Best Home Improvement Loans of 2025: Compare Rates, Terms, and Alternatives

Home improvement loans can help you make necessary repairs or tackle that remodeling project you’ve been dreaming of, without having to drain your cash reserves. The best home improvement loans let you tap into cash at reasonable interest rates, with repayment terms that fit your budget.

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Borrow Based on After-Renovation Value

• Borrow up to 90% after-renovation value or 150% of current LTV.
• Speak directly with licensed loan advisors
• Compare HELOC, HELOAN, and Personal Loan offers
• Borrow $25,000 to $750,000
• Excellent customer ratings (4.7/5.0 Trustpilot)

We’ve researched loans for home improvement so you don’t have to. Read on to find out which lenders rise to the top and how we selected them for our best-of list.

Table of Contents

1. Credible
2. LightStream
3. SoFi
4. Upgrade
5. Upstart
6. Navy Federal Credit Union
7. Wells Fargo
8. BHG Financial
9. What is a home improvement loan?
10. Should you use a personal loan for home improvements?
11. Compare interest rates
12. Find the right loan
13. FAQ

Credible

Best Marketplace

5.0 _/5

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Why it’s one of the best

• Compare multiple lenders at once
• Check rates without affecting credit scores
• Best Rate Guarantee (Get a $200 gift card if Credible doesn’t find you the lowest rate)

• 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 $200,000, giving you enough cash to fund large or small home improvements. If you find a lower rate elsewhere after getting prequalified, you can get a $200 Credible gift card with the Best Rate Guarantee. Credible doesn’t accept joint applications, but some of the lenders listed in the marketplace do.

Rates (APR)	6.49% – 35.99%
Loan amounts	$1,000 – $200,000
Repayment terms	12 – 120 months
Credit score requirements	580

LightStream

Best for Excellent Credit

4.8 _/5

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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.

Rates (APR)	6.94% – 25.29%
Loan amounts	$5,000 – $100,000
Repayment terms	24 – 144 months
Credit score requirements	660

SoFi

Best for Good Credit

5.0 _/5

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Why it’s one of the best

• No origination fees or prepayment penalties
• Same-day funding is available

• $5,000 minimum loan amount
• Autopay and direct deposit are required for rate discounts

SoFi makes applying for home improvement loans as simple as possible, with a fast online application and the potential for same-day funding. SoFi home improvement loans offer fixed rates, and multiple rate discounts are available to bring the cost down. You won’t pay any origination fees, late payment fees, or prepayment penalties to borrow, which adds to your overall savings.

Rates (APR)	8.99% – 35.49%* w/ all discounts
Loan amounts	$5,000 – $100,000
Repayment terms	24 – 84 months
Credit score requirements	660

Upgrade

Best for Fair Credit

4.9 _/5

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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)	7.99% – 35.99
Loan amounts	$1,000 – $50,000
Repayment terms	24 – 84 months
Credit score requirements	580

Upstart

Best for Little to No Credit

4.8 _/5

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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)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	36 or 60 months
Credit score requirements	None

Navy Federal Credit Union

Best Credit Union

4.6 _/5

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Why it’s one of the best

• No fees
• Same-day funding
• Smallest loan amount is $250

• Military membership (or family of military personnel) required
• Minimum loan qualification requirements are not disclosed

Navy Federal Credit Union offers personal loans for home improvement starting at $250. No fees apply, and you can get funding the same day once approved. You’ll need to be eligible for Navy Federal Credit Union membership to apply for a loan. Currently, the field of membership extends to military members and their families, so if you don’t qualify, you may want to try another credit union that accepts members from all backgrounds.

Rates (APR)	8.99% – 18.00%
Loan amounts	$250 – $50,000
Repayment terms	Up to 15 years
Credit score requirements	Not disclosed

Wells Fargo

Best for Small Loans

4.5 _/5

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Why it’s one of the best

• Low fixed rates
• Rate discounts are available
• No origination fees or prepayment penalties

• Must have a Wells Fargo account open for at least 12 months to apply
• Late fees can still apply

If you want a home improvement loan from a traditional bank, Wells Fargo is worth a look. Borrowers can enjoy low, competitive rates and take advantage of rate discounts to save even more. You won’t pay origination fees or a prepayment penalty if you repay your loan early. The only caveat is that you’ll need to have a Wells Fargo account open for at least 12 months to apply for a personal loan.

Rates (APR)	11.96% – 24.91%
Loan amounts	$3,000 – $100,000
Repayment terms	12 – 84 months
Credit score requirements	Not disclosed

BHG Financial

Best for Professionals

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Why it’s one of the best

• Get a loan quote in 30 seconds
• Large loan amounts
• Customer service is available 7 days a week

• Minimum qualifications not disclosed online
• Loan fees not disclosed

BHG Financial offers personal loans for home improvement to borrowers who come from professional backgrounds. You can get up to $200,000 for home renovations, remodeling, or repairs, with quotes available in 30 seconds. Minimum credit score and income requirements are not disclosed online, but BHG looks for borrowers who work in fields like medicine, law, finance, and real estate.

Rates (APR)	11.96% – 24.91%
Loan amounts	$20,000 – $200,000
Repayment terms	3 – 10 years
Credit score requirements	Not disclosed

What is a home improvement loan?

Home improvement loans provide homeowners with a means to finance renovations, repairs, and upgrades. When you get a home improvement loan, you’re typically getting an unsecured personal loan.

You can use an unsecured personal loan for virtually any expense, and they aren’t tied to collateral. That’s different from a home equity loan or line of credit (HELOC), which is secured by your home.

Home improvement loans allow you to borrow a lump sum that you repay over time, with interest. Interest rates for home improvement loans are typically fixed, and they can be lower than credit card rates for people with good credit.

I’d urge my clients to consider that personal loan interest typically isn’t tax-deductible, unlike HELOC or home equity loan interest used for qualified improvements. Also, homeowners often assume renovations will increase property value, but there’s no guarantee the return will offset costs.

Should you use a personal loan for home improvements?

Personal loans can help you fund home improvements, but you have other options. A home equity loan or home equity line of credit (HELOC) could help you unlock even lower rates and potentially borrow larger amounts of money. Here’s how to decide which one to use.

Unless it’s an emergency, I usually recommend holding off on more debt. If someone lacks emergency savings, already carries high-interest debt, or has job uncertainty, it’s too risky. It’s better to wait until their financial foundation is stronger before borrowing for renovations.

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Consider a personal loan if you…	Consider a home equity loan or HELOC if you..
Know how much you need to borrow	Would like a longer repayment term
Don’t want to use your home as collateral for a loan	Are comfortable tapping into your home equity
Prefer predictable monthly payments	Plan to make improvements that will add to your home’s value
Want to use loan funds for more than just home improvements	Hope to get a tax deduction for loan interest

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When my clients are trying to determine how to finance home renovations, we’ll first discuss the project’s purpose, cost, and whether it’s a need or want. We’ll consider whether it will significantly improve the home’s value or their quality of life.
If they plan to stay at least 10 years or are aging in place, we’ll likely consider a HELOC or home equity loan, depending on equity available. If they’re not staying long-term or lack equity to cover costs, we may look at personal loans or a combination of cash reserves and investments if it fits within their broader financial plan.

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. Learn what documentation you’ll need to apply for a personal loan.

FAQ

Is the interest on a home improvement loan tax-deductible?

In most cases, personal home improvement loans are not tax-deductible because they’re unsecured. However, if you use a HELOC or home equity loan and the funds go toward substantial improvements that increase your home’s value, the interest may be deductible. Consult a tax professional to be sure.

What is the typical term for a home improvement loan?

Most personal loans for home improvement have terms ranging from 12 to 120 months (one to 10 years). Longer terms reduce your monthly payment but may increase the total interest you pay over time. Home equity loans or HELOCs can stretch to 20 or 30 years.

What is the current interest rate for a home improvement loan?

Interest rates vary based on your credit, loan amount, and lender. The lenders above have rates as low as around 6.49% and as high as 35.99% APR. Borrowers with excellent credit tend to qualify for rates under 10%, while those with lower scores may see much higher rates.

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 of the best personal loans for home improvements