Home improvement loans aren’t just one type of loan. Depending on your credit, how much equity you have, and how you plan to use the funds, you might choose a personal loan, a home equity loan, a HELOC, or even a home equity agreement. Each option comes with different rates, risks, and repayment structures.
Below, we compare the best home improvement financing options so you can find the right fit for your renovation plans.
Table of Contents
The best home improvement loans to consider right now
Figure
Why it’s one of the best
- Fixed-rate HELOC structure
- Fully online application
- Fast funding timeline (as few as 5 days)
- Requires sufficient home equity
- Closing costs may apply
Figure offers a home equity line of credit with fixed rates, which can provide more predictable payments than traditional variable-rate HELOCs.
Because the line of credit is secured by your home, qualification depends on available equity and your financial profile. If you’re in a hurry, you might like that funding can move quickly once approved.
| Rates (APR) | 6.05% – 14.05% fixed |
| Loan amounts | $15,000 – $750,000 |
| Repayment terms | 5, 10, 15, or 30 years |
| Min. credit score | 640 (but 720+ is recommended) |
Credible
Why it’s one of the best
- Compare multiple lenders at once
- Check rates without affecting credit scores
- Close with a better rate than you prequalify for on Credible and get a $200 gift card. Terms Apply.
- No option to apply for a joint loan through the platform
- Origination fees apply
Credible allows you to compare home improvement loan rates and terms from 17 top lenders in one place. You can borrow up to $250,000, giving you enough cash to fund large or small home improvements.
Credible doesn’t accept joint applications, but some of the lenders listed in the marketplace do.
| Loan type | Personal loan marketplace |
| Rates (APR) | 6.49% – 35.99% |
| Loan amounts | $1,000 – $250,000 |
| Repayment terms | 1 – 10 years |
| Min. credit score | Varies |
Hometap
Why it’s one of the best
- High funding amounts up to $600,000
- No monthly payments during the 10-year term
- Strong customer reviews and borrower protections, including the Hometap Cap
- Only available in 16 states + D.C.
- Potentially high repayment costs at the end of the term
Hometap lets homeowners access equity with no monthly payments in exchange for a share of the home’s future value. With funding up to $600,000, a 10-year term, and protections like its 20% return cap and renovation adjustment, it earns our top rating among home equity investment companies.
| Repayment amount | 15% – 30% share of home’s future value |
| Funding amount | $15,000 – $600,000 |
| Term length | 10 years |
| Min. credit score requirement | 585 |
Aven
Why it’s one of the best
- Excellent customer reviews
- Fixed interest rates
- Funding in as little as three days after signing
- 4.90% first-draw fee at closing
- Full HELOC amount must be drawn at origination
Aven’s Home Equity Cash is a fixed-rate HELOC designed for borrowers who want predictable payments and a fast, fully digital process. You can check your rate with no credit impact, complete the application online, and close remotely.
While it requires drawing the full approved amount at origination and charges a first-draw fee, its streamlined approval process and consistently strong customer reviews make it a standout option.
| Rates (APR) | 6.99% – 15.49% |
| Loan amounts | $5,000 – $400,000 |
| Repayment terms | 5, 10, 15, or 30 years |
| Min. credit score | 640 (but 720+ recommended) |
Upstart
Why it’s one of the best
- No minimum credit score required for approval
- Check rates without affecting your credit
- Next day funding, with no hidden fees
- Origination fee of up to 12%
- Maximum loan amount is $50,000
Upstart is one of the best home improvement loans for people with thin or no credit history. No minimum credit score is required; instead, Upstart looks at your income, debt, and other factors to approve you for a loan. Once approved, you can get funds as soon as the next business day. You’ll pay an origination fee to borrow, but you’ll never encounter hidden fees with Upstart loans.
| Rates (APR) | 6.20% – 35.99% |
| Loan amounts | $1,000 – $75,000 |
| Repayment terms | 36 or 60 months |
| Min. credit score | None specified |
Upgrade
Why it’s one of the best
- Smaller minimum loan amount of $1,000
- Competitive rates for people with fair credit
- Joint applications are accepted
- 1.85% to 9.99% origination fee
- Not suitable for larger home improvement projects
Upgrade offers smaller loans for home improvement, with a minimum threshold of $1,000. Applicants with a credit score of 580 or better can get approved, and you can apply with a co-borrower or cosigner.
Once approved, Upgrade makes your funds accessible as soon as the next business day. Should you decide to pay your loan off early, no prepayment penalties or fees apply.
| Rates (APR) | 7.74% – 35.99% |
| Loan amounts | $1,000 – $50,000 |
| Repayment terms | 24 – 84 months |
| Min. credit score | 580 |
LightStream
Why it’s one of the best
- Customized loans for home improvement or any other need
- Same-day funding for eligible borrowers
- Get the lowest rate with LightStream rate matching
- No option to check rates with a soft credit pull
- Minimum loan is $5,000
LightStream offers home improvement loans up to $100,000, with some of the lowest rates around. Borrowers enjoy a quick and easy online application process, and in some cases, funds may be available the same day. You’ll need good to excellent credit to qualify for the lowest rates, which include a 0.50% autopay discount. Quotes are not available; you must apply to see what rates you qualify for.
| Loan type | Personal loan |
| Rates (APR) | 6.99% – 25.39% |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 24 – 144 months |
| Min. credit score | 660 |
Renofi
Why it’s one of the best
- Loans designed specifically for renovation financing
- Can borrow up to 125% of current home’s value or 90% of future value
- Partners with credit unions for potentially lower rates
- Not a lender; just connects you with one
- Closing costs and appraisal fees vary by lender
Renofi offers a renovation-focused HELOC that considers your home’s projected value after improvements—not just its current appraised value. That structure may allow homeowners to access larger credit lines compared to traditional HELOCs.
| Loan type | HELOC and renovation home equity loan |
| Rates (APR) | Vary by lender |
| Loan amounts | $25,000 – $750,000 |
| Repayment terms | 10-year draw; 10, 15, or 20-year repayment (HELOC); 10, 15, or 20-year term (home equity loan) |
| Min. credit score | 640 |
Spring EQ
Why it’s one of the best
- High borrowing limits (up to 95% of your home’s value)
- Fixed-rate HELOCs and home equity loans available
- Doesn’t require a home appraisal in many cases
- Not available nationwide
- Can’t prequalify like with some lenders
Spring EQ offers both home equity loans and HELOCs as home improvement loan options. You can get up to $500,000 in cash and funds are available in around 21 days on average.
| Rates (APR) | Starting at 9.50% |
| Loan amounts | $25,000 – $500,000 |
| Repayment terms | 5 – 30 years |
| Min. credit score | 640 |
Rocket Mortgage
Why it’s one of the best
- Recognizable national lender
- Fixed-rate home equity loans
- Online application process
- Requires sufficient home equity
- May involve closing costs
Rocket Mortgage is the best home improvement loan option if you want the backing of a well-known national lender while tapping your home equity for renovations. Instead of navigating smaller regional banks or unfamiliar online lenders, you’re working with one of the largest mortgage providers in the country.
| Rates (APR) | Not disclosed |
| Loan amounts | $45,000 – $350,000 |
| Repayment terms | 10 or 20 years |
| Min. credit score | 680 |
What is a home improvement loan?
A home improvement loan isn’t a single product. It’s a general term for several ways to finance renovations, repairs, or upgrades.
You can use an unsecured personal loan, a home equity loan, a home equity line of credit (HELOC), or even a home equity agreement. The main difference comes down to whether the financing is secured by your home.
Deciding whether to borrow or save up for home improvements depends on your ability to save and budget. For smaller projects, saving up and paying cash could be feasible. For larger projects or urgent home repairs, you may need to borrow funds to cover the cost.
How to choose the right type of loan for home improvements
The best home improvement loan option depends on how much you need, how quickly you need it, and whether you’re comfortable securing the debt with your home.
Here’s a quick rundown.
When to use a personal loan for home improvements
You may want to get a personal loan as a home improvement loan if you:
- Don’t want to use your home as collateral
- Need fast funding
- Have limited home equity
- Are financing a smaller project
Rates may be higher than home equity products, but approval is typically based on credit and income instead of property value.
When to use a HELOC for home improvements
A home equity line of credit may work well as a home improvement loan if you:
- Are completing renovations in stages
- Want ongoing, easy access to funds
- Have a sizeable chunk of home equity
- Can handle potential rate changes
Many HELOCs have variable rates, meaning payments can rise if rates increase. Some lenders offer fixed rates, though, or the option to convert a variable rate to a fixed one. Your home secures the line of credit.
When to use a home equity loan for home improvements
You might want a home equity loan as a home improvement loan if you:
- Need a large lump sum
- Prefer fixed monthly payments
- Have a clearly defined budget
- Plan to stay in your home long term
Because the loan is secured by your property, rates may be lower than unsecured personal loans for qualified borrowers. However, your home serves as collateral.
When to use a home equity agreement for home improvements
Lastly, you may want to go the home equity agreement or home equity investment route if you:
- Don’t qualify for traditional loans
- Want to avoid monthly payments
- Have lower credit
Instead of paying interest, you agree to share a portion of your home’s future value. You then repay when you sell, refinance, or reach the end of the agreement term.
If your home appreciates significantly, the amount owed could exceed traditional loan interest.
Home equity agreements (HEAs) go by several names—home equity investments (HEIs), home equity contracts, or home equity sharing agreements (HESAs). They all refer to the same product: you receive cash based on your home equity today in exchange for giving the company a share of your home’s future appreciation. You can learn more about these terms and how they work in our complete guide.
A personal loan for home improvements works well when you have a smaller budget and limited equity. The process is also faster and the fees could be lower. Borrowing against your home equity can be effective when you have more equity in your home and need to take out a larger loan. In addition to paying a lower interest rate, you can also deduct the interest on home equity loans or HELOCs when you meet IRS requirements.
How to compare interest rates for home improvement loans
Rate shopping can help you find the best deal on a home improvement loan. Here’s what to keep in mind as you check out lenders:
- Most lenders use credit scores to determine rates, though some have no minimum credit score requirement.
- A low debt-to-income (DTI) ratio can help to offset a lower credit score.
- Your loan amount and the repayment term also influence your rate.
- Rate discounts can reduce costs but you may need to agree to automatic payments or enroll in direct deposit to qualify.
Look for lenders that offer rate quotes with a soft credit pull, or consider using a home improvement loan marketplace to see rates from multiple lenders.
Find the right home improvement loan
Whether you’re planning a major facelift or some smaller fixes, home improvement loans can help you get the job done. Estimating what you plan to borrow, checking your credit, and comparing the best home improvement lenders can help you find the right loan for your needs.
Taking on a home improvement project? Check out our resources
- Understanding Drywall Repair Costs and How to Pay for Them
- How Much Does a Storm Shelter Cost?
- How Much Does It Cost to Replace a Roof?
- Cost to Finish a Basement: What to Realistically Expect in 2026
- Home Improvement Financing: 7 Responsible Ways to Pay for Renos and Repairs
- How Much Should a Kitchen Remodel Cost?
- How Much Should a Foundation Repair Cost?
- How Much Should Window Replacement Cost?
- How Much Should a Bathroom Remodel Cost?
- How Much Does It Cost to Paint a House?
- How Much Does It Cost to Install or Repair Gutters?
- How Much Does It Cost to Replace or Repair a Furnace?
- How Much Should It Cost to Add a Fireplace or Furnace to Your Home?
- What to Know About Siding Replacement Cost and How to Pay for It in 2026
FAQ
Is the interest on a home improvement loan tax-deductible?
It depends on the type of financing you use. Interest on unsecured personal loans is generally not tax-deductible. However, interest on a home equity loan or HELOC may be deductible if you use the money for “substantial home improvements” that increase your property’s value, and you meet IRS requirements.
What is the typical term for a home improvement loan?
It depends on the lender and the type of underlying loan you get. However, you can typically expect to find these options: personal loans with one to 10-year terms, home equity loans with five to 30-year terms, and HELOCs with a draw period of five to 10 years, followed by a repayment period that can extend 10 to 20 years.
Home equity agreements typically require repayment within 10 to 30 years or when you sell or refinance the home.
What is the current interest rate for a home improvement loan?
Your credit score, debt-to-income ratio, and available equity all influence what rate you may qualify for.
Personal loan APRs often range from about 6% to 36%. Home equity loans and HELOCs may offer lower rates for qualified borrowers because they’re secured by your home, though HELOC rates are commonly variable. Home equity agreements don’t charge interest but require sharing a portion of your home’s future value.
Does the VA do home improvement loans?
Yes, the VA offers home improvement loans and grants, such as the VA Renovation Loan and Specially Adapted Housing (SAH) grants for eligible veterans. These options typically have lower interest rates and more flexible terms, but you must meet VA service and eligibility criteria.
Recap: The best home improvement loans
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Aven, Home Equity card
- Credible, Personal Loan
- Hometap, Home Equity Investments
- Renofi, Renovation Financing Made Easy
- Figure, Home Equity Line
- Spring EQ, Fixed-Rate HELOC
- Upstart, Personal Loans
- Rocket Mortgage, Home Equity Loan
Related articles
About our contributors
-
Written by Cassidy Horton, MBACassidy Horton is a finance writer passionate about helping people find financial freedom. With an MBA and a bachelor's in public relations, her work has been published more than 1,000 times online.
-
Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
-
Reviewed by Chloe Moore, CFP®Chloe Moore, CFP®, is the founder of Financial Staples, a virtual, fee-only financial planning firm based in Atlanta, Georgia, and serving clients nationwide. Her firm is dedicated to assisting tech employees in their 30s and 40s who are entrepreneurial-minded, philanthropic, and purpose-driven.