Best Loans for Kitchen Remodel Financing

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 $28,500 for a minor remodel to more than $160,000 for a major one, according to The Journal of Light Construction^[1].

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 range from 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.

» MORE: Best personal loans for home improvement

Pros and cons of financing a kitchen remodel with a personal loan

» MORE: Best home improvement loans for bad credit

Steps to get a kitchen remodel loan

» MORE: What are the requirements for a personal loan?

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.

» MORE: Personal loans vs. home equity loans

Home equity loan

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.

» MORE: Best home equity loan lenders

Home equity line of credit

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.

» MORE: Best HELOC lenders

Other kitchen remodel financing options

Cash-out refinance

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.

» MORE: Best lenders for cash-out refinances

Federal programs

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.

» MORE: Home improvement tax credits for energy-saving updates

Kitchen remodel financing tips

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 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.

» MORE: How to save on your kitchen remodel

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 that 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.

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.

30+

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 30 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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