Kitchen Remodel Loans & Financing Options
Homeowners have several kitchen remodel financing options through personal loans, home equity loans, and lines of credit.
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Kitchen remodeling is a common renovation for homeowners. Aside from the perk of having a new kitchen, it can also lead to increased property value and an easier time selling the house.
Potential buyers may want to see updated cabinets, new appliances, fresh countertops, and unique touches throughout. However, tackling this kind of home improvement project is expensive.
Fortunately, there are financing options to help you pay for the project. As long as you can afford the monthly payments that come with a kitchen remodel loan and you qualify for a low interest rate, it is generally a good idea.
This guide covers some of the best kitchen remodel financing options, so you can make your HGTV 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)
4.99% – 16.99%*
with AutoPay
Loan Amounts
$5,000 – $100,000
Credit Score
660+
LightStream is one of the few personal loan lenders with a specific loan for kitchen remodels. They also rank as our best personal loan for excellent credit with low rates, no fees, and a Rate Beat program in which they 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)
7.99% – 35.97%
Loan Amounts
$1,000 – $35,000
Credit Score
620+
Upgrade is a great option for borrowers with bad or fair credit, as well as those that 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 as compared to 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)
8.41% – 35.99%1
Loan Amounts
$1,000 – $50,0002
Credit Score
600+
Upstart is an online lending platform that partners with banks to provide personal loans that can be used for almost anything. Upstart’s lending model considers education, employment, and many other variables when determining eligibility.3 This model leads to 27% more approvals and 16% lower rates than traditional models.4
- 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)
5.205%+
Loan Amounts
$20,000 – $500,000
Credit Score
680+
If you prefer taking out a home equity loan, Spring EQ is a great option. This online lender offers fast funding and competitive fixed rates. You can also get a loan term of up to 30 years so you can spread the cost of your kitchen remodel out over a long time if you prefer.
- 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)
3.49% – 13.25%
Loan Amounts
$15,000 – $150,000
Credit Score
640+
If you prefer a home equity line of credit, Figure is our top-rated online lender. What makes Figure unique is that they use blockchain technology to make the approval and disbursement process much faster than competitors. You can get approved as soon as the same day and receive 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
Deciding which kind of kitchen remodel financing is right for you
As you saw in the section above, there are many financing options you can use 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:
Using a personal loan
Most homeowners tilt toward personal loans to pay for renovations. They are a reliable solution for kitchen financing because there is a loan option out there for nearly all types of borrowers.
Though some loans are marketed as something like “home improvement loans” or “kitchen loans” personal loan lenders do not typically restrict how borrowers can use the funds, and loan amounts can be high enough to cover basically any renovation budget.
Pros of using a personal loan
- Quick funding, sometimes in as little as one business day.
- Low-credit borrowers may still qualify.
- Amounts are flexible, up to loan limits of a specific lender.
- No collateral is required to back the loan.
Cons of using a personal loan
- May have higher interest rates or annual percentage rates than other kitchen financing options.
- Loan terms may be shorter than home equity loans or lines of credit.
>> See Options: Best Personal Loans
Using a 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 for personal loans. However, you’ll wait longer to receive funding and the application process may require extra steps.
Pros of using a home equity loan
- Can deduct interest from taxes as long as the loan is used for home improvements.
- Lower total cost of borrowing thanks to lower interest rates compared to personal loans.
- Ability to qualify even if credit is not strong, so long as there is equity available in your home.
- Larger loan amounts, based on your home equity amount.
Cons of using a home equity loan
- Your home is collateral, so if you cannot repay the loan, it’s on the line.
- You have to have enough 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.
- An appraisal may be required to determine the property’s equity, which means an added cost.
- You may pay closing costs.
>> Read More: Best Home Equity Loans or Home Equity Loan Uses
Using a HELOC
Similar to a home equity loan, a home equity line of credit (HELOC) 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 want 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 of using a HELOC
- Can deduct interest from taxes as long as the line of credit is used for home improvements.
- Potentially lower interest rates than personal loans, because the home is used as collateral to back the credit line.
- A flexible credit line you can use multiple times over the life of the account, unlike a home equity loan or personal loan.
- Repayment can extend far longer than a personal loan, making a kitchen remodel more affordable over time.
Cons of using a HELOC
- Overborrowing is an issue for some homeowners.
- Your home is on the line as collateral, so if you cannot repay, the lender could recoup losses through foreclosure.
- Higher interest rates compared to 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%*+ with AutoPay |
| Upgrade | Personal Loan | 7.99%+ |
| Upstart | Personal Loan | 8.27%+1 |
| Spring EQ | Home Equity Loan | 5.205%+ |
| Figure | HELOC | 3.49%+ |
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
**LightStream will offer a rate .10 percentage points lower than the rate offered on any competing lender’s unsecured loan provided that you were approved for that lower rate (with the same loan terms offered by LightStream) no later than 2 p.m. Eastern time two business days prior to loan funding. The Rate Beat Program excludes secured or collateralized loan offers from any lender, and the competitive offer must be available to any customer with a similar credit profile. Terms are subject to change at any time.
If you believe you have been approved by another lender for a lower qualifying rate, contact LightStream customer service. We will work with you to determine your Rate Beat eligibility and obtain the necessary documentation.
***Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of three years would result in 36 monthly payments of $303.99.
1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
2Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
3Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.
4Approval numbers compare the 2020 loan approval rate by the Upstart model and a hypothetical traditional credit decision model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical traditional model used in Upstart’s analyses was developed in connection with the CFPB No Action Letter access-to-credit testing program, is trained on Upstart platform data, uses logistic regression and considers traditional application and credit file variables.
