Home improvement loans can be used for a variety of projects, from minor repairs to complete home additions.
Jump to insightMany home improvement lenders offer low- or no-fee loans, but fee structure can change by lender and loan type.
Jump to insightOther types of funding might be available if you don’t qualify for a home improvement loan.
Jump to insightOur picks for best home improvement loans
To choose the best home improvement loans, we collected 806 data points (26 individual data points for 31 lenders), including customer reviews and overall ratings from ConsumerAffairs readers, for popular lenders. We used these data points to evaluate factors that most impact borrowers, such as annual percentage rate (APR), loan minimums, repayment terms and funding times, before making our final selections.
Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may affect the order in which the companies appear.
- Max loan amount
- $5,000 to $100,000
- Repayment terms
- 24 to 84 months
- Minimum credit score
- Not disclosed
Partner Disclosures
SoFi disclosures
Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 02/23/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions. Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. SoFi Plus Discount: SoFi Plus members are eligible for an interest rate reduction of 0.25% on a Personal Loan. To be eligible for the discount, you must meet the SoFi Plus eligibility criteria within 31 days of the funding of your loan. For complete SoFi Plus eligibility, please see the SoFi Plus terms. When you enroll in SoFi Plus, the discount will lower the interest rate that applies to your loan only during periods in which you are enrolled in SoFi Plus. The discount will be removed during periods in which SoFi determines you are not enrolled in SoFi Plus. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to change or terminate this offer for unenrolled participants at any time. You are not required to enroll in SoFi Plus to be eligible for Loan approval.
LightStream disclosures
Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 8.99% APR with a term of 5 years would result in 60 monthly payments of $207.54. Truist Bank is an Equal Housing Lender. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Achieve Personal Loans disclosures
Personal loans available through Achieve.com (NMLS #138464) or Achieve Personal Loans (NMLS ID #227977) are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, or Pathward®, N.A., Equal Housing Lenders. Loan applications are subject to credit review, underwriting criteria and approval. Loans are not available in all states and available loan terms/fees may vary by state. Loan amounts range from $5,000 to $50,000. APRs range from 8.99 to 35.99% and include applicable origination fees that vary from 1.99% to 6.99%. The origination fee is deducted from the loan proceeds. Repayment periods range from 24 to 60 months. Example loan: four-year $20,000 loan with an origination fee of 6.99%, a rate of 15.49%, and corresponding APR of 19.54%, would have an estimated monthly payment of $561.60 and a total cost of $26,956.80. To qualify for a 8.99% APR loan, a borrower will need excellent credit, a loan amount less than $12,000.00, and a term of 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could also help you qualify for lower rates. Funding time periods are estimates and can vary for each loan request. Same day decisions assume a completed application with all required supporting documentation submitted early enough on a day that our offices are open. Achieve Personal Loans loan consultants' hours are Monday-Friday 6am-8pm AZ time, and Saturday-Sunday 7am-4pm AZ time.
- Max loan amount
- $35,000
- Repayment terms
- 36 to 84 months
- Minimum credit score
- 660
- Max loan amount
- $100,000
- Repayment terms
- 24 to 240 months
- Minimum credit score
- 670 to 700
Partner Disclosures
SoFi disclosures
Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 02/23/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions. Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. SoFi Plus Discount: SoFi Plus members are eligible for an interest rate reduction of 0.25% on a Personal Loan. To be eligible for the discount, you must meet the SoFi Plus eligibility criteria within 31 days of the funding of your loan. For complete SoFi Plus eligibility, please see the SoFi Plus terms. When you enroll in SoFi Plus, the discount will lower the interest rate that applies to your loan only during periods in which you are enrolled in SoFi Plus. The discount will be removed during periods in which SoFi determines you are not enrolled in SoFi Plus. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to change or terminate this offer for unenrolled participants at any time. You are not required to enroll in SoFi Plus to be eligible for Loan approval.
LightStream disclosures
Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 8.99% APR with a term of 5 years would result in 60 monthly payments of $207.54. Truist Bank is an Equal Housing Lender. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Achieve Personal Loans disclosures
Personal loans available through Achieve.com (NMLS #138464) or Achieve Personal Loans (NMLS ID #227977) are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, or Pathward®, N.A., Equal Housing Lenders. Loan applications are subject to credit review, underwriting criteria and approval. Loans are not available in all states and available loan terms/fees may vary by state. Loan amounts range from $5,000 to $50,000. APRs range from 8.99 to 35.99% and include applicable origination fees that vary from 1.99% to 6.99%. The origination fee is deducted from the loan proceeds. Repayment periods range from 24 to 60 months. Example loan: four-year $20,000 loan with an origination fee of 6.99%, a rate of 15.49%, and corresponding APR of 19.54%, would have an estimated monthly payment of $561.60 and a total cost of $26,956.80. To qualify for a 8.99% APR loan, a borrower will need excellent credit, a loan amount less than $12,000.00, and a term of 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could also help you qualify for lower rates. Funding time periods are estimates and can vary for each loan request. Same day decisions assume a completed application with all required supporting documentation submitted early enough on a day that our offices are open. Achieve Personal Loans loan consultants' hours are Monday-Friday 6am-8pm AZ time, and Saturday-Sunday 7am-4pm AZ time.
- Max loan amount
- $50,000
- Repayment terms
- 24 to 60 months
- Minimum credit score
- 560
Partner Disclosures
SoFi disclosures
Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 02/23/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions. Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. SoFi Plus Discount: SoFi Plus members are eligible for an interest rate reduction of 0.25% on a Personal Loan. To be eligible for the discount, you must meet the SoFi Plus eligibility criteria within 31 days of the funding of your loan. For complete SoFi Plus eligibility, please see the SoFi Plus terms. When you enroll in SoFi Plus, the discount will lower the interest rate that applies to your loan only during periods in which you are enrolled in SoFi Plus. The discount will be removed during periods in which SoFi determines you are not enrolled in SoFi Plus. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to change or terminate this offer for unenrolled participants at any time. You are not required to enroll in SoFi Plus to be eligible for Loan approval.
LightStream disclosures
Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 8.99% APR with a term of 5 years would result in 60 monthly payments of $207.54. Truist Bank is an Equal Housing Lender. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Achieve Personal Loans disclosures
Personal loans available through Achieve.com (NMLS #138464) or Achieve Personal Loans (NMLS ID #227977) are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, or Pathward®, N.A., Equal Housing Lenders. Loan applications are subject to credit review, underwriting criteria and approval. Loans are not available in all states and available loan terms/fees may vary by state. Loan amounts range from $5,000 to $50,000. APRs range from 8.99 to 35.99% and include applicable origination fees that vary from 1.99% to 6.99%. The origination fee is deducted from the loan proceeds. Repayment periods range from 24 to 60 months. Example loan: four-year $20,000 loan with an origination fee of 6.99%, a rate of 15.49%, and corresponding APR of 19.54%, would have an estimated monthly payment of $561.60 and a total cost of $26,956.80. To qualify for a 8.99% APR loan, a borrower will need excellent credit, a loan amount less than $12,000.00, and a term of 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could also help you qualify for lower rates. Funding time periods are estimates and can vary for each loan request. Same day decisions assume a completed application with all required supporting documentation submitted early enough on a day that our offices are open. Achieve Personal Loans loan consultants' hours are Monday-Friday 6am-8pm AZ time, and Saturday-Sunday 7am-4pm AZ time.
How to get a home improvement loan
Home improvement loans can help cover upfront costs for home repairs, additions, electrical work, appliance upgrades and more. If taking out a home improvement loan makes sense for your situation, follow the steps below to apply. The application process may vary depending on the lender and underwriting requirements.
1. Determine your needs
Loan amounts and rates vary between lenders. Understanding how much you need to borrow will help you narrow your search. Most lenders allow you to use loan funds for any home repair projects you want. Some options include:
- Unexpected repairs
- Flooring
- Windows
- Interior design
- Bathroom or kitchen remodels
- Plumbing
- Electrical work
- Additions to your home or property
- Solar panels and other energy efficiency upgrades
Get quotes from licensed contractors or service providers whenever possible. That helps you avoid borrowing more than you need and gives you a clearer target for comparing loan offers.
2. Know your score
Check your credit score and history to get an idea of where you stand in the eyes of creditors. Lenders typically reserve the best rates for those with excellent credit. Reviewing your credit reports will also help you spot any negative marks or errors that could affect your eligibility for a loan. If you find a mistake, fix it before you apply.
3. Shop around
Some lenders allow you to check rates for a personal loan without any hit to your credit score. That's because they rely on soft credit pulls for prequalification. A formal application usually triggers a hard inquiry, which can temporarily lower your score.
By shopping around, you can see which lender offers the best rates and terms, including how much you can borrow, the loan length and the APR. It also gives you a sneak peek into what it's like to work with a particular lender before you commit.
4. Apply for a loan
Once you've narrowed things down to one lender, apply online (or over the phone or in person with some lenders) for a home improvement loan. Depending on the lender, the process could take several business days to complete. You can speed up the process by having all necessary documentation ready and promptly following up on any lender requests.
After you’re approved, the lender will present you with the loan agreement. Read through it carefully, ask any questions you have and sign the necessary paperwork. Depending on your lender, you may get funds on the same day you are approved. You can then negotiate with your contractor for the work you need done.
Home improvement loan types and alternatives
Home improvement loans often fall under the general category of personal loans. These are typically unsecured, meaning that they do not require collateral. Instead, lenders look at factors like your credit score, credit history and debt-to-income (DTI) ratio.
Because these loans are unsecured and riskier for lenders, interest rates may be higher than for secured loans. That is why it’s worth comparing personal loans with other home equity products before you decide.
Home equity loan
A home equity loan allows you to borrow against the equity you’ve built up in your property. Your home serves as collateral, meaning the lender can foreclose on it if you don’t repay.
Because it’s secured with collateral, this type of loan may offer a lower rate and a longer repayment period than a personal loan. You receive the money in one lump sum, and the interest rate is fixed.
Home equity line of credit (HELOC)
Like a home equity loan, a home equity line of credit (HELOC) is a secured loan that allows you to tap into your home equity. But unlike a home equity loan, a HELOC works more like a revolving credit line.
That flexibility can help if your project costs may change over time. Interest rates are typically variable, although some HELOCs allow you to lock your rate.
Cash-out refinance
A cash-out refinance is another secured option with your home acting as collateral. It replaces your current mortgage with a new, larger mortgage and gives you the difference in cash. The interest rate may be fixed or variable.
Cash-out refinancing restarts the “clock” on your mortgage, with a new interest rate and payment schedule. Because you’ll be increasing the amount you owe, this refinance will reduce your home equity. You’ll usually need to pay closing fees, but you may come out ahead if you can secure a lower interest rate than your original mortgage.
Government-sponsored home improvement loans
Federal and state government programs also offer home improvement loans. While eligibility criteria can be more specific than for private loans, and you may have less leeway in how you spend the funds you borrow, interest rates can be lower than private financing in some cases.
Examples of government home improvement loans include various state and local programs, along with federal programs like U.S. Department of Housing and Urban Development (HUD) Title I property improvement loans, the Federal Housing Administration (FHA) 203(k) Rehabilitation Mortgage Loan Program, and Home Equity Conversion Mortgages, or HECMs, through the FHA.
FAQ
Is it hard to get a home improvement loan?
It depends on the applicant. If you have good credit, you will likely have an easier time getting approved than if your credit is fair or poor. However, regardless of your credit score, you must still meet a lender's income requirements, debt-to-income (DTI) ratio and other requirements to qualify for a home improvement loan.
What are some alternatives to home improvement loans?
A home improvement loan is not always suitable for everyone. Alternative funding options include a home equity loan, a home equity line of credit (HELOC), mortgage refinancing, credit cards or saving money in a separate fund to cover home improvement expenses.
Can I get a home improvement loan if I have negative equity?
Yes, you can qualify for a home improvement loan with no equity or negative equity. Many home improvement loans are unsecured loans and do not require collateral. Lenders assess a borrower's creditworthiness and other factors to determine loan eligibility.
How does a home improvement loan affect your credit score?
Lenders perform a hard credit inquiry during the loan application process, which can slightly lower your credit score. A home improvement loan can improve your credit score by helping you establish on-time payment history, adding to your credit mix or reducing your credit utilization ratio by replacing credit card debt. On the other hand, your credit score could suffer if you don’t make monthly payments on time.
Bottom line
A home improvement loan helps fund home improvement projects or pay for unexpected or necessary repairs to your home. Before taking out one of these loans, take stock of your options. Compare loan offers from various lenders, and choose a loan from a lender you feel comfortable working with that has the most favorable terms.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- PNC, “How Do Home Improvement Loans Work?” Accessed July 15, 2026.
- First Citizens Bank, “A Practical Guide to Home Improvement Financing.” Accessed July 15, 2026.
- USA.gov, “Government Home Repair Assistance Programs.” Accessed July 15, 2026.
- U.S. Department of Housing and Urban Development, “Fixing Up Your Home and How to Finance It.” Accessed July 15, 2026.
- U.S. Department of Housing and Urban Development, “203(k) Rehabilitation Mortgage Insurance Program Types.” Accessed July 15, 2026.
- U.S. Department of Housing and Urban Development, “Home Equity Conversion Mortgages for Seniors.” Accessed July 15, 2026.
