Compare rates and more of personal loans for home improvements
home improvements

Compare home improvement loans

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Interested in getting a loan for home improvements? Here’s what to look for and what to avoid.

Home renovations can improve your lifestyle and add to the value of your property. If your family’s growing, it could also be a necessity. Unfortunately, home improvements are expensive.

If don’t have the money to finance this investment, you can consider a home improvement loan to cover the costs. In this guide, we’ll take you through some of the financing options available and what you need to know to find a home improvement loan that’s right for you.

Even Financial Personal Loans

Even Financial Personal Loans

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  • Minimum Credit Score Needed: 580
  • APRs as low as: 4.99%
  • Minimum Loan Amount: $1,000
  • Maximum Loan Amount: 100000
  • Simple online application process
  • Free loan matching service

    Personal loans you can apply for

    Rates last updated August 20th, 2018

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR
    Credible Personal Loans
    Get personalized rates in minutes and then choose a loan offer from several top online lenders.
    Good to excellent credit
    $50,000
    4.99%–36% (fixed)
    LendingClub Personal Loan
    A peer-to-peer lender offering fair rates based on your credit score.
    660
    $40,000
    6.16%–35.89% (fixed)
    SoFi Personal Loan Fixed Rate (with Autopay)
    No fees. Multiple member perks such as community events and career coaching.
    680
    $100,000
    7.075%–15.365% (fixed)
    Even Financial Personal Loans
    Get connected to competitive loan offers instantly from top online consumer lenders.
    580
    $100,000
    4.99%–35.99% (fixed)
    NetCredit Personal Loan
    Check eligibility in minutes and get a personalized quote without affecting your credit score.
    550
    $10,000
    34%–155% (Varies by state) (fixed)
    Best Egg Personal Loans
    A prime lender with multiple repayment methods.
    640 FICO®
    $35,000
    5.99%–29.99% (fixed)
    Monevo Personal Loans
    Quickly compare multiple online lenders with competitive rates depending on your credit score.
    580
    $100,000
    3.09%–35.99% (fixed)
    FreedomPlus Personal Loans
    Consolidate debt and more with these low-interest loans. Cosigners welcome.
    640
    $35,000
    4.99%–29.99% (fixed)
    OppLoans Installment Loans
    Installment loans with competitive rates from a top-rated direct lender.
    Bad credit accepted
    $5,000
    99%–199% (fixed)
    OneMain Financial Personal and Auto Loans
    An established online and in-store lender with quick turnaround times. Poor credit is OK.
    Varies
    $30,000
    16.05%–35.99%* (fixed)

    Compare up to 4 providers

    How does a home improvement loan work?

    Depending on the type of changes or updates you want to make on your property, there’s a variety of loans available for home improvements. These loans all have key features and differences, so it’s important to compare your options to find the best one to suit your needs and situation.

    • Secured or unsecured. If you have some equity in your house, you can consider getting a home equity loan. This option uses your home equity as collateral for the money you borrow. If you don’t have enough equity in your home, or if you don’t want to use it as collateral, you can get an unsecured loan.
    • Fixed or variable rate. Providers of home improvement loans may offer you a choice between a fixed and variable (or “floating”) interest rate. With fixed rate loans, your repayments remain the same throughout the loan term. If you opt for a variable rate loan, your rate may start lower but can fluctuate over the life of your loan. The interest rate for variable rate loans depend on either the Prime Index or the London Interbank Offered Rate (LIBOR). Check if your bank has a cap for how high your variable rate can climb.
    • Protection against losses. If you have limited equity in your home, you can think about getting a National Housing Act authorized FHA Title I loan. With these loans, FHA insures lenders against possible losses.
    GreenSky Direct Home Improvement Loans

    GreenSky Home Improvement Loans

    Consider this lender that offers a specialized financing solution for home improvement projects.

    • Minimum Credit Score Needed: 640
    • APR range: 4.99%-23.99%
    • Minimum Loan Amount: $3,500
    • Maximum Loan Amount: 55000
    • Option to apply with a coapplicant

      4 features to consider when exploring home improvement loans

      If you’re interested in getting a loan for home improvements, make sure you consider the following factors:

      • Security. You need to have enough equity in your home to get a secured loan. Alternatively, you may be able to use a vehicle as security for the loan, providing the value of the car is sufficient. You can also apply for an unsecured loan.
      • Interest rate. This is the amount of interest you will pay on the money you have borrowed for your home improvements. Secured loans tend to come with lower interest rates than unsecured loans because it’s less of a risk for the lender. Interest rates can vary even with these kind of loans, so paying attention to this aspect is crucial. Some lenders offer interest rate discounts if you sign up for automatic repayments.
      • Loan term. A longer loan term will give you lower ongoing repayments, but at the end of the loan term you will have paid more interest. This adds to the overall cost of getting the loan. In contrast, higher repayments and a shorter loan term help keep the overall cost of the loan down.
      • Processing time. Depending on the kind of credit you’re looking for, you can receive your loan funds one business day from approval, but in some cases the process may take a week or more.

      How much do home improvements cost?

      Home improvements can add up. Here’s around what you can expect to pay for these common home improvement expenses:

      ImprovementWhat it involvesAverage cost
      Adding square footageRemoving walls to expand the interior of a home or apartment.$7,000–$100,000
      Basement remodelingPutting down a floor, building walls, installing electric and plumbing lines.$10,500–$27,000
      PlumbingHiring a plumber to replace old pipes or install new plumbing systems.$300; $45–$150/hour
      Electric workHiring an electrician to redo part of your building’s wiring.$350; $50–$100/hour
      PermitsGetting permission from your state and local authorities to start construction.$900
      Solar energyBuying and installing solar panels$25,000–$35,000

      Benefits and drawbacks of financing home improvements

      • Carry out time-sensitive repairs. A home improvement loan lets you carry out repairs as soon as possible. Postponing repair work until you’ve saved the money can result in more damage, which can also lead to more expensive repairs.
      • Various loan options. No matter what type of home improvement you’re looking at doing, you have a range of loan options to choose from. These include home equity loans, home equity lines of credit, unsecured or secured personal loans and personal lines of credit.
      • Taking on too much debt. If you apply for a loan you can’t afford to pay off, you run the risk of taking on debt you can’t manage. Make sure you budget for your repayments based on your financial situation before you apply.
      • Finance doesn’t account for renovation budgets or schedule changes. If anything happens that affects the budget or schedule of your renovations, it could impact on your ability to make loan repayments. Make sure you leave room to move in your budget so that you can still make repayments if anything unexpected happens and you need extra funds.

      What to avoid when getting a home improvement loan

      Unplanned or poorly considered renovation projects should be avoided at all costs. This is especially true if you’re planning to finance it with a loan. Home improvements often involve long and expensive processes, and you need to be financially prepared to cover it.

      If you think you may have problems in repaying the loan, avoid taking it. If you don’t make your repayments on time, your credit score will be negatively affected – and if your loan is secured you could lose your home.

      Frequently asked questions

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      US Personal Loans Offers

      Important Information*
      Even Financial Personal Loans

      Get connected to competitive loan offers instantly from top online consumer lenders.

      Prosper Personal Loans

      Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.

      LendingClub Personal Loan

      A peer-to-peer lender offering fair rates based on your credit score.

      SoFi Personal Loan Fixed Rate (with Autopay)

      No fees. Multiple member perks such as community events and career coaching.

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