When looking for financing for your home improvement project, it’s essential to go with a capable and trustworthy partner. Lots of lenders offering loans for home improvement projects are available.
While that is true, having an idea of the financial institutions to approach can sometimes be challenging.
In this article, we’ve addressed the usual difficulties encountered by borrowers by providing a list of banks that offer home improvement loans.
Here, you’ll find details that will help you apply for an ideal loan for your needs. Also included are credit unions that also offer home improvement loans to their members.
Banks and Credit Unions: what are the Similarities and Differences?
When it comes to home improvement loan issuance, credit unions and banks tend to offer similar services.
This has made many people mix the two, but the reality says quite the opposite. Credit unions are considered non-for-profit entities dedicated to serving their members.
While credit unions may offer similar services to a bank, members majorly own them. Such members benefit from cost savings on their accounts which are accruable through lower interest rates.
In terms of their operations, the government regulates both credit unions and banks.
Such regulations include being insured by the government and being backed by the U.S Treasury. Compared to banks which are solely for-profit entities, credit unions are established to serve as non-profit organizations geared towards the service of their members.
Regarding the topic being discussed, both banks and credit unions offer home improvement loans. That is why we’ll be including a few credit unions among banks that offer home improvement loans.
With this explanation, let’s discuss the different financial institutions that provide home improvement loans.
Banks Offering Home Improvement Loans
There are lots to choose from when it comes to finding out reputable financial institutions offering all sorts of assistance like home improvement loans. Some household names include LightStream, SoFi, Upstart, Navy Federal Credit Union, and Ardent Credit Union.
Other reputable banks offering this service include Figure, Lending Point, Marcus, Vibrant Credit Union, Upgrade, Universal Credit, Discover, FedChoice Federal Credit Union, and Valley Strong Credit Union.
You can also apply with OneMain Financial or Wells Fargo Personal Loans.
Rocket Loan is yet another option for banks that offer home improvement loans. With this said, let’s get into the specifics of each financial institution mentioned.
Here, we’ll take a look at what they’re about, minimum requirements, and pros & cons, among others.
If you’re looking for a financial institution that offers home improvement loans with low rates and extended repayment terms, LightStream is the name to trust.
This bank offers loan amounts between $5,000 and $100,000. To qualify for this loan opportunity, you’ll have to meet its minimum credit score of 660.
Other minimum requirements include having a solid payment history coupled with several years of credit history. You should also have multiple account types within your credit history.
In terms of the benefits, there are no fee requirements. Plus, borrowers get to enjoy some of the most competitive rates available.
There are downsides to using this lender, including showing several years of credit history. Also, there are no prequalification opportunities on its website.
SoFi offers lenders loan amounts within the range of $5,000 to $100,000. These substantial home improvement loan amounts come with low-interest rates.
However, borrowers are required to have a minimum credit score of 680. Patronizing this financial entity offers several benefits, including zero fees.
Other benefits include unemployment protection, co-sign loan options, an app (mobile) to manage your loan better, and discounts for setting up autopay.
The negatives of applying for a loan with SoFi include a high minimum loan amount and the absence of a joint or secured loan option.
Upstart requires borrowers to have a minimum credit score of 600 and offers loan amounts of about $1,000 to $50,000. It gives lenders the ability to choose their preferred payment date.
Access to this loan is still available for persons with fair credit ratings.
You must know the downsides of applying for a home improvement loan from this financial institution. First off, there are no co-signer or secured options. You also incur an origination fee of up to 8% of the loan amount.
Borrowers are offered loans with short terms of around 3 to 5 years.
Navy Federal Credit Union provides loan amounts of between $250 and $50,000. It has no minimum credit score requirements. To qualify for home improvement loans, you only need to meet its membership requirements.
Benefits include zero origination fees and secure, joint, and co-sign loan options.
Its loan amounts and repayment terms are generally favorable to borrowers. This lender also funds loans on the same day.
The cons experienced with this credit union include the absence of rate discounts for autopay, the inability to adjust to the payment date, and its exclusivity.
This financial institution provides its members with home improvement loans ranging from $20,000 to $250,000. You can borrow as much as 95% of your home’s post-renovation value through this option.
Of course, this excludes your mortgage’s outstanding balance.
From the time of applying for this loan, it will take around 30 days on average to receive funds for your home improvement needs. Unlike some loan types, Ardent Credit Union’s holders have no pre-payment penalties.
This means the freedom to make advance repayments without additional fees.
With a minimum credit score of 640, you can access Figure’s loan amounts of around $5,000 to $50,000. It comes with numerous upsides and downsides.
For the upsides, you benefit from competitive interest rates and quick funding. Also, there are no pre-payment penalties.
Downsides include having shorter term lengths and origination fees that are accruable to the borrower. Borrowers must be employed to benefit from this loan.
However, exceptions are made for retired applicants. Have you previously applied for figure loans in the past? If so, you must be in good standing to benefit further.
vii. Lending Point
Lending Point caters to home improvement loan applicants, including those with below-average credit scores.
Borrowers benefit from fast funding, with minimum credit scores being 600. Loan amounts of $2,000 to $36,500 are available to qualified applicants.
Apart from quick funding, you get to enjoy zero pre-payment penalties and low credit score requirements. The downsides include not being available in all states (Nevada and West Virginia).
Borrowers get to incur origination fees and don’t have access to joint loans or co-signers.
viii. Marcus by Goldman Sachs
This bank is well known for its flexible term home improvement loans. The loan amount provided by this lender ranges from $3,500 to $40,000.
The minimum credit score required is 660. You also need to provide essential identification documents such as your tax ID and social security numbers.
In terms of the benefits, borrowers enjoy zero fees while also benefiting from direct payment to creditors for debt consolidation loans. A lot of repayment term options are also available to pick from.
On the flip side, one main disadvantage is the inability to enjoy co-sign, joint, or secured loan options.
With Vibrant Credit Union, borrowers enjoy a 5-year fixed-rate home equity loan.
There’s also the 10-year fixed rate home equity loan and the home equity line of credit. The application process for a home improvement loan can be completed in minutes.
The application process is expedited due to the fact that no appraisals are necessary. Among the documents required for application are bank statements, employer information, and proof of homeowners insurance.
You’re like to wait for around 2 to 6 weeks for payment from the time of application.
Upgrade offers you several credit-building tools, including a mobile app to help you manage your loan.
Loan amounts disbursed for home improvements range from $1,000 to $50,000. It would be best if you had a credit score of 560 and maintained a maximum debt-to-income ratio of less or equal to 75%.
The benefits of this patronizing this lender are several. They include having access to secured and joint loans, significant rate discounts for clients with checking accounts, and various repayment terms.
For the downsides, borrowers get to incur origination fees. Plus, there are no co-signed loan options.
Discover Personal Loans has a higher requirement for the minimum credit score a borrower should have. This minimum is set at 720.
The benefits include the ability to fund loans within one business day, zero origination fees, and multiple repayment term options.
You also get to manage your loan using its mobile app, thus making the repayment process less stressful. On the flip side, there are also multiple disadvantages to patronizing this lender.
They include late fees, absence of joint or secured loan options, and co-signing. What more? No rate discounts for autopay.
This is another home improvement loan instrument you can get access to. Since its establishment in 1935, this credit union has undergone transformations and name changes.
Of course, it’s exclusive to 25,000 strong members. Home improvement loans are among the many loan types issued by the organization.
To know if you’re qualified, all you have to do is visit its site for details on what’s required and who this loan opportunity serves.
Valley strong offers all sorts of home financing solutions. It’s one loan that has low fixed rates with no prepayment penalties. Like most credit unions, such opportunities are only available to members.
The credit union’s exclusivity makes it less likely to qualify for its home improvement loan.
xiv. OneMain Financial
If you seek secured home improvement loans, OneMain financial is one lender to patronize.
Its loan amounts range from $1,500 to $20,000 and have no minimum credit score requirements. Here, it’s clear that bad credit borrowers have a shot at applying for this home improvement loan.
The loan has term limits of 2 to 5 years with no minimum income requirement.
To be considered for this loan opportunity, your income average should be around $45,000. So, what are the ups and downsides of applying for this loan? For the upsides, you get to fund a loan the same day.
Borrowers get to choose their payment date. The lender contracts to pay directly to creditors for debt consolidation loan plans. An extra plus is seen in the availability of joint and secured loans. On the downside, OneMain Financial charges an origination fee for loans.
When compared with other lenders, its rates tend to be higher. This is in addition to no rate discount for autopay.
As a Wells Fargo bank customer, you get access to its home improvement loans. The loan amount ranges from $3,000 to $100,000 and has no minimum credit score requirement to qualify.
To qualify, you must provide personal details, including the preferred loan term and the amount you wish to borrow.
Loan terms vary widely and depend on the loan type you wish you apply for. Available term lengths range from 1 to 7 years. When it comes to the pros, borrowers get to enjoy more loan amount options and repayment terms.
There are no pre-payment or origination fees, plus you get a rate discount for autopay.
In terms of the disadvantages, there are no options to pre-qualify for this loan. Plus, you enjoy certain features that only the bank’s customers want.
xvi. Rocket Loans
As the name suggests, rocket loans are known for their fast approval process. They offer loan amounts ranging from $2,000 to $45,000. Borrowers with fair credit scores of 640 are considered for the loan offer. Loan term lengths vary from 3 to 5 years.
You must present a minimum credit history of two years and a minimum annual income of around $24,000. The benefits include competitive rates, soft credit checks, same-day funding of loans, and discounts for autopay setup.
The cons include having limited (2) repayment options and origination fee charges. Borrowers cannot change their payment dates.
If you’ve read to this point, you have a clear idea of what banks offer home improvement loans. We’ve included these with credit unions and basic requirements and benefits as well as disadvantages of each.