Best Home Improvement Loans of September 2026

Our take on the best home improvement loans

Learn more about why the NerdWallet editorial team chose these lenders for home improvement loans.

LightStream: Best for overall home improvement loan

Why we like it: For pricey projects, LightStream offers personal loans up to $100,000 to those who qualify. It also offers repayment plans up to 20 years for loans that are greater than $25,000 and used for home improvement purposes.

LightStream can fund your loan within a day or two, or you can choose to receive your money up to 90 days after approval. That’s a unique feature among lenders that lets you align funding with your project.

The downside: LightStream’s minimum credit score is relatively high, at 660, and it seeks borrowers with good or excellent credit. If that’s not you, look into a lender with lower requirements.

Upgrade: Best for borrowers with fair credit

Why we like it: Upgrade offers loan amounts from $1,000 to $75,000 and a wide variety of repayment terms. Its minimum credit score requirement of 600 is ideal for borrowers with fair credit, who can increase their odds of approval by opting for a co-signed or secured loan.

The downside: Upgrade charges an origination fee of 1.85% to 9.99%.

SoFi: Best for large loan amounts

Why we like it: SoFi offers loans up to $100,000, as well as joint loans — ideal for large, shared home improvement expenses. SoFi also stands out for offering multiple rate discounts, as well as hardship assistance for a job loss.

The downside: SoFi doesn’t offer secured loans, which are typically easier to qualify for and may help borrowers get a lower rate or higher loan amount.

Patelco Credit Union: Best for its members

Why we like it: Patelco’s rates are among the lowest of lenders we review. The state-chartered credit union caps its APRs below 18% — many other reputable lenders have maximums near 36%. Its opportunities for rate reductions and the fact that it doesn’t charge an origination fee also make this a more affordable loan.

We also appreciate Patelco's wide range of loan amounts, from $300 to $100,000, that could cover just about any home expense.

The downside: Funding can take two or three days, which is slower than what the online lenders on this list offer. And while you don’t need to be a Patelco member to pre-qualify, you must join if you decide to proceed with an offer.

Happen Bank (formerly LendingClub): Best for low rates

What we like: Happen Bank boasts low minimum APRs compared to competitor lenders. On top low rates, you can get a 0.5-percentage-point reduction for enrolling in autopay.

The lender’s maximum loan amount is $75,000, which you can manage with a co-borrower. Opting for a joint loan may help you secure a lower rate than you would on your own.

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

Upstart: Best for thin- or low-credit borrowers

Why we like it: While most lenders focus a lot on credit to determine whether an applicant qualifies and for what rate, Upstart has no minimum credit score and accepts applicants without much credit history. Instead, it considers factors like education and work experience.

The downside: Loans offered through Upstart may have an origination fee up to 12%. Other lenders charge origination fees, but they’re typically capped at 10% or less.

Best Egg: Best for secured loans

Why we like it: Best Egg offers secured loans, meaning you back them up with collateral, which is property that the lender can take if you don’t repay. Secured loans are typically easier to qualify for and may lead to lower rates or higher amounts than you would have been offered for an unsecured loan. (Best Egg offers unsecured loans, too.)

Best Egg accepts permanent home fixtures (like built-in cabinets, light fixtures and bathroom vanities) as collateral and may allow you to borrow up to $50,000.

The downside: Best Egg charges an origination fee from 0.99% to 9.99%.

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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What rates should I expect on a home improvement loan?

Home improvement loan rates range from about 7% to 36%, with the lowest rates going to borrowers with high credit scores and income. 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 much APR affects your monthly payments and total costs, here’s an example of two rates on a five-year, $20,000 home improvement loan.

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.

How to get a home improvement loan

Pros and cons of home improvement loans

Pros

Cons

» MORE: Personal loan application requirements

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.