Best Home Improvement Loans
Find the best financing options for home renovation projects, from personal loans to HELOCs.
| Personal Loan | Est. APR | Loan Amount | Loan Terms | Origination Fee | Apply now |
|---|---|---|---|---|---|
10.49%–19.49% | $2,000–$30,000 (up to $50,000 for existing Citi customers) | 2–5 years | None | Check Rates Won't affect credit score | |
6.99%–24.99% | $3,500–$40,000 | 36–72 months | None | Check Rates Won't affect credit score | |
6.99%–35.99% | $2,000–$50,000 | 36–60 months | 0.99%–9.99% | Check Rates Won't affect credit score | |
8.74%–35.49% | $5,000–$100,000 | 2–7 years | 0%–7% (optional — borrowers can choose a lower rate with a fee or no fee with a slightly higher rate) | Check Rates Won't affect credit score | |
18.00%–35.99% | $1,500–$20,000 | 24–60 months | 1%–10% or flat fee | Check Rates Won't affect credit score | |
7.74%–25.99% | $5,000–$100,000 | 24–144 months | None | Check Rates Won't affect credit score | |
6.49%–24.89% | $5,000–$100,000 | 24–84 months (up to 240 months for home improvement loans over $25,000) | None | Check Rates Won't affect credit score | |
7.99%–17.99% | $600–$50,000 | 12–60 months | None | Check Rates Won't affect credit score | |
8.01%–29.99% | $2,000–$75,000 | 36–60 months | 1%–8% | Check Rates Won't affect credit score | |
7.99%–24.99% | $2,500–$40,000 | 36–84 months | None | Check Rates Won't affect credit score | |
7.74%–35.99% | $1,000–$50,000 | 24–84 months | 1.85%–9.99% | Check Rates Won't affect credit score | |
6.74%–25.99% | $3,000–$100,000 | 12–84 months | None | Check Rates Won't affect credit score |
Max APR Cap
19.49% ceiling
Fees
Zero fees (no origination, late, or prepayment)
Credit Score Required
680+ (estimated)
Customer Perk
Rate discounts for existing Citi banking customers
Why We Like It
- Industry-low maximum APR of 19.49% protects all borrowers
- Completely fee-free: no origination, late, or prepayment fees
- Higher loan limit ($50,000) for existing Citi customers
Where It Falls Short
- Only available to existing Citi customers
- No co-signer, joint, or secured loan options
Pro Tip
A home equity loan or HELOC may offer lower rates than a personal loan for renovations — if you have equity built up, it's worth comparing both options.
Credit Score Required
730+ minimum
Prepayment Penalty
None
Autopay Discount
0.25% rate reduction
Funding Speed
Up to 10 business days
Why We Like It
- No origination fee or prepayment penalty
- Direct payment to up to 10 creditors for debt consolidation
- Skip-a-payment perk after 12 on-time payments
Where It Falls Short
- New loans discontinued; requires invitation code
- High minimum credit score of 730 limits eligibility
Funding Speed
1–3 business days
Min. Credit Score
600
Prepayment Penalty
None
Collateral Required
None (Unsecured)
Why We Like It
- Fast funding in as little as 24 hours
- Direct payment to creditors for debt consolidation
- No prepayment penalties
Where It Falls Short
- Origination fee up to 9.99%
- Not available in Iowa, Vermont, West Virginia, D.C., or U.S. Territories
Pro Tip
Get at least 3 contractor quotes before taking out a loan — borrowing more than your project actually costs is an easy way to end up with unnecessary debt.
Funding Speed
Same day
Min. Credit Score
680
Autopay Discount
0.25% rate reduction
Prepayment Penalty
None
Why We Like It
- Same-day funding available
- No origination fee option available
- Rate check with no credit score impact
Where It Falls Short
- Minimum 680 credit score required
- Cannot be used for education expenses
Funding Speed
Same day
Collateral Options
Secured or unsecured
Credit Score Required
Not disclosed
Prepayment Penalty
None
Why We Like It
- Same-day funding available
- Accepts bad credit applicants
- Secured option may improve approval odds
Where It Falls Short
- High APRs up to 35.99%
- Origination fees up to 10%
Pro Tip
Some home improvement loans offer deferred payment periods — helpful for managing cash flow during a renovation, but make sure interest isn't accruing silently.
Funding Speed
As soon as same day
Credit Score Required
660+ (Good to Excellent)
AutoPay Discount
0.50% rate reduction
Prepayment Penalty
None
Why We Like It
- No origination fees or prepayment penalties
- Same-day funding available
- Large loan amounts up to $100,000
Where It Falls Short
- Requires good to excellent credit (660+)
- High minimum loan amount of $5,000
Funding Speed
Same day
Credit Score Required
660+
Discount Programs
Rate beat & autopay discount
Prepayment Penalty
None
Why We Like It
- Same-day funding available
- No origination or prepayment fees
- Extended terms up to 240 months on large loans
Where It Falls Short
- High minimum loan amount of $5,000
- Limited soft credit check pre-qualification
Funding Speed
1–2 business days
Min. Credit Score
700
Prepayment Penalty
None
Collateral
Unsecured
Why We Like It
- No origination fees or prepayment penalties
- Competitive low APRs starting at 7.99%
- Fast funding in 1–2 business days
Where It Falls Short
- Requires PenFed credit union membership
- Good credit score of 700+ needed to qualify
Funding Speed
As soon as same day
Credit Score Required
640+
AutoPay Discount
Available
Prepayment Penalty
None
Why We Like It
- Same-day funding available for fast access to cash
- No prepayment penalty — pay off early without fees
- AutoPay discount helps lower your effective rate
Where It Falls Short
- Origination fee of 1%–8% adds to borrowing cost
- Limited loan terms (36–60 months) reduce flexibility
Funding Speed
Next business day
Min. Credit Score
660
Prepayment Penalty
None
Collateral
Unsecured
Why We Like It
- No origination, prepayment, or hidden fees
- Fast funding as soon as next business day
- Flexible terms up to 84 months
Where It Falls Short
- Requires good credit (660+ score)
- Minimum $25,000 annual income required
Funding Speed
1 business day
Min. Credit Score
580
Discount Programs
Autopay, direct pay & rewards checking
Prepayment Penalty
None
Why We Like It
- Fast 1-business-day funding
- Accessible to fair-credit borrowers (580+)
- Multiple discount programs available
Where It Falls Short
- Origination fee up to 9.99%
- High APRs possible for fair-credit applicants
Funding Speed
Same day
Autopay Discount
0.25% rate reduction
Collateral
Unsecured
Min. Credit Score
Not disclosed
Why We Like It
- No origination, closing, or prepayment fees
- Same-day funding available for many borrowers
- High loan amounts up to $100,000
Where It Falls Short
- Existing Wells Fargo customers only (12+ months)
- Credit and income requirements not disclosed
Finding the Best Home Improvement Loans
What Are Home Improvement Loans?
A home improvement loan is money you borrow specifically to fund repairs, upgrades, or renovations to your home. The term covers a few different products. Personal loans are the most straightforward — you borrow a lump sum, typically between $1,000 and $100,000, and repay it in fixed monthly installments over two to seven years. Home equity loans work similarly but use your home as collateral, usually offering lower interest rates in exchange. A HELOC, or home equity line of credit, functions more like a credit card — you draw funds as needed up to a set limit, which gives you flexibility if your project costs are hard to predict upfront. Some lenders also offer FHA Title I loans, which are government-backed options for borrowers with limited home equity. The right product depends on how much you need, how quickly you need it, and how much equity you've built in your home. Each option carries its own rates, terms, and qualification requirements.
Why Do People Use Home Improvement Loans?
Most homeowners turn to these loans because renovation costs have a habit of exceeding what's sitting in a savings account. A kitchen remodel averages around $27,000. A bathroom renovation runs $10,000 to $15,000. Replacing a roof can easily hit $12,000 or more. Paying out of pocket for projects at that scale just isn't realistic for most people, so financing fills the gap. Beyond necessity, many borrowers are making strategic investments. Certain upgrades — adding a bathroom, finishing a basement, replacing windows — can meaningfully increase resale value, sometimes returning 70 to 80 cents on every dollar spent. Others are focused on safety or code compliance, like updating outdated electrical systems or fixing structural issues. Homeowners who plan to stay long-term often finance improvements for comfort and energy efficiency, knowing that lower utility bills will offset some of the borrowing cost over time. In short, these loans help people maintain and grow one of their largest financial assets without draining their liquid savings.
What to Consider When Choosing Home Improvement Loans
The interest rate is the obvious starting point, but the APR — annual percentage rate — tells a more complete story because it includes fees. A personal loan advertised at 9% might carry an origination fee of 1% to 5%, which changes the real cost. Compare APRs, not just rates. Loan term matters too. A longer repayment period lowers your monthly payment but increases total interest paid. On a $20,000 loan at 10%, choosing a seven-year term over three years could cost you an extra $3,500 in interest. If you have significant home equity, a home equity loan or HELOC will generally offer lower rates than an unsecured personal loan, but you're putting your home on the line if you default — that's a real risk worth weighing carefully. Also check whether the lender charges prepayment penalties, which can eat into savings if you pay the loan off early. Your credit score heavily influences your rate, so pulling your credit report before applying helps you know what to expect and spot any errors worth disputing.
How to Get the Most Out of Home Improvement Loans
Before you sign anything, get at least three quotes from contractors with itemized estimates. Vague project scopes lead to cost overruns that push you back to the lender for more money — a situation that compounds your interest costs fast. Once you have a firm number, borrow only what you actually need. It sounds obvious, but lenders often approve more than requested, and the temptation to pad the budget is real. If your project has phases, a HELOC can be smarter than a lump-sum loan because you only pay interest on what you've drawn. For personal loans, making even one extra payment per year can shave months off your repayment schedule and save hundreds in interest. Keep documentation of all improvements — permits, receipts, contractor invoices — because certain upgrades can increase your home's cost basis, which reduces taxable capital gains when you eventually sell. Finally, time larger projects around your credit health. Spending a few months paying down existing debt and correcting errors on your credit report can drop your rate by a full percentage point or more.