The Best Home Improvement Personal Loans for 2022

When you're looking for the best home improvement loans, you might not want to go the traditional route of a home equity loan. Personal loans for home repair could be the answer.
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Home improvement personal loans help you make repairs to your home or do a complete renovation. Unlike home equity loans, you don’t put your house up for collateral. Depending on your credit, you might qualify for a lower interest rate than you’d get with a home equity loan.

Compare Best Personal Loans

Best Home Improvement Loan Rates for 2022

What we researched
Fees
Fees can range from 0% to 5% or higher. We analyzed dozens of personal loan lenders to find the lowest fees.

Types of loans

Types of Loans
From debt consolidation to medical emergencies and other major expenses, we looked at the best loans for a variety of situations.
Reviews
We’ve conducted exhaustive reviews of dozens of lending companies and used them to see what lenders do best and what they can improve on.
Offers
We searched for the best offers and show you how to get them.
Rates
We looked at the most current rates based on a variety of factors including credit score, income, and more to find the best.
Accessibility
We looked at personal loans that are widely available and easy to access for the majority of borrowers.

How We Picked

We reviewed dozens of lenders and personal loans to find the best one based on a variety of needs including rates, credit scores, size of loan, flexibility, borrower income, cosigned loans, and more.

Our methodology

AmOne researched tens of loan companies to find which ones offer personal loans for home improvement.

Once we found those, we analyzed home improvement loans offered by over 10 lenders and looked at 10 data points, including credit score requirements, fees, accessibility, customer experience, APR rates, loan amounts, length of time to pay, the application process, and more. We picked the best loan companies by scoring loans based on those features.

AmOne will continue to spot-check and ensure the most recent loan information is included here as needed and update our list annually.

Top Lenders

Lenders are competing for your business. It’s important to narrow down the options and choose the one that’s right for you. Here are some of the points to ponder among the top five lenders.

LightStream: Best rates, flexible terms

As a lending division of Truist, LightStream offers the benefits of having a strong backing, and that allows them to offer some of the highest personal loan amounts.

Key Points

  • Repayment terms range from two to seven years.
  • No origination or late payment fees.
  • No fee if you choose to pay the loan off early.
  • Those who enroll in autopay can receive 0.50% off their interest rate.
  • No app currently available for LightStream, but the online site works well for management of your loan, and customer service is readily available.

Loan Amount: $5,000 to $100,000

Availability and restrictions: Available in all states, Washington D.C., and Puerto Rico.

Learn More About Lightstream with Our Review

OneMain: Low income, low credit score

Designed for borrowers with bad credit or low income, OneMain offers joint and secured loans.

Choose a term between two and five years for up to $20,000 in funding that can be direct deposited. That deposit can happen as early as the next business day after full loan approval.

Key Points

  • The APR starts at a level higher than that of other lenders, but the shorter repayment times help save money.
  • There is an origination fee of anywhere from 1% – 10% of the total loan.
  • You can lower your APR by choosing to secure the loan with a vehicle.

Loan amount: $1,500 to $20,000

Availability and restrictions: Some states require minimum loan amounts.

Learn more about OneMain with Our Review

Lending Club: Small loan amounts

With amounts as low as $1,000 and terms between 36 and 60 months, Lending Club is a top lender for those who need small amounts of cash in a hurry, as they can be funded within 48 hours.

Key Points

  • There are no penalties for early repayment.
  • You can set up easy automatic payment withdrawals from your bank account.
  • The origination fee might be a hurdle at anywhere from 3% to 6% of the loan amount.

Loan amount: $1,000 to $40,000

Availability and restrictions: Not available in Iowa or U.S. territories.

Learn More About Lending Club with Our Review

Prosper: Easy, streamlined application

Unlike many other lenders, Prosper offers the option of a co-signer, which can make approval much easier for those who have a short or difficult credit history.

Key Points

  • Your cash is available within three business days, so those urgent home improvements can begin almost immediately.
  • There are no repayment penalties if you choose to pay off the balance early.
  • A robust website makes managing the loan easy.
  • This is a good option for those who want to use a co-borrower to increase their chances of getting a higher amount.
  • Origination fees from 2.41% – 5% are charged, depending upon the amount of the loan.

Loan amount: $2,000 to $40,000

Availability and restrictions: Prosper is not available to borrowers in Iowa or West Virginia.

Learn More About Prosper with our Review

Upgrade: Large loan amounts, short credit history

Though the APR for loans through Upgrade might be more than that of other lenders, Upgrade offers loans for those who have a short or spotty credit history – 580 is the minimum credit score required to get a loan here.

Key Points

  • Loans can be paid back in three to five years.
  • No repayment penalty.
  • Robust mobile app allows for on-the-go management of your loan.
  • Credit Health Tool can assist in keeping your financial life on track.
  • Origination fee of between 2.8% and 8%.
  • Late payment fees of $10.
  • No discounts for autopay.

Loan amount: $1,000 to $50,000

Availability and restrictions: Not currently available in Iowa, Vermont, or West Virginia

Learn More About Upgrade with Our Review

Home Equity Loan vs Home Improvement Loan: What’s the Difference?

A home equity loan, which is closely related to home equity line of credit (HELOC), is a loan taken out against the equity you have in your home.

The equity is the difference between what you have paid and what you still owe. For instance, if your home is appraised at $300,000 and you owe $100,000, your equity is $200,000. That amount is what a lender will use to provide you with a certain dollar amount in a loan or line of credit. Your home equity loan is secured by your home.

A home improvement loan is an unsecured loan. It doesn’t tap into the equity in your home or use your home as collateral in the event that you can’t pay the loan back. This means the lender takes on a higher risk in providing the loan to you, and as a result, you might see higher interest rates and less favorable terms.

However, it’s a valuable option if you are looking for a small amount of money, such as up to $10,000 to fix that leaky roof, or if you need to get your hands on the cash for an immediate repair, such as fixing the sewer system.

How to Compare to Find the Best Loan

These are some of the points to ponder when you’re comparing the variety of loans out there.

APR

The Annual Percentage Rate, or APR, is the interest rate you can expect to pay over the life of the loan. In most cases, the better your credit score and credit history, the lower your APR will be.

There might be a base APR, such as 4.99%, that is reserved for only the best credit-holders or those who agree to a loan for a certain amount that must be paid within a shorter period of time.

Those with not-so-good credit can expect to see a higher APR, sometimes up to 25% or more.

Origination fees

Some lenders require an origination fee. This fee is applied right at the start of the loan, or in some cases, you can choose to pay it separately, up-front.

This fee is often applied to help the lender recoup their costs in paperwork, time, and other expenses they incur in giving you the loan.

Look for a lender that doesn’t require an origination fee, as these can run into thousands of dollars, depending upon the size of your personal loan.

Special features

Some lenders offer special features such as no late payment fees.

Other special features can include a robust mobile app for handling your loan from anywhere, the option to refinance, the opportunity to change your payment due dates, or the ability to pull in a co-signer for a higher loan amount, if necessary.

Repayment period and terms

Some lenders offer loan repayment plans of as little as two years and as many as ten.

Much of it might depend upon how much the loan is for; it’s unlikely a loan of $5,000 will come with a 10-year repayment plan.

Look at the payments required per month to help you determine what repayment period you can comfortably handle. Also look at the fine print: is there a penalty for paying off the loan early?

Funding Time

For those who are planning in advance, this might not be a big deal. For instance, if you’re taking out a loan for that bathroom renovation that’s scheduled for a few months from now, then how soon you can get the money might not matter as much.

But if you have a leaky roof and it’s the height of spring storm season, you might need that money as soon as possible. Some companies offer a funding time of only a few days from approval of the loan, while others might take a few weeks.

How to Get a Home Improvement Loan

Consider the following steps when getting your home improvement loan.

1. Decide which loan is best for you

Start by looking at your options for a home equity loan. Can you get an amount that works for you in a timeframe that is suitable for your project?

A home equity loan will likely take longer — in some cases, much longer — than a home improvement loan. Your home improvement loan might have a higher interest rate but it’s possible to get the money in a matter of days, not weeks or months.

2. Check your credit score

Your credit score is based on several factors, including the length of your credit history, how well you’ve done with making payments on time, and your debt to income ratio.

The higher your credit score, the less of a risk the lender is assuming in giving you a loan. A higher score also means you could see much lower interest rates and better terms.

Keep in mind that your credit report does not usually give you a credit score. You should know the difference.

3. Look for the best rates

Home improvement loan rates are based on the annual percentage rate and can range from 1%-2% to upwards of 30% or more.

Your rate will be individualized, based on your creditworthiness and other factors, but it’s a good idea to look at the potential range before you apply. Here is more information on rates for personal loans.

4. Get organized and apply

You’ll need a wide variety of financial documents, such as bank statements and tax returns. You might also need proof of income, as well as proof of what you intend to do with the loan. Gather all the documents you might need before you begin the application process to make it all easier in the long run.

5. Don’t start repairs or renovations until your loan is funded

Sometimes you can get a preapproval for a loan, which indicates that the lender will probably give it to you, but they need to review more documents and decide on just how much of a loan you can get.

Wait until your loan is not only approved, but you have the cash in hand before you begin any sort of home improvements.

6. Pay off your loan

Some lenders offer a grace period of a few months before payments kick in. Once it’s time to make payments, be sure to make them in full, on time, every time. This will help build up a more robust credit score, so the next loan you get will have better terms than this one. Should you pay it off early? That depends on whether there is a prepayment penalty. In some cases, that penalty will actually be more than the accrued interest; in that case, it’s better to simply make those monthly payments.

How AmOne Can Help Repair or Remodel your Home

If you’re looking for the best home improvement loans, turn to AmOne.

We can do the legwork for you with our free service to help you find the best personal loans for your situation.

Have you used credit cards to fix up your home and now you’re looking for debt consolidation? Our system matches you with the best debt consolidation services for you.

Explore our wide variety of options available to you, or reach out to one of our loan specialists to get answers to all your questions. Join our many satisfied clients who have taken charge of their financial life and met their money goals.

Home Improvement Loans Pros and Cons

Just as with any other type of loan, there will be pros and cons. The idea is that the pros will always outweigh the cons and make the loan a more reasonable choice. Here’s what you can expect from home improvement loans.

Pros of Home Improvement Loans

Cons of Home Improvement Loans

Frequently Asked Questions

Can I have a personal loan and home equity loan at the same time?

Yes – but keep in mind that the more loans you have outstanding, the more your credit score might be impacted.

What can I do if I live in a state where personal loans are hard to come by through online lenders?

Some online lenders don’t have the regulatory authority to provide personal loans in certain states. In that case, you’ll need to go with a traditional lender, such as a local bank or credit union.

Can a home repair loan help me build my credit?

Yes. Any loan can help you build a good credit history as long as you make your payments in full, on time, every time.

Do I have to have a minimum credit score to get personal loans?

In many cases, yes. There are some lenders, however, that don’t focus on credit score and instead want to see a steady stream of income or something you can use for collateral.

Do I have to prove I am using a personal loan for home repairs?

Not always, though some lenders do require an idea of what you want to use the loan for and how much you will really need. This can affect what they allow you to borrow. For instance, if that pool repair will cost $10,000 but you’re requesting $20,000, they might ask why you want the additional $10,000.

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