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> Review for February 2026

Item: SoFi ® Review
Rating: 4
Author: Top Consumer Reviews

Sunday, February 15th We evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.

2026 Home Improvement Loan Reviews

Where Can You Get the Best Home Improvement Loans? Need some extra cash to make some changes to your house? Home improvement loans are here to help you tackle those renovation projects. Whether you're planning to overhaul the kitchen with all-new cabinets and countertops, get rid of that 70s-style bathroom, or add curb appeal to your property, these loans provide the financial support you need to make it happen.

3.8

VERY GOOD

Very Good

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
Available in all states except Mississippi
Live customer support 7 days a week
"A+" BBB rating

VERY GOOD

3.8

On the SoFi^® website

Ready to tackle that home improvement project? SoFi might have the cash you need to get it done. With over two million members and an impressive $50 billion in funded loans, SoFi has established itself as a reliable player in the financial arena, providing a range of resources aimed at fostering financial independence.

Borrow up to $100K

SoFi can provide personal loans to be used for home improvements. These loans range from $5,000 to $100,000, with flexible repayment terms spanning from 2 to 7 years. Borrowers have ample time to pay off their loans without feeling overwhelmed. What's more, most loans are funded either on the same day or the next day, ensuring that you have access to the funds when you need them most.

Some APR discounts available

But what sets SoFi apart from other lenders? You can save a bit on your interest rate here. You'll typically get a 0.25% APR discount if you use autopay on your loan, and another half-percentage point if you set up direct deposit on your SoFi account.

Pay attention to origination fees

However, it's essential to note that SoFi's loans are structured as personal loans, meaning they're not specifically tailored to the home improvement industry. While this doesn't affect the loan process itself, it's something to keep in mind when considering your options. Additionally, while SoFi boasts competitive rates, it's essential to carefully review the terms and conditions, as some borrowers have reported being caught off guard by origination fees (disclosed in the fine print as ranging from 0% to 6%), despite the big-print areas in the site saying there wouldn't be any.

"A+" from the BBB

Despite these slight possible drawbacks, SoFi has established a solid reputation in the financial community. With an "A+" rating from the Better Business Bureau and over 7,000 five-star ratings on Trustpilot, SoFi is generally regarded as a trustworthy and reliable lender. While there have been some complaints filed against SoFi, they've been appropriately addressed, and many were unrelated to loan products.

Worth considering for some unique benefits

SoFi could be a viable option for financing your home improvement projects, especially if you value convenience and flexibility. While they may not offer the absolute best rates and terms, their commitment to customer satisfaction and innovative features make them a contender worth considering. So, if you're in need of funds to transform your living space, it might be worth giving SoFi a closer look.

On the SoFi^® website

Continued from above...

Where Can You Get the Best Home Improvement Loans?

Need some extra cash to make some changes to your house? Home improvement loans are here to help you tackle those renovation projects. Whether you're planning to overhaul the kitchen with all-new cabinets and countertops, get rid of that 70s-style bathroom, or add curb appeal to your property, these loans provide the financial support you need to make it happen.

When it comes to applying for a home improvement loan, going online offers you a convenient and accessible option. It's no wonder that online home improvement loans have become so popular. With just a few clicks, you can explore a variety of lenders and loan terms from the comfort of your own home.

Online applications streamline the process, eliminating the hassle of in-person appointments and extensive paperwork. Instead, you can submit your application quickly and easily, receiving loan offers and getting funds deposited - all without ever leaving your computer or smartphone.

Before you start filling out applications, it's important to understand that not all loans labeled as "home improvement loans" are structured the same way. Some are specifically tailored for home-related projects, while others, particularly those offered online, are often personal loans.

Personal loans provide you with a lump sum of money that you can use for various purposes, including home improvements. Unlike home equity loans or lines of credit (HELOCs), which are secured by the equity in your home, personal loans are unsecured and don't require collateral.

The distinction between personal loans and HELOCs is crucial for you to understand. HELOCs allow homeowners to borrow against the equity in their homes, making them ideal for large-scale renovations or projects that require substantial funding. While HELOCs may offer lower interest rates and tax benefits, they also come with the risk of losing your home if you default on payments.

On the other hand, personal loans offer you flexibility and accessibility. They don't require equity in your home, making them accessible to homeowners with limited equity or those who don't want to put their homes at risk. Personal loans often come with fixed interest rates and repayment terms, simplifying budgeting and planning for you. Additionally, the application process is typically faster, with funds disbursed quickly - sometimes within a few days of approval.

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.