Kitchen remodeling is a common renovation for homeowners. It can increase your property value and make it easier to sell the house—plus, in the meantime, you can enjoy a brand-new kitchen.
Potential buyers may want to see updated cabinets, new appliances, fresh countertops, and unique touches throughout. However, this kind of home improvement project is expensive.
Several financing options can help you pay for the project. As long as you can afford the monthly payments that come with a kitchen remodel loan and qualify for a low interest rate, it can pay off. This guide covers the best kitchen remodel financing options to make your dream a reality.
In this guide:
Best kitchen remodel loans & financing options
Here are five lenders you may want to consider to finance your kitchen remodel.
LightStream (Best for excellent credit)
- Rates (APR): 7.99% – 20.74%
- Loan amounts: $5,000 – $100,000
- Credit score: 660+
LightStream is one of the few personal loan lenders with specific loans for kitchen remodels. It ranks as our best personal loan for excellent credit with low rates, no fees, and a Rate Beat program that will beat any rate a competitor offers by 0.10 percentage points.
- Credit score category: Excellent, good
- Soft credit pull to check rates: Not available
- Deposit time: As soon as the same day
- Origination fee: None
- Late fee: None
- Discounts: 0.50% rate reduction for enrolling in autopay
- Repayment terms: 24 – 144 months
Upgrade (Best for fair credit)
- Rates (APR): 8.49% – 35.99%
- Loan amounts: $1,000 – $50,000
- Credit score: 580+
Upgrade is a solid option for borrowers with bad or fair credit and those who need smaller loans for their kitchen remodel. You can check rates without affecting your credit score, and eligibility is based more on free cash flow than other lenders.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As soon as the next day
- Origination fee: 2.9% – 8%
- Late fee: $10
- Repayment terms: 36 or 60 months
Upstart (Best for thin credit)
- Rates (APR): 6.12% – 35.99%
- Loan amounts: $1,000 – $50,000
- Credit score: 580+
Upstart is an online lending platform that partners with banks to provide personal loans you can use for almost anything. Upstart’s lending model considers education, employment, and other variables when determining eligibility. This model leads to 27% more approvals and 16% lower rates than traditional models.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As fast as one business day
- Origination fee: 0% – 8%
- Late fee: $15 or 5% of payment
- Repayment terms: 36 or 60 months
Spring EQ (Best multi-product application)
- Rates (APR): Starting at 9.50%
- Loan amounts: $25,000 – $500,000
- Credit score: 620+
If you prefer a home equity loan, Spring EQ is a fantastic option. This online lender offers fast funding and competitive fixed rates. You can also get a loan term of up to 30 years to spread the cost of your kitchen remodel over a longer time.
- Credit score category: Fair, good
- Max Loan-to-Value: 90%
- Soft credit pull to check rates: Yes
- Deposit time: Funding in 21 days, on average
- Origination fee: $700 – $2,000
- Late fee: Yes
- Repayment terms: 5 – 30 years
Figure (Best HELOC)
- Rates (APR): 6.55% – 15.54%
- Loan amounts: $15,000 – $400,000
- Credit score: 640+
Figure is our top-rated online lender if you prefer a home equity line of credit. Figure uses blockchain technology to make the approval and disbursement process faster than competitors. You can get approved as soon as the same day and get your funds in as little as five days.
- Credit score category: Fair, good
- Max Loan-to-Value: 80%
- Soft credit pull to check rates: Yes
- Deposit time: As soon as five days
- Origination fee: Up to 4.99%
- Late fee: No
- Draw period: 5 years
- Repayment terms: 5, 10, 15, or 30 years
Decide which kind of kitchen remodel financing is right for you
You can use several financing options as a home improvement loan. Which is right for you depends on your situation.
Here are the three most common kitchen remodel financing options and the pros and cons of each:
Personal loan
Most homeowners lean toward personal loans to pay for renovations. They are a reliable kitchen financing solution because most borrowers can find loan options.
Some loans are marketed as specific “home improvement loans” or “kitchen loans,” but most personal loan lenders don’t restrict how borrowers can use the funds. Loan amounts can be high enough to cover many renovation budgets.
Pros
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Quick funding, sometimes in as little as one business day.
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Low-credit borrowers may still qualify.
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Amounts are flexible, up to loan limits of a specific lender.
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No collateral is required to back the loan.
Cons
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May have higher interest rates or annual percentage rates than other kitchen financing options.
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Loan terms may be shorter than home equity loans or lines of credit.
>> See options: Best Personal Loans
Home equity loan
Another option for kitchen renovation financing is a home equity loan. For homeowners who have available home equity, this can be a cost-effective solution.
Home equity loans are secured using the home as collateral, so interest rates are often lower than personal loans. However, you’ll wait longer to receive funding, and the application process may require extra steps.
Pros
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May be able to deduct interest from taxes.
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Lower total cost of borrowing thanks to lower interest rates compared to personal loans.
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Qualify even with poor credit if you have equity in your home.
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Larger loan amounts based on your home equity amount.
Cons
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Your home is collateral; if you can’t repay the loan, it’s on the line.
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You need sufficient equity to qualify—most lenders will not let you exceed 90% to 95% loan-to-value with a home equity loan and your remaining mortgage balance.
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An appraisal may be required to determine the property’s equity, which means an added cost.
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You may pay closing costs.
>> Read more: Best Home Equity Loans or Home Equity Loan Uses
HELOC
Similar to a home equity loan, a home equity line of credit may be a viable option for financing a kitchen remodel or renovation.
A HELOC operates like a credit card for homeowners. You establish a flexible line of credit you can draw from multiple times over the life of the account, and you can borrow as much or as little as you need each time. You only pay for what you draw plus interest.
A HELOC is most beneficial for homeowners who plan to complete a kitchen remodel over several months. However, like a home equity loan, your home equity is collateral. This makes it crucial to understand how much you can afford to repay.
>> Read more: Should You Use a Home Equity Loan or Line of Credit for Remodeling Improvements?
Pros
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May be able to deduct interest from taxes.
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Potentially lower interest rates than personal loans because your home is collateral.
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A flexible credit line you can use multiple times over the life of the account, unlike a home equity loan or personal loan.
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Repayment can extend far longer than a personal loan, making a kitchen remodel more affordable.
Cons
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Overborrowing is an issue for some homeowners.
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Your home is on the line as collateral, so if you can’t repay, the lender could recoup losses by foreclosing.
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Higher interest rates than home equity loans. Rates are often variable and may increase over time.
>> See options: Best Home Equity Lines of Credit
Recap of the kitchen remodel financing options above
| Lender | Type | Rates (APR) |
| LightStream | Personal loan | 4.99%+ |
| Upgrade | Personal loan | 7.99%+ |
| Upstart | Personal loan | 8.27%+ |
| Spring EQ | Home equity loan | 5.205%+ |
| Figure | HELOC | 3.49%+ |