Kitchen Remodel Financing: Compare Loan Options & Financing Strategies
Homeowners have several kitchen remodel financing options through personal loans, home equity loans, and lines of credit. We rated the best places to find financing for your next remodeling project.
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Kitchen remodeling is a common home renovation undertaking among homeowners. Aside from the perk of having a new kitchen, it can also lead to an increased property value and an easier time selling the house.
Potential buyers want to see updated fixtures and finishes, new kitchen appliances, fresh countertops, and unique touches throughout. However, tackling this kind of home improvement project is expensive.
Fortunately, home improvement loans are available to help you pay for the project without depleting your savings. This guide covers the best kitchen remodel financing options, so you can make your HGTV dream a reality.
In this guide:
How to finance a kitchen remodel
It isn’t uncommon for homeowners to seek out kitchen renovation loan options because of the high cost and potential return of such a project.
As long as you can keep up with monthly payments on a kitchen loan, financing isn’t a bad idea, because kitchen renovations can boost the value of your home. Consider it a return on your initial home investment—and the cost of financing is part of your contribution to that return.
There are generally three ways to finance a kitchen remodel. You can click one of the options below to see how it works and compare your options.
Using personal loans to finance a kitchen remodel
Most homeowners tilt toward personal loans to pay for renovations. Personal loans 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
- Personal loans 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
Best kitchen remodel loans
We have rated the best personal loan options for kitchen remodel financing, based on borrower credit scores. Here are our picks:
If you have good to excellent credit
If you have fair credit
If you have poor credit
Let’s take a closer look at each lender.
If you have good to excellent credit
LightStream
A division of SunTrust Bank, LightStream offers loans for just about any purpose. The online lender serves consumers of different credit scores and income, and it offers a plethora of personal loan options. However, LightStream is best for borrowers with good credit.
Lender info
- LendEDU rating: 5.00 / 5.00
- Minimum credit score: lightstream-perl-43-mincreditscore
- Loan amount: lightstream-perl-43-amountlow – lightstream-perl-43-amounthigh
- APRs: lightstream-perl-43-alllow – lightstream-perl-43-allhigh
Full review: LightStream Personal Loan Review
SoFi
This online lender offers a bevy of financing solutions for qualified borrowers with good credit. From student loans to kitchen remodel loans, SoFi focuses its efforts on offering affordable, low- to no-fee loans to its members.
Lender info
- LendEDU rating: 4.87 / 5.00
- Minimum credit score: sofi-perl-36-mincreditscore
- Loan amount: sofi-perl-36-amountlow – sofi-perl-36-amounthigh
- APRs: sofi-perl-36-alllow – sofi-perl-36-allhigh
Full review: SoFi Personal Loan Review
PNC
PNC is a well-known national financial institution providing several types of loans. Unlike some other lenders, PNC operates both online and through brick-and-mortar locations, and caters to those with relatively strong credit.
PNC offers both secured and unsecured personal loans, but we’ll focus on the unsecured loans for home improvement. These loans are ideal for borrowers with good credit.
Lender info
- LendEDU rating: 4.75 / 5.00
- Minimum credit score: Not disclosed
- Loan amount: pnc-perl-1142-amountlow – pnc-perl-1142-amounthigh
- APRs: pnc-perl-1142-alllow – pnc-perl-1142-allhigh
Full review: PNC Personal Loan Review
If you have fair credit
Marcus
Marcus is an online lender fueled by Goldman Sachs. The finance company offers personal loans for kitchen financing to consumers who have good-to-fair credit. Marcus is known for its streamlined application process and fast funding for qualified borrowers.
Lender info
- LendEDU rating: 5.00 / 5.00
- Minimum credit score: marcus-perl-56-mincreditscore
- Loan amount: marcus-perl-56-amountlow – marcus-perl-56-amounthigh
- APRs: marcus-perl-56-alllow – marcus-perl-56-allhigh
Full review: Marcus Personal Loan Review
FreedomPlus
Operating solely online, FreedomPlus provides fast-turnaround personal loans to borrowers from varied credit histories. However, we’ve rated it as the second best lender for borrowers with fair credit.
Loan applications are submitted quickly online, and some borrowers can receive a decision on the same day.
Lender info
- LendEDU rating: 4.38 / 5.00
- Minimum credit score: Not disclosed
- Loan amount: freedomplus-perl-53-amountlow – freedomplus-perl-53-amounthigh
- APRs: freedomplus-perl-53-alllow – freedomplus-perl-53-allhigh
Full review: FreedomPlus Personal Loan Review
If you have poor credit
OneMain Financial
For individuals with a lower credit score, OneMain Financial offers personal loans for kitchen remodel financing and other uses. You can submit an initial application online, but finalizing the process requires visiting a physical branch location.
Funds for a loan can be dispersed within a few days.
>> Read more: Home Improvement Loans With Bad Credit
Lender info
- LendEDU rating: 5.00 / 5.00
- Minimum credit score: Not disclosed
- Loan amount: onemainfinancial-perl-51-amountlow – onemainfinancial-perl-51-amounthigh
- APRs: onemainfinancial-perl-51-alllow – onemainfinancial-perl-51-allhigh
Full review: OneMain Financial Personal Loan Review
Using home equity loans as kitchen loans
Another option for kitchen renovation financing is a home equity loan. For homeowners who have available home equity, a home equity loan 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 from home equity loans, and the application process may require extra steps.
Pros of using a home equity loan
- 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 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 for a home equity loan.
Best home equity loans for kitchen remodeling
Here are our picks for best home equity loan lenders:
TD Bank
TD Bank is a large, brick-and-mortar bank that operates in Ct, De, Fl, Me, Md, Ma, NH, NJ, NY, NC, Pa, RI, SC, Vt, Va, and Washington, D.C.
If you already work with TD Bank, either for your mortgage or other banking purposes, this could be a great option.
Lender info
- LendEDU Rating: 5.00 / 5.00
- Maximum loan-to-value: tdbank-homeeq-153-ltvhigh
- Loan amounts: tdbank-homeeq-153-amountlow – tdbank-homeeq-153-amounthigh
- APRs: tdbank-homeeq-153-alllow – tdbank-homeeq-153-allhigh
Spring EQ
Spring EQ operates in 33 states and Washington, D.C., and specializes in home equity loans. You could qualify with a minimum credit score of springeq-homeeq-154-mincreditscore.
Lender info
- LendEDU Rating: 4.72 / 5.00
- Maximum loan-to-value: springeq-homeeq-154-ltvhigh
- Loan amounts: springeq-homeeq-154-amountlow – springeq-homeeq-154-amounthigh
- APRs: Starting at springeq-homeeq-154-alllow
Full review: Spring EQ Review
Discover
Like its other products, Discover home equity loans are accessible to borrowers with a lower credit score. Its minimum is just discover-homeeq-599-mincreditscore as long as you can prove employment and income.
Lender info
- LendEDU Rating: 4.66 / 5.00
- Maximum loan-to-value: discover-homeeq-599-ltvhigh
- Loan amounts: discover-homeeq-599-amountlow – discover-homeeq-599-amounthigh
- APRs: discover-homeeq-599-alllow – discover-homeeq-599-allhigh
Using a HELOC as a kitchen loan
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
- 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 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.
Best home equity lines of credit for kitchen remodeling
Here are our picks for best HELOC lenders:
M&T Bank
M&T’s CHOICEquity line of credit product was created to help with unexpected expenses and home repairs, though you can use the funds however you see fit.
Lender info
- LendEDU Rating: 5.00 / 5.00
- Maximum loan-to-value: mtbank-homeeq-603-ltvhigh
- Line of credit amounts: mtbank-homeeq-603-amountlow – mtbank-homeeq-603-amounthigh
- APRs: mtbank-homeeq-603-alllow – mtbank-homeeq-603-allhigh
Figure
This online lender offers perks such as same-day approval and funding within five days. Unlike some other lines of credit, you’ll receive the full lump sum upfront and can draw on the line of credit as you repay the loan.
Lender info
- LendEDU Rating: 4.56 / 5.00
- Maximum loan-to-value: figure-homeeq-600-ltvhigh
- Line of credit amounts: figure-homeeq-600-amountlow – figure-homeeq-600-amounthigh
- APRs: figure-homeeq-600-fixlow – figure-homeeq-600-fixhigh
Full review: Figure Home Equity Line Review
Regions Bank
Regions offers flexibility through several unsecured home equity products, as well as the option to convert your HELOC balance into a fixed-rate loan.
Lender info
- LendEDU Rating: 4.37 / 5.00
- Maximum loan-to-value: regions-homeeq-608-ltvhigh
- Line of credit amounts: regions-homeeq-608-amountlow – regions-homeeq-608-amounthigh
- APRs: regions-homeeq-608-fixlow – regions-homeeq-608-fixhigh
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