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Looking for the money you need to renovate your home? Maybe you’d like to build an additional room for a growing family—or you’ve been itching to perform some preventative maintenance.
Unlike some other loan purposes, borrowing money to improve your home can be a smart idea that may put you in a stronger financial position in the long run. It can increase the value of your home in addition to improving your living environment.
But what exactly is a home improvement loan? Which lender provides the best personal loans? Below are Fortune’s top picks for the best home improvement loans for a variety of common financial situations.
Best home improvement loans of December 2025
| Best for | Institution | Max loan amount | Max loan term | APR | See details |
|---|---|---|---|---|---|
| Long repayment terms | LightStream | $100,000 | 240 months | 6.24%-24.89% | View offer at MoneyLion |
| Low fees | Discover | $40,000 | 84 months | 7.99%-24.99% | View offer at MoneyLion |
| Fast funding | Wells Fargo | $100,000 | 84 months | 6.74%-26.49% | View offer at MoneyLion |
| Minor renovations | PenFed Credit Union | $50,000 | 60 months | 6.99%-17.99% | View offer at MoneyLion |
| High loan amount | BHG Money | $250,000 | 120 months | 8.72%-27.87% | View offer at MoneyLion |
| Long repayment terms | View offer at MoneyLion |
|---|---|
| LightStream | |
| $100,000 | |
| 240 months | |
| 6.24%-24.89% | |
| Low fees | View offer at MoneyLion |
| Discover | |
| $40,000 | |
| 84 months | |
| 7.99%-24.99% | |
| Fast funding | View offer at MoneyLion |
| Wells Fargo | |
| $100,000 | |
| 84 months | |
| 6.74%-26.49% | |
| Minor renovations | View offer at MoneyLion |
| PenFed Credit Union | |
| $50,000 | |
| 60 months | |
| 6.99%-17.99% | |
| High loan amount | View offer at MoneyLion |
| BHG Money | |
| $250,000 | |
| 120 months | |
| 8.72%-27.87% |
Best for long repayment terms
LightStream
| Loan amount | $5,000-$100,000 |
| APR | 6.24%-24.89% |
| Max loan term | 240 months |
LightStream is a fully digital lender under the Truist umbrella that offers loans of up to $100,000 and some of the lowest minimum interest rates on the market to creditworthy borrowers. LightStream is especially enticing for home renovations because of its remarkably lengthy repayment terms, up to 240 months. This gives borrowers the freedom to take out a considerable amount of money while keeping monthly costs comparatively low.
Lender details checked Dec. 12, 2025
Best for low fees
Discover Bank
| Max Loan amount | $40,000 |
| Min. APR | 7.99% |
| Max loan term | 84 months |
Discover’s personal loans shine when it comes to a conspicuous lack of fees. You won’t be charged origination fees, administrative fees, or prepayment fees. And with a reasonable APR range, Discover can be one of the cheapest options for when a qualified borrower needs funds. That said, its maximum loan amount is modest at $40,000—so it won’t be a fit for those with especially high borrowing needs.
Lender details checked Dec. 22, 2025
Best for fast funding
Wells Fargo
| Loan amount | $3,000-$100,000 |
| APR | 6.74%-26.49% |
| Max loan term | 84 months |
Wells Fargo keeps fees to a minimum, offers loans of up to $100,000, and also comes with the convenience of more than 4,000 physical branches for those that prefer to service their loan in-person. It’s also known to fund loans at seeming lightning speed, claiming that 97% of borrowers receive funds the same day they sign for the loan. If you’re qualified and you need money in a hurry, Wells Fargo is hard to beat.
Lender details checked Dec. 22, 2025
Best for minor renovations
PenFed Credit Union
| Loan amount | $600-$50,000 |
| APR | 6.99%-17.99% |
| Max loan term | 60 months |
Pentagon Federal Credit Union (PenFed) issues loans that make them, by nature, more suited to those looking for less expensive home improvement aspirations. Its maximum loan amount is $50,000, and the maximum repayment term is comparatively short at just 60 months.
But PenFed offers some of the smallest personal loans around, starting at just $600. This is more convenient for small projects than many other lenders that may require you to borrow thousands of dollars at a minimum.
Lender details checked Dec. 22, 2025
Best for a high loan amount
BHG Money
| Max Loan amount | $250,000 |
| Min. APR | 8.72% |
| Max loan term | 120 months |
BHG Money is pretty unique when it comes to the maximum amount you can borrow from a loan. While the vast majority of other lenders cap the amount you can borrow at $100,000 or less, BHG Money extends up to a whopping $250,000. Its repayment terms are also more generous than most at 120 months—handy for those borrowing hundreds of thousands of dollars and looking to keep monthly payments manageable.
Lender details checked Dec. 22, 2025
What is a home improvement loan?
Have you seen advertisements from lenders touting special home improvement loans? Many banks and credit unions promote loans that sound like they’re expressly designed for renovations and repairs.
When you get down to the nitty gritty, a “home improvement loan” is simply a personal loan marketed as home improvement-specific funds. Pop the hood and you’ll find that it’s just a standard personal loan with no home improvement-specific perks.
This loan works the same as any other personal loan: open the account, receive a lump sum upfront, and be enrolled in equal monthly installments until your loan (including interest) is fully repaid.
Pros and cons of home improvement loans
Pros
- Collateral not required
- Typically fast funding
- Flexible use of money
Cons
- Potentially high APR, depending on your creditworthiness
- Maximum loan may be lower than borrowing from home equity
- Some lenders charge origination fees and prepayment fees
How to choose the best home improvement loan
During your search for the best home improvement loan, ask yourself the following questions about your specific home renovation goals.
How much will your renovation cost?
The maximum amount of money you can borrow varies by lender. Some may offer a maximum of $40,000, while others may offer $100,000. Even then, how much you can get from a personal loan will depend on how creditworthy a financial institution considers you to be.
Whether you’re doing an AC repair that costs around $1,000 or installing a $70,000 swimming pool, choose a lender that offers the minimum or maximum loan amount you need.
Whether you need more than a lender offers or you’re having trouble being approved for a large enough loan, consider completing your home repair in phases. Take the loan amount you’re given and use it to complete a portion of the full renovation. Then pay it off and open another loan to complete more.
How much can you afford to pay each month?
Home improvement isn’t cheap (you’re shopping for a loan, after all). One of the biggest questions to ask yourself before taking out a loan is how large a monthly payment you can reasonably afford. The answer to that will affect two aspects of your loan:
- The amount you borrow
- The length of your repayment term
Fiddle with these two aspects of your loan until you land on a monthly installment that you have supreme confidence you can pay. The longer the repayment term, the lower the monthly payment (but the more you’ll pay in interest—unless you pay off the personal loan early).
Borrowing more than you can afford is one of the most devastating financial moves you can make. It can result in high-interest debt and even a rock-bottom credit score if you default on your loan.
Is the APR reasonable?
The interest rate you qualify for can translate to many thousands of dollars over the life of your loan. The annual percentage rate (APR) represents the interest you’ll pay each year for your loan, plus other charges like fees. Make sure your offer is competitive.
For example, you might apply for a $50,000 loan and be offered an 8% APR by one lender and a 10% APR from another. That translates to a difference of roughly $2,912 in interest paid over the life of a five-year loan:
- 8% APR: an estimated $10,829 in total interest paid
- 10% APR: an estimated $13,741 in total interest paid
It’s worth mentioning that APR and interest rate are different things. Your APR is typically higher because it accounts for both interest and loan fees.
What fees are associated with your loan?
Depending on the lender, you may be subject to ancillary personal loan costs like origination fees and administrative fees. These can add up to 10% or more of your loan amount.
You may also be charged behavior-related costs like early payoff penalties and late fees. Read through the costs each loan enforces before you apply.
How fast do you need the money?
Many personal loans deposit within a week or so after approval. Some deposit as early as the same day. Clearly, your circumstances will determine how quickly you need the money—a leaky roof may cause you to prioritize the speed at which you can receive your funds above almost anything else.
A “home improvement” personal loan may not be your best option
Again, personal loans can be a quick and easy way to fund your home improvement project. But relative to your needs and your estimated repayment time frame, you may be better served with the below alternatives.
Borrow from your home equity
If you’re looking for a home improvement loan, you probably own the property. Depending on the amount of equity you’ve built, pulling from your home equity might result in considerably higher borrowing amount and a much longer repayment period. The big difference is that your loan will be backed by property. Default on one of these loans, and you could lose your home.
Here are some popular options:
- Home equity loan: A home equity loan acts similarly to a personal loan in that you’ll receive a lump sum upon account opening. You’ll then be put on an installment plan (which can be decades long) to repay what you owe.
- Home equity line of credit (HELOC): A HELOC lets you borrow your home equity in the form of a revolving credit line—kind of like a credit card. You’ll only be charged interest for the money you spend. That’s great for those who plan to make considerable home improvement purchases over the next several years.
- Cash-out refinance: You can choose to refinance your mortgage for more than you owe and then pocket the difference. For example, if you’ve paid off $100,000 of your $400,000 home, you could refinance it for $350,000 and get that extra $50,000 in cash. You may even benefit from lower interest rates.
These loans typically take weeks (even months) to process—meaning it can be a while before you see your funds. They can also be costly, as many lenders charge closing costs such as appraisal fees, title fees, and more.
It’s also worth noting that lenders generally require you to keep between 80% to 85% of your home equity in the property at all times. In other words, if you’ve only got 15% equity, you’ll have a hard time borrowing anything.
Use a low-APR credit cards
It could be worth putting relatively inexpensive home repair on a credit card that comes with an interest-free window for purchases upon account opening. For example, if you’ve got a $6,000 project that you know you can pay off quickly, opening a credit card with a 0% intro APR period of a year or longer could be the way to go. As long as you can pay it off within that time frame, you shouldn’t pay a dime of interest.
Our methodology
Fortune compared popular financial institutions that offer home improvement loans to provide you with the best options for common scenarios. We ranked these home improvement loans according to the following elements:
- Minimum loan amount (17%): Many financial institutions set a minimum amount you can borrow. We favored personal loans with lower minimum loan requirements.
- Maximum loan amount (18%): Your bank or credit union sets limits for how much you can borrow. We favored banks with higher maximum loan amounts.
- Minimum APR (13%): This is the lowest advertised rate by the lender. The APR you qualify for will depend on your unique financial profile.
- Maximum APR (17%): This is the highest advertised rate by the lender. The APR you qualify for will depend on your unique financial profile.
- Maximum loan term (20%): This is the longest repayment timeline the lender offers. We prioritized lenders that offer longer repayment terms.
- Origination or administrative fees (10%): Any financial institutions that charged for things like loan origination or account setup fees were docked points.
- Customer support (5%): Top picks offer customers various ways to get in contact: chat support, phone, and/or email.
Frequently asked questions
What’s the difference between a home improvement loan and a home equity loan?
A home equity loan is a secured loan that uses your property as collateral. If you fail to repay what you owe, the lender can take your house. A home improvement loan is an unsecured personal loan that doesn’t require a security deposit. Defaulting on the loan will be catastrophic to your credit profile and even result in a lawsuit, but you won’t lose your home.
What is the best loan for home improvements?
The best loan for home improvements is the one with the lowest APR and the most realistic repayment terms. This is often a home equity loan or HELOC, but your situation may favor a simple unsecured personal loan.
What credit score do I need for a home improvement loan?
When applying for a personal loan for home improvement, it’s wise to have at least a credit score of 580 or above (considered “fair” by FICO) at a bare minimum. To get the best terms, however, you should typically wait until your credit score is in the 700s.
How long does it take to get approved for a home improvement loan?
You can potentially be approved for a home improvement loan within minutes of applying. Some lenders deposit funds on the same day.
Can I use a home improvement loan for any project?
You can use a home improvement loan for essentially any project. That’s because personal loans aren’t terribly particular about how you use the money.