Best home improvement loans in February 2026

What are home improvement loans?

A home improvement loan is a financing option used to pay for home remodeling and repairs. Loan amounts for personal loans used for home improvement can range from $1,000 to $100,000, with standard repayment terms between one and seven years.

Home improvement personal loans are unsecured installment loans, meaning they have a fixed interest rate and stable monthly payment for a set period. Because your home doesn’t secure them, you don’t risk losing your property if you default on the loan. Once approved, you receive the entire lump sum, in some cases, as soon as the same day you apply.

You'll then make regular principal and interest payments until the balance is paid in full. Most unsecured home improvement loans don't have a prepayment penalty, and don't require any assessment of your home's value for approval.

Calculate your home improvement loan payment

Use Bankrate's loan calculator to determine the best loan repayment plan for you. Enter different loan amounts, terms, and interest rates to understand your estimated monthly payments and the total interest cost.

How to compare home improvement loan lenders

It's always best to get quotes from a few lenders before applying for a loan so you can determine the best offer. When comparing lenders, keep an eye on these factors.

• Approval requirements: Every lender sets its own threshold for approving potential borrowers. They consider your income, credit score and debt-to-income ratio. If you have below-average credit, look for lenders that use other approval criteria. Some will consider your area of study or job history.
• Interest rates and fees: The lowest advertised rate is never guaranteed, so compare quotes and ensure you're checking the annual percentage rate (APR) to account for fees or penalties.
• Cosigners: Adding a cosigner may boost your approval odds of getting low rates if you have fair or poor credit, but not all lenders offer this option.
• Loan amounts: The scope of your home project or repair sets how much you need to borrow. If you are remodeling your kitchen, you will likely need a larger loan than just replacing an appliance. Ensure the lender offers loan amounts as high or low as you need.
• Repayment options: A good home improvement loan lender usually offers repayment terms ranging from 12 to 84 months. The longer the term, the lower the monthly payment — but the more interest you pay over the life of the loan. 
• Unique features: Look for lenders with any unique perks or restrictions. For example, some lenders offer discounts if you set up automatic payments from your bank account. Others may charge a fee if you pay the loan off before the full term.
• Customer service: Check the company's business hours, particularly if you prefer in-person service to online. Also, look for company reviews on various platforms to see what consumers say about their experiences. 

Pros and cons of home improvement loans

Weigh the pros and cons of a home improvement loan — like the minimal paperwork against a short repayment timeline — before taking out a loan.

How to get a home improvement loan 

To determine your best loan option, compare the characteristics and drawbacks of each type of funding with your own needs and circumstances. For example, if you urgently need to replace your roof following a storm, you might need the fast timeline and large amount a personal loan can provide. When you’re ready, follow these steps to apply for a home improvement loan.

Where to get a home improvement loan

You can get home improvement loans from the same institutions as you would a personal loan. This includes most banks, online lenders, credit unions and peer-to-peer lenders.

• Bank or credit union: If you have good credit and a solid repayment history, then start with your bank or credit union to see what rate you're offered. Plus, banks often give preexisting customers exclusive benefits for borrowing with them again, like extended grace periods or interest rate reductions. If the rates aren't ideal, turn to an online lender. 
• Online lender: Online lenders may offer lower interest rates than other lending institutions. The offers may also be easier to compare since the application process is completed online. The applications are typically completed within minutes, but this depends on the lender. However, if your credit isn't where you want it to be, then starting with a peer-to-peer lender may be better for you.
• Peer-to-peer lender: Peer-to-peer lenders may offer lower rates than online lenders and are most likely to approve borrowers with a shaky credit profile. Keep in mind that while this option boasts low rates, it can also mean slow funding or high origination fees.

Learn more about home improvement loans

How we made our picks for the best home improvement loans

To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four categories: