8 Best Mortgage Lenders for Home Improvement Loans of 2021
Looking to pay for home improvements? NerdWallet picked the best lenders in five categories to help you have a first-rate experience and get the best rates.
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When you need to make improvements on a house, there’s more than one way to pay for it. Whether you own the house already or you’re buying a fixer-upper, and whether you’re building an addition or you’re merely renovating a bathroom, you have plenty of options for financing the work if you’re not paying for it out of savings.
NerdWallet researched dozens of prominent mortgage lenders to identify which are among the leaders in five categories of lending for home improvement projects. Happy hammering!
When you need to make improvements on a house, there’s more than one way to pay for it. Whether you own the house already or you’re buying a fixer-upper, and whether you’re building an addition or you’re merely renovating a bathroom, you have plenty of options for financing the work if you’re not paying for it out of savings.
NerdWallet researched dozens of prominent mortgage lenders to identify which are among the leaders in five categories of lending for home improvement projects. Happy hammering!
Best Mortgage Lenders for Home Improvement Loans
Lender | NerdWallet Rating | Min. credit score | National / regional | Learn More |
---|---|---|---|---|
![]() Rocket Mortgage, LLC: NMLS#3030 Learn more at Rocket Mortgage, LLC | Best for Best cash-out refinance lenders | 620 | National | Learn more at Rocket Mortgage, LLC |
New American Funding: NMLS#6606 Learn more at New American Funding | Best for Best FHA 203(k) lenders | 640 | N/A | Learn more at New American Funding |
![]() Veterans United: NMLS#1907 Learn more at Veterans United | Best for Best cash-out refinance lenders | 620 | National | Learn more at Veterans United |
![]() Fairway Independent Mortgage: NMLS#2289 Learn more at Fairway Independent Mortgage | Best for Best Fannie Mae HomeStyle lenders | 620 | N/A | Learn more at Fairway Independent Mortgage |
![]() SunTrust (Truist): NMLS#2915 | Best for Best HELOC lenders | 620 | National | Read review |
![]() Flagstar: NMLS#417490 | Best for Best HELOC lenders | 620 | National | Read review |
![]() PrimeLending: NMLS#13649 | Best for Best Fannie Mae HomeStyle lenders | 620 | N/A | Read review |
![]() Homebridge: NMLS#6521 | Best for Best FHA 203(k) lenders | 550 | N/A | Read review |
Our pick for
Best cash-out refinance lenders
If you have plenty of equity in your home, you can pay for home improvements by refinancing your mortgage for more than you currently owe. You collect the difference in cash; that’s why this form of refinancing is called a cash-out refi. The cash can be used to pay for the renovations.

at Rocket Mortgage, LLC
Rocket Mortgage, LLC: NMLS#3030

Min. credit score
620National / regional
Nationalat Rocket Mortgage, LLC
Our pick for
Best FHA 203(k) lenders
at New American Funding
New American Funding: NMLS#6606
Min. credit score
640Min. down payment
3.5%at New American Funding
Our pick for
Best cash-out refinance lenders

at Veterans United
Veterans United: NMLS#1907

Min. credit score
620National / regional
Nationalat Veterans United
Our pick for
Best Fannie Mae HomeStyle lenders

at Fairway Independent Mortgage
Fairway Independent Mortgage: NMLS#2289

Min. credit score
620Min. down payment
3%at Fairway Independent Mortgage
Our picks for
Best HELOC lenders
A home equity line of credit, or HELOC, acts somewhat like a credit card, using your home as collateral. HELOCs have variable rates, and you tap your equity only when you need it.
SunTrust (Truist): NMLS#2915

National / regional
NationalMax LTV
89.9%Min. credit score
620Flagstar: NMLS#417490

National / regional
NationalMax LTV
89%Min. credit score
620Our pick for
Best Fannie Mae HomeStyle lenders
A HomeStyle mortgage allows home buyers and refinancers to roll the costs of renovations into the loan. Qualified first-time home buyers can buy with down payments as low as 3%.
PrimeLending: NMLS#13649

Min. credit score
620Min. down payment
3%Our pick for
Best FHA 203(k) lenders
The Federal Housing Administration’s 203(k) program lets borrowers include renovation costs in an FHA-insured mortgage. The loan amount takes into account the home’s current value, its future value after renovations are completed, and how much the work will cost.
Homebridge: NMLS#6521

Min. credit score
550Min. down payment
3.5%More ways to pay for home improvements
In addition to the mortgage options listed above, homeowners can consider unsecured personal loans that are not backed by collateral such as one’s home. Personal loan interest rates are higher, but borrowers won’t put their homes at risk. Check out NerdWallet's selections for some of the best personal loans for home improvements.
More from NerdWallet
Last updated on January 30, 2021
Methodology
NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Mortgage Lenders for Home Improvement Loans of 2021
- Rocket Mortgage, LLC: Best for Best cash-out refinance lenders
- New American Funding: Best for Best FHA 203(k) lenders
- Veterans United: Best for Best cash-out refinance lenders
- Fairway Independent Mortgage: Best for Best Fannie Mae HomeStyle lenders
- SunTrust (Truist): Best for Best HELOC lenders
- Flagstar: Best for Best HELOC lenders
- PrimeLending: Best for Best Fannie Mae HomeStyle lenders
- Homebridge: Best for Best FHA 203(k) lenders