Are you seeking home repair financing but can’t figure out who the best loan providers for home improvement are?
This article has been written to provide detailed information on the most credible home repair financiers. Although there’s an almost endless list of loan providers, we only focus on some of the best.
These companies cater to a wide range of home improvement needs with many competing incentives to attract homeowners.
We have listed the different home improvement loan providers, and we’ve also included reasons why they’re among the best financial services you’ll find.
Types of Home Improvement Loans
Although our focus is on the top home improvement loan providers, it’s necessary to briefly mention some of these loan types you can benefit from.
They include HELOC loans, rehab loans, secured and unsecured personal loans, home equity loans, credit cards, and cash-out refinance.
So, what are these loans about, and what benefits do they offer? Let’s take a brief look at each type to understand better what they’re about.
If you want access to a home improvement loan that enables you better manage the interest paid, the HELOC loan is one to consider. Here, your home will have to be used as collateral.
This allows you to borrow the maximum amount available.
Rehab loans are also known as the 203k loan. You can register your mortgage at a higher price than your home’s current value with such a provision.
The rest of the money is used for home improvements.
Secured & Unsecured Personal Loans
One of the main advantages of personal loans is that they’re easier to get. The downside with this type of loan is the higher interest rate you’re likely to pay. Plus, they’re accompanied by shorter repayment timeframes.
Home Equity Loans
With home equity loans, you get to receive funding in one lump sum. This is unlike HELOC loans, where funds are disbursed in installments.
Another type of home improvement loan you can take advantage of is that obtained from credit cards. A clear advantage of using credit cards for home improvement financing is that they’re a quick financing option.
The downside here is that it can be pretty expensive compared to other alternatives.
Applying for Home Improvement Loan
Before we get into details regarding home improvement loan providers, briefly consider the application procedures involved.
First off, you’ll need to compare offers from lenders. This allows you to check monthly payment rates to pick your preferred home improvement, loan provider.
Next, you’ll have to prepare for necessary documentation before applying. These systematic steps enable you to find a company that best fits your remodeling needs.
Now, let’s discuss each of the points mentioned briefly to understand the application process better.
Comparing Offers from Lenders
As you’ll soon find from our discussion below, many reputable home improvement loan providers provide a wide range of financial solutions to clients. This is a competitive industry with players adopting different marketing strategies to woo clients.
By comparing these loan providers against each other, you can figure out what company offers the most suitable home improvement plan for your situation.
It would help if you also compared these loan providers with financing options such as home equity financing, credit cards, etc.
Check Monthly Payment Rates
As a borrower, you need to ensure you can meet up with all monthly payment obligations.
By checking your rate and monthly payments, you get to determine if you can keep up with the loan requirements or not. Some of the best home improvement loan providers offer the needed help through prequalification.
Prepping for Necessary Documentation
Having settled for a particular loan provider, you’ll need to take the next step leading to an eventual application. Here, all necessary documents for applying for home improvement loans will need to be gathered.
These include financial information, W-2s, proof of residence, and pay stubs.
Applying for Home Improvement Loans
This is the final step in the application process. Your method of application will largely be influenced by the options available.
Some of the best home improvement loan providers offer online applications, while others require an in-person or physical application.
The Best Loan Providers for Home Improvement Projects
This is the section where we list and discuss the different home improvement, loan providers.
Of course, we mainly focus on the best providers you can get. Even then, we won’t be able to exhaust the list of top loan providers for home improvements.
Major players in this industry include Upgrade, Credible, OneMain Financial, Rocket Loans, Discover Personal Loans, and Wells Fargo Personal Loans. Other home improvement loan providers have Marcus by Goldman Sachs, LightStream, SoFi, and Navy Federal Credit Union.
Other reliable home improvement loan providers you can take advantage of include Alliant, Quicken Loans, Loan Depot, and PenFed Credit Union.
With these mentioned, we’ll discuss the specifics of what qualifies these loan providers to be included among the best there are.
Upgrade is one of the tops and most reliable home improvement loan providers.
Its loans have term limits that range from 2 to 7 years. One of its several requirements is a minimum credit score of 560 and a borrower average of 678.
Borrowers are also required to maintain a maximum debt-to-income ratio of 75%, including the mortgage. The benefits offered by this loan provider are numerous.
Borrowers enjoy a significant discount rate for checking account holders. This is in addition to rate discounts with direct payment to creditors on debt consolidation loans.
Credible is another reliable home improvement loan provider you can choose to work with.
Qualified borrowers get access to loan amounts ranging from $600 to $100,000. The application process is fast as well as easy to perform.
Credible offers loans for home improvement. It also has other loan options covering wedding expenses, moving costs, car financing, career development, starting a new business, debt consolidation, credit card refinancing, and vacations.
If your credit score isn’t that great, it won’t stop you from patronizing some of the best home improvement loan providers.
OneMain Financial is one of these services you can trust as it has no minimum credit score requirement. Also, there are no minimum income requirements.
Its home improvement loan offerings typically have term limits ranging from 2 to 5 years. You stand to benefit from a loan amount ranging from $1,500 to $20,000.
There are several benefits to patronizing this loan provider. These include choosing your payment date and direct payment to creditors on debt consolidation loans.
To take advantage of Rocket Loans, you must have a minimum credit score of 640 with a borrower average of 710. This home improvement loan provider offers loans from $2,000 to $45,000.
To qualify for this loan amount, you must have a minimum annual income of $24,000.
Other loan requirements include the provision of social security number, must be at least 18 years old, and must maintain a maximum debt-to-income ratio of 40% or 70% (inclusive of the mortgage).
Rocket Loans offers competitive rates and can disburse loan amounts on the same day.
One of the best home improvement loan providers you’ll find is Discover Personal Loans. To consider your loan application, you must have a minimum credit score of 720 with a borrower average of 750.
Borrowers must be at least 18 years of age and have a minimum household income of $40,000.
Its loan comes with term limits ranging from 3 to 7 years. Borrowers with excellent credit ratings get multiple benefits, including special money-back guarantee provisions and a mobile app to help manage their loans.
The loan amount available to borrow from this loan provider is around $2,500 to $35,000.
Wells Fargo quickly falls among top loan providers due to its tradition of excellence.
It caters to clients, including those whose credit score isn’t as great. That is why it requires no minimum credit score. This lender offers loan amounts ranging from $3,000 to $100,000.
The benefits of patronizing this lender are numerous.
Some of those benefits include the absence of prepayment or origination fee. Borrowers also get rate discounts for autopay and the possibility of funding loans on the same or next business day.
Marcus by Goldman Sachs
This reputable loan provider offers loan amounts of between $3,500 and $40,000.
Interested borrowers are required to have a minimum credit score of 660 and proof of income and other forms of identification. The term limits for its loans range from 3 to 6 years.
Marcus by Goldman Sachs has no origination fee requirement regarding application fees.
The same applies to late fees. Borrowers get access to a variety of repayment term options and direct payment to creditors for debt consolidation loans.
Another top home improvement loan provider you can trust is LightStream. This lender offers home improvement loan amounts ranging from $5,000 to $100,000.
The term limits for such loans vary from 2 to 7 years, depending on the type of home improvement and the amount being applied.
With zero fees, borrowers get extra incentives to patronize this loan provider. Part of the requirements for applying for this home improvement loan includes meeting its minimum credit score requirement of 660.
You must also be able to show several years of credit history.
With SoFi, borrowers can apply for loan amounts ranging from $5,000 to $100,000.
Prospective borrowers should have a minimum credit score of 680. If you’re a borrower with a good credit rating, you’ll find SoFi a great option due to its flexible payments, low rates, and zero fees.
SoFi also looks out for its clients, hence including an unemployment protection plan in its loan provisions. You also get more control over the management of your loan through the company’s innovative mobile app.
To qualify, you must be a U.S citizen, a visa holder, or a permanent resident.
This is an ideal loan provider for persons with credit scores that are less than satisfactory.
Navy Federal Credit Union has no minimum credit score. This loan opportunity can perform your home improvement without worrying about the origination fee.
Loan amounts vary from $250 to $50,000. However, this isn’t for everyone as only credit union members can benefit from it.
A clear disadvantage of using this loan provider is the absence of the option to change your payment date. Also, there’s no rate discount for autopay.
Alliant Credit Union is one of the best home improvement loan providers that offer lines of up to $250,000 with zero application fees and closing costs.
With this loan opportunity, you can borrow as much as 90% of your home’s equity. Loan amounts available for borrowers range from $1,000 to $50,000.
Quicken Loans is another reliable home improvement loan provider that serves a wide range of client needs. It’s ideal for low-credit home renovation loans.
The application process is relatively easy and can be done online. Also, the requirements for qualification aren’t that stringent.
With Loan Depot, you stand to benefit from multiple refinancing options.
The application process is convenient as you can complete the entire process online. What more? Borrowers get a lifetime guarantee on subsequent refinancing fees.
To benefit from this home improvement loan, you’ll need to make a minimum down payment of 5% and maintain a minimum credit score of 620.
PenFed Credit Union
PenFed Credit Union is the ideal loan provider for minor home improvements.
With this lender, you get multiple loan options in addition to low-interest and low-income loans. Borrowers can access as much as $20,000 for their home improvement needs.
Now that you know some of the best home improvement loan providers, you have to choose which serves your needs best.
Here, you’ll need to identify what you want before finding what loan provider best fits such needs.
With the right partner, you can do a lot in terms of finding a home improvement loan that addresses your issues.