What are my options for home improvement loans?

In general, there are four types of financing for home improvement: home improvement loans, which don't depend on having any equity in your home, cash-out refinancing, home equity loans (HEL), and home equity lines of credit (HELOC). The loan that's right for you will be affected by several factors, such as current interest rates, the amount that you want to borrow, and your credit history.

What's the difference between a home equity loan (HEL) and home equity line of credit (HELOC)?

Great question! Both types of loan assume that you've got some equity built up in your property, and you use that property to "secure" your loan. Home equity loans are more like a traditional loan: you get an upfront lump sum and make fixed payments over your repayment term. On the other hand, a home equity line of credit lets you borrow as needed, up to a predetermined limit: your interest rate may be variable, so your payments can increase or decrease over time.

Can I use my home improvement loan funds any way I want?

Basically, yes. Your loan is rarely tied to any particular use. Maybe you thought you wanted a new kitchen, but now an in-ground pool sounds more fun. Or, perhaps you planned to upgrade your bathroom, and then all of your appliances died after a lightning strike. No problem! The money is yours to use as you see fit.

How much can I borrow with a home improvement loan?

That depends. With a traditional home improvement loan, the amount you can borrow will largely be determined by your credit history, current amount of debt, and your income. If you're borrowing against the equity in your home, you may be able to get a loan for up to 85% of your equity. For example, if your home is worth $300,000 and you've got $200,000 left to pay, then your equity is $100,000: you may be able to borrow up to $85,000.

How quickly can I get approved for a home improvement loan?

If you need money fast, your best bet is a home improvement loan rather than a home equity loan. With a home improvmeent loan, you could get funds deposited within a day or two of being approved. Any lending tied to the equity in your home takes much longer, often including a (new) house inspection and underwriting. But, keep in mind that home improvement loans often have higher interest rates than home equity loans.

Which type of home improvement loan is the most affordable?

The home improvement loan process is much easier than an equity-based loan, and you'll receive your money much faster - but you're likely to get the best rates and terms with a cash-out refinance (if interest rates now are lower than when you obtained your current mortgage) or a home equity loan. Keep in mind, though, you can get your money with a home improvement loan in just a day or two, while an equity-based loan can take weeks.

Can I get a home improvement loan if I have bad credit?

It's not impossible. You're more likely to qualify for a home equity loan or line of credit, because your home's value can secure the loan. But, there are also some home improvement loan providers that work with individuals that have less-than-perfect credit.

Can't I just use a credit card to pay for my home improvements?

You can... but unless you've got a 0% APR card with a high credit limit and you can pay it all off within the introductory no-interest period (usually 12-21 months), you're going to wind up paying a lot more in interest. A LOT more. Check out your other options, which are tailored for this type of project, before using a credit card to fund home improvements or repairs!

SoFi<sup>®</sup> vs Prosper for 2026 | Best Home Improvement Loans

Item: SoFi ® vs Prosper
Rating: 4
Author: Top Consumer Reviews

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2026 Home Improvement Loan Reviews

Here you can see how SoFi^® and Prosper match up head-to-head in a battle for the Best Home Improvement Loans in 2026.

SoFi^®

Home improvement loans available from $5,000 to $100,000 (structured as a personal loan)
Flexible repayment terms spanning from 2 to 7 years
Most loans funded same or next day

With over two million members and $50 billion in funded loans, SoFi offers an array of resources for financial independence, including personal loans for your home upgrades. Applying for a home improvement loan with SoFi is straightforward - just enter your basic info and desired loan amount, and they'll verify your identity with a soft credit check. While their rates aren't the lowest, they do offer perks like autopay discounts. However, watch out for potential origination fees, which can range up to 6%. Despite some transparency issues, SoFi has a mostly positive reputation, with an "A+" rating from the BBB and thousands of five-star reviews from satisfied clients. While they might not offer the absolute best rates and terms, the unique perks make it worth considering SoFi for your home improvement financing needs.

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Prosper

Personal loans up to $50,000
HELOCs and HELoans up to $500,000
Origination fees from 1%-7.99%

Prosper offers a different way to fund your home improvement projects. As a peer-to-peer lending platform since 2005, it connects people who want to invest with those who need to borrow. You have the choice between a personal loan or a HELOC/HELoan, with the personal loan allowing you to borrow up to $50,000 without using your home as collateral. When applying, make sure to select "Home Improvement" as your reason to attract investors. Expect origination fees ranging from 1% to 7.99%, deducted from your loan amount. While funding may take longer due to the peer-to-peer aspect, Prosper maintains an "A+" BBB rating and thousands of 5-star reviews on Trustpilot from customers who appreciate the streamlined process. Overall, Prosper is a reliable option for home improvement loans.

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Short on cash but ready to refresh your place? A home improvement loan can bridge the gap - giving you the funds to tackle the projects you've been planning. Whether it's a full kitchen revamp with new cabinets and countertops, finally ditching that 70s-style bathroom, or boosting curb appeal, this financing helps turn plans into reality. From quick fixes to big makeovers, you can choose an amount that fits your goals and keep your budget on track, so you can move forward with confidence.

Applying online makes home improvement loans easy to access, which is a big reason they've taken off. From your couch, you can compare lenders, rates, and terms in minutes, and many sites let you prequalify without a hard credit check. The digital process often speeds things up - you can upload documents, track your application, and view offers side by side - and you'll be better positioned to pick the loan that fits your project and budget.

Applying online cuts out the headache of in-person appointments and stacks of paperwork, letting you handle the whole process from your computer or smartphone. You can breeze through the application, review loan offers, and have funds sent straight to your account - all in just a few clicks. Many platforms even save your details for next time, making repeat applications faster and more convenient.

Before you start applying, it's worth knowing that not every offer tagged as a "home improvement loan" works the same way. Some products are built specifically for renovation projects, while many you'll find online are really unsecured personal loans - with different costs, terms, and protections. Take a moment to compare how each option is structured, including collateral and eligibility, so you choose the one that truly fits your project.

With a personal loan, you get a lump sum you can use for almost anything, including home improvements. It's unsecured and not tied to your house - unlike a home equity loan or HELOC, which is backed by your home's equity - so there's no collateral required. Because of that, lenders usually base approval and terms more on your credit and income than on how much equity you have.

Before you choose how to borrow, it helps to know how personal loans differ from HELOCs. A HELOC lets you tap your home's equity - often with lower rates and potential tax perks - which can make it a smart fit for large-scale renovations or other big-ticket projects. But because it's secured by your property, missing payments could put your home at risk. By contrast, personal loans are typically unsecured, so your house isn't collateral, though you may face higher rates and smaller limits.

Personal loans offer flexible, accessible financing without tying anything to your house, making them a smart choice if you've got limited equity or simply don't want to put your home on the line. With fixed rates and set repayment terms, it's easier to budget and know exactly what you'll owe each month. The application is usually quick and straightforward, and funds often hit your account fast - sometimes just a few days after approval. That speed can be a lifesaver when you're dealing with time-sensitive expenses.

So, with all of the options out there, how can you tell where to start your search for a home improvement loan? Here are some ideas for sifting through the various platforms and choosing the right one for you:

Referral service or direct lender. Do you want to compare loan offers from multiple financial institutions at once? Then choose a site that serves as a referral platform. But, if you'd prefer the peace of mind that comes from a single application with a lender you already know and trust, you've got solid options that way as well. It's a matter of personal preference.
Borrower qualifications. Does the lender or platform have any minimum criteria you'll need to meet, in order to be eligible for a home improvement loan? That could be a particular credit score, monthly income, or even a particular state of residence.
Maximum loan amount. If you've got a major home improvement project in mind, you may need more than a few thousand bucks to get it done. Some lenders cap their loans at $35,000 (or less), so check that out first.
Reputation. Have other homeowners successfully used the site to get the funding they needed? Were there any surprises during the application process or afterwards? Has the lender or the referral platform been rated by the BBB?

Ready for renovations? The experts at Top Consumer Reviews have reviewed and ranked some of today's most frequently-used sites for home improvement loans, so that you can turn your ho-hum house into something truly Insta-worthy in no time.