8 oct 2026 ·
Advertiser: Every figure comes from the lender’s own website or a named independent source, and our method is explained at the end of the article.
A new roof, a kitchen remodel or a bathroom update can easily cost five figures. Unless you’ve saved up, you’ll need to borrow, and the loan you pick can change the final cost of your project by thousands of dollars.
We compared six personal loan lenders popular for home projects, plus the main alternatives: HELOCs, FHA Title I loans and contractor financing. All rates and terms are as published on October 8, 2026.
How home improvement loans work
Most «home improvement loans» are unsecured personal loans. You get a lump sum, pay it back in fixed monthly payments, and don’t need to use your home as collateral or have equity in it. Many lenders fund within a day or two, so you can pay a contractor quickly.
The trade-off is cost. Because the loan isn’t backed by your house, rates are usually higher than those on home equity products. Some lenders narrow that gap by offering a secured option backed by your car or by fixtures in your home.
Our top picks at a glance
LightStream is our top pick for large projects if you have excellent credit. If your credit is fair, Upgrade and Best Egg are the stronger choices.
| Lender | Best for | APR range | Origination fee | Loan amounts | Terms |
|---|---|---|---|---|---|
| LightStream | Large projects, excellent credit | About 6.49% – 25.39%* | None | $5,000 – $100,000 | Up to 20 years for home improvement |
| SoFi | Large projects with a soft-pull rate check | 6.99% – 35.49%** | None on standard offers | $5,000 – $100,000 | 2 – 7 years |
| Upgrade | Fair credit, homeowner discount | 7.74% – 35.99% | 1.85% – 9.99% | $1,000 – $50,000 | 2 – 7 years |
| Best Egg | Secured loan backed by home fixtures | 6.99% – 35.99% (unsecured) | 0.99% – 9.99% | $2,000 – $50,000 | 3 – 5 years |
| Happen Bank (formerly LendingClub) | Low fees, small to mid-size projects | 5.96% – 35.99% | 0% – 8% | $1,000 – $75,000 | 2 – 7 years |
| Upstart | Limited credit history | 6.3% – 35.99% | 0% – 12% | $1,000 – $75,000 | 3 or 5 years |
*LightStream doesn’t publish its full APR range on its main pages; this range is reported by Bills.com. **SoFi’s range includes its autopay and member discounts; its loan amounts are reported by NerdWallet. All other figures come from each lender’s website, checked October 8, 2026.
The best home improvement loans, reviewed
1. LightStream — best for large projects and excellent credit
LightStream lends $5,000 to $100,000 for home improvement with terms up to 20 years, and it charges no fees or prepayment penalties. It places no restrictions on the type of project. Funds can arrive the same day if you finish the required steps by 2:30 p.m. ET on a banking business day. NerdWallet reports that the longest terms are reserved for home improvement loans of $25,000 or more.
- Pros: no fees, very long terms for big projects, low reported maximum APR, Rate Beat program
- Cons: only approves good-to-excellent credit; no prequalification, so applying means a hard credit inquiry
2. SoFi — best for large projects with a soft-pull rate check
SoFi also lends up to $100,000 with no mandatory fees, and lets you see your rate with a soft credit pull first. It typically funds the same day if you sign by 5:30 p.m. ET on a business day, and you can cut your rate with up to three 0.25% discounts.
- Pros: soft-pull rate check, no mandatory fees, fast funding, co-borrowers allowed
- Cons: $5,000 minimum; terms capped at 7 years; usually needs good credit
3. Upgrade — best for fair credit
Upgrade is open to fair-credit borrowers and offers terms from two to seven years. Homeowners can get a lower rate by securing the loan with built-in fixtures like ceiling fans, bookshelves and light fixtures. Your home isn’t used as collateral, and there’s no home inspection or extra paperwork.
- Pros: homeowner discount without using the house as collateral, wide term range, joint applications
- Cons: origination fee of at least 1.85%; $50,000 maximum
4. Best Egg — best secured loan for homeowners
Best Egg’s secured loan uses permanent fixtures in your home, such as built-in cabinets, vanities and light fixtures, as collateral; a UCC-1 lien is filed on those items, not your house. NerdWallet lists a secured APR range of 5.99% to 29.99%, below Best Egg’s unsecured range.
- Pros: lower-rate secured option, fee can start at 0.99%, fast funding for many borrowers
- Cons: fee is at least 4.99% on terms of four years or more; no co-borrowers; not available in five areas, including Washington, D.C.
5. Happen Bank (formerly LendingClub) — best for low fees on small to mid-size projects
Happen Bank’s origination fee can be 0%, and its loans start at $1,000, so it suits smaller jobs like a water heater or new flooring as well as bigger remodels. Terms run up to seven years and joint applications are allowed.
- Pros: lowest starting APR here, fee can be 0%, $1,000 minimum
- Cons: fee can reach 8%; minimum credit score not published
6. Upstart — best for limited credit history
Upstart’s model looks at your education and employment along with your credit. It lends $1,000 to $75,000 for projects such as energy-efficient upgrades, additions, repairs and kitchen or bath remodels. It says 65% of customers in June 2026 had transfers started within 24 hours of approval and signing.
- Pros: considers more than your credit score, up to $75,000, fast funding
- Cons: origination fee up to 12%; only 3- or 5-year terms
Other ways to pay for home improvements
| Option | How it works | Typical cost | Best for |
|---|---|---|---|
| Personal loan | Unsecured lump sum, fixed rate | Average APR 15.16% (excellent credit) to 23.77% (fair) | Fast funding, little or no equity |
| HELOC | Credit line secured by your home | Average 7.29%, usually variable | Big or staged projects with plenty of equity |
| Home equity loan | Lump sum secured by your home, fixed rate | Usually below personal loan rates | Large one-time projects with equity |
| FHA Title I loan | Federally insured loan from HUD-approved lenders | Set by the lender | Basic upgrades with little equity |
| Contractor or retailer financing | Offered at checkout or by the contractor | Varies; watch for deferred-interest promotions | Small projects you can pay off quickly |
Average personal loan APRs are from NerdWallet (October 2026); the HELOC average is Bankrate’s for the week of September 30, 2026.
FHA Title I loans in brief
Title I loans are insured by the Federal Housing Administration and made by HUD-approved lenders such as banks and credit unions. According to Experian, single-family homes can borrow up to $25,000 for up to 20 years. Loans under $7,500 can be unsecured, and you don’t need home equity to apply. The work must improve the basic livability or usefulness of the home; luxury items like pools don’t qualify. Confirm current limits with a HUD-approved lender.
Real cost example: a $25,000 kitchen remodel
| Option | Rate used | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| Personal loan, excellent credit | 15.16% fixed | 5 years | $597 | $10,811 |
| Personal loan, excellent credit | 15.16% fixed | 7 years | $485 | $15,712 |
| Personal loan, good credit | 19.55% fixed | 5 years | $656 | $14,366 |
| HELOC, rate unchanged | 7.29% variable | 5 years | $498 | $4,907 |
| HELOC, rate unchanged | 7.29% variable | 10 years | $294 | $10,283 |
We calculated these with standard loan formulas using the averages above. They don’t include fees: a personal loan’s origination fee or a HELOC’s closing or annual fees would add to the cost.
Two lessons stand out. First, a HELOC is far cheaper over the same term, if you have the equity and accept that your home secures the debt. Second, stretching any loan out to lower the payment adds thousands in interest. For a deeper comparison, see our guide to personal loans vs HELOCs for home improvement.
How to choose the right home improvement loan
| Your situation | Look at | Why |
|---|---|---|
| Big remodel ($50,000+), excellent credit | LightStream or SoFi | Up to $100,000, no mandatory fees |
| Big remodel and plenty of equity | A HELOC or home equity loan | Much lower average rates |
| Fair credit | Upgrade or Best Egg | Accept fair credit; secured options can lower your rate |
| Small job under $5,000 | Happen Bank, Upgrade or Upstart | $1,000 minimums |
| Thin credit history | Upstart | Weighs education and employment |
| Little equity, basic repairs | FHA Title I | No equity needed, federally insured |
| Urgent repair (furnace, roof leak) | SoFi, LightStream or Upgrade | Same-day or next-day funding |
How to apply, step by step
- Get written quotes from at least two or three contractors, and add 10–20% for surprises.
- Decide how much to borrow, including any origination fee that will come out of the loan.
- Prequalify with several lenders. Most let you see your rate with a soft credit check; LightStream doesn’t offer prequalification.
- Compare APRs and total cost, not just the monthly payment.
- Gather your documents: ID, proof of income and bank account details.
- Apply and sign, then pay your contractor according to the contract, never all up front.
Red flags when hiring a contractor
Your loan is only as good as the work it pays for. The Federal Trade Commission warns about these signs of a home improvement scam:
- Someone knocks on your door saying they’re «working in the area» or have leftover materials
- Pressure to decide right away
- A demand for full payment up front, or cash only
- Asking you to get the building permits yourself
- Suggesting you borrow from a lender they know
The FTC also recommends hiring only licensed and insured contractors, getting a written contract with start and end dates and every promise in writing, and never making the final payment until the work is done. If a contractor offers to arrange your financing, shop around and compare terms before you sign anything.
How we chose these lenders
We looked at major online lenders that market personal loans for home improvement and lend nationally. We ranked them on five factors:
- Cost (30%): APR range and fees
- Loan fit (25%): loan amounts and term lengths suited to home projects
- Access (20%): credit requirements, prequalification and joint or secured options
- Speed (15%): how quickly funds are sent after approval
- Transparency (10%): whether rates, fees and terms are clearly published
All rates, fees, amounts and terms come from each lender’s official website, checked on October 8, 2026. When a lender doesn’t publish a figure, we cite the independent source that reports it. We didn’t apply for these loans ourselves. We review this list at least once every quarter.
Frequently asked questions
What credit score do I need for a home improvement loan?
It depends on the lender. LightStream only approves good-to-excellent credit profiles, while lenders like Upgrade, Best Egg and Upstart accept fair credit. Independent reviewers report minimums of about 580 for Upgrade and 600 for Best Egg.
Is a personal loan or a HELOC better for home improvements?
A HELOC usually has a much lower rate, about 7.29% on average versus 15% to 24% for personal loans, but it uses your home as collateral and takes longer to set up. A personal loan is faster and doesn’t require equity.
How long can I take to repay a home improvement loan?
Most personal loans run two to seven years. LightStream offers terms up to 20 years for some home improvement loans. FHA Title I loans can also run up to 20 years for single-family homes, according to Experian.
Is interest on a home improvement loan tax-deductible?
Interest on an unsecured personal loan isn’t deductible. Interest on a HELOC or home equity loan may be, if you itemize and use it to buy, build or substantially improve the home that secures it. See IRS Publication 936 or ask a tax professional.
Can I use a personal loan to pay a contractor directly?
Usually the money goes into your bank account and you pay the contractor yourself. Pay according to your written contract, and never pay the full cost up front.
Do I need home equity to get a home improvement loan?
No. Unsecured personal loans don’t require any equity. FHA Title I loans also don’t require equity, according to Experian.
Disclaimer
This article is for general information only and is not financial, legal or tax advice. We are not a lender or a financial advisor. APRs, fees and requirements shown are those published by each lender, or reported by the sources cited, on the date above and may change at any time. Your actual offer depends on your credit, income, state and other factors. Secured loans and HELOCs put your collateral at risk if you can’t repay. Always read the full loan agreement and compare several offers before you borrow.