8 Best Mortgage Lenders for Home Improvement Loans of 2021

at Rocket Mortgage, LLC

4.5

Best for Best cash-out refinance lenders

620

National

at Rocket Mortgage, LLC

New American Funding: NMLS#6606

at New American Funding

4.0

Best for Best FHA 203(k) lenders

640

N/A

at New American Funding

Veterans United: NMLS#1907

at Veterans United

4.0

Best for Best cash-out refinance lenders

620

National

at Veterans United

Fairway Independent Mortgage: NMLS#2289

at Fairway Independent Mortgage

3.5

Best for Best Fannie Mae HomeStyle lenders

620

N/A

at Fairway Independent Mortgage

SunTrust (Truist): NMLS#2915

4.5

Best for Best HELOC lenders

620

National

Flagstar: NMLS#417490

5.0

Best for Best HELOC lenders

620

National

PrimeLending: NMLS#13649

3.5

Best for Best Fannie Mae HomeStyle lenders

620

N/A

Homebridge: NMLS#6521

3.5

Best for Best FHA 203(k) lenders

550

N/A

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

4.5

Min. credit score

620

National / regional

National

at Rocket Mortgage, LLC

Why we like it

Good for: borrowers who appreciate convenience online and on the go for a fully digital home loan experience with consistently acclaimed customer service.

Pros

Caters to self-service users who want to apply for a home loan online and talk to a human only as necessary.
Estimates the loan amount you’ll qualify for within minutes.
Streamlines the online process with document and asset retrieval capabilities, including the ability to edit your preapproval letter.

Cons

Getting a customized interest rate requires a credit check, which can affect your credit score.
Doesn't offer home equity loans or lines of credit.
Lender fees are on the high side and the fees aren't offset by particularly low mortgage rates, according to the latest data.

Our pick for

Best FHA 203(k) lenders

at New American Funding

New American Funding: NMLS#6606

4.0

Min. credit score

640

Min. down payment

3.5%

at New American Funding

Why we like it

Good for: borrowers who need to be evaluated on the basis of nontraditional credit and those interested in various down payment assistance programs.

Pros

Uses manual underwriting to evaluate creditworthiness.
Offers full online mortgage application, rate quotes, document upload and loan tracking.

Cons

Mortgage origination fees tend to be on the high end, according to the latest federal data.

Our pick for

Best cash-out refinance lenders

at Veterans United

Veterans United: NMLS#1907

4.0

Min. credit score

620

National / regional

National

at Veterans United

Why we like it

Good for: veterans, active-duty service members and eligible reservists looking to refinance VA or non-VA loans.

Pros

Offers 24/7 customer service over the phone.
Has online application and pre-qualification.
Offers a free credit counseling service.
Employs advisors from each branch of the armed forces.

Cons

Doesn't offer home equity loans or HELOCs.
Veterans United has physical branch offices in only 17 states.
Information on FHA, USDA and conventional loans is harder to find on its website.

Our pick for

Best Fannie Mae HomeStyle lenders

at Fairway Independent Mortgage

Fairway Independent Mortgage: NMLS#2289

3.5

Min. credit score

620

Min. down payment

at Fairway Independent Mortgage

Why we like it

Good for: borrowers who want access to a wide variety of mortgages and the convenience of a comprehensive mobile application process.

Pros

Offers a robust suite of loan products, including a variety of renovation loans.
Has a digital application that can be completed in 10 minutes.
Works with some state housing finance agencies to offer mortgages with down payment and closing cost assistance.

Cons

Mortgage rates aren't posted online.
Origination fees are on the high side and are not offset by low rates, according to the latest data.

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

4.5

National / regional

National

Max LTV

89.9%

Min. credit score

620

Min. credit score

620

Why we like it

Good for: first-time home buyers, doctors and other borrowers interested in low-down-payment mortgage options.

Pros

Offers a wide variety of loan options, including special programs for doctors.
Offers a complete suite of online mortgage application tools and loan tracking.
Sample rates and fees are easy to find on the website.

Cons

Customized rates aren't available online without starting an application.
Branches are limited mostly to the Southeast.

Flagstar: NMLS#417490

5.0

National / regional

National

Max LTV

89%

Min. credit score

620

Min. credit score

620

Why we like it

Good for: borrowers who want a wide range of choices — not only among mortgage products, but also in the channel they prefer, whether a branch, online or on the phone.

Pros

Offers a wide range of loan types and products, including FHA, VA and USDA.
Has a full suite of online conveniences.
Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.

Cons

Home equity lending is geographically limited.

Our 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

3.5

Min. credit score

620

Min. down payment

Why we like it

Good for: borrowers looking for closing cost assistance, as well as those seeking to renovate or to build a new home.

Pros

Full online application includes document uploads and automated loan updates.
Offers a "float-down" interest rate lock.
Offers a proprietary closing-cost assistance program.

Cons

No online mortgage rates — you have to contact the lender for info.
Doesn't offer home equity products.

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

3.5

Min. credit score

550

Min. down payment

3.5%

Why we like it

Good for borrowers who want a loan officer's help, in person or on the phone, when deciding among the wide range of available mortgage options — including loans to buy and renovate.

Pros

Offers a full array of mortgage products, including government and renovation loans.
Has loans for most purposes, including purchase, refinance and jumbo mortgages.
Online portal keeps borrowers up-to-date on the loan application's progress.

Cons

Doesn't post interest rates on its site.
Doesn’t directly offer home equity loans or lines of credit.