10 Best Home Improvement Loans – If you want to fix your home and you need money, a home improvement loan from the best lender could be a good choice. But before you decide to get this kind of loan, it’s ideal to look at different options.
The best home improvement loans have good deals on interest rates and prices, and you can pay them back in a reasonable amount of time. Some of them are also okay with lower credit scores, which makes it easier for more people to get approved. This way, you will find the best home improvement loans that work well for all kinds of borrowers.
What are Home Improvement Loans?
A home improvement loan is money you borrow to help pay for fixing up or making your home better. When you get one of these loans, you use the money to buy the things you need for the improvements.
After that, you pay back the loan bit by bit over time. Home improvement loans are handy when you don’t have the money right away to cover the costs of making your home better.
The most common types of home improvement loans are home equity loans and personal loans. But there are other choices too, like cash-out refinancing. Different places, like banks, credit unions, and online lenders, might give you these loans.
10 Best Home Improvement Loans
Getting a home improvement loan is a handy way to get the money you need to fix your home without using it as collateral. A lot of these loans have good deals with low rates, flexible terms, quick funding, and not many fees, or sometimes none at all.
To find the best home improvement loans, we looked at things like interest rates, how much money you can borrow, how long it takes to get the money, and how easy it is to qualify.
We also checked if you can get someone to sign with you and what people say about their experience with the loan.
LightStream
LightStream is part of Truist Bank, which works online. It provides some of the most affordable rates you can find for home improvement loans. Additionally, they give you more time than usual to pay back the money.
LightStream is one of the best choices for home improvement loans because it provides the best all-around options. They have really good deals with low interest rates. They also let you borrow a lot of money, and you can pay it back.
In addition, they don’t charge any fees for the loan, and all this makes it a good option for those who want a low interest rate and receive a monthly.
SoFi
SoFi stands out by offering personal loans that go as high as $100,000, making it possible for those with expensive home improvement projects. What’s unique about SoFi is that they provide longer repayment terms compared to many other lenders, giving borrowers a window of 24 to 84 months to pay back the loan.
SoFi gives borrowers the flexibility to choose between a fixed and variable APR. Variable rates can change during your loan’s life, potentially saving you money if the APR goes down.
On the other hand, fixed rates ensure that your monthly payment stays the same throughout the loan, making it simpler to plan your repayment budget.
Discover Personal Loans
Discover Personal Loan is well-known for its online banking services. It is recognized for providing credit cards, student loans, personal loans, and various banking services across all 50 states.
It stands out as one of the best home improvement loans, particularly for customers requiring fast funding for minor repairs and renovations, with a maximum loan amount of $35,000.
To qualify for a Discover home improvement loan, you need to be a U.S. citizen and have a minimum household income of $25,000. Additionally, you are required to provide your tax information, employment history, and personal documents.
Marcus, by Goldman Sachs
Marcus by Goldman Sachs is one of the best home improvement loans, offering fixed-rate loans that go up to $40,000. Also with repayment terms spanning from three to six years. The current interest rates vary between 6.99% and 24.99%.
What sets Marcus apart is his flexibility. Borrowers can defer payments and even change the due date. This flexibility makes it stand out as a lender with accommodating terms.
Additionally, Marcus provides one-time payment rewards, adding a perk for borrowers. Importantly, there are no loan fees involved, which means no origination fees, late fees, prepayment penalties, or sign-up fees.
PenFed Credit Union
PenFed, also known as Pentagon Federal, is recognized for providing highly competitive rates across its financial products. This company is one of the 10 most popular home improvement companies offering loans. It also includes personal loans tailored for home improvements.
Home improvement loans feature fixed rates ranging from 7.74% to 17.99%, with repayment terms extending up to 60 months (five years). Borrowers can access loan amounts ranging from $600 to $50,000.
This makes it an appealing choice for those looking to borrow smaller amounts for minor projects. PenFed Credit Union is specifically highlighted as the best option for small loans due to its flexibility in granting loans as low as $600.
U.S. Bank
U.S. Bank provides loans for home improvement. This type of loan doesn’t require collateral or getting your home checked for it. U.S. Bank is one of the best choices for home improvement loans because they let you borrow as little as $1000. If you’re not a customer, you can borrow up to $25,000.
But if you’re a current customer, you might be able to borrow up to $50,000. The interest rate can be as low as 8.99% or as high as 21.49%, and that depends on how good they think you are at paying back money on time.
Navy Federal Credit Union
The Navy Federal Credit Union excels at providing competitive financial products for military members and their families across all 50 states. It offers home improvement personal loans starting at $25,000 with no origination fees.
The credit union boasts competitive rates and extended repayment terms, especially designed for military members. Minimum interest rates vary based on the loan duration, beginning at 7.49% for terms up to 36 months, 14.79% for 37 to 60 months, and 15.29% for 61 to 180 months.
To apply, active military members and employees, along with certain non-immediate family members, need to provide essential documents. This document includes employment details, income, a Social Security number, and contact information.
Upstart
Among the 10 best home improvement loans is Upstatrt. Upstart is a place that might help you fix up your home. It looks at other things like your education, job, credit history, and work experience.
Now, the time you get to pay back the loan is a bit limited compared to other choices. You can pick either a three-year loan or a five-year one. The smallest amount you can ask for is $1,000, and the biggest is $50,000.
Upstart adds an origination fee, which can be up to 12% of the loan amount. They also have late fees, but the good news is that there’s no fee if you want to pay off the loan early.
Upgrade
Upgrade provides loans starting at $1,000 and going up to $50,000. They give you flexibility in choosing how long you want to take to pay it back, anywhere from two to seven years.
Upgrades charge an origination fee. This fee can be anywhere from 1.85% to 9.99%, which is a bit more compared to some other good choices out there.
Also, Upgrade has higher APRs, with the highest rate being 35.99%. It’s important to know that interest rates can change based on how good your credit is, how much money you’re borrowing, and how long you’re planning to take to pay it all back.
LendingClub
Lending Club is an online lending option that provides fixed-rate loans for home improvements. You can borrow up to $40,000 and choose to make monthly payments over a period of three to five years.
One interesting thing about Lending Club is that it allows joint loan applications. which means you can apply with someone else. This could be helpful if your credit score isn’t super high.
However, it’s important to note that Lending Club has an origination fee, and it can be quite high, ranging from 2% to 6%. Also, the highest interest rate they charge, known as the APR, is 36%.
So, before you decide, it’s good to be aware of these fees and rates, which can depend on factors like your credit score and how much you want to borrow.
Conclusion
Home improvement is a big financial step, and picking the right personal loan can help ease the financial strain. It’s important to consider features such as the length of the loan term, how quickly you can get the funds, and the fees involved when comparing different lenders. Each of these factors plays a role in finding the loan that suits your needs best.
