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Best home improvement loans in August 2022

As of August 16, 2022
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4.6

Bankrate Score
APR from

4.99%*

with AutoPay
Loan Amount

$5k- $100k*

Term: 2-6 yr*
Min. Credit

Not disclosed

Apply on partner site

4.8

Bankrate Score
APR from

6.95- 35.97%

with AutoPay
Loan Amount

$1k- $50k

Term: 2-7 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.7

Bankrate Score
APR from

7.99%

3 or 5 year term
Loan Amount

$2k- $50k

Term: 3-5 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.6

Bankrate Score
APR from

7.99- 22.73%

with AutoPay
Loan Amount

$5k- $100k

Term: 2-7 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.6

Bankrate Score
APR from

5.99%

Loan Amount

$5k- $40k

Term: 2-5 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.6

Bankrate Score
APR from

7.95- 35.99%

Loan Amount

$2k- $40k

Term: 3-5 yr
Min. Credit

560

Check rate with Bankrate

4.5

Bankrate Score
APR from

9.95- 35.99%

Loan Amount

$2k- $35k

Term: 2-5 yr
Min. Credit

550

Check rate with Bankrate

3.9

Bankrate Score
APR from

18.00- 35.99%

Loan Amount

$1.5k- $20k

Term: 2-5 yr
Min. Credit

None

Check rate with Bankrate
APR from

7.99- 35.99%

Loan Amount

$1k- $35k

Term: 1-3 yr
Min. Credit

None

Check rate with Bankrate

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The Bankrate guide to choosing the best personal loan for home improvements

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When shopping for the best home improvement loan, look for the lowest interest rate, an affordable repayment term and low to no fees. Loan details presented here are current as of the publication date. Check the lenders’ websites for the most up-to-date information. The top lenders, listed below, are selected based on factors such as APR, loan amounts, repayment terms, credit requirements and broad availability.

Best home improvement loan rates in 2022

LENDER BEST HOME IMPROVEMENT LENDER FOR APR LOAN AMOUNT RANGE MIN. CREDIT SCORE
LightStream Long-term financing 7.49%–16.99% (with autopay) $5,000–$100,000 Not specified
SoFi Unemployment protection 5.99%–18.85% (with autopay) $5,000–$100,000 680
Marcus by Goldman Sachs Minor home improvements 6.99%–19.99% (with autopay) $3,500–$40,000 Not specified
TD Bank Convenience 6.99%–21.99% $2,000–$50,000 Not specified
LendingClub Emergency home repairs 8.05%–35.89% $1,000–$40,000 660
Best Egg Consumers with limited credit history 5.99%–29.99% $2,000–$35,000 600
Upstart Consumers with below-average credit 6.76%–35.99% $1,000–$50,000 600
Prosper Online-only experience 7.95%–35.99% $2,000–$40,000 640

Best lender for long-term financing

Min. credit score:
Not disclosed
Fixed APR From:
5.73%
Loan amount:
$5,000–$100,000
Term lengths:
2 to 7 years
Min. annual income:
$50,000
Overview: LightStream’s unsecured personal loans are big enough for major home projects and come with competitive rates for qualified borrowers.
Why LightStream is best for long-term financing: The online lending arm of Truist (formerly SunTrust Bank) offers terms as long as 12 years for home improvement loans.

Best lender for unemployment protection

Min. credit score:
Not disclosed
Fixed APR From:
7.99% –22.73%
Loan amount:
$5,000–$100,000
Term lengths:
2 to 7 years
Min. annual income:
$30,000
Overview: SoFi, an online-only lender, offers personal loans for home improvements ranging from $5,000 to $100,000.
Why SoFi is best for unemployment protection: SoFi’s Unemployment Protection Program temporarily pauses your payments if you lose your job.

Best lender for minor home improvement projects

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –24.99%
Loan amount:
$3,500–$40,000
Term lengths:
3 to 6 years
Min. annual income:
$35,000
Overview: Marcus by Goldman Sachs is an online lender that offers unsecured personal loans for home improvements. You do not have to have a relationship with Goldman Sachs to apply.
Why Marcus by Goldman Sachs is best for minor home improvement projects: You can borrow as little as $3,500, which is good for minor fixes around the house.

Best lender for convenience

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –18.99%
Loan amount:
$2,000–$50,000
Term lengths:
3 to 5 years
Min. annual income:
$0
Overview: Best Egg home improvement loans allow you to finance big expenses like building a new deck, replacing your garage door and remodeling your kitchen.
Why Best Egg is best for consumers with little credit history: Borrowers with little credit experience and a FICO credit score of just 600 may be able to qualify for a home improvement loan with Best Egg.

Best lender for consumers with little credit history

Min. credit score:
Not disclosed
Fixed APR From:
7.99%
Loan amount:
$2,000–$50,000
Term lengths:
3 to 5 years
Min. annual income:
$0
Overview: LendingClub is a peer-to-peer lender that offers loans of up to $40,000 for home improvement projects. You can apply online and get a loan quote without a hard pull on your credit report.
Why LendingClub is best for emergency home repairs: LendingClub lets you borrow as little as $1,000, which is convenient if the hot water heater or clothes dryer conks out and you’re short of cash. 

Best lender for consumers with below-average credit

Min. credit score:
Not disclosed
Fixed APR From:
5.4% –35.99%
Loan amount:
$1,000–$50,000
Term lengths:
3 to 5 years
Min. annual income:
$12,000
Overview: Home improvement loans through Upstart allow you to finance home improvement projects like home renovations or unexpected home expenses, such as a roof repair.
Why Upstart is best for consumers with below-average credit: Consumers with tainted credit still might be able to qualify for unsecured home improvement loans with Upstart, a lending platform that partners with banks to make personal loans.

Best lender for online-only experience

Min. credit score:
560
Fixed APR From:
7.95% –35.99%
Loan amount:
$2,000–$40,000
Term lengths:
3 to 5 years
Min. annual income:
$0
Overview: Prosper was founded in 2005 and is a pioneer in the digital lending marketplace. It is a peer-to-peer lender, which matches investors with borrowers. Prosper offers fixed-rate unsecured personal loans to borrowers with fair to excellent credit. Prosper’s home remodeling loans let you make renovations like building an outdoor deck or a room addition.
Why Prosper is best for online-only experience: The paperless application process is quick, and borrowers receive their funds within three business days on average.

Current home improvement loan rates

Average home improvement loan rates currently range from around 3 percent to 36 percent. While the rate you're quoted depends on many factors, the most important is usually your credit score; the higher your credit score, the lower your rate. Many lenders provide their minimum credit score requirements, as well as the credit score needed to receive the lowest rate. However, even if your score is closer to the minimum, it's still worth going through prequalification, as lenders may also factor in things like your annual income, debt-to-income ratio and employment status when determining your rate.

What is a home improvement loan and how does it work?

A “home improvement loan” is usually an unsecured personal loan used to pay for home repairs and improvements. An unsecured loan does not require you to put up an asset, like your house, as collateral. Loans can range from $1,000 to $100,000 and typically have a fixed interest rate and a fixed monthly payment. They are available from traditional banks, credit unions, online lenders and peer-to-peer lenders.

When you're approved for a home improvement loan, you receive all funds up front, which you can then use to make your renovations. As soon as funds are disbursed, you'll enter the repayment term, which can last anywhere from one to 15 years. During this time, you'll make regular fixed payments on the loan, paying back the principal plus interest.

Types of home improvement loans

There are several kinds of loans you can use to make home improvements. The most common are:

  • Personal loans: These unsecured loans, which are featured on this page, can be used for any purpose. Interest rates are based on your credit score, and you don’t have to provide collateral. This may be a good option if you want to avoid using your home to secure a loan.
  • Home equity loans: These are lump-sum loans that are often used for home-related projects and needs. Your home is used to secure the home equity loan. Because of this, you can usually expect a lower interest rate than with a personal loan, but if you miss payments, your home could face foreclosure.
  • Home equity line of credit (HELOC): HELOC is a revolving line of credit secured by the equity in your home. You can take money out for home-related expenses as needed, rather than as a lump sum. Your home is used as collateral for a HELOC, and you’ll score lower interest rates because of it.

Common reasons to use a home improvement loan

A home improvement loan is flexible. You can use it to cover the cost of just about any project that will improve your home or repair any problems that exist. Some examples of common projects include:

  • Kitchen remodels.
  • Deck or patio additions.
  • Bathroom remodels.
  • Roof replacements.
  • Home additions.
  • Flooring upgrades.
  • Window replacements.

Pros:

  • Most home improvement loans are unsecured, so you won’t lose your home if you default on your loan.
  • the same day you’re approved or a few days after.
  • Since home improvement loans come with fixed interest rates, you can enjoy predictable payments.

Cons:

  • You may be on the hook for fees such as origination fees and late fees. This can increase the overall cost of your loan.
  • Some home improvement loans have high APRs, which may cost you thousands of dollars in interest.
  • If you borrow more than you can afford, you risk steering yourself into a cycle of debt.

How to find the best home improvement loan rates

To land the best home improvement rate, you can:

  • Shop around: Not all lenders are created equal. Do your research and compare lenders so you can choose the ideal option for your budget and credit.
  • Get prequalified: See if you prequalify for a loan with various lenders. This way, you can easily compare rates and terms.
  • Get a co-signer: If you have less than stellar credit, a co-signer may make sense. They can help you secure a loan with an interest rate that you may not qualify for on your own.
  • Improve your credit score: A higher credit score can lead to a lower rate. If your score is on the low side, work to improve it before you apply for a loan.
  • Choose a shorter loan term: Generally speaking, the shorter loan term you choose, the lower rate you’ll receive. If you do go with a shorter term, make sure you can afford the monthly payments.

Frequently asked questions about home improvement loans

Can a home improvement loan increase my home's value?

Doing home improvement projects makes it less likely that you’ll have to pay for expensive repairs down the road. When you replace your roof and gutters, for example, you protect your home from water damage. Some projects add more value to your home than others.

Some home improvement projects are expensive but add little value to your property. Comparing the cost of the project to its value can help you determine your asking price when it’s time to sell.

The remodeling projects that recoup the most cost, according to Remodeling's 2021 Cost vs. Value report, include the following:

  • Garage door replacement (93.8 percent of cost recouped).
  • New manufactured stone veneer (92.1 percent of cost recouped).
  • Minor kitchen remodel with midrange finishes (72.2 percent of cost recouped).

Are home improvement loans tax deductible?

Personal loans for home improvement are not tax deductible because they're not secured by your home. Home equity loans and home equity lines of credit, on the other hand, use your home as collateral for the loan. Because of this, you may be able to deduct the interest paid on a home equity loan or HELOC if the funds were used to "buy, build or substantially improve" the home that was used as collateral.
 

How much can you borrow with a home improvement loan?

Because home improvements do not use your home as collateral, you're typically not limited by the amount of equity you have in your home — the amount you can borrow is instead determined by the individual lender. Most lenders offer loan amounts from $1,000 to $50,000, though some let you borrow much more.
 

Can I borrow more on my mortgage for home improvement?

While it's not possible to add on to your existing mortgage, you can borrow money for home improvements through what's known as a cash-out refinance. With a cash-out refinance, you'll take out a new mortgage for a greater amount than what you currently owe. You'll then receive the difference in cash, which can be put toward home improvements. Because you'll be taking out an entirely new mortgage with new terms and a new interest rate, a cash-out refinance is only a wise move if you can get a better interest rate than what you're paying on your current mortgage.