Thursday, June 1st
2023 Home Improvement Loan Reviews
Upgrade
- Fixed-rate loans from $1,000 to $50,000
- Competitive interest rates
- Two lending partners
- Repayment terms from 24-84 months
- "A+" rated and accredited by the BBB
Upgrade is one of the newer options in the home improvement loans industry, but the company has already made a strong showing. With just two lenders in their partnership, Upgrade can typically offer a one business day turnaround once you've accepted a loan offer. The BBB gives this service the highest possible rating, and most consumers won't have trouble getting a good home improvement loan here.
LendingClub
- Fixed-rate loans from $1,000 to $40,000
- Minimum loan amounts vary by state
- APRs vary widely
- Origination fees ranging from 3% to 6%
- All loans have repayment terms of at least 36 months
LendingClub used to crowdfund all of their home improvement loans through investors. But, after undergoing some changes, their lending is now structured more like a regular bank. They offer fixed-rate loans with repayment terms of at least 36 months, and recent customer feedback is very positive. You should have a good experience if you choose to get a home improvement loan here, but we're holding back a higher recommendation while they continue proving out their new structure.
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The 8 Best Home Improvement Loans
Where Can You Find the Best Home Improvement Loans?
If you're looking to finally renovate that kitchen straight out of the 70's, or build on the extra bedroom you need, chances are good that you don't just have the cash sitting around to get it done. Most homeowners use a home improvement loan to access the funds required to turn their house into a "home sweet home" .
There are several types of financing that can be used to make improvements or repairs. These depend on a variety of factors: the amount of equity you have already built up in your property, your credit history, and the amount of money you need.
Home Improvement Loan FAQ
Continued from above...
If you have little equity in your home - in other words, you haven't made many payments on your mortgage yet, and you didn't put down much money at closing - you'll most likely use a home improvement loan to fund your projects. These loans are based on your overall credit history; the higher your credit score and the lower your debts, the better rates and terms you'll get.
On the other hand, if you've built up equity in your home, you'll be able to access three other types of home improvement loans: cash-out refinancing, a home equity loan (HEL), and a home equity line of credit (HELOC). Each type has its ins and outs, and not every loan type is appropriate for a particular borrowing need. For example, a cash-out refinance is great if you can reset your mortgage at a much lower interest rate - but it also comes with closing costs (which can sometimes be rolled back into the loan amount). HELOCs let you take money out as-needed, but interest rates can be higher than some home equity loans and are often adjustable: your payments may increase in the future.
As you can see, choosing a home improvement loan leaves you with some research to do. While considering your options, here are some guidelines to help clarify which service you should use:
- Loan Amount. How much money can you borrow? Some lenders offer loans up to $100,000, while others cap their limit at $35,000 - or lower. Can you get all the money you need from the lender you choose?
- Loan Terms. How much will you pay in interest for your home improvement loan? How long will you have to repay the total amount borrowed? Are there any origination fees, prepayment penalties, or other costs?
- Transparency. How much does the company tell you upfront about their loans? Is it easy to get a quote without a credit check? Does the provider tell you how much you should expect to pay in fees, their average interest rates, and their minimum eligibility requirements?
- Direct lender or referral service. Some home improvement loan companies offer you funding directly, while others have partnerships with lenders and let you compare offers. A referral service is an easy way to compare loans and terms, but you may be spammed for weeks with annoying emails and calls from lenders.
- Reputation. What do other homeowners have to say about the experience of getting a home improvement loan through the service? Is help readily available from knowledgeable company reps? Has the Better Business Bureau given the provider a strong rating?
TopConsumerReviews.com has evaluated and ranked the best options for home improvement loans available today. We're confident that this information will help you get the money you need for your next big project!
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