12 Best Home Improvement Loans Listed

Erika Crawford
Oct 12, 2020

Whether you want to remodel your kitchen, get a new roof, build a swimming pool, or install solar panels, a home improvement loan can help you get the funding you need for your project immediately and repay it over time. While you could apply for a personal loan to meet your needs, some lenders specifically offer home improvement loans with high loan caps, fixed interest rates, and long repayment terms.

There are two main types of home improvement loans: unsecured personal home improvement loans and home equity loans. An unsecured personal loan requires no collateral, and you can typically get approved fairly easily (many are available to those with less-than-stellar credit). However, these loans typically have shorter repayment terms, lower funding caps, and higher interest rates than home equity loans.

Alternatively, a home equity loan leverages the amount you’ve already paid toward your house. The house is used as collateral, making it a secured loan. If you don’t repay the loan on time, the lender will repossess your home. Home equity loans are usually offered by banks (not independent lenders), and you can typically finance large amounts — up to 85% of your total equity[1] — with terms up to 30 years for most lenders. Additionally, the interest you pay toward a home equity loan is often tax deductible.[2]

What We Recommend

Many home improvement loans are similar in that they have near-immediate approvals, they disburse funds within a few business days, and they have few purpose specifications outside of needing to be used for some form of home renovation or upgrade. However, there are a few lenders offering loans that may better suit certain needs:

  • Best for bad credit: Wells Fargo, which accepts borrowers with fair credit
  • Best for low interest (unsecured): LightStream, which has a variable APR of 5% to 17%
  • Best for low interest (secured): KeyBank, which has a variable APR starting at 3%
  • Best for large renovations: TD Bank, which has a maximum loan amount of $500,000 or more

Comparison Table

Use the table below for a quick comparison of the home improvement loan options available to you, then click any lender or scroll for more details. You can also sort any column in the table to find the loan that best meets your needs.

Lender Requires Equity? Max Loan Term Credit Requirement APR Range
Wells Fargo No $100,000 1 to 7 years Fair 6% to 25%
LightStream No $100,000 2 to 12 years Good 5% to 17%
Axos Bank No $35,000 1 to 5 years 720 5% to 20%
Renovate America (Benji) No $50,000 Varies Not specified Varies
Avant No $35,000 2 to 5 years 600 10% to 36%
Upstart No $50,000 3 or 5 years 620 8% to 36%
LendingClub No $40,000 3 to 5 years Varies 10% to 36%
PenFed Credit Union No $20,000 Up to 5 years Not specified Starting at 6%
KeyBank Yes $250,000+ 5 to 30 years Not specified Starting at 3%
PNC Bank Yes $150,000+ 5 to 30 years Not specified Starting at 3%
TD Bank Yes $500,000+ 5 to 30 years 740 3% to 8%
Discover Yes $200,000 10, 15, 20, or 30 years 620 4% to 12%

The List

1. Wells Fargo

  • Requires home equity? No[3]
  • Loan amount: $3,000 to $100,000[3]
  • Term: One to seven years[4]
  • Credit requirement: Fair[4][5]
  • APR range: Around 6% to 25%[4]
  • Fees: No origination fees; other fees vary by contract[6]
  • Apply

2. LightStream

Note: LightStream is a division of SunTrust Bank, so you can apply for a LightStream loan directly or through SunTrust Bank.[7]

  • Requires home equity? No[8]
  • Loan amount: $5,000 to $100,000[8]
  • Term: Varies by loan amount[8]
    • $5,000 to $9,999: Two to six years
    • $10,000 to $24,999: Two to seven years
    • $26,000 to $100,000: Two to 12 years
  • Credit requirement: Good[9]
  • APR range: Around 5% to 17%[8]
  • Fees: No origination or prepayment fees; other fees may vary by contract[8]
  • Apply

3. Axos Bank

  • Requires home equity? No[10]
  • Loan amount: $5,000 to $35,000[10]
  • Term: One to five years[10]
  • Credit requirement: 720[10]
  • APR range: Around 5% to 20%[10]
  • Fees: Vary by contract[11]
  • Apply

4. Renovate America

Note: To apply for a Benji home improvement loan from Renovate America, you must first pair with a contractor in the Renovate America network.[12]

  • Requires home equity? No[13]
  • Loan amount: $2,000 to $50,000[13]
  • Term: Varies by contract[14]
  • Credit requirement: Not specified; approvals are based on credit, home equity, household income, debt, and desired home improvement project(s)[12]
  • APR range: Variable[12]
  • Fees: Vary by contract[14]
  • Apply

5. Avant

  • Requires home equity? No[15]
  • Loan amount: $2,000 to $35,000[15]
  • Term: Two to five years[15]
  • Credit requirement: Around 600[16]
  • APR range: Around 10% to 36%[15]
  • Fees: Administration fee of up to 4.75% of the loan amoutn; other fees vary by contract[15]
  • Apply

6. Upstart

Note: Upstart loans are not available in Iowa or West Virginia.[17]

  • Requires home equity? No[17]
  • Loan amount: $1,000 to $50,000[18]
  • Term: Three or five years[17]
  • Credit requirement: About 620[19]
  • APR range: Around 8% to 36%[17]
  • Fees:
    • Late fee: $15 or 5% of the late payment amount, whichever is greater[20]
    • Origination fee: 0% to 8% of the loan amount[20]
  • Apply

7. LendingClub

Note: LendingClub is a peer-to-peer lender, which means it will connect you with a variety of lenders that provide loan offers when you apply, and you can select your desired option. However, this also means that rates and fees can vary widely depending on the offer.

  • Requires home equity? No[21]
  • Loan amount: Up to $40,000[22]
  • Term: Three to five years[22]
  • Credit requirement: Varies by lender[23][24]
  • APR range: Around 10% to 36%[21]
  • Fees:
    • Late fee: $15 or 5% of the late payment amount, whichever is greater[21]
    • Origination fee: 2% to 6% of the total loan amount[21]
  • Apply

8. PenFed Credit Union

Note: You must be a PenFed Credit Union member to apply for a loan.

  • Requires home equity? No; does not require home title or deed[25]
  • Loan amount: Up to $20,000[25]
  • Term: Up to five years[25]
  • Credit requirement: None specified[25]
  • APR range: Starting around 6%[25]
  • Fees: No origination fees; other fees vary by contract[25]
  • Apply

9. KeyBank

  • Requires home equity? Yes[26]
  • Loan amount: $25,000 to $250,000+[27]
  • Term: Five to 30 years[27]
  • Credit requirement: Not specified; approval depends more on home equity[27]
  • APR range: Typically starting around 3%, with promotional rate discounts for existing KeyBank customers[26]
  • Fees: $295 origination fee; late fees and other fees vary by contract[27]
  • Apply

10. PNC Bank

Note: PNC Bank also offers unsecured personal loans (that don’t require home equity) for a variety of uses.

  • Requires home equity? Yes[28]
  • Loan amount: $25,000 to $150,000+[28]
  • Term: Five to 30 years[28]
  • Credit requirement: None specified; approvals depend more on home equity[28]
  • APR range: Typically starting around 3%, with some promotional rate discounts[28]
  • Fees:
    • Late fee: $40 or 10% of the late payment, whichever is greater[28]
    • Recording and Satisfaction fees: Vary by location[28]
    • Other fees, such as appraisal and property search fees, may apply.[28]
  • Apply

11. TD Bank

Note: TD Bank also offers unsecured personal loans (that don’t require home equity) for a variety of uses.

  • Requires home equity? Yes[29]
  • Loan amount: $25,000 to $500,000+[30]
  • Term: Five to 30 years[30]
  • Credit requirement: Around 740[30]
  • APR range: Around 3% to 8%[30]
  • Fees: Vary by contract[30]
  • Apply

12. Discover

Note: Discover also offers unsecured personal loans (that don’t require home equity) for a variety of uses.

  • Requires home equity? Yes[31]
  • Loan amount: $35,000 to $200,000[31]
  • Term: 10, 15, 20, or 30 years[32]
  • Credit requirement: 620[33]
  • APR range: Around 4% to 12%[32]
  • Fees: No origination or application fees; other fees vary by contract[32]
  • Apply

Alternatives to Home Improvement Loans

If you have several different home renovation projects you’re hoping to undertake or you’re uncertain how much your project(s) will cost, you may want to consider a home equity line of credit (HELOC) instead of a loan. A HELOC functions similarly to a credit card in that you have a revolving credit line and limit, and you only need to make payments on what you actually borrow (not the total credit limit).[34]

Like a home equity loan, you must put up your house as collateral for the credit line, but unlike a loan, the interest rate for a HELOC is often variable.[34] Many of the lenders that provide home equity loans also offer lines of credit, and the amount of time you can draw money from a HELOC is typically about the same as the term of a home equity loan.

If you’re a federal employee, you may also want to check out our list of personal loans and home equity lines of credit for federal employees (even those with bad credit).

  1. https://www.consumer.ftc.gov/articles/0227-home-equity-loans-and-credit-lines#loans[↩]
  2. https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law[↩]
  3. https://www.wellsfargo.com/personal-credit/home-improvement/[↩][↩]
  4. https://www.wellsfargo.com/personal-credit/rate-and-payment-calculator/[↩][↩][↩]
  5. Wells Fargo customer service (800) 869-3557[↩]
  6. https://www.wellsfargo.com/help/loans-and-lines/personal-credit-faqs/[↩]
  7. https://www.suntrust.com/loans/home-improvement/unsecured-home-improvement-loan [↩]
  8. https://www.lightstream.com/home-improvement-loan[↩][↩][↩][↩][↩]
  9. https://www.lightstream.com/contact-us[↩]
  10. https://www.axosbank.com/Personal/Personal-Loans/Home-Improvement-Loans[↩][↩][↩][↩][↩]
  11. https://www.axosbank.com/Customer-Support/Personal-Support/Manage-My-Loan[↩]
  12. https://www.renovateamerica.com/support/faq[↩][↩][↩]
  13. https://www.renovateamerica.com/financing/benji[↩][↩]
  14. https://apply.renovateamerica.com/eligibility[↩][↩]
  15. https://www.avant.com/home-improvement-loans/[↩][↩][↩][↩][↩]
  16. https://support.avant.com/article/14-avant-credit-quality[↩]
  17. https://www.upstart.com/home-improvement-loans[↩][↩][↩][↩]
  18. https://www.upstart.com/personal-loans[↩]
  19. https://upstarthelp.upstart.com/questions/108501-what-are-the-minimum-credit-requirements-to-receive-a-loan[↩]
  20. https://upstarthelp.upstart.com/7620-applying-for-a-loan/83438-what-fees-am-i-charged[↩][↩]
  21. https://www.lendingclub.com/loans/personal-loans/rates-fees[↩][↩][↩][↩]
  22. https://www.lendingclub.com/loans/personal-loans/home-improvement[↩][↩]
  23. https://help.lendingclub.com/hc/en-us/articles/213706208-Qualifying-for-a-personal-loan[↩]
  24. LendingClub customer service (888) 596-3157[↩]
  25. https://www.penfed.org/personal/personal-loans/home-improvement[↩][↩][↩][↩][↩][↩]
  26. https://www.key.com/personal/home-loans-lines/home-equity-loan.jsp[↩][↩]
  27. https://onlinea.key.com/uap/SvltKdd?mode=3&id=KCOCHT-HELOAN[↩][↩][↩][↩]
  28. https://www.pnc.com/en/personal-banking/borrowing/home-equity-loans/home-equity-loans.html[↩][↩][↩][↩][↩][↩][↩][↩]
  29. https://www.td.com/us/en/personal-banking/learning-home-lending/uses-and-benefits/[↩]
  30. https://wowzone.tdbank.com/personal/home_equity_loans_details.aspx[↩][↩][↩][↩][↩]
  31. https://www.discover.com/home-equity-loans/home-improvement/[↩][↩]
  32. https://www.discover.com/home-equity-loans/[↩][↩][↩]
  33. https://www.discover.com/home-equity-loans/loan-amount-calculator/[↩]
  34. https://www.consumer.ftc.gov/articles/0227-home-equity-loans-and-credit-lines[↩][↩]
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