Kitchen Remodel Loans and Financing Options

Personal loans and home equity lines of credit (HELOC) are among the best options for kitchen remodel loans because you can use the money for nearly any expense. Here’s how to find the right fit based on your budget, credit score, and home equity.

How to finance a kitchen remodel 

The average kitchen remodel costs between $24,000 for a minor remodel and up to $136,000 for an upscale renovation. Due to the price tag, most homeowners prefer financing their kitchen remodel over paying in cash. 

You can pay for a kitchen remodel with a personal loan or HELOC. Both options allow maximum flexibility, which is essential when paying for a renovation.

Kitchen remodeling financing option 1: Use home equity 

If you want to borrow using home equity, you have two options: home equity loans or home equity lines of credit (HELOCs). You get the money as a lump sum with a home equity loan. The fixed interest rate and monthly payments stay the same throughout the repayment term.

With a HELOC, you can access your home equity through a line of credit. You have a draw period when you can spend the money and a repayment period when you repay it. HELOCs typically have variable interest rates that can change throughout repayment, but that’s not always true. 

Our top financing picks for kitchen renovations include two companies that offer HELOCs with fixed rates.

Figure HELOC

Best Overall

4.9 _/5

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Why it’s one of the best

• Fixed interest rates
• No in-person appraisal needed
• Option to redraw up to 100% of funds
• Funding can be available in as few as 5 days
• Check your rate without affecting your credit score

• 100% of funds must be drawn at origination
• An origination fee of up to 4.99%
• Not available in 4 states (listed below)

Figure offers a straightforward HELOC that stands out for its fast application process and competitive fixed rates. With no hidden fees and flexible terms, it’s an excellent choice for homeowners looking to finance a kitchen remodel. 

The online-only platform simplifies the entire process, from application to funding, making it a top pick for those who value convenience and speed.

HELOC details

Rates (APR)	6.95% – 15.55%
Funding amount	$15,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Min. credit score	640
Availability	Unavailable in Hawaii, Kentucky, New York, and West Virginia

Aven HELOC

Best Customer Reviews

4.8 _/5

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College Ave.

• Lowest rate guarantee
• Optional debt protection program through Securian
• Approval in as little as 15 minutes
• Excellent Trustpilot reviews from more than 3,800 customers (in September 2024)
• 100% digital application process
• Increases credit line for select customers
• Automated appraisals
• High maximum loan-to-value ratio (LTV)
• 3-day funding after signing
• Fixed interest rates from start to finish
• Check your rate with no credit impact

• Short draw period
• First-draw fee of 4.90%
• Only available in 32 states*

Customers praise Aven’s HELOC for its easy-to-understand terms and excellent customer service. It’s ideal for homeowners who want a transparent borrowing experience with ongoing support. Aven’s focus on customer satisfaction is reflected in its positive reviews, making it a strong option for anyone looking to finance home improvements without hassle.

HELOC details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Min. credit score	640
Funding time	As little as 3 days after signing

Bethpage HELOC

Best for Large HELOCs

4.7 _/5

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Why it’s one of the best

• 12-month fixed introductory rate for qualified borrowers
• $0 application, origination, and appraisal fees
• $0 closing costs
• Convert some or all of your HELOC into a fixed-rate loan at no cost

• Closing can take 6 – 10 weeks, on average

Bethpage FCU’s HELOC is perfect for those needing larger credit lines for extensive kitchen remodels. It offers competitive rates and flexible borrowing options, especially for high-value properties. The credit union’s commitment to member benefits, including personalized service and low fees, makes it a solid choice for large-scale renovation projects.

HELOC details

Rates (APR)	12-month introductory rate starting at 6.99% for VantageScores of 720 and up, with variable post-introductory rates starting at 8.50%
Loan amounts	$10,000 – $1 million
Repayment terms	20 years
Min. credit score	670

Option 2: Personal loans for kitchen remodel 

Personal loans offer maximum flexibility since you can use the funds for almost anything. For example, you can use the funds for renovations, appliances, furniture, kitchen accessories, and more.

Your credit score is the main eligibility factor—you don’t need collateral or home equity. Because you don’t need any equity in your home, the loan is a solid option for new homeowners who haven’t built equity yet. 

Most personal loans have fixed interest rates and repayment terms between two and seven years. Borrowers benefit from fixed interest rates, straightforward monthly payments, and long repayment terms.  

Here are the top personal loan lenders for borrowers with every type of credit score. 

SoFi

Best for Good Credit

5.0 _/5

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Why it’s one of the best

• Borrow up to $100,000 for kitchen remodeling
• Same-day funding available once approved
• No origination fees

SoFi offers unsecured personal loans of up to $100,000, which is an advantage if you’re trying to fund a larger kitchen remodeling project. There are no collateral requirements and no annual fees, and you can repay your loan in up to 84 months. 

Loan rates are fixed, which makes it easier to budget for repayment. If you enroll in autopay and open a checking and savings account with SoFi, you can qualify for two interest rate discounts. SoFi offers same-day loan funding once borrowers are approved.

Loan details

Fixed rates (APR)	8.99% – 29.99% with all discounts
Loan amounts	$5,000 – $100,000
Term lengths	24 – 84 months
Minimum credit score	660

Upgrade personal loan

Best for Fair Credit

4.9 _/5

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Why it’s one of the best

• Borrow up to $50,000 for home improvements
• No penalty for paying your loan off early
• Lower minimum credit score requirement

Upgrade’s personal loans range from $1,000 to $50,000, which could make them ideal for funding smaller or mid-sized kitchen renovations. It’s possible to get approved with a credit score below 600, and you can check your rates before applying without impacting your credit. 

A one-time origination fee applies to Upgrade loans, which Upgrade will deduct from your loan proceeds. Keep this in mind because it’s possible to find kitchen remodel loans from other lenders that don’t require this fee.

Loan details

Rates (APR)	9.99% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	24 – 84 months
Min. credit score	580

Upstart

Best for Little to No Credit

4.8 _/5

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Why it’s one of the best

• Next-day funding once approved
• Borrow up to $50,000
• No minimum credit score requirement in most states

Upstart offers personal loans ranging from $1,000 to $50,000. Once you’re approved, it’s possible to get loan proceeds as soon as the next business day. With no minimum credit score requirement in most states, Upstart could be ideal for financing kitchen renovations if you have less-than-perfect credit. 

You can take 36 or 60 months to repay your loan, and no prepayment penalty applies if you decide to pay it off early. Be aware of the origination fee—but for certain borrowers, it may be as low as 0%.

Loan details

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	36 or 60 months
Min. credit score	580

LightStream

Best for Excellent Credit

4.8 _/5

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Why it’s one of the best

• Loans range from $5,000 to $100,000
• Lengthy repayment terms
• No origination fee

LightStream personal loans allow you to borrow up to $100,000 for kitchen remodeling projects, with a minimum loan of $5,000. Once approved, you can receive loan funding as soon as the next business day—no origination or late fees apply. 

Loan terms range from 24 to 144 months, so you can choose what works best for your budget. If you enroll in autopay, you can qualify for an interest rate discount to save on total loan costs.

Loan details

Rates (APR)	7.49% – 25.49%
Loan amounts	$5,000 – $100,000
Repayment terms	24 – 144 months
Min. credit score	660

HELOC vs. personal loan for kitchen remodel

HELOCs and personal loans are both cost-effective ways to finance a kitchen renovation. But depending on your circumstances, credit score, and budget, one might make more sense than the other. 

Type of financing	Do you need equity?	Best for
HELOC	Yes	Costly renovations with a variable budget
Personal loan	No	Smaller loan amounts with straightforward repayment

Pros and cons for HELOCs

Here’s what to consider when deciding whether a HELOC is the best option.

Pros

• Low interest rates

  HELOCs are secured loans. Your house is the collateral, which helps reduce the risk for lenders. Because of that, you can usually get a lower interest rate with a HELOC and save money on your kitchen renovation.

• Higher limits

  HELOCs have higher limits than personal loans. For example, you can easily find a HELOC for up to $400,000. However, most personal loans have a maximum of $50,000.

• Tax-deductible interest

  The interest on your HELOC is tax-deductible as long as you use the funds to buy, build, or substantially improve your home. It’s an extra perk that can help reduce the loan cost.

Cons

• Home equity requirement

  You must have equity in your home to qualify for a HELOC. Some homeowners, especially new owners, might not have enough equity to apply for the loan.

• Might have a variable rate

  Some HELOCs have variable interest rates, which can increase throughout the repayment term. When the rate increases, your payment also increases. Variable rates can make it harder to budget accurately.

• Harder to track

  HELOCs are a line of credit with a spending limit. How much you spend impacts how much you owe. Your payment amount can also change depending on whether you’re in the draw or repayment periods.

Pros and cons of personal loans

Personal loans have the following benefits and drawbacks. Here’s what to consider. 

Pros

• Fixed payments

  Your payments are always the same due to the fixed interest rates. Fixed payments make it easier to budget and plan ahead.

• Straightforward terms

  The amount you borrow and the amount you repay doesn’t change, which is different from a HELOC.

• Available for all borrowers

  You don’t need equity in your home to qualify for a personal loan.

Cons

• Might have higher rates

  Personal loans are unsecured, so you don’t have to provide collateral. Because of that, the interest rates might be higher.

• Shorter repayment terms

  Personal loans usually have shorter repayment terms than HELOCs. Most lenders only offer repayment terms of up to 60 months, while HELOCs regularly offer terms of up to 20 or 30 years.

• Smaller limits

  With a personal loan, you can usually borrow a maximum of $100,000, which is much lower than what you can borrow with a HELOC.

Whether you should use a HELOC or personal loan for a kitchen remodel depends on your timeframe for selling your home. If your plan is to do your remodel and then quickly sell, you may want to go the personal loan route, as it may be quicker to get approved vs. the time it takes to get a HELOC, but you will likely pay a higher interest rate. If you plan to stay in the home for the long term, the lower interest rate of the HELOC is likely the better option.

Rand Millwood, CFP®

How to choose a kitchen remodel loan lender

Once you decide between a HELOC and a personal loan, you need to choose the best lender. Terms, rates, and fees can vary from one lender to the next, so it’s essential to compare offers and find the best deal. Here’s how. 

• Consider your credit score: Lenders use your credit score to determine your eligibility for a loan, which also impacts your interest rate and terms. Some lenders are best for borrowers with a high score, while others specialize in loans for borrowers with lower scores. 
• Prequalify to view offers: Prequalification is when lenders review your finances and credit score to provide a loan estimate. Most lenders offer prequalification with a soft credit check, which doesn’t hurt your score. 
• Compare rates: After prequalifying with two or three lenders, compare interest rates. The interest rate has the biggest impact on the cost of the loan—lower rates help you save money. 
• Understand the fees: Some lenders charge fees, making the loan more expensive. Review the fees so you can make an informed decision about the cost. 

How to apply for a kitchen remodel loan 

Completing the application is the final step to getting a kitchen remodel loan. Here’s how to apply for a personal loan and HELOC. 

• Gather information: You usually need to provide personal information, like your address, social security number, and government-issued identification. You also need a mortgage statement, property tax bill and homeowner’s insurance policy when you apply for a HELOC.
• Apply: Complete the application and submit the necessary information. The process is quick, usually 15 to 30 minutes. 
• Complete the next steps: If you’re applying for a HELOC, you must complete a home appraisal. A virtual appraisal usually takes a few hours, and an in-person appraisal can take a few days. 
• Confirm the offer: The lender will provide a final offer, including repayment terms, interest rate, and fees. Sign the documents to finalize the loan. 
• Receive funds: You can receive personal loan funds within a day or two. However, due to the three-day cancellation rule, receiving the money for a HELOC takes longer. 

Credit score is a huge factor in determining steps for any kind of loan as it is a big driver of your loan approval amount and your interest rate. You need to determine if the interest rate you will pay for the loan is doable from a cash flow standpoint and if the long-term benefit gained from the improvement to your home makes sense for your financial situation.

Rand Millwood, CFP®

Alternative kitchen remodeling financing options

You have options if you’re looking for an alternative to HELOCs and personal loans. Here’s what to consider.

Type of financing	Do you need equity?	Best for
Home equity sharing agreement	Yes	Borrowers with lower credit scores
Cash-out refinance	Yes	Owners with home equity
Store and company financing	No	Brand-specific remodels

Home equity sharing agreement

A home equity sharing agreement is a contract between you and an investment firm. It’s different from other types of equity loans because the future value of your home determines the loan amount. 

You receive the loan as a lump sum payment. Instead of making monthly payments to repay the balance, you pay it all at once—usually 10 years later. The perks of a home equity sharing agreement are that approval is easier and closing costs are lower. But you might owe a much larger amount than you would with other financing options. 

Cash-out refinance

A cash-out refinance allows you to refinance your home with a larger mortgage. You pay off your remaining balance with some of the loan and keep the rest. The monthly repayment includes your remaining mortgage amount plus the extra amount for renovations. 

The benefit of a cash-out refinance is that the new interest rate might be lower than your current rate. However, closing costs can add up quickly, and a bigger mortgage increases your debt ratio. 

Store and company financing

You might be able to finance your kitchen renovation through the company or store you use for the project. It can be a helpful way to afford the cost, especially if you can find an offer with a low interest rate. 

The benefit of store and company financing is that it can be easier to qualify and find more flexible payment terms, especially if you’re working with one company throughout the renovation. However, the downsides are that you might be limited in how you spend the money, and interest rates might be higher than what you can find with other options. 

FAQ

How long will it take to get approved for a kitchen remodel loan?

The approval time for a kitchen remodel loan depends on your financing type. Personal loans typically have a faster approval process, often taking just a few minutes to a few days. This makes them a terrific option if you need quick access to funds.

Home equity loans and HELOCs can take longer to approve, often ranging from a few days to several weeks. Lenders must evaluate your home’s value and conduct a more detailed underwriting process. Home equity financing might be worth the wait if you have time to plan and want potentially lower rates.

What are the tax implications of using a personal loan for a remodel?

There are no tax implications for using a personal loan to pay for home improvements because the interest is not a deductible expense. However, you may be able to deduct home equity loan or HELOC interest if you use the funds for home renovations or repairs. 

Is it possible to get a kitchen remodel loan with bad credit?

It’s possible to find bad-credit home equity loans and personal loans for bad credit, but keep in mind that you may not be able to borrow a larger loan if you have a poor credit score, and you’re more likely to pay a higher interest rate.

How we chose the best HELOCs for kitchen remodeling

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

How we chose the best personal loans for kitchen remodel loans

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the options for kitchen remodeling