Home improvement loans
A home improvement loan is usually an unsecured personal loan for repairs, remodels or upgrades. You don't need home equity or an appraisal, your house isn't used as collateral, and most lenders send funds within 24 to 48 business hours of final approval. You can check your rate with a soft credit pull, which doesn't affect your credit score.
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Loan terms from 2 to 60 months. Rates vary depending on the lender, your credit and your state. Maximum APR is 35.99%.
Your home improvement financing options
| Option | Uses your home as collateral? | Speed | Best for |
|---|---|---|---|
| Personal loan | No | Often a few business days | Projects up to about $50,000, urgent repairs, little or no equity |
| Home equity loan | Yes | Usually weeks (appraisal and closing) | Large remodels when you have substantial equity |
| HELOC | Yes | Usually weeks | Long projects paid in stages; variable rate |
| Contractor financing | Varies | Same day at signing | Convenience, if the APR and promo terms hold up against your other offers |
| Credit card | No | Immediate | Small jobs you can pay off quickly, or a true 0% intro APR |
Why homeowners choose a personal loan
- No appraisal, no lien on your home and no closing costs.
- A fixed rate and fixed payment, so the budget doesn't move.
- Fast funding when a roof, furnace or water heater can't wait.
- Checking your rate uses a soft credit pull, so comparing lenders doesn't cost you points.
How to get a home improvement loan
- Get a written quote from your contractor, and add 10% to 15% for surprises.
- Pre-qualify with Compare Loan Offer. One application checks multiple lenders with a soft credit pull.
- Compare APR, monthly payment, term and total cost across your offers.
- Pick an offer and complete that lender's application and documents. After underwriting and final approval, most lenders send the funds to your bank account within 24 to 48 business hours.
- Pay your contractor on a schedule tied to finished work, and collect a lien waiver with each payment.
Protect yourself on the project
- Don't pay the full price up front. Pay in stages as work is completed.
- Ask for lien waivers, so an unpaid subcontractor can't put a lien on your home.
- Confirm the contractor is licensed and insured where your state requires it, and that permits are pulled.
- Interest on home equity debt may be tax-deductible when it's used to substantially improve the home. Personal loan interest generally isn't. Ask a tax professional.
Popular home improvement projects
Roof replacement loans
A roof replacement loan is a personal loan used to pay for a new roof or major roof repair.
Read the guideHVAC and AC replacement financing
HVAC financing with a personal loan pays for a new air conditioner, heat pump or furnace with a fixed rate and payment.
Read the guideKitchen remodel loans
A kitchen remodel loan is a personal loan that funds cabinets, counters, appliances and labor in one lump sum with a fixed payment.
Read the guideBathroom remodel loans
A bathroom remodel loan is a personal loan for a new shower or tub, vanity, tile, plumbing or accessibility upgrades.
Read the guideSee which lenders will work with you
Pre-qualify in minutes. Checking your rate won't affect your credit score.
Common questions
Can I check my home improvement loan rate without affecting my credit?
Yes. Compare Loan Offer pre-qualification uses a soft credit pull, which doesn't affect your credit score. A hard inquiry happens only if you choose an offer and continue with that lender.
Do I need home equity for a home improvement loan?
No. An unsecured personal loan is based on your credit and income, not your home's value, so you don't need equity or an appraisal.
How much can I borrow for home improvements?
Through Compare Loan Offer you can request $1,000 to $50,000. The amount each lender approves depends on your income, credit and existing debt.
What credit score do I need for a home improvement loan?
Requirements vary by lender. Many work with good credit and above, and some approve fair credit. Pre-qualifying shows which lenders will work with you without affecting your score.
How fast can I get a home improvement loan?
After you choose an offer and the lender receives your completed application and documents, final approval typically takes 1 to 3 business days with good to excellent credit, or up to 5 to 7 business days for higher-risk applicants. Once approved, most lenders send the money directly to your bank account within 24 to 48 business hours. Each offer shows the lender's own funding estimate.
Is a personal loan or a HELOC better for home improvements?
A personal loan is faster, has a fixed rate and doesn't put your home on the line. A HELOC often has a lower, variable rate and suits large projects paid in stages, but it uses your home as collateral and takes longer to open.
Can I use a personal loan to pay my contractor directly?
Most lenders deposit the money in your bank account, and you pay the contractor. Pay in stages as work is completed rather than all at once.
Should I use contractor financing or my own loan?
Compare both. Contractor financing is convenient, but check whether a 0% offer is true 0% APR or deferred interest, and compare its APR with your pre-qualified offers.
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Pre-qualify in minutes. Checking your rate won't affect your credit score.