Best Home Improvement Loans in October 2026

A home improvement loan is a way to finance renovations, repairs, upgrades, and other projects if you don't have the cash available to pay the entire cost up front. You can use a home improvement loan to make your home safer, more comfortable, or more livable, or to increase its resale value.

Common types of home improvement loans include:

• Installment loans, such as personal loans, home equity loans, and contractor financing
• Revolving credit, such as home equity lines of credit (HELOCs) and credit cards
• Mortgage refinancing (cash-out refinance)
• Government-backed loans, such as VA loans, FHA loans, and USDA loans

The main considerations for choosing a home improvement loan include:

• The cost of the project
• The state of your credit
• Whether you have home equity
• How quickly you can afford to repay

The following chart provides an overview of borrowing costs, loan amounts, and repayment terms for different types of home improvement loans, as well as the types of borrowers and projects each type might be best for. You can find a full description of each type below.

If you can’t qualify for a government-backed loan and your project is too large for a credit card, you may end up choosing between a personal loan and a home equity loan or HELOC. There is no one correct choice for every borrower or every situation. Rather, the best course depends largely on your credit score, how much you want to borrow, and the equity available to you.

If you want to borrow more than $100,000 (and have the home equity to do so), a HELOC or home equity loan starts to look more attractive. This is for a few reasons. First, few lenders offer personal loans larger than $100,000 — exceptions include BHG Financial (up to $250K) and Navy Federal Credit Union (up to $150K). Second, financing a larger sum means paying more in interest — shaving just a few percentage points with a home equity loan could save you thousands. (Interest savings could be especially significant if you don’t have very good credit.) Finally, financing a large amount with a home equity-based loan could mean netting a large tax deduction.

However, if borrowing a lesser amount with very good or excellent credit, you might get a personal loan rate not much higher than what you’d get on a home equity loan or HELOC. In this case, the personal loan could be preferable because it’s unsecured (typically), meaning  you won’t tie your home to the loan or give the lender the right to foreclose if you miss payments.

If you need the money right away or need to borrow less than $10,000, a personal loan could be the easiest choice and doesn’t require taking out a second mortgage.

Most personal loans for home improvement are unsecured, unlike home equity loans, which come with a risk of foreclosure in the event of nonpayment. However, some personal loan lenders offer secured loan options that could have lower interest rates than unsecured loans. 

As you research lenders offering personal loans for home improvement, consider the following features:

• How much time do I have to repay the loan? Most lenders require you to repay a personal loan within 7 years, but some lenders offer longer repayment terms. 
• How much can I borrow?  Some personal loan lenders offer up to $100,000 for qualified borrowers to finance home improvements, and BHG Financial's maximum loan amount is even higher at $250,000. If you’re seeking a home equity loan, the loan amount is dependent on the amount of equity you have. Keep in mind, the amount you qualify for also depends on your credit score, income, and other financial factors. 
• What will I pay in interest? Annual percentage rates (APRs) for personal loans, which account for the interest rate and upfront lender fees, typically range from 5.99% to 35.99%. The lowest rates are reserved for excellent credit borrowers, while borrowers with fair or poor credit tend to pay higher rates.
• Will I have to pay any fees? Many lenders charge an origination fee for personal loans, which is deducted upfront from the loan proceeds. Origination fees typically range from less than 1% to as much as 15% of the loan amount (the fee is likely to be on the high end of the range if you have bad credit). Other fees can include late fees and insufficient funds fees. Some lenders, like Citibank and Discover, don’t charge any fees.
• How quickly can I get the money? Personal loans offer a speedy application process, and most lenders can distribute the funds directly to your bank account within a few business days of approval. Some lenders even offer funding as soon as the same day. Home equity loans can take over one month to approve and fund due to the home appraisal and other closing requirements. 
• How does the lender treat its customers? Check customer reviews on third-party sites like Trustpilot to determine if borrowers are generally happy with their experiences, and make sure the lender you choose is licensed in your state.

Related: How Do Personal Loans Work?

You might use cash from a home improvement loan to pay contractors, buy paint, appliances, or fixtures, or purchase new furniture. The list below shows some common uses.

• Swimming pool installation
• Roofing replacement
• Solar panel installation
• Kitchen remodel
• Bathroom remodel
• Deck addition
• HVAC replacement
• Professional landscaping

Almost half of homeowners who hired a professional for a home improvement project went over budget — 43%, according to Angi’s 2026 State of Home Spending Pulse report. For this reason, it’s important to plan ahead. Have backup funds at the ready (and don’t be surprised) if your project goes over budget. Here’s how:

• Increase your loan amount: While it’s generally not advisable to borrow more than you need, adding an extra 10% to 20% over your contractor’s quote can help protect you from needing to borrow mid-project.
• Get a 0% APR credit card: If you can qualify for a low promotional rate, put extra costs on the card. Just plan to pay the balance in full before the promotional period expires. 
• Prepare for delays: Shipping delays or materials shortages could set the timeline for your project back. If you need to leave your house during renovations (or won’t have use of your kitchen), be prepared to pay for additional living expenses. 

Credible evaluated 32 lenders across 1,184 data points to choose the best lender overall plus top picks for different borrowers and use cases. Across lenders, we collected data on customer experience and service options, minimum and maximum fixed interest rates, minimum and maximum loan amounts, funding times, loan terms, fees, discounts, third-party reviews, and more.

We assigned a score to each attribute based on how that feature compared with the same feature for every other lender in the set. Scores were weighted according to their relative importance — for instance, maximum origination fee scores received a high weight since loan cost is among the most important factors in determining loan value. Individual attribute scores were then added to determine each lender's overall star rating. 

Attributes were grouped into categories; each category contributed to lender scores as follows: 

• Borrower cost (22.5%): Origination fee ranges and minimum and maximum APRs measure upfront and overall costs and lender accessibility across credit score groups.
• Flexibility (22.5%): Maximum loan terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint and secured loans measure the range of options for loan size, repayment terms, and loan types.
• Eligibility and availability (22.5%): Minimum income requirements, funding speed, minimum credit score requirements, and state availability measure how easily and how quickly borrowers can access personal loans.
• Reputation (15%): Trustpilot, Better Business Bureau, and J.D. Power ratings measure customer satisfaction.
• Discounts, customer service, and account management (12.5%): Discounts for autopay and direct pay, plus availability of mobile apps and live customer support chat, measure borrower perks and ease of loan management.
• Partner lender data (5%): Data from loans closed by our partners, including average rates, loan amounts, funding time, and eligibility criteria, measure real-world performance and borrower outcomes.

Non-partner lenders were evaluated based on the same criteria but not assigned star ratings. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.

Where we get our data

Credible is a personal loans marketplace that partners directly with lenders to offer loans for a wide range of credit profiles and loan purposes. Because of these relationships, we have access to the most current interest rates that real borrowers are being approved for, along with average rates by credit score and loan purpose, approval rates overall and by lender, and more. Lender-specific data is based on 12 months of loans closed by that lender on the Credible marketplace. Lenders may also provide product and eligibility insights that we share in reviews. The data we use is primary source data and does not include any personally identifiable information about borrowers.