Your best kitchen remodel financing depends on your timeline, home equity and project size. Here are our picks for best kitchen remodel loans along with other options to consider.
This service is free and will not affect your credit score.
Wells Fargo personal loans are likely a good fit for existing customers, thanks to a wide range of loan amounts and repayment terms, plus perks like pre-qualification and a rate discount. Read our review of Wells Fargo Personal Loan
Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more. Read our review of Upgrade
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit. Read our review of LendingClub
Rocket Loans offers fast funding for online personal loans to borrowers with fair and good credit, but it lacks some key features. Read our review of Rocket Loans
Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast. Read our review of Best Egg
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.
70+
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 at least twice per year 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 70 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.
See how different loan amounts, rates, and terms affect your monthly payment
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
$10,000
Interest rate
7.25%
7.25%
Loan term (years)
3
3 years
PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95
90%
10%
What is a kitchen remodel loan?
A kitchen remodel loan enables you to borrow money from a lender to pay for your kitchen project. You pay for the kitchen remodel over time by making monthly loan payments with interest. Having time to pay can be helpful, because kitchen remodeling costs typically range from about $27,000 for a minor remodel to more than $150,000 for a major one, according to The Journal of Light Construction.
Personal loans for kitchen remodeling
Kitchen financing may be in the form of a personal loan. WIth a personal loan, you receive a lump sum of money and repay it, in fixed monthly installments. These loans are unsecured, meaning they aren’t backed by any collateral (such as your home's equity). Rates are 6% to 36% and loan amounts can be $1,000 to $100,000. The rate and amount you’re approved for depend on your credit, income and other debts.
Pros and cons of financing a kitchen remodel with a personal loan
Pros
No collateral: An unsecured personal loan doesn’t require you to use your home as collateral, so the lender can’t take your home if you fail to repay.
Fast funding: Some lenders can fund a personal loan the same day you apply. Most personal loans are funded within one week.
Fixed payments: Monthly payments are the same for the life of the loan. This can help you budget better than options with variable rates and payments.
Cons
Rates may be higher than other financing options: Your credit history is a key determinant of your rate, and even borrowers with strong credit may receive a rate that's higher than home equity options.
No tax benefits: Unlike home equity loans and lines of credit, you can’t claim a tax deduction on the interest you pay on a personal loan.
Fixed loan amount: A personal loan is distributed in a lump sum, so you can’t borrow more than the initial loan amount.
Get a firm cost estimate. The amount you plan to spend on the kitchen remodel could determine how you pay for it, so get a few quotes and settle on a budget first.
Pre-qualify. Once you have an estimate, pre-qualify to see potential loan rates and terms. Because this process doesn’t affect your credit score, you can pre-qualify with multiple lenders.
Compare lenders. If you get two similar offers, compare loan features like rate discounts, funding time and repayment term options to break the tie.
Apply. Gather documents like W-2s, paystubs and bank statements before you apply to make the loan application process smoother. A lender will do a hard credit check, which will cause your credit score to dip temporarily. Expect a decision within a day or two of applying.
Financing a kitchen remodel: Personal loans vs. home equity
A personal loan may be a good option if you don’t have much equity in your home or don’t want to use the home as collateral for the loan.
Monthly payments are often higher on personal loans because they tend to have higher rates and shorter repayment terms than home equity financing. However, many personal loans can be funded within a week, while a home equity loan or line of credit may take a couple of weeks or longer if the lender requires an appraisal.
A home equity loan is a second mortgage you get in a lump sum and repay in fixed monthly installments for up to 30 years. Rates start in the single digits.
Compare to personal loans: Home equity loans are similar to personal loans, but the loan amount is tied to the home’s value. Credit and income requirements may be softer for equity financing, so those with less-than-perfect credit who have repaid much of their mortgage may be able to borrow more with a home equity loan than a personal loan.
A HELOC is a credit line you draw from as needed, typically over a ten-year period. Repayment terms are often 20 years, and rates can be low but variable, meaning your monthly payments may fluctuate.
Compare to personal loans: Since you don’t borrow a HELOC all at once, it can be ideal if the project’s cost isn’t set and you want to be ready for surprise expenses. If you get a personal loan and unexpected remodeling costs come up, you can’t borrow more without getting another loan.
With a cash-out refinance, you replace your existing mortgage with a new one that includes funds for a remodel.
Cash-out refinancing works best for a remodel if the rate on your new mortgage has a lower APR than your current mortgage. This type of financing also comes with closing costs so financial planners recommend homeowners stay in the home long enough for the monthly savings to exceed the cost of refinancing.
The Federal Housing Administration has two programs that can help you finance a qualifying renovation:
Title I Property Improvement Loans are available for home improvements and repairs. If your renovation will cost more than $7,500, the loan must be secured by a deed of trust or mortgage.
The Energy Efficient Mortgage Program helps finance renovations that make your home more energy-efficient and can help lower your utility bills.
The final cost of a kitchen remodel depends on the materials used, the amount of work needed and additional features like new appliances, and it can be easy to inadvertently run up the cost. Here are tips to keep in mind when financing a future kitchen remodel.
Budget more than you think you’ll need. It's a good idea to add extra money to your project’s budget for unexpected expenses. Ask contractors how much wiggle room they think is reasonable when you’re gathering quotes.
Account for a future sale. If you plan to sell the home, consider how much your taste should factor into the kitchen update. For example, if you plan to sell in the next five years, consider changes both you and a future buyer might find appealing.
Prioritize updates. Prioritize your budget based on which updates are the most important. For example, top-of-the-line cabinets — which can be the most expensive part of a remodel — might not be a good use of your budget if your main goal is to knock down a wall and make more space.
Frequently asked questions
What financing options are available for a kitchen remodel?
You can explore a few options to pay for your kitchen remodeling project.
Personal loans are fast to fund and easy to apply for, though interest rates tend to be higher.
Home equity loans or HELOCs generally offer lower interest rates but use your home as collateral and take longer to finalize.
Cash‑out refinances are a way to refinance your mortgage (preferably to a lower rate) for more than you currently owe, and using the extra funds for your kitchen remodel.
Government programs (like FHA Title I or Energy Efficient Mortgages) provide support for qualified homeowners and are especially helpful for energy-saving upgrades.
Should I use contractor financing to remodel my kitchen?
Some contractors do offer financing through a third-party lender, and it has its pros and cons. Kitchen contractor financing can be convenient with fast approval. However, this type of unsecured financing usually has higher interest rates and is more expensive than other options. It's good to compare contractor financing to other home improvement loan options to find the best rate and term.
