Home improvements can make your property more comfortable, functional, and valuable, but major projects can also require a significant amount of money. If you do not have enough cash savings to cover a renovation, a personal loan may be one financing option to consider.
Personal loans for home improvement can provide a lump sum that you repay through fixed monthly payments over a set period. Depending on the lender, borrowers may be able to use the money for projects such as kitchen renovations, bathroom remodeling, roofing, flooring, painting, HVAC replacement, or other eligible home improvements.
In this guide, we explain how home-improvement personal loans work, what lenders typically consider, the costs to compare, and several U.S. loan platforms worth researching in 2026.
Financial Disclaimer: This article is for general educational purposes only and does not constitute financial, investment, tax, legal, or lending advice. Loan availability, rates, fees, eligibility requirements, and terms can change. Always verify current information directly with the lender before applying.
What Is a Home Improvement Personal Loan?
A home improvement personal loan is generally an unsecured personal loan used to finance renovation or repair expenses.
Unlike a home equity loan or home equity line of credit, an unsecured personal loan typically does not require your home to serve as collateral.
You generally receive the approved amount as a lump sum and repay it through scheduled payments that include principal and interest.
The exact loan amount, annual percentage rate (APR), repayment period, fees, and eligibility requirements depend on the lender and your financial profile.
How Home Improvement Personal Loans Work
The process usually follows these steps:
- Estimate your project cost.
- Determine how much you need to borrow.
- Compare available lenders and loan offers.
- Check whether you can prequalify.
- Review the APR, fees, monthly payment, and total repayment amount.
- Submit a full application if you decide to proceed.
- Receive the funds if approved.
- Repay the loan according to the agreement.
Some lenders allow borrowers to check potential rates through prequalification before submitting a full application.
Personal Loans vs. Home Equity Financing
There are several ways to finance a home improvement project.
| Feature | Personal Loan | Home Equity Loan | HELOC |
|---|---|---|---|
| Collateral | Usually unsecured | Home equity | Home equity |
| Funding | Usually lump sum | Lump sum | Revolving credit |
| Interest rate | Often fixed | Often fixed | Often variable |
| Home at risk if you don’t repay | Generally no | Yes | Yes |
| Application requirements | Vary | Usually more extensive | Usually more extensive |
| Best use | Defined project | Large renovation | Projects with changing costs |
A personal loan can be simpler because it generally does not use your home as collateral. However, borrowers should compare the interest rate and total cost with other financing options.
Personal Loan Platforms to Research in 2026
There is no single personal loan that is right for every homeowner. The following lenders and marketplaces are examples consumers may research when comparing home-improvement financing.
1. SoFi
SoFi offers unsecured personal loans that can be used for eligible purposes, including home improvement.
Potential features include fixed-rate loans and online application tools.
Borrowers should check current eligibility requirements, available loan amounts, APRs, fees, and repayment terms directly with SoFi.
May be worth researching for: borrowers with established credit who want to compare fixed-rate personal-loan options.
2. LightStream
LightStream is a division of Truist and offers personal loans for a variety of purposes, including home improvement.
The lender is known for offering unsecured personal loans and online applications.
Available terms and rates depend on factors such as the applicant’s credit profile and loan details.
May be worth researching for: homeowners with stronger credit looking for unsecured financing.
3. Upgrade
Upgrade offers personal loans that can be used for eligible home-improvement expenses.
It may be an option for borrowers whose credit profile does not meet the requirements of some lenders.
Loan amounts, APRs, fees, and eligibility requirements vary.
May be worth researching for: borrowers comparing personal loans across different credit profiles.
4. Upstart
Upstart uses additional information beyond a traditional credit score in its lending process.
That can make it relevant to borrowers who have limited or nontraditional credit histories, although approval and loan terms are not guaranteed.
May be worth researching for: borrowers who may have limited credit history.
5. OneMain Financial
OneMain Financial offers personal loans and may provide options for borrowers with different credit profiles.
Depending on the applicant and loan, secured and unsecured options may be available.
May be worth researching for: borrowers who want to compare different personal-loan structures.
What Credit Score Do You Need?
There is no single credit score required for every home-improvement personal loan.
Different lenders use different underwriting criteria.
Your application may be evaluated using factors such as:
- Credit history
- Credit score
- Income
- Employment
- Existing debt
- Debt-to-income ratio
- Loan amount
- Repayment term
- Payment history
A higher credit score may help you qualify for more competitive loan terms, but credit score is not necessarily the only factor considered.
How Much Can You Borrow for Home Improvement?
Personal loan amounts vary considerably between lenders.
The amount you qualify for may depend on:
- Your income
- Credit history
- Existing debt
- Loan purpose
- Lender requirements
- Repayment ability
For smaller projects, you may only need a few thousand dollars. Larger renovations can require substantially more.
Before borrowing, create a realistic project budget and consider leaving room for unexpected expenses.
What Can a Home Improvement Loan Pay For?
Depending on the lender’s rules, personal loan funds may be used for projects such as:
- Kitchen remodeling
- Bathroom renovation
- New flooring
- Roof repairs
- HVAC replacement
- Painting
- Windows and doors
- Electrical work
- Plumbing improvements
- Landscaping
- Accessibility improvements
- General home repairs
Always check the lender’s permitted-use requirements before applying.
Costs to Compare Before Borrowing
The advertised interest rate should not be the only factor you consider.
APR
The annual percentage rate can help you compare the cost of different loans because it can incorporate interest and certain fees.
Origination Fee
Some lenders charge an origination fee.
If a fee is deducted from your loan proceeds, you may receive less money than the amount shown on the loan agreement.
Monthly Payment
Make sure the monthly payment fits comfortably within your budget.
Loan Term
A longer repayment period may reduce the monthly payment but can increase the total interest paid.
Total Cost
Always look at the total amount you are expected to repay rather than focusing only on the monthly payment.
Example of a Home Improvement Loan
Suppose you borrow $15,000 for a renovation.
The actual payment will depend on the APR and repayment period.
For illustration only, a $15,000 loan at a hypothetical 12% APR for 5 years would have a monthly payment of approximately $334 and total payments of approximately $20,050.
This is only an example and does not represent an actual lender offer.
Your actual rate and payment could be substantially different.
How to Improve Your Chances of Getting a Better Loan
Before applying, consider taking these steps:
Check Your Credit Reports
Review your credit reports for inaccurate information and dispute errors where appropriate.
Reduce Existing Debt
A lower debt burden may improve your overall financial profile.
Compare Multiple Lenders
Different lenders can offer different rates, fees, and loan terms.
Consider Prequalification
When available, prequalification can allow you to review potential offers without immediately submitting a full application.
Borrow Only What You Need
Avoid taking a larger loan simply because you qualify for one.
Improve Your Credit Before Applying
If your renovation is not urgent, improving your credit profile before applying may help you qualify for more competitive terms.
Personal Loan vs. Credit Card for Home Improvement
For smaller projects, some homeowners may consider using a credit card.
However, credit cards and personal loans work differently.
A personal loan commonly provides a fixed amount with a scheduled repayment period, while credit cards provide revolving credit.
If you are considering a promotional 0% APR credit card, carefully review the promotional period and what happens when it ends.
For larger projects, compare the total financing cost rather than choosing based only on the initial rate.
Personal Loan vs. Home Equity Loan
A home equity loan allows homeowners to borrow against available equity in their property.
It may offer a different interest rate structure than an unsecured personal loan.
However, because the home generally serves as collateral, failure to repay can put the property at risk.
A personal loan generally does not use the home as collateral, but its interest rate may be higher than some secured financing options.
What to Avoid
Homeowners should be cautious about lenders or websites that:
- Guarantee approval before reviewing your application
- Ask for unusual upfront payments
- Pressure you to make an immediate decision
- Do not clearly disclose APR or fees
- Request sensitive information through suspicious channels
- Promise unrealistically low rates regardless of credit history
Before providing personal or financial information, verify that you are dealing with a legitimate lender or financial institution.
Frequently Asked Questions
Can I use a personal loan to remodel my house?
Many personal loans can be used for eligible home-improvement expenses. However, permitted loan purposes vary by lender, so check the lender’s terms before applying.
Is a personal loan a good way to finance home improvements?
It depends on your financial situation, project cost, available alternatives, and the loan’s total cost. Compare personal loans with savings, home equity financing, credit cards, and other available options.
Can I get a home improvement loan with bad credit?
Some lenders consider borrowers with lower credit scores, but eligibility is not guaranteed. Borrowers with weaker credit may also receive higher APRs or less favorable terms.
How long does it take to receive a personal loan?
Funding times vary by lender and application. Some online lenders advertise same-day or next-business-day funding, while others may take longer.
Does a personal loan affect my credit score?
Applying for a loan can result in a hard credit inquiry, which may temporarily affect your credit score. Some lenders offer prequalification using a soft inquiry.
How much should I borrow for a renovation?
Ideally, borrow only what you need for the project and can reasonably repay. Create a detailed project budget before deciding on the loan amount.
Final Thoughts
A personal loan can be one way to finance a home improvement project without using your home as collateral. However, the right financing choice depends on your credit profile, income, project size, available savings, and the total cost of borrowing.
When comparing home-improvement personal loans in 2026, look beyond the advertised rate. Review the APR, origination fees, repayment period, monthly payment, total repayment amount, funding time, and eligibility requirements.
Most importantly, verify current terms directly with the lender before submitting a full application.
Daily24 does not provide personalized financial advice.