Answer a few questions to quickly get rates from several lenders, or scan our data-backed list of the best loans for home improvement.
Checking rates is free and won't impact your credit score.
Best for overall home improvement loan
2026 NerdWallet award winner
6.49 - 24.89%
$5K - $100K
660
2 to 7 years
Best for borrowers with fair credit
2026 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for credit union members
7.89 - 18.00%
$500 - $50K
None
6 months to 7 years
Best for large loan amounts
2026 NerdWallet award winner
8.74 - 35.49%
$5K - $100K
None
2 to 7 years
Best for thin- or low-credit borrowers
2026 NerdWallet award winner
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for secured loan options
2026 NerdWallet award winner
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
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.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
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.
Our list includes lenders offering larger loan amounts appropriate for typical home improvement projects as well as terms that allow affordable monthly payments. We also considered features like rates and funding time, plus loan requirements and options that help borrowers qualify.
For pricey projects, LightStream offers personal loans of up to $100,00 to those who qualify. It also offers repayment plans of up to 20 years for loans that are greater than $25,000 and used for home improvement purposes.
LightStream also stands out for depositing funds quickly, charging no fees and allowing co-borrowers.
Upgrade offers loan amounts from $1,000 to $50,000 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 through Upgrade.
One reason to consider a loan through a federal credit union: their maximum APRs are capped at 18%. In addition to offering relatively low rates, First Tech has many personal loan options to fit a variety of home improvement needs. Loan amounts range from $500 to $50,000, and terms range from 6 months to seven years.
Note that you must become a member of First Tech to qualify.
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.
Lenders typically focus a lot on credit to determine whether an applicant qualifies and for what rate. But Upstart has no minimum credit score and accepts applicants without much credit history. Instead, it considers factors like college education and work experience.
A secured loan is backed by collateral, or property that the lender can take if the borrower doesn’t repay their loan. The upside of this move: Secured loans are typically easier to qualify for and may lead to lower rates or higher amounts than a borrower would have been offered for an unsecured loan.
Best Egg offers two ways to secure loans. Homeowners can use permanent home fixtures (like built-in cabinets, light fixtures and bathroom vanities) as collateral and borrow up to $50,000. Or people can borrow up to 250% of their vehicle’s value, up to $100,000.
A home improvement loan is typically an unsecured personal loan that you use to cover the costs of home upgrades or repairs. They're sometimes called home renovation loans or home remodeling loans.
Lenders provide loans of up to $100,000 in a lump sum, which you repay in monthly installments, usually over two to 12 years. A loan with a long repayment term may have low monthly payments, but you’ll pay more interest over the life of that loan than one with a shorter repayment term.
Once approved, you may receive your loan within one to two days. Missed or late loan payments will negatively impact your credit, but you won’t risk losing your home.
Annual percentage rates range from about 7% to 36%. APRs represent the entire cost of the loan, including fees the lender may charge. Lenders decide your rate on the loan primarily by evaluating your credit score, credit history and debt-to-income ratio.
Some lenders let you add a co-signer or co-borrower to your application. Adding someone with better credit or higher income to the loan application may reduce your annual percentage rate (APR) or increase the amount you can borrow.
» MORE: Current average personal loan rates
» MORE: Where to get a personal loan
» MORE: Personal loan application requirements
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
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:
Project type | Estimated cost |
|---|---|
$82,793. | |
$26,138. | |
$18,263. | |
$29,649. | |
$31,871. | |
$65,909. | |
$3,647. |
Sources: Remodeling 2025 Cost vs Value Report, EnergySage, Angi.
Unsecured personal loans, or 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 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
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."
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.
» MORE: Home improvement tax credits for energy-saving updates
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.
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.
A home improvement loan is a lump sum of money that you repay in fixed monthly installments over two to 12 years. Unlike home equity loans or home equity lines of credit, the loans are not secured by your home, and approval is based mainly on your creditworthiness.
Home improvement loan amounts range from $1,000 to $100,000. However, many lenders cap amounts at $30,000 to $50,000. If you think your project will cost more than that, look for a lender that offers larger loans.
The best way to finance home improvements depends on factors such as your home equity, how much money you need to borrow and your credit score. Compare home improvement loans with home equity loans, home equity lines of credit, cash-out refinancing and federal programs.
Home improvement loan rates typically range from about 6% to 36%. The best personal loan rates typically go to borrowers with high credit scores and credit histories showing consistent on-time payments toward other loans and credit cards.
Look for online lenders that accept lower credit scores or don’t have a minimum score requirement. Comparing lenders and pre-qualifying can help you find the best rates and terms without hurting your credit. Adding a co-signer or choosing a secured loan may also improve your chances of approval.
