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8 Kitchen Remodel Loans: Compare Financing Options

Kitchen remodel financing options include personal loans, home equity financing, cash-out refi or government assistance. Compare these options to find what's best for you.

Mar 17, 2022

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One of the most important decisions of a kitchen remodel comes before you even start: how to pay for it. An unsecured personal loan is a relatively fast and convenient choice.

Other financing options include home equity loans and lines of credit, a cash-out refinance and government loans. The best way to finance a kitchen remodel depends on the price of the project, your credit, how much equity you have in your home and your goal with the renovation.

Here are our picks for kitchen remodel loans, the pros and cons of getting one and other options you should consider.

Kitchen Remodel Loans: Compare Financing Options

Our pick for

Kitchen remodel loans

SoFi
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on SoFi's website

SoFi

5.0

NerdWallet rating 
SoFi

Est. APR

7.99-23.43%

Loan amount

$5,000-$100,000

Min. credit score

None
Get rate

on SoFi's website


Min. credit score

None

Key facts

SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.

Pros

  • No fees.

  • Joint loan option.

  • Rate discount for autopay.

  • Hardship program for borrowers in need.

  • Mobile app to manage loan.

Cons

  • No option to choose initial payment date.

  • High minimum loan amount.

Qualifications

  • Must legally be an adult in your state.

  • Must be a U.S. citizen, permanent resident or visa holder.

  • Must be employed, have sufficient income or have an offer of employment to start within the next 90 days.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Fixed rates from 7.99% APR to 23.43% APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 8/22/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. 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. See APR examples and terms. 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.

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Lightstream
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on LightStream's website

LightStream

5.0

NerdWallet rating 
Lightstream

Est. APR

6.99-22.49%

Loan amount

$5,000-$100,000

Min. credit score

660
Get rate

on LightStream's website


Min. credit score

660

Key facts

LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose.

Pros

  • No fees.

  • Rate discount for autopay.

  • Long repayment terms on home improvement loans.

  • Rate Beat program and Experience Guarantee.

Cons

  • No option to pre-qualify on its website.

  • Requires several years of credit history.

  • No direct payment to creditors with debt consolidation loans.

Qualifications

  • Minimum credit score: 660.

  • Several years of credit history.

  • Multiple account types within your credit history, like credit cards, a car loan or other installment loan and a mortgage.

  • Strong payment history with few or no delinquencies.

  • Investments, retirement savings or other evidence of an ability to save money.

  • Enough income to pay existing debts and a new LightStream loan.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $25,000 loan at 4.98% APR with a term of 20 years would result in 240 monthly payments of $164.71. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2022 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.

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Marcus by Goldman Sachs
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on Goldman Sachs' website

Marcus by Goldman Sachs

5.0

NerdWallet rating 
Marcus by Goldman Sachs

Est. APR

6.99-24.99%

Loan amount

$3,500-$40,000

Min. credit score

740
Get rate

on Goldman Sachs' website


Min. credit score

740

Key facts

With zero fees and customizable repayment terms, Marcus offers one of the best personal loans for borrowers with good credit.

Pros

  • No fees.

  • Rate discount for autopay.

  • Option to pre-qualify with a soft credit check.

  • Direct payment to creditors with debt consolidation loans.

Cons

  • No co-sign or joint loan option.

Qualifications

  • Minimum credit score: 740 FICO.

  • Must have U.S. bank account.

  • Must provide Social Security number or Individual Tax ID number.

Available Term Lengths

3 to 6 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

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Wells Fargo Personal Loan
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on NerdWallet's secure website

Wells Fargo Personal Loan

4.5

NerdWallet rating 
Wells Fargo Personal Loan

Est. APR

5.74-20.99%

Loan amount

$3,000-$100,000

Min. credit score

None
See my rates

on NerdWallet's secure website


Min. credit score

None

Key facts

Wells Fargo personal loans stand out thanks to a wide range of loan amounts and flexible terms, but borrowers can't pre-qualify.

Pros

  • No origination fee.

  • Option to pre-qualify with a soft credit check.

  • Wide variety of repayment term options.

Cons

  • No co-sign or joint loan option.

  • No direct payment to creditors with debt consolidation loans.

  • Must be an existing customer.

Qualifications

  • Must be an existing Wells Fargo customer.

  • Must provide personal information, including Social Security number or Individual Tax Identification Number.

  • Must provide employment and income information; documentation may be required to verify this information.

Available Term Lengths

1 to 7 years

Fees

  • Late fee: $39.

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Upgrade
Get rate

on Upgrade's website

Upgrade

5.0

NerdWallet rating 
Upgrade

Est. APR

7.96-35.97%

Loan amount

$1,000-$50,000

Min. credit score

560
Get rate

on Upgrade's website


Min. credit score

560

Key facts

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros

  • Secured and joint loans.

  • Multiple rate discounts.

  • Mobile app to manage loan payments.

  • Direct payment to creditors with debt consolidation loans.

  • Long repayment terms on home improvement loans.

Cons

  • Origination fee.

  • No option to choose your payment date.

Qualifications

  • Minimum credit score: 560.

  • Minimum number of accounts on credit history: 1 account.

  • Maximum debt-to-income ratio: 75%, including the loan you're applying for.

  • Minimum length of credit history: 2 years.

  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: 1.85% to 8.99%.

  • Late Fee: $10.

  • Failed payment fee: $10.

Disclaimer

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.96%-35.97%. All personal loans have a 1.85% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.

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Lending Club
Get rate

on LendingClub's website

LendingClub

5.0

NerdWallet rating 
Lending Club

Est. APR

8.30-36.00%

Loan amount

$1,000-$40,000

Min. credit score

600
Get rate

on LendingClub's website


Min. credit score

600

Key facts

LendingClub is a good option for fair-credit borrowers and for co-borrowers who want to jointly apply for a loan.

Pros

  • Joint loan option.

  • Direct payment to creditors with debt consolidation loans.

  • Option to pre-qualify with a soft credit check.

  • Option to change your payment date.

Cons

  • Origination fee.

  • Late fee.

  • No mobile app to manage loan.

Qualifications

  • Minimum credit score: 600.

  • Maximum DTI: 60%; 40% for joint applicants.

  • Minimum credit history: 37 months and 2 accounts.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 3% to 6%.

  • Late fee: 5% of payment or $15 after 15-day grace period.

Disclaimer

Between April 2022 and June 2022, Personal Loans issued by LendingClub Bank were funded within 44 hours after loan approval, on average. The time it takes for a loan to be funded is not guaranteed and individual results vary based on multiple factors, including but not limited to investor demand. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $16,980 for a term of 36 months, with an interest rate of 13.49% and a 6.00% origination fee of $1,019, for an APR of 17.89%. In this example, the borrower will receive $15,961 and will make 36 monthly payments of $576. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 8.30% to 36.00% and origination fee ranges from 3.00% to 6.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2022 and are subject to change without notice. Loans are made by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of NerdWallet Compare, Inc. which is an unrelated third party (“third party”). LendingClub Bank is not responsible for any products and services provided by this third party and may receive compensation if you visit the third party’s websites or use any of its products or services. Credit eligibility is not guaranteed. Loans are subject to credit approval and may be subject to sufficient investor commitment before they can be funded or issued. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.

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Alliant Personal Loan
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on NerdWallet's secure website

Alliant Personal Loan

4.5

NerdWallet rating 
Alliant Personal Loan

Est. APR

6.24-27.24%

Loan amount

$1,000-$50,000

Min. credit score

620
See my rates

on NerdWallet's secure website


Min. credit score

620

Key facts

Alliant’s personal loans, with their wide range of amounts, fast funding and rate discount are a strong option for members with fair and good credit.

Pros

  • Fast funding.

  • Wide range of loan amounts.

  • Rate discount for autopay.

  • Option to choose initial payment date.

Cons

  • Exclusive to credit union members.

  • No option to pre-qualify with a soft credit check.

  • No co-sign or joint loan option.

  • No direct payment to creditors with debt consolidation loans.

Qualifications

  • You must be an Alliant Credit Union member for at least six months to apply for a personal loan.

  • Minimum credit score: 620.

  • Loan approval is based on payment method, creditworthiness and ability to repay.

Available Term Lengths

1 to 5 years

Fees

  • Origination fee: None.

  • Prepayment fee: None.

  • Late fee: Varies.

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PenFed Credit Union Personal Loan
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on NerdWallet's secure website

PenFed Credit Union Personal Loan

5.0

NerdWallet rating 
PenFed Credit Union Personal Loan

Est. APR

7.74-17.99%

Loan amount

$600-$50,000

Min. credit score

700
See my rates

on NerdWallet's secure website


Min. credit score

700

Key facts

PenFed’s personal loans are best for good- to excellent-credit borrowers looking for a wide range of loan amounts and terms to choose from.

Pros

  • Option to pre-qualify with a soft credit check.

  • Co-sign and joint loan options.

  • Can fund loans within one week.

  • Wide range of loan amounts.

Cons

  • No rate discount.

  • Reports payments to only one of the three major credit bureaus.

  • No direct payment to creditors with debt consolidation loans.

Qualifications

  • Minimum credit score: 700.

  • Must provide name, address, date of birth, Social Security number and employer information.

  • Must show at least two years of credit history, two accounts and no bankruptcies.

  • Average borrower annual income: $55,000.

  • Average borrower debt-to-income ratio: 40%.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: None.

  • Late fee: $29.

  • Non-sufficient funds fee: $35.

Disclaimer

Personal Loan rates range from 7.74% to 17.99% APR.Rates and offers current as of October 2022 and are subject to change.* Your actual APR will be determined at the time of disbursement and will be based on your creditworthiness, which includes an evaluation of your credit history and the length of your PenFed membership. Not all applicants will qualify for the lowest rate. Rates quoted assume excellent borrower credit history. Other eligibility requirements may apply. All loans are subject to a minimum monthly payment of $50.Insured by NCUA. To receive any advertised product, you must become a member of PenFed. Equal Housing Lender.

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What is a kitchen remodel loan?

A kitchen remodel loan is a personal loan that you use to pay for a kitchen renovation. You get this type of loan in a lump sum and repay it, plus interest, in monthly installments.

Loan amounts range from $1,000 to $100,000, and repayment terms are typically two to seven years. Rates are between 6% and 36%.

These loans don’t require collateral, meaning approval and the loan’s annual percentage rate are based on information like your credit and income.

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 can 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.

Home equity loan

A home equity loan is a second mortgage that you get in a lump sum and repay in fixed monthly installments for a term of up to 15 years. Rates are often 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 who have less-than-perfect credit but have repaid much of their mortgage may be able to borrow more with a home equity loan than a personal loan.

Home equity line of credit

A HELOC is a credit line that you draw from as you need it over a period of up to 10 years. 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 estimate isn’t firm or when surprise expenses come up. If you get a personal loan and then unexpected remodeling costs come up, you can’t borrow more.

Steps to get a kitchen remodel loan

  • Get a 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 what loan amount and rate you could be approved for. Because this process doesn’t affect your credit score, you can pre-qualify with multiple lenders to compare offers.

  • Compare lenders. If you get two similar offers, compare loan features like funding time, repayment term options and credit-building assistance to break the tie.

  • Submit an application. 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 when you apply, which will cause your credit score to temporarily dip. Expect a decision within a day or two of applying.

Financing a kitchen remodel with a personal loan: Pros and cons

Pros

  • No collateral: With an unsecured personal loan, you don’t have to put the home up as collateral, so the lender doesn’t have the right to take it if you fail to repay.

  • Fast funding: Some lenders can fund a personal loan the same or next day after you apply. Most personal loans are funded within one week.

Cons

  • Rates may be high for bad-credit borrowers: Because your credit history is a key factor on a personal loan application, borrowers with bad credit (629 or lower FICO) may not qualify, or may qualify for an APR on the high end of a lender’s range.

  • No tax benefits: Unlike with home equity loans and lines of credit, you can’t claim a tax deduction on the interest you pay on a personal loan.

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. Financial planners also recommend homeowners plan to stay in the home long enough for the monthly savings to exceed the cost of refinancing.

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.

Kitchen remodel financing tips

Budget more than you think you’ll need. A good rule of thumb when budgeting for a kitchen remodel is to set aside 17% to 20% of your home’s market resale value, says David Pekel, former CEO of the National Association of the Remodeling Industry.

For example, you might budget from $50,000 to $60,000 for a remodel on a home valued at $300,000.

Typically, it’s better to sit down with a contractor before you start planning the remodel to get an estimate. Most contractors won’t charge you for an hour-long consultation, he says.

New Jersey-based kitchen and bath designer Peter Salerno says unexpected costs like added features or faulty wiring and plumbing are common with kitchen remodels. Pekel recommends saving an extra 10% of what you’ve budgeted for the project to cover unexpected costs.

Account for your home’s value. Especially if you’re fixing up to sell, your goal should be to minimize spending and maximize your return, says Larry Ginsburg, a certified financial planner based in Oakland, California.

An experienced real estate agent can help you gauge whether your planned updates will increase the house’s value, Pekel says.

Prioritize updates. Prioritize your budget based on which updates are the most important, Salerno says. For example, new top-of-the-line appliances — which can be the most expensive part of a remodel — might not be a good use of your budget if your goal is to knock down a wall and make more space.

Last updated on March 17, 2022

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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.

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

To recap our selections...

NerdWallet's Kitchen Remodel Loans: Compare Financing Options