If you’re looking to make improvements to your home and have good to excellent credit, this loan could be the solution to your financing needs.
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. And best of all? You won’t put your home at risk when you borrow.
|Product Name||LightStream Home Improvement Loan|
|Interest Rate Type||Fixed|
|Min Loan Amount||$5,000|
|Max. Loan Amount||$100,000|
How does a home improvement loan through LightStream work?
LightStream home improvement loans are unsecured and offer significant savings because of their low rates and lack of fees. And because you don’t have to put up security, you’ll keep the equity of your home intact during the renovation process. However, to access the best rates, you’ll need good to excellent credit.
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).
Once 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 — not as a business or student loan.
What are the benefits of a LightStream home improvement loan?
- 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.
- No fees. LightStream doesn’t charge any fees for its service. That means no origination, application or prepayment fees, which can result in big savings.
- No equity required. Unlike home equity loans or lines of credit, LightStream doesn’t require you to use your home as collateral.
- Same-day funding if you meet certain requirements†. For those who qualify, 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%.
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:
- 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 loan proceeds for the purpose stated on your application. LightStream requires you to have a loan purpose when you apply. If you use your loan to pay for anything else, you may void your contract.
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, based on the unpaid principal balance. Your payment will first be applied to interest, with the remainder going toward principal.
- Low rates. LightStream offers competitive APRs. Rate is determined by the loan purpose, loan amount, loan terms and your credit profile.
- You’ll save with AutoPay. If you choose to receive an invoice, your rate will be 0.50% higher*.
Interest rates are based a combination of loan amount and purpose, length of the loan and your credit profile.
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 for a LightStream home improvement loan
Applying for a home improvement loan through LightStream is a simple online process that takes about 10 minutes. You will receive a response quickly if you apply during business hours.
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.
If approved, simply e-sign your documents, set up payment information and set up your loan for funding. You can even receive your funds that same day, if you meet certain requirements† and apply during a banking business day. If your application is approved, you must then 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.
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.