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 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.
1. LightStream (Personal loan)
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 overall personal loan lender 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
2. Upgrade (Personal loan)
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
3. LendingClub (Personal loan)
Rates (APR)
10.68% – 35.89%
Loan Amounts
$1,000 – $40,000
Credit Score
600+
LendingClub is a peer-to-peer lender offering loans to those with bad and fair credit. The minimum loan amount makes this a good option for those who need smaller loans for their kitchen work.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As soon as 4 business days
- Origination fee: 1% – 6%
- Late fee: $15 or 5% of payment amount
- Repayment terms: 36 or 60 months
4. Spring EQ (Home equity loan)
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: As soon as 11 days
- Origination fee: $700 – $2,000
- Late fee: Yes
- Repayment terms: 5 – 30 years
5. Figure (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.
>> See Options: Best Home Equity Loans
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 best kitchen remodel financing options
| Lender | Type | Rates (APR) |
| LightStream | Personal Loan | 4.99%+ |
| Upgrade | Personal Loan | 7.99%+ |
| LendingClub | Personal Loan | 10.68%+ |
| Spring EQ | Home Equity Loan | 5.205%+ |
| Figure | HELOC | 3.49%+ |
