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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.

Annie Millerbernd
By
Last updated on December 13, 2023
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

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Compare personal loan rates in just 2 minutes Check rates from multiple lenders at once Explore loans up to $100,000 There’s NO impact on your credit score
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SoFi Personal Loan
SoFi Personal Loan
SoFi Personal Loan
5.0
NerdWallet rating

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

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Kitchen Remodel Loans: Compare Financing Options

Lender
NerdWallet Rating
Est. APR
Loan amount
Min. credit score
Learn more
SoFi

SoFi Personal Loan

Top 3 most visited 🏆
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
Best for Kitchen remodel loans
Rate discount

8.99-29.99%

$5,000-$100,000

None

Upgrade

Upgrade

5.0
/5
Best for Kitchen remodel loans
Rate discount

8.49-35.99%

$1,000-$50,000

560

Lightstream

LightStream

Visit Lender
on LightStream's website
on LightStream's website
4.5
/5
Best for Kitchen remodel loans
Rate discount

7.99-25.49%

$5,000-$100,000

660

Wells Fargo Personal Loan

Wells Fargo Personal Loan

Check Rate
on NerdWallet
on NerdWallet
4.5
/5
Best for Kitchen remodel loans

7.49-23.74%

$3,000-$100,000

None

Lending Club

LendingClub

4.5
/5
Best for Kitchen remodel loans
Flexible payments

9.57-35.99%

$1,000-$40,000

600

PenFed Credit Union Personal Loan

PenFed Credit Union Personal Loan

4.5
/5
Best for Kitchen remodel loans

7.99-17.99%

$2,000-$50,000

700

BestEgg

Best Egg

4.5
/5
Best for Kitchen remodel loans
Secured loans
Wide range of loan amounts

8.99-35.99%

$2,000-$50,000

600

RocketLoans

Rocket Loans

4.0
/5
Best for Kitchen remodel loans
Fast funding
Rate discount

9.12-29.99%

$2,000-$45,000

640

Our pick for

Kitchen remodel loans

SoFi
Visit Lender
on SoFi's website
on SoFi's website
SoFi

SoFi Personal Loan

Est. APR

8.99-29.99%

Loan amount

$5,000-$100,000

Min. credit score

None

Lightstream
Lightstream

LightStream

4.5
Est. APR

7.99-25.49%

Loan amount

$5,000-$100,000

Min. credit score

660

Wells Fargo Personal Loan
Wells Fargo Personal Loan

Wells Fargo Personal Loan

Est. APR

7.49-23.74%

Loan amount

$3,000-$100,000

Min. credit score

None

Upgrade
Upgrade

Upgrade

Est. APR

8.49-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

Lending Club
Lending Club

LendingClub

Est. APR

9.57-35.99%

Loan amount

$1,000-$40,000

Min. credit score

600

PenFed Credit Union Personal Loan
PenFed Credit Union Personal Loan

PenFed Credit Union Personal Loan

Est. APR

7.99-17.99%

Loan amount

$2,000-$50,000

Min. credit score

700

RocketLoans
RocketLoans

Rocket Loans

Est. APR

9.12-29.99%

Loan amount

$2,000-$45,000

Min. credit score

640

BestEgg
BestEgg

Best Egg

Est. APR

8.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600

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 from 6% to 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.

» MORE: Best personal loans for home improvement

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.

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 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 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

  1. 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.

  2. 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.

  3. 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.

  4. 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 use the home 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 scores (629 or lower) 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. It’s a good idea to add extra money to your project’s budget for unexpected expenses or additions. Some contractors say homeowners should expect to spend as much as 20% more than they’re quoted, but it can vary by project. Ask contractors how much wiggle room they think is reasonable when you’re gathering quotes.

Account for a future sale. If you’re planning 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.

Last updated on December 13, 2023

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender 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.

To recap our selections...

NerdWallet's Kitchen Remodel Loans: Compare Financing Options

  • SoFi Personal Loan: Best for Kitchen remodel loans
  • LightStream: Best for Kitchen remodel loans
  • Wells Fargo Personal Loan: Best for Kitchen remodel loans
  • Upgrade: Best for Kitchen remodel loans
  • LendingClub: Best for Kitchen remodel loans
  • PenFed Credit Union Personal Loan: Best for Kitchen remodel loans
  • Rocket Loans: Best for Kitchen remodel loans
  • Best Egg: Best for Kitchen remodel loans
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