If you’re looking to make improvements to your home and have good to excellent credit, this could be the provider you need.
Known for: LightStream believes that consumers with good credit deserve a simple loan process with a low APR and no fees.
Rather than opting for a home equity line of credit (HELOC) — and bearing the cost of multiple fees and a variable APR — consider LightStream instead. Its home improvement loans come with no fees and a low fixed APR. But if your credit and savings aren’t up to par, you might not qualify.
|Product Name||LightStream Home Improvement Loan|
|Min. Loan Amount||$5,000|
|Max. Loan Amount||$100,000|
|Interest Rate Type||Fixed|
|Minimum Loan Term||2 years|
|Maximum Loan Term||12 years|
|Requirements||You must have a good to excellent credit profile, and be U.S. citizen with a valid Social Security number.|
- You must have a good to excellent credit profile.
- You must be a U.S. citizen.
- Have a valid Social Security number.
- You must have a valid Visa or MasterCard credit card.
How does a home improvement loan through LightStream work?
LightStream, the lending division of SunTrust bank, offers home improvement loans that provide significant savings because of their low rates and limited fees. And because you don’t have to put up security, you’ll keep the equity of your home intact during the renovation process.
You can borrow between $5,000 to $100,000, and those with excellent credit may qualify for extended terms lasting between 85 months to 12 years (144 months).
If approved, you must transfer the funds to your bank account within 30 days. If you don’t, you’ll need to reapply. And no matter how much you borrow, your loan must be used for home improvement — LightStream has a general personal loan to fund other expenses.
How much will I pay for a home improvement loan through LightStream?
To start off, here’s a payment example: Monthly repayments for a $10,000 loan at 5.99% APR with a term of 3 years would result in 36 monthly repayments of $304.17.
Now that we’ve covered the basics, let’s look at the interest rate:
- The interest rate is fixed. It won’t change over the lifetime of the loan.
- Interest accrues daily. The interest you pay is based on the unpaid principal balance of your loan. Your payment will be applied to interest first, and the remainder will go toward the principal.
- Low rates. LightStream offers competitive APRs. Your rate is determined the amount you want to borrow, your loan term and your credit profile.
- You’ll save with AutoPay. If you choose to receive an invoice, your rate will be 0.50% higher*.
What are the benefits of a LightStream home improvement loan?
- Same-day available†. You may be able to get your home improvement loan funds on the same day you apply. This type of quick turnaround means you can start your project on your schedule without having to wait days for your application to process.
- Satisfaction guarantee. LightStream is so sure you’ll be satisfied with the loan process, it comes with a guarantee: After initiating a complaint and completing a questionnaire, you could receive $100§. Loans are also backed by LightStream’s Rate Beat Program, which promises to beat another lender’s APR by 0.10%.
- No fees. LightStream doesn’t charge any fees for its service. That means no origination, application or prepayment fees. But you may still be on the hook for late fees if you aren’t careful.
- No equity required. Unlike home equity loans or lines of credit, LightStream doesn’t require you to use your home as collateral.
- Easy online process. LightStream is an online lender, so you can complete the entire process in just a few minutes — without setting foot in a bank.
What to watch out for
LightStream’s loans do have a few faults. Most complaints are due to not being approved, but remember: You need good to excellent credit to qualify.
In addition, you should be aware of the following:
- Higher APR for invoice payments. If you choose to pay by invoice, your interest rate will be 0.50% higher*. Select AutoPay on loan acceptance to avoid the higher rate.
- You must have a valid Visa or Mastercard credit card. This is for verification purposes only, and no charges are applied.
- You must use your loan for home improvement. When you apply for a home improvement loan, LightStream requires you to use your funds for home improvement on a specific property. If you use your loan to pay for anything else, you may void your contract.
Am I eligible?
Qualifying for a LightStream loan requires good to excellent credit, and you must have sufficient income to repay any existing debt in addition to the loan.
LightStream considers good credit to be:
- Several years of credit history
- Credit history with a variety of account types
- Good payment history
- Evidence of the ability to save
How to apply
Applying for a home improvement loan through LightStream is a simple online process that takes about 10 minutes. Typically, you should receive a response quickly if you apply during business hours.
- Click the Go to Site button to be redirected to LightStream’s website, then click Apply Now to get started.
- Read over LightStream’s basic requirements, then select your loan purpose, the amount you need to borrow and other details for your loan.
- Enter information about yourself, your finances and the property you want to improve if different from your primary residence.
- Create an accout with LightStream by creating a user ID, password and security question.
If your application is approved during a business day and you want same-day funding† , complete the following steps by 2:30 p.m. ET:
- Review and electronically sign the loan agreement.
- Provide LightStream with your banking information and funding preferences.
- Complete the final verification process.
What documents will I need?
To apply, you’ll be asked for your:
- Personal info. Your full name, home address, contact info, Social Security number, date of birth and driver’s license number, among other general information.
- Income and employment. Your work status, annual income, liquid assets and retirement assets.
- Property info. Your total monthly housing costs, the estimated equity in your home, your address, occupancy type and property type.
- Security info for account setup. You’ll need to select a user ID, password and security question and answer.
I got the loan! Now what?
You’ve successfully qualified for a LightStream loan. But before you begin shopping for the perfect hardware for your new kitchen cabinets, it’s important to understand how to make payments on your new loan and take advantage of its features.
When you applied for your loan, you opted for either AutoPay or invoice:
- AutoPay is automatically withdrawn from your bank account each month. Once you’ve set up this feature, you’re good to go. Selecting AutoPay results in a lower APR*.
- Invoice payments must be returned by mail. You can’t make payments at or through a SunTrust Bank branch. Invoice payments result in a slightly higher APR, so consider setting up AutoPay to avoid a higher interest rate.
Applying for a LightStream loan is a simple process for applicants with good to excellent credit. If your credit history enables you to qualify, this loan is a great option to finance your home improvement projects.
However, if you don’t qualify, you may want to compare your other home improvement loan options or check out the providers on the table below.