SoFi offers the best overall home improvement loans, according to our research, due to its flexible repayment terms, same-day funding, competitive rates, and more. We researched 70 personal loan lenders and evaluated them on 31 factors, including borrower requirements, rates, fees, terms, and more.
Best Home Improvement Loans for March 2024
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- Best Overall: SoFi
- Best for Large Projects: LightStream
- Best for Repayment Terms: First Tech Federal Credit Union
- Best for Small Loans: Patelco Credit Union
- Best for Emergency Loans: Regions
- Best for Bad Credit: Upgrade
- Best Big Bank: U.S. Bank
- Best for Military Members: Navy Federal Credit Union
Company | APR | Credit Score est. | Loan Amount | More Details |
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Best Overall : SoFi
- APR Range: 8.99% - 29.49%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 84 months
SoFi offers flexible home improvement loans with same-day funding for eligible applicants. Loans also have several repayment terms and allow you to borrow up to $100,000. SoFi is our top pick due to its easy application process, lack of fees (including late payment fees), and competitive rates compared to others in the industry.
SoFi doesn’t allow co-signers, but it does allow co-applicants, making it easier to qualify if you apply with someone who has a better credit history. SoFi has easily accessible customer service options, with live chat available on the website as well as phone and email support available seven days per week.
Same-day funding available
Borrow up to $100,000
No late fees or origination fees
$5,000 minimum loan amount
- Must be at least the age of majority in your state and able to enter into a binding contract
- Must be a U.S. citizen, eligible permanent resident, or non-permanent resident alien (including DACA recipients and asylum seekers); documentation may be required
- Available nationwide
- Must be employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days
Founded in 2011 as a student loan refinancing company, SoFi is headquartered in San Francisco and also has offices in Healdsburg, California, and New York City. In addition to personal loans, it offers online checking and savings accounts, investment options, and more.
Best for Large Projects : LightStream
- APR Range: 7.49% - 25.49%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 144 months
LightStream is a leading online lender that offers personal loans up to $100,000, making it a great option for major home improvement projects. LightStream offers low interest rates, a wide range of repayment terms (up to 12 years), and no fees whatsoever (no application, origination, prepayment, or late payment fees).
LightStream home improvement loans are paid directly to your bank account, so you can fund your project how you wish. Funds may arrive the same day you apply, depending on your bank policies and approval from LightStream.
LightStream does allow co-applicants, which can help you qualify if you personally don’t meet the credit and financial requirements. LightStream doesn’t offer pre-qualification, however, so you’ll need to complete a full application to qualify, which requires a hard credit pull.
Overall, LightStream offers some of the best loan terms and rates for large home improvement projects—if you have the credit to qualify.
Borrow up to $100,000
Long repayment terms
Low interest rates
Funds may arrive the same day
$5,000 minimum loan amount
No pre-qualification
Good to excellent credit required
- Must be at least the age of majority in your state
- Must be a U.S. citizen, eligible permanent resident, or non-permanent resident alien
- Must reside in one of the 50 U.S. states or Washington, D.C.
- Qualify based on financial history, credit score, and other factors
Lightstream, with offices in Atlanta, is a division of Truist Financial Corporation, which also owns Truist Bank.
Best for Repayment Terms : First Tech Federal Credit Union
- APR Range: 8.94% - 18.00%
- Loan Amount: $500 - $50,000
- Loan Terms: 24 months - 84 months
First Tech Federal Credit Union is a credit union that anyone can join that also happens to offer a wide range of personal loan payment terms. You can get a loan that allows up to 84 months to pay back funds you borrow for a home improvement project. In addition, there's a 45-day deferred payment option for your first payment if you need a little time to get your budget in order.
If you join the credit union, you’ll score some member perks as well as a competitive APR (even at the higher end) for your loan. Though specific credit score requirements are not disclosed, First Tech FCU states that it will work with members to find the right option.
Easy to join credit union
No origination fees
Option to defer first payment for 45 days
Open to applicants with fair credit
No loan discounts available
Maximum loan amount of $50,000 is lower than some other lenders
- Must become a member of First Tech FCU (if you don’t meet the demographic eligibility requirements, you can join the Computer History Museum or the Financial Fitness Association)
- Must be the age of majority in your state
First Tech is headquartered in Beaverton, Oregon, and dates back to 1952 when it was formed by employees of Hewlett-Packard and Tektronix.
Best for Small Loans : Patelco Credit Union
- APR Range: 8.95% - 17.90%
- Loan Amount: $300 - $100,000
- Loan Terms: 6 months - 84 months
If you prefer to work with a credit union, Patelco Credit Union is our top pick for home improvement loans. It offers a large loan amount range of up to $100,000, which can fund a wide variety of home improvement project types.
Patelco has a competitive APR range and no origination fees. It also rewards good payment behavior with its LevelUp program, which allows you to earn a 0.5% interest rate discount for every 12 months of on-time payments you make (up to 1.5% total).
You’ll have to take the extra step of joining the credit union in order to take out a loan, but membership comes with a slew of perks. Membership is open to those who meet employer or location eligibility or anyone who joins the Financial Fitness Association for $8, a cost that Patelco will cover for the first year.
Competitive APR
Rate discount program
Pre-qualification is available
Branches are only in California
Membership is required to take a loan
- Must become a member of Patelco Credit Union
- Must provide Social Security number, photo ID, and proof of home address
- Must have a 640 minimum credit score
Patelco was established in 1936 by employees of Pacific Telephone and Telegraph Company, now part of AT&T. It is headquartered in Dublin, California.
Best for Emergency Loans : Regions
- APR Range: 9.24% - 29.99%
- Loan Amount: $2,000 - $50,000
- Loan Terms: 36 months - 60 months
If you’re a Regions Bank customer, you can apply for an unsecured loan of up to $50,000 and get same-day funding. This can be a helpful option if you need emergency funding for a major home repair. Minimum rates are also competitive for those with a strong credit history, making it a strong contender.
No origination fees
Same-day funding
Auto-pay rate discount available
Only available in 16 states
You must have a Regions deposit account for at least six months to be loan eligible
Larger late fees ($100 or 5% of unpaid loan, whichever is less)
- Must be at least 18 years old in most states
- Have a deposit account with Regions for at least six months
- Must meet credit qualifications
Though Regions is a large regional bank, it operates in only 16 states, and you must have an existing banking relationship to access its home improvement personal loans. Headquartered in Birmingham, Alabama, Regions dates back to 1928.
Best for Bad Credit : Upgrade
- APR Range: 8.49% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 24 months - 84 months
Upgrade is a financial technology company that works with partner banks to offer personal loans for home improvement projects with flexible repayment terms and up to $50,000 in funding. Upgrade also allows co-applicants, which can increase your chances of qualifying if you have poor credit and you apply with someone with stronger credit.
Upgrade offers a simple online application process, or you can call in and apply over the phone. A decision is made within minutes, and you can check your rate and loan terms before completing your application.
Upgrade does charge an origination fee on all personal loans, which can reach as high as 9.99%; this will be deducted from your total loan amount. And payments 15 days late or more are charged a $10 late fee. But if you have poor credit, a higher borrowing cost is expected; with Upgrade, you’ll have fewer hoops to jump through.
Can apply with a co-applicant
Funding available next day
Allows joint applicants
1.85% to 9.99% origination fee
Late payment fee of $10
- Must be a U.S. citizen or permanent resident, or living in the U.S. on a valid visa
- Must be at least 18 years old in most states
- Must provide a verifiable bank account
- Must provide a valid email address
Upgrade, headquartered in San Francisco, partners with Cross River Bank to issue home improvement loans. Upgrade was founded in 2017, and Cross River, headquartered in Teaneck, New Jersey, dates back to 2008.
Best Big Bank : U.S. Bank
- APR Range: 8.74% - 24.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 12 months - 84 months
If you prefer to borrow from a large bank for your home improvement project, U.S. Bank offers its banking customers a personal loan with favorable terms. People who are not U.S. Bank customers can still borrow, but they are limited to loans up to $25,000 and a 60-month term, as opposed to customers, who can borrow up to $50,000 and pay it back over 84 months.
U.S. Bank scores well for customer service, earning the top ranking for California banks in JD Power’s 2023 U.S. Retail Banking Satisfaction Survey. Besides competitive interest rates, we also like that borrowers with average credit scores are eligible and funding is quick.
Can apply in branch
Quick funding
No origination fees
Non-customers have fewer loan options
Not available in all states
Top loan amount is lower than some
- Must have a credit score of 660 (or 720 if you’re not a customer)
- Must be the age of majority in your state
- Must live in one of the 27 states in which U.S. Bank operates
- Must have a valid Social Security number
U.S. Bank dates back to 1863 when it began as First National Bank of Cincinnati. It is headquartered in Minneapolis.
Best for Military Members : Navy Federal Credit Union
- APR Range: 8.99% - 18.00%
- Loan Amount: $250 - $50,000
- Loan Terms: 6 months - 180 months
Navy Federal offers home improvement loans to members, and membership is open to all military members and their families. Navy Federal offers low rates and super flexible repayment terms (up to 15 years in length), and borrowers can get loans as small as $250.
Overall, Navy Federal offers competitive rates on home improvement loans, especially those with terms under three years in length. Loans up to 36 months come with rates as low as 8.99%, but that rate jumps up to 15.29% for loans that are 37 months or longer.
Navy Federal does require higher loan minimums for longer-term loans. Loans with rate terms over 60 months require a $25,000 minimum, and terms over 84 months require a $30,000 minimum. The lender doesn’t offer a pre-qualification tool, so you will need to complete a full application to get your rate information.
Loan terms up to 15 years in length
No origination fees
Can borrow as little as $250
Membership required and not open to all
No pre-qualification
Minimum loan amounts are higher for longer terms
- Must be a Navy Federal member (which requires being active duty military or veteran, a military family member, or an employee of the Department of Defense)
- Must be at least the age of majority in your state
- Must be a U.S. citizen, eligible permanent resident, or non-permanent resident alien
- Available in all 50 U.S. states and Washington, D.C.
Navy Federal opened its doors in 1933 and is headquartered in Merrifield, Virginia.
Compare the Best Home Improvement Loans for March 2024
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The Bottom Line
Overall, SoFi offers the best mix of competitive rates and loan terms, in addition to the versatility of being able to borrow a small or a large amount. The other options on this list are aimed at borrowers with specific needs, like fast funding (Regions Bank), large loan amounts (LightStream), or flexible repayment terms (First Tech Federal Credit Union).
Guide to Choosing the Best Home Improvement Loans
What Is a Home Improvement Loan and How Does It Work?
A home improvement loan typically is an unsecured personal loan used for home improvement, home remodeling, or repairs, but it may be any type of loan used for home improvements. For example, home equity loans and home equity lines of credit (HELOCs) are secured forms of financing that can be used to fund home improvement projects.
For smaller upgrades, personal loans can be a good financing option since they have less stringent requirements, allow for faster funding, and allow you to make fixed payments. Home improvement loans work in basically the same way as any other personal loan. You research lenders, choose the loan amount and term that’s best for you, get a rate quote, and then select a lender to which you’ll submit a full application. If approved, you can usually receive funds within a business day or two.
Home Improvement the Second Most Common Reason for a Loan
According to Investopedia's 2023 Personal Loan Borrowers' Survey, home improvement is the second most common reason cited for seeking a personal loan.
Determine the Amount You Need for a Home Improvement Loan
The first step to getting a home improvement loan is to estimate how much you’ll need to borrow. Websites like HomeAdvisor can provide you with a project cost estimate based on typical costs in your area. To get the most accurate pricing, seek out a few quotes from contractors and suppliers. Some contractors offer their own financing programs, but you should always compare the rates and terms offered with a traditional personal loan.
Shorter Repayment Terms Can Save You Money
Based on data from 18 lenders, the average personal loan interest rate is 23.88% for terms of about 48 months. However, the Fed reports that 24-month personal loans have an average rate of 12.35%.
If you can afford the higher monthly payments that come with a shorter term, it could save you a lot of money. The chart below shows the potential savings of a 24-month term as opposed to a 48-month term on a $20,000 home improvement loan:
$20,000 Home Improvement Loan | |||
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Loan Term | APR* | Monthly Payment | Total Interest Paid |
24 months | 12.35% | $944.74 | $2,673.80 |
48 months | 23.88% | $650.71 | $11,234.11 |
Average Home Improvement Costs
The table below shows nationwide cost estimates for common home improvement projects based on Zonda Media's 2023 Cost Vs. Value Report.
Repair or Upgrade | Cost* |
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Kitchen Remodel | $26,790–$154,483 |
Bathroom Addition | $57,090–$104,733 |
Bathroom Remodel | $24,606–$76,827 |
Roof Replacement | $29,136–$47,414 |
Window Replacement | $20,091–$24,376 |
Deck Addition | $17,051–$23,430 |
Siding Replacement | $16,348–$19,361 |
HVAC Conversion | $17,747 |
Garage Door Replacement | $4,302 |
Keep an Eye on the Fed's Target Federal Funds Rate
The Fed held rates steady at its most recent meeting March 19-20—the fifth consecutive meeting at which it has done so. From March 2022 through July 2023, the Fed increased its target rate range 11 times, from near zero to 5.25–5.50%. Before that rate-hiking campaign, the average APR for a 24-month personal loan from commercial banks was 9.38%. That number has risen along with the Fed's rate hikes to 12.35%.
Fed members indicated that they expect to cut rates later this year, but until that happens, lending rates are unlikely to get any lower. Because personal loans typically are fixed-rate products, the rate you get when take out your loan is the rate you'll have for the duration of that loan. Lending rates typically will rise or fall along with what the Fed does, so if you expect to have a longer repayment term, it might be a good idea to wait until later this year or next year to get a personal loan. The Fed is scheduled to meet again April 30–May 1.
How to Compare Home Improvement Loans
There’s a lot to consider when looking at your options for home improvement loans. Evaluate each potential lender based on the following:
- Annual percentage rate (APR): APR is the annual cost of the loan in interest and fees. Use it to compare how much you’ll pay to borrow the money.
- Fees: Determine whether the lender charges an origination fee, late fees, prepayment fees, or any other charges. It's worth your time to look for lenders with few or no fees.
- Loan amounts: Opt for a lender that can provide you with the exact amount you need. Avoid borrowing more than you need.
- Loan terms: Make sure the lender offers a term that will allow you to comfortably afford your fixed monthly payments.
- Discounts: Find out if you can get a lower rate for enrolling in automatic payments, applying with a co-signer, or borrowing from a bank you already do business with.
- Speed of funding: If you need the money quickly, be sure to select a lender with fast funding. Many lenders offer next-day or even same-day funding.
- Ease of application: Some lenders have complicated applications. The best lenders make it easy to apply with a simple application process.
- Customer service: Make sure that the lender offers customer service hours and channels (online, phone, etc.) that are convenient for you.
- Lender reputation: Check out what other borrowers are saying about the lender. While it’s common for lenders to have mixed reviews, an abundance of negative reviews is a bad sign.
- Borrower requirements: You may not qualify for our top pick if you have fair or poor credit. When comparing lenders, go through the pre-qualification process each time to see if you’re eligible, especially if you have less-than-perfect credit.
How to Apply For a Home Improvement Loan
- Get pre-qualified: Visit three lenders you're comfortable with based on your research and get pre-qualified with each so you can compare offers. Pre-qualification will not affect your credit score.
- Choose a loan offer: The lenders you choose may each offer you multiple loan options. Choose the amount and term that best suits your needs.
- Complete a formal application: Once you’ve selected a loan, gather the necessary information and documents. You’ll likely need to provide information like your Social Security number and proof of income.
- Get funded (and make a plan for repayment): Upon approval, most lenders will deliver funds within a few days. From there, build out a new budget that includes loan repayment. This way, you can set up automatic payments and feel confident that you’ll always have the funds available to cover your monthly installment.
Pros & Cons of Getting a Home Improvement Loan
Get your loan proceeds fairly quickly
Repay in predictable fixed monthly payments
No need for collateral, such as your home or vehicle
Home improvement loan rates can be higher than secured forms of financing
Risk of default if your financial situation changes
Paid as a lump sum when you may prefer a credit line
Alternatives to a Home Improvement Loan
In addition to home improvement loans or personal loans, you can consider other ways of funding a home improvement project, including secured or unsecured loan options. Here are some alternatives to a home improvement loan:
- Home equity loan: Home equity loans are secured by the equity in your home and allow you to borrow a lump sum from the value in your home that exceeds your loan amount.
- Home equity line of credit (HELOC): HELOCs are revolving lines of credit with a maximum limit that allows you to borrow what you need, pay it back later, and potentially reborrow it. They’re helpful for ongoing projects. Like home equity loans, they're secured by your home equity.
- Cash-out refinancing: With cash-out refinancing, you replace your current mortgage with a new mortgage for a larger amount than you owe, and you keep the difference as cash.
- Credit card: If you have sufficient credit available, you may be able to finance a home improvement with a credit card. This may not be your best choice, as credit card interest rates are often higher than other options. Not paying off your credit card balances each month could quickly increase your total costs.
- Contractor financing: Some contractors offer financing programs through partner lenders. The lender typically pays the contractor directly for the work.
Home Improvement Loan vs. Equity Financing
If your project is large and expensive and you have substantial home equity, consider a home equity loan or a home equity line of credit (HELOC). A home equity loan will likely have lower interest rates than a home improvement loan or personal loan, since you'll be offering collateral (your home), but it can take longer to get the funds.
Home Improvement Loan | Home Equity Loan | |
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Loan Type | Unsecured | Secured on home equity |
Loan Term | 2 to 5 years | 5 to 20 years |
Interest Rate | Fixed | Fixed (variable with a HELOC) |
Appraisal Required | No | Yes |
Closing Costs | No | Yes |
Approval Time | A few days | A month or more |
Loan Amount | $250 to $100,000 | Typically up to 80% of home equity |
The key difference between a home improvement loan and a home equity loan is that the latter is secured by your home equity. This affects every aspect of the loan, from the application process (lengthier with a secured loan) to the amount you can borrow (usually higher with a secured loan, but limited by the amount of equity you have in your home) to the interest rate you'll pay (usually lower with a secured loan because the collateral reduces lender risk).
Tax Benefits of a Home Equity Loan
If you have a home equity loan or line of credit, you may deduct the interest you pay on the home equity loan. The IRS allows you to deduct mortgage interest on the first $750,000 of indebtedness, and the home equity loan counts as long as all of the loan funds are used to upgrade, repair, or improve your home. Consult a tax professional for details.
Why You Should Trust Us
Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a home improvement loan. We used this data to review each company for rates, fees, repayment terms, credit requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best home improvement loans since 2016.
Frequently Asked Questions
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How Much Can You Borrow With a Home Improvement Loan?
The amount you can borrow with a home improvement loan depends on your personal financial situation, such as your credit score, income, and existing debt, if any. The lenders we have researched offer unsecured home improvement loans from as little as $250 to as much as $100,000. With a secured loan, such as a home equity loan or line of credit, you may be able to borrow much more with a potentially lower interest rate.
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What Is the Average Length of a Home Improvement Loan?
Most home improvement loans have terms between two and 12 years, although some lenders offer terms longer than that. Many lenders let you choose your term length, which can give you some control over your monthly payment.
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What Credit Score Do I Need to Qualify for a Home Improvement Loan?
Credit score requirements for a home improvement loan vary by lender and your overall financial situation. Many of the lenders we have researched have a minimum credit score requirement of 660. Some lenders will accept a credit score as low as 560. Check with potential lenders for their specific credit score requirements.
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Where Can I Get a Home Improvement Loan?
For smaller upgrades and improvements, an installment or personal loan is often a good choice. There are many lenders that offer personal loans, from traditional banks and credit unions to online-only fintechs. In general, interest rates are reasonable, and the application and approval process is quick. For larger, more expensive improvements, consider a home equity loan or line of credit from a mortgage lender.
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How Much Is the Return on Investment From Upgrades Made With a Home Improvement Loan??
It varies based on the type of upgrade and market conditions, but research shows that HVAC conversions, garage door replacements, and entry door replacements have ROIs that rank among the best. Among the lowest ROIs were primary suite additions, roof replacements, and major kitchen remodels.
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What Is the Difference Between a Mortgage and a Home Improvement Loan?
A mortgage is a loan agreement used to purchase a home loan in which you agree to pay back a lender. If you are unable to make your payments, the lender is legally allowed to take over the property. A home improvement loan is a type of unsecured personal loan, meaning it is not collateralized. You’ll pay it back in fixed installments every month for the life of the loan.
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What Is a Good Rate for a Home Improvement Loan?
The best rates won't always be available if speed is a higher priority, but the Fed's March 7, 2024, Consumer Credit Report states that the average APR for a 24-month personal loan is 12.35%. That is based on data through November 2023.
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Companies We Reviewed
We researched and reviewed 70 lenders to find the best home improvement lenders you see above on this list. While we write individual reviews for most companies, we do not always write reviews for companies we would not recommend. Below are the companies we researched along with links to individual company reviews to help you learn more before making a decision:
Achieve, Affinity Federal Credit Union, Alliant Credit Union, American Express, Avant, Axos Bank, Bankers Healthcare Group, Best Egg, Bethpage Federal Credit Union, Blue Federal Credit Union, Boatloan.com, Boeing Employees' Credit Union, CapexMD, Citibank, Connexus Credit Union, Discover, Dividend Finance, ENT Credit Union, Fig Loans, First Tech Federal Credit Union, Future Family, GoodLeap, Greenstate Credit Union, Happy Money, Hiway Credit Union, Lake Michigan Credit Union, Laurel Road, LendingClub, LendingPoint, LendingUSA, Liberty Federal Credit Union, LightStream, Lyon Financial, Mariner, Money Key, Mountain America Credit Union, NASA Federal Credit Union, Navy Federal Credit Union, Netcredit, Old National Bank, OneMain Financial, OppLoans, Patelco Credit Union, PenFed, Personify Financial, PNC Bank, Prosper, Reach Financial, Regions, Reprise, Rocket Loans, Santander, Service Federal Credit Union, SoFi, Southeast Financial, Summit Credit Union, SunPower, TD Bank, Teachers Federal Credit Union, Trident Funding, Truist, U.S. Bank, Universal Credit, Upgrade, Upstart, USAA, Vantage Recreational Finance, Wells Fargo.
How We Pick the Best Home Improvement Loans
To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
Learn more about how we evaluated personal loans in our complete methodology.
Guide to Personal Loans
Learn more about personal loans:
- What Is a Personal Loan?
- How Do Personal Loans Work?
- When Are Personal Loans a Good Idea?
- How to Get a Personal Loan
- How to Apply for a Personal Loan
- How to Use a Personal Loan
- Where to Get a Personal Loan
- Personal Loans Vs. Credit Cards
- Alternatives to Personal Loans
- Personal Loan Calculator
- Personal Loans Methodology