Best Home Improvement Loans of October 2026

Details about the best home improvement loans

Upgrade: If you need multiple ways to qualify

Is it for you? Consider Upgrade if your credit score is at least a 600 and you want to boost your chances of qualifying or getting a lower rate. Upgrade offers both co-signed and secured loans, which lenders consider less risky than single-borrower or unsecured loans.

If you opt for a co-signed loan, which few other lenders besides Upgrade offer, your co-signer vouches for you on your application. The co-signer can't access the funds but agrees to repay the debt if you don’t.

You can also secure your loan with a vehicle or home fixtures as collateral. Just be aware that Upgrade can take your assets if you don’t repay the loan.

Upgrade’s multiple loan types, as well as its wide range of loan amounts ($1,000 to $75,000) helped it earn 5 out of 5 stars for flexibility in our latest review.

The downside: You’ll have to pay an origination fee of 1.85% to 9.99% of the loan amount, which is deducted from your proceeds.

SoFi: If you need a large loan and have strong credit

Is it for you? If you’re adding a bedroom, finishing your basement or otherwise taking on a major project, consider SoFi. Its loans start at $5,000 and go up to $100,000, which is one of the highest maximums among the dozens of lenders we review.

SoFi also offers same-day funding and joint loans. Unlike the co-signed loans that Upgrade offers, co-borrowers on joint loans share access to the funds, as well as responsibility for repayment.

The downside: SoFi’s loans are likely harder to qualify for than many other lenders on this list. SoFi told us it seeks borrowers with good or excellent credit, and its average borrower has a score of 720 or higher. Sharing a loan with someone with strong credit may boost your odds of qualifying.

Patelco Credit Union: If you’re willing to join a credit union

Is it for you? A home improvement loan from Patelco Credit Union could be the most affordable option. Patelco caps its APRs at 17.90%, whereas many other reputable lenders have maximums near 36%. You also don’t have to pay an origination fee.

Patelco's loan amounts range from $300 to $100,000, which could cover just about any home expense. Like Upgrade, Patelco offers multiple loan types: unsecured, secured (backed by a vehicle or savings account), co-signed and joint loans.

You must join Patelco Credit Union before your loan is funded, though you can pre-qualify and check your rates first.

The downside: If you need funds for an urgent home repair, look elsewhere. Funding can take two or three days, which is slower than what the online lenders on this list offer.

Happen Bank: If you want a joint loan and don’t have strong credit

Is it for you? Happen Bank, formerly LendingClub, could be a strong choice if you want a joint loan and your credit score is at least 600. It offers home improvement loans from $1,000 to $75,000.

While SoFi and Patelco also offer joint loans, you may qualify more easily with Happen. Its minimum credit score requirement (600) and average borrower scores are lower. However, Happen says co-borrowers should have good or excellent credit, reasonable debt-to-income ratio and verifiable income.

The downside: Happen Bank charges an origination fee that can be up to 8% of the loan amount.

Upstart: If your credit is poor or thin

Is it for you? Look into Upstart if you have poor or limited credit. Unlike many other lenders, Upstart has no minimum credit score or credit history requirement. Instead, it considers non-traditional factors like education and work experience to determine whether you qualify.

Upstart also reports your payments to all three credit bureaus. Making consistent, on-time monthly payments could help your score.

The downside: You may have to pay an origination fee up to 12%. Other lenders charge origination fees, but they’re typically capped at 10% or less. Upstart is also the only lender on this list that doesn’t offer co-signed or joint loans.

What rates should I expect on a home improvement loan?

Lenders' advertised annual percentage rates for home improvement loans range from about 6% to 36%. Borrowers with the highest credit scores receive the lowest rates. Here are the average APRs by credit band that borrowers who pre-qualified for home improvement loans with NerdWallet received over the last 30 days:

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet in the last 30 days. Rates are estimates only and not specific to any lender.

» MORE: Current average personal loan rates

Example of how rates affect loan costs

To understand how APR affects your monthly payments and total costs, here’s an example of two rates on a five-year, $20,000 home improvement loan.

» MORE: Compare the costs of two loans side-by-side

Home improvement loan calculator

Experiment with the calculator below to get an idea of how much you would pay each month on a home improvement loan. The more you borrow and the higher the interest rate, the more expensive your monthly payment. Shorter loan terms mean higher monthly payments but less interest paid overall. With longer repayment terms, you’ll have lower monthly payments but pay more in interest over the life of the loan.

» MORE: Get details on how to use our loan calculator

How to get a home improvement loan

» MORE: Personal loan application requirements

Pros and cons of home improvement loans

Pros

Cons

Costs of home improvement projects

Unsecured loans can cover almost any home improvement project. How much you need varies based on your location, home size and how extensive your plans are.

Here are some common projects and how much you could pay for each, based on the most recent cost estimates available:

Sources: Remodeling 2025 Cost vs Value Report, EnergySage, Angi.

Home improvement loans vs. equity financing

Home improvement loans are far from the only way to fund a project. You may also consider tapping your home’s equity, which is its value minus what you owe.

That equity serves as collateral, meaning that if you don’t repay, the lender could take your house. In turn for that risk, you may be more likely to qualify or secure lower rates than you would for a personal loan.

Also note that this type of financing can take longer to fund, because it typically requires a home appraisal.

Here are two types of equity financing:

Home equity loan

Home equity loans work similarly to personal loans: borrowers receive the funds in a lump sum, and the loans typically have fixed interest rates. You repay this loan in monthly installments over a term as long as 30 years.

Because you’re offering your home as collateral, home equity loans often have lower rates and longer repayment terms than personal loans.

» Dive deeper: Personal loan vs. home equity loan

Home equity line of credit

A HELOC is pretty different from both personal loans and home equity loans. Rather than a fixed amount of money, a HELOC is an open credit line that you draw on as needed, for about 10 years.

Unlike personal and equity loans, interest rates are variable, meaning monthly payments fluctuate.

What the nerds think

How do I choose the right home improvement financing option?

"Sometimes, the project itself will give one type of financing an edge. When I needed a new roof on my house, I went with a personal loan because that repair wouldn't wait, and borrowing against my home equity would have taken way too long. But if you're looking to borrow a larger amount for a major renovation, or you want a longer time to pay back the loan, borrowing against your home equity may make more sense."

Kate WoodHome improvement financing expert

Other types of home improvement financing

Government assistance

Some government programs can help pay for a home renovation. The Federal Housing Administration has two programs: Title I loans and Energy Efficient Mortgages. You can search for a “Title I Property Improvement” lender in your state on the U.S. Department of Housing and Urban Development website.

The Inflation Reduction Act of 2022, or IRA, allows homeowners to get tax credits for energy-efficient updates, like new doors, windows, insulation, heat pumps and air conditioners. The Energy Efficient Home Improvement Credit and Residential Clean Energy Credit are listed on the IRS website.

When it’s best: Consider applying if your project and finances meet the criteria outlined by these programs. They can help make upgrades more affordable.

Cash-out refinancing

A cash-out refinance is a new home loan for more than what you owe on your house. You can use this new loan to pay off your original mortgage, then use the extra cash for your renovation.

When it’s best: Consider this option if mortgage rates are lower than the one you're paying now.

Credit card

Strategic use of a credit card can cover the cost of your upgrades. Home improvement store cards can earn cash back as you upgrade, while a card with a 0% introductory APR can cover short-term home renovations.

When it’s best: Use a credit card for projects small enough that you won’t max it out. You should typically aim to pay your full balance every month. You’ll need good or excellent credit (690 credit score or higher) to qualify for a zero-interest or rewards card.

How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

35+

Lenders reviewed

We review over 35 lenders, including major banks, top credit unions, leading digital platforms and high interest installment lenders operating across multiple states.

25+

Categories assessed

Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.

60+

Data points analyzed

Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.

Affordability

25%

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

20%

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

20%

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

20%

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

15%

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

5.0

Overall score

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

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