home improvements and have long repayment terms.
↳ Best Feature?
TD Bank offers one of the best-unsecured loans, with a rate beat program like no other. Not only that but it doesn’t have any prepayment fees and no strict repayment terms.
↳ Who is it Best For?
TD Bank is ideal for people that are looking for an experience similar to credit unions rather than a typical banking service.
Click Here to Know More About Home Improvement Loan.
Marcus by Goldman Sachs: For Various Loan Funds
Marcus by Goldman Sachs provides a diverse selection of no-fee personal lending choices.
The thing about Marcus is that you don’t need to have excellent credit to apply for personal loans. Your credit score can be as average as 600 and you’ll still get the chance to take personal loans for your home improvement project.
↳ Best Feature?
If you want an online lender that allows you to take the smallest loan amount of $3,500 then Marcus is perfect for you.
It is one of the best home improvement loans that you can use to make smaller home improvements.
↳ Who is it Best For?
Marcus is ideal for people that have a somewhat solid credit report and a fair credit score, and want to pay a low origination fee.
Click Here to Know More About Home Improvement Loan.
LendingClub: Best Peer-to-Peer Platform
Lending Club is one of the best home improvement loans for giving personal loans to people with a low credit score.
This peer-to-peer lender allows you to use cash-out refinance with low personal loan rates. The whole application process for personal loans is entirely online which you can complete within five minutes.
This means that you won’t have a hard pull on your credit score and it won’t be affected in any negative way.
It works almost like a credit union and you’ll need a fair credit score to be eligible for the personal loans.
↳ Best Feature?
The best thing about Lending Club is that it offers home improvement loans and home equity loans.
Not only that but you can even have a joined account that can be used for loan funding, and have a better credit history that way.
No matter what your credit score is, with this joined account you can take home improvement loans and use them for all kinds of projects.
↳ Who is it Best For?
Lending Club is best for people that want to have a credit union experience with a soft credit inquiry.
Click Here to Know More About Home Improvement Loan.
Upstart: Best For the Lowest Credit Score
Upstart is a credit union that is designed for people that have a low to fair credit score and offers unsecured personal loans with high loan amounts.
With this credit union, you will be able to pay for all kinds of improvements your house needs without having to pay a high origination fee.
You don’t need to have a credit history to apply for these personal loans.
↳ Best Feature?
Upstart partners with banks to provide you with loan funding even if you have a really bad credit history.
Not only that but you can get your personal loans in little as just one day.
↳ Who is it Best For?
Upstart is ideal for people that want to have unsecured home improvement loans without needing to have even a slightly good credit score but can still pay an origination fee.
Click Here to Know More About Home Improvement Loan.
Best Egg: Lowest APR Credit Union
Best Egg is one of the best credit unions when it comes to providing its borrowers with good loan amounts and long loan terms.
If you have a good credit score and want to experience long loan terms for paying back the loan amounts, then Best Egg is perfect for you.
For people that have the highest credit score, the rate can go as low as 6%. However, it might not be suitable for people that don’t want to pay a high origination fee.
↳ Best Feature?
Best Egg offers incredibly high loan amounts even for people that don’t have such a good credit score.
You can have a credit score of 600 and still get the chance to be eligible for a personal loan.
Unsecured personal loans come with loan terms that range from 1 to 5 years. And you can borrow any of the given loan amounts and still have these same loan terms applicable for the loan.
↳ Who is it Best For?
Best Egg is ideal for people that want to borrow high loan amounts, but don’t necessarily have the maximum credit score.
Click Here to Know More About Home Improvement Loan.
Prosper: Best for Cash-Out Refinance
Prosper is ideal for people that want to borrow personal loans and have a good credit score to keep up with.
Unlike many home equality loans and other home improvement loans, it provides a cash-out refinancing, with long repayment terms.
You won’t need to have a solid mortgage to get access to loan funds. But you’ll need to wait to get connected to other lenders so they can fund you.
↳ Best Feature?
The loan purpose can be almost anything as other people are funding you. You can get loan amounts as high as $40,000 which you can use to cash-out refinance.
↳ Who is it Best For?
It’s best for people that have an already existing mortgage and want to have an experience similar to a credit union.
Click Here to Know More About Home Improvement Loan.
What is a home improvement loan?
A home improvement loan is an unsecured personal loan that has the goal of helping you with your home improvement project.
You can take any loan amount to make home improvements and fix damages.
Online lenders provide home improvement loans with low-interest rates, zero to low origination fees, and without needing to have excellent credit.
There are almost no prepayment penalties, and you can even take the money to pay off debt acquired from student loans.
Are home improvement loans the same as housing loans?
Housing Loans
Although house loans are quite similar to home improvement loans, they vary in several areas. For instance, you can take loans from a bank or from some type of a lender and use that money to pay for a house.
This means that you can fully use t to buy a house and have it used for personal and commercial use. These types of loans more often come with a fixed interest rate and repayment terms.
A home improvement loan is a type of housing loan.
The only difference is is that you use that money to pay for home restoration, upgrade, and other forms of DIYs.
You can take lower loan amounts but you will still have long repayment terms.
How do home improvement loans work?
Home Improvement Loans
A home improvement loan works by giving you a loan amount money that you can use to repair your home and even do other home improvement projects.
For example, you can use these personal loans to rebuild your home after some disaster.
But it doesn’t end there. You can also use it for all kinds of renovations and updates you want to do to you.
To acquire this type of home improvement, all you need to document all you need to do is submit an application and wait for it to be approved.
You will typically receive your money a few days after your application.
Home Equity Loans
If you opt for a more secured loan, a home equity loan might be perfect for you. A home equity loan uses your house as collateral that you will pay off your loans.
This type of home improvement loan works on longer repayment terms and with lower interest rates.
Credit Score Requirement for Home Improvement Loan?
What makes home improvement loans best is that they’re suitable for people that have a poor credit score and credit history. Many of the lenders require a credit score as low as 600.
However, it is important to notice that having excellent credit will bring you much more benefits than having a poor credit history.
It means that you can qualify for more personal loans and you will get better rate offerings.
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Who is Home Improvement Loan best for?
A home improvement loan is best for people that want to have fast approval terms, low monthly payments, and high loan amounts for the loan they’re borrowing.
Even people with a poor credit score, no credit profile, and poor credit history can be eligible for receiving these personal loans with low-interest rates.
If you’re someone that has been wanting to start on a home improvement project but didn’t have the money to do so, then these types of personal loans are ideal for you.
All you need to do is sign a loan agreement, provide some personal information and you’re good to go. And depending on your lender, you can get loan amounts as high as $100,000.
Home Equity Loans VS Home Improvement Personal Loan
Home Equity Loans
A home equality loan is a lump sum loan. This type of loan uses the money you’ve previously invested toward your property as collateral, ensuring that you’ll repay the loan. This is most often known as a second mortgage.
It is a secured loan that uses your house as security. The equal housing lender allows you to have repayment terms that last around 15 years on average. However, sometimes they can last up to 30 years.
With these types of loans, you’ll need to provide a lot of documentation, such as income and identity. And, the loan options are not flexible.
The home equity loan has low-interest rates, but you’ll have to wait for weeks to get approved.
It is a less expensive option if you want to pay low monthly payments, but you’ll get only $25,000 to $60,000 loan amount on average.
Home Improvement Loans
On the other hand, a home improvement personal loan is an unsecured loan that you can get at a much faster rate and even if you have poor credit.
For this type of personal loan, you’ll need to provide basic information about your job and identity. And, once you get credit approval, you will get your loan in a few days.
You can avoid all kinds of fees with this lean. The prepayment fees are minimal to non-existent and you can even avoid credit card debt fees.
You don’t have to have a long credit history or have excellent credit to get approved. Most of the home improvement lenders provide loan options to people that fit the minimum credit score requirements.
You can take loan amounts that go up to $100,000 and you can repay them in 12 years most. The home improvement loan rates are also low, with minimum to no origination fees.
They are the perfect solution for you if you want to borrow high loan amounts and use them for home improvement loan work projects.
Final Verdict
If you want to have quick access to money without having to battle with hassle application processes, then SoFi is perfect for you. With no prepayment penalties and with unemployment protection, you can get the house of your dreams without having a job.
It offers you long repayment terms and no origination fees to pay. Not only that but you can also pause your monthly payment for three months after you’ve lost your job.
Even though it is an unsecured loan, you will still get the best of it. You can use it for a home improvement project or even use it as student loans.
It is an ideal solution for almost anyone.
Frequently Asked Questions
Can I Borrow More On My Mortgage for Home Improvement?
There is an option some of these lenders offer that is called cash-out refinance.
This means that you can increase the size of your mortgage by borrowing more money.
You can use this money for all paying for all kinds of services such as paying off student debts, using it for home improvements, and more.
How much can you borrow for a home improvement loan?
Many personal loan lenders offer personal loan amount up to $100,000 even if you have a poor credit score.
Can I get a loan to remodel my house?
Home improvement loans are the type of loans specifically designed to finance your home improvement projects even if you have a low credit score.
