Best Home Improvement Loans in August 2026
The best home improvement loans come from LightStream, partly because it may beat competitors’ rates
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- Personal loans are often best for one-time home improvement projects because they provide a lump sum and don’t require you to use your home as collateral.
- If you’ve built enough home equity, you could get a lower rate with a home equity loan or HELOC, but your home serves as collateral.
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LendingTree users shopping for home improvement loans request an average of $10,769 and have an average credit score of 600.
LendingTree analysis of personal loan inquiries on the LendingTree platform from April 2025 through March 2026.
| Lender | User rating | Best for | APR | Amount | Min. credit score | See Results |
|---|---|---|---|---|---|---|
|
Overall home improvement loans | 7.24% to 20.94% (with autopay) |
$5k – $100k |
Not specified | ||
|
Joint loans | 6.25% to 35.99% |
$5k – $50k |
600 | ||
|
Lower rates with collateral | 5.99% to 29.99% |
$5k – $50k |
620 | ||
|
Emergency home repairs | 6.99% to 35.49% (with discounts) |
$5k – $100k |
600 | ||
|
Smaller loans | 6.30% to 35.99% |
$1k – $75k |
None |
Read more about how we made our picks for best home improvement loans.
Home improvement loans at a glance
Best for: Home improvement loans overall – LightStream
- APR (with autopay)
- 7.24% to 20.94%
Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
- Terms up to 240 months on home improvement loans
- Offers program to beat competitor rates
- No fees
- Loan may be available as soon as the same day
- Checking rates requires a hard credit pull
- Not the lowest starting rate
LightStream, the online lending arm of Truist Bank, offers terms up to 240 months on its home improvement loans. This is much longer than most lenders (60 or 84 months is more typical). This extra time can reduce your monthly payments, making your loan easier to manage
LightStream also does something that few (if any other) lenders do — beat competitors’ rates. With its Rate Beat program, LightStream could beat a competing offer by 0.10 percentage points if you find a better deal.
LightStream specializes in loans for borrowers with good and excellent credit. If you qualify, you could get a $100,000 personal loan. But unlike many other lenders, it doesn’t let you prequalify. That means you have to agree to a hard credit check to see your eligibility and rates.
LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
- At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
- Stable income and can handle paying their current debt obligations
- Savings, whether in a bank account, investment account or retirement account
Best for: Joint home improvement loans – Achieve
- APR
- 6.25% to 35.99%
- Multiple rate discounts, including one for adding a co-borrower
- Offers free budgeting app
- All loans have an origination fee
Achieve offers three potential rate discounts: one for having a sufficiently funded retirement account, one for using direct pay to consolidate debt and one for adding a qualified co-borrower.
If you own your home with someone else, teaming up and getting a joint loan could make sense. Your co-borrower can help you qualify for a lower rate while also sharing responsibility for financing improvements that benefit the property.
All Achieve home improvement loans have an origination fee. If you have strong credit, you may want to look for a no-fee lender. Otherwise, expect Achieve to deduct 1.99% – 8.99% from your loan before sending you the funds.
Other than a credit score of at least 600, Achieve will typically ask you to provide the following documents and information:
- Proof of income
- Social Security number
- Government-issued ID
- Employment status
You must also live in an eligible U.S. state (Achieve operates in most states, with a small number excluded).
Best for: Lower rates with collateral – Best Egg
- APR
- 5.99% to 29.99%
- Uses permanent fixtures for collateral rather than the home itself
- Collateral is optional
- Very competitive rates
- Mandatory origination fee
- No joint loans
Home equity loans and home equity lines of credit (HELOC) use your home as collateral. If you don’t pay back your loan, the lender can foreclose on your house, making these options riskier than unsecured personal loans.
Best Egg’s secured personal loan may be a good middle ground. Rather than the home itself, it uses built-in cabinetry, lighting and your home’s other permanent fixtures as collateral. It can still repossess your collateral if you default, but you won’t lose your home.
At 5.99%, Best Egg’s secured loan has one of the lowest starting annual percentage rates (APRs) on the market. And if you don’t want to use collateral, Best Egg’s unsecured loan starts off at a still-competitive 6.99%.
Like many other online lenders, Best Egg charges a mandatory origination fee (1.49% – 8.99%).
Best Egg uses built‑in home fixtures as collateral but doesn’t require an appraisal of them. It reviews your credit history and home equity instead.
You must also meet the requirements below to qualify for a Best Egg loan:
- Age: Be of legal age to accept a loan in your state (usually 18)
- Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
- Administrative: Have a personal checking account, Social Security number, email address and physical address
- Residency: Live in an eligible U.S. state (Best Egg operates in most states, with a small number excluded)
- Credit score: 620+
Best for: Emergency home repairs – SoFi
- APR (with discounts)
- 6.99% to 35.49%
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2025 was around $32K. Information current as of 07/20/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions. Fixed rates from 6.99% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% member rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 07/20/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibilitycriteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Member Rate Discount: To be eligible for an additional 0.25% interest rate reduction on a Personal Loan, you must, within 31 days of loan funding, either (1) meet SoFi Plus eligibility criteria, (2) receive an Eligible Direct Deposit into a SoFi Checking or Savings account, or (3) receive at least $5,000 in Qualifying Deposits into a SoFi Checking or Savings account. You must continue to meet at least one of the above eligibility criteria every 31 days to maintain the discount. See the SoFi Plus terms for details on SoFi Plus subscription. For more details on Eligible Direct Deposit or Qualifying Deposits, please see https://www.sofi.com/legal/banking-rate-sheet. Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan.
- Offers same-day loans
- Can choose to pay an origination fee for a lower rate
- Get one free financial planning session
- Best rates may require an origination fee
- Lower minimum credit score requirements
If you’re financing a surprise home repair, SoFi may be your best bet for an emergency loan. As long as you e-sign your loan agreement by 5:30 p.m. Eastern time (ET) on a business day, you could get your money the same day that you apply.
SoFi’s origination fee structure is unique. It has no mandatory fees, but you can choose to pay an origination fee in exchange for a lower rate. This flexibility may help you find a loan that best fits your budget. But if you aren’t willing to pay an origination fee, you might not get the lowest rate possible.
You must meet the requirements below to get a loan from SoFi:
- Age: Be the age of majority in your state (typically 18)
- Citizenship: Be a U.S. citizen, an eligible permanent resident or a nonpermanent resident (a DACA recipient or asylum-seeker, for instance)
- Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
- Credit score: 600+
Best for: Bad-credit borrowers – Upstart
- APR
- 6.30% to 35.99%
- Loans start at $1,000
- Could get funds within 24 hours of approval
- No formal minimum credit score requirements
- May pay an origination fee
- No Android app, only iPhone
Upstart is a lending platform that helps connect partner lenders and borrowers. That means more potential options, because each partner offers different terms and amounts. Most home improvement loans start at $5,000. With Upstart, you can borrow as little as $1,000 (and as much as $75,000 — big loans are available, too).
Eligibility requirements and fees also vary by lender. Some of Upstart’s partners don’t have a formal minimum credit score requirement. It also uses alternative underwriting to help more borrowers get approved. However, you may need to pay an origination fee if the partner Upstart connects you with charges one.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: None
What is a home improvement loan?
A home improvement loan is a type of personal loan that you can use to pay for home renovations or repairs. Personal loans come as a lump sum of cash, which you will repay in installments over a set loan term. The annual percentage rate (APR) is typically fixed, and your monthly payment won’t change as long as you make your payments on time.
Most personal loans are unsecured, meaning they don’t require collateral. Because the lender takes on more risk, they often have higher interest rates than collateral loans like a home equity loan or a home equity line of credit (HELOC).
Financing options that use home equity
A personal loan isn’t your only option for financing home improvements. If you’ve built equity in your home, you may qualify for a home equity loan or home equity line of credit.
Rates are usually lower on home equity loans and lines of credit compared to home improvement loans. The tradeoff is that your house serves as collateral. The lender can foreclose on your home if you fall behind. These types of loans are also known as a second mortgage.
- Home equity loan: A home equity loan works more like a home improvement loan. It provides a lump sum of money with fixed APRs that stay the same for as long as you have the loan.
- Home equity line of credit (HELOC): A home equity line of credit (HELOC) works more like a credit card. You can borrow as you need it, up to your credit limit. You only pay interest on what you borrow, and APRs are variable, meaning they go up and down with the market.
When could a home improvement loan be the right choice?
It can be hard to know which type of financing to choose when there are so many options available. Here are some common home improvement scenarios and the financing options that may be the best fit.
| Your situation | Option to consider | Why? |
|---|---|---|
| Remodeling one room or tackling one project | Home improvement loan | Lump sum payment without using house as collateral |
| Getting the lowest rate is priority | Home equity loan or HELOC | Borrowing against equity often comes with lower rates |
| Unsure of the final cost | HELOC | Borrow as needed instead of a lump sum payment |
| Need funding as fast as possible | Home improvement loan | Many lenders can fund approved loans within a few business days |
| Have significant equity and know how much you need | Home equity loan | Lump sum payment with a lower rate than a personal loan |
| Just bought a fixer-upper | Home improvement loan | Need equity for the other financing options |
Should you use a personal loan or tap your home equity?
Before borrowing from your home, ask yourself…
- Can I comfortably afford another housing payment?
- Am I comfortable using my home as collateral?
- Will I finish this project all at once or over time?
- Could rising interest rates affect my budget if I choose a HELOC?
- Will the improvements add enough value to justify the debt?
See how much your home improvement loan may cost you
Use the table below to find what your APR may be based on your credit score, according to our LendingTree marketplace data. Then, plug in that average APR for your credit score into the calculator below and see how much your loan could cost.
| Credit tier | Average APR |
|---|---|
| Excellent (800 and above) | 15.34% |
| Very good (740-799) | 17.46% |
| Good (670-739) | 22.70% |
| Fair (580-669) | 27.52% |
| Poor (under 580) | 30.51% |
Before you apply for a home improvement loan
Taking a few minutes to prepare before applying can help you borrow the right amount and save money.
Get several home improvement quotes
Knowing how much you need to borrow can help you avoid getting a bigger loan than necessary. Unless you pay your loan off early, the more you borrow, the more overall interest you’ll pay.
Compare prequalified loan offers
Many lenders let you check rates with a soft credit pull. This will let you compare estimated APRs, loan terms and origination fees before formally applying for a loan. Comparing loans is just as important as comparing contractors.
Make sure the monthly payment fits your budget
Choose a loan payment that you’ll be able to comfortably afford for the loan’s entire term. A lot can happen over a loan term, which usually spans from 12 to 84 months or longer. Home renovations can cost more than expected, which is also something to keep in mind.
A homeowner’s perspective:
I was nervous, but getting a personal loan for a kitchen renovation was a lot easier and more customizable than I imagined it would be. I worked with a loan agent to find loan terms, rates and monthly payments I was comfortable with. He made the loan work for me.
When banks compete, you win
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Shop your offers
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Get your money
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Government home improvement loans
- FHA Title 1 loan: Borrow up to $25,000 to repair your single-family home if you are low- to moderate-income.
- Limited FHA 203(k) loan: Refinance your mortgage and access up to $75,000 to pay for repairs and renovations.
- USDA Section 504 Home Repair Program: Borrow up to $40,000 to repair or improve eligible homes if you are very low income. If you’re 62, you can get a grant of up to $10,000, which doesn’t need to be repaid.
Contact an FHA-approved lender for Title I or 203(k) loans, or your local USDA Rural Development office for the Section 504 Home Repair Program. They can help you determine whether you qualify and walk you through the application process.
How we chose the best home improvement loans
We reviewed more than 40 lenders and companies to determine the overall best five home improvement personal loans. To make our list, lenders must offer home improvement loans with competitive APRs.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best home improvement loans come from LightStream, Achieve, Best Egg, SoFi and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
Why trust our methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Some home improvement loans can have an origination fee. Origination fees can be a flat fee but are more commonly a percentage of the loan (usually 1%-10% or more). Lenders usually deduct origination fees from the loan before sending it to you, or it could add it to your loan balance, where it will accrue interest.
Origination fees are more common with online loans and/or if you have bad credit.
That depends on how you want to borrow money. If you want a continuous stream of funding, a HELOC makes more sense. It works more like a credit card — you can borrow over and over again, up to your approved limit. A personal loan comes as a lump sum.
HELOCs could be a better financing option for home improvements that will take a long time or don’t have a firm price tag. A personal loan may be a better fit for smaller projects or emergency repairs.
Usually no; most home improvement loans are unsecured. When collateral is required, it’s usually your car or your home’s permanent fixtures, not your house.