Yes, Wells Fargo does home improvement loans. You can take out a personal loan from Wells Fargo and use it to pay for home improvement expenses, such as remodeling a kitchen, finishing a basement, putting on siding or many other projects. Wells Fargo does not specifically refer to their loans as “home improvement loans,” so you’ll need to take out a general-purpose personal loan.
Quick Facts About Wells Fargo Home Improvement Loans
APR: 5.99% - 19.99%
Origination fee: $0
Loan amount: $3,000 to $100,000
Payoff period: 12 to 84 months
Credit score required: 660
Before you apply for a Wells Fargo home improvement loan, it’s a good idea to compare the offer to WalletHub’s editors’ picks for the best home improvement loans. That way, you’ll be able to see how the offer stacks up against loans from leading competitors.
The minimum credit score for a home improvement loan is 660 for most lenders. While lenders typically don’t offer “home improvement loans” in particular, they offer personal loans that can be used for almost any purpose, including home improvements. And most personal loan providers require a credit score of 660+. That’s not too difficult to attain, either – it’s within the fair credit range and below the … read full answeraverage American’s credit score.
However, not all lenders look for a credit score of 660 or better. Some are more stringent, with a minimum score of 680-700. Others are more lenient, and will accept scores as low as 585-600. And you may be able to get a home improvement loan with even lower scores if you get a secured personal loan. Secured loans tend to not have a minimum credit score at all. That’s because they require collateral, which the lender can take possession of if you don’t pay back the loan. There’s very little risk for the lender, so they can afford to accept people with bad credit.
Minimum Credit Score for Home Equity Loans
Another way to get a home improvement loan is through a home equity loan or home equity line of credit. The average credit score needed for home equity loans and lines of credit is 680, according to Experian, though it may be possible to get approved with lower scores. Your chances are best if you have a score of at least 700.
Home improvement loans give homeowners the funds needed to complete projects related to maintaining or increasing the value of a home and the surrounding property, such as remodeling a room, putting on a home addition, or replacing a roof. Although they have a unique purpose, loans for home improvement function just like most other loans. The borrower receives a lump sum of money and must pay it back, along with interest, over a certain number of months.… read full answer
Most lenders actually don’t differentiate home improvement loans from their other personal loans. Personal loans can typically be used for any purpose, including home improvement. Some lenders, such as LightStream, give specific interest rate ranges for home improvement loans versus other types of personal loans. But they are not common.
The interest rate on a home improvement loan depends on the borrower’s credit and income, among other factors. And the lender may charge additional fees, such as an origination fee for processing the loan.
How home improvement loans work:
Application process: Before applying for a personal loan for home improvement, it’s good to check for pre-qualification to see approval odds and estimated rates. Borrowers can do that with WalletHub’s free pre-qualification tool and then apply for the loan on the issuer’s website.
Approval: Lenders should usually come to a decision within 7 business days of receiving a personal loan application.
Loan funding: The lender gives a lump sum of money to the borrower, usually as a direct deposit to a bank account but sometimes as a check. It typically takes only a few business days after approval to receive the funds.
Home improvement: The borrower can used his or her personal loan to purchase the home improvement goods and services needed to complete the job.
Payoff: The borrower must make a set minimum payment each month until the loan is paid off. The total cost of the loan will include interest and any applicable fees.
It’s useful to note that while most “home improvement loans” are just personal loans used for the purpose of home improvement, there are other types of loans you can use for home improvement as well.
Another type of loan commonly used for home improvement is a home equity loan. Like a personal loan, a home equity loan can be used to pay for just about anything. The difference is that with a home equity loan, your home serves as collateral and could be foreclosed on by the lender if you default. But that risk comes hand in hand with the benefits of low APRs and the potential for large loan amounts.
There are also home equity lines of credit, which don’t give you a lump sum at the beginning but let you withdraw up to a certain amount whenever you want, like a credit card.
Finally, you might consider getting a government-backed loan for home improvement. The Federal Housing Administration offers “Title I” loans, which can be used for anything that makes your home “more livable and useful.” The loan is usually secured by your house if you borrow more than $7,500 and unsecured otherwise. The payoff period is 20 years for a single-family house, and you’ll need a debt-to-income ratio of 45% or lower to qualify. Other government-backed options for home projects include Energy Efficient Mortgages for improving the home’s energy use and Single Family Housing Direct Loans from the USDA for people in rural areas. The latter can be used to either purchase a home or renovate one.
There are plenty of home improvement loans with no equity needed. Only home equity loans and home equity lines of credit require the borrower to use the equity in their home. The best way to get a home improvement loan with no equity is by applying for an unsecured personal loan. Personal loans base eligibility on your credit and income, so you don’t need to own property worth a certain amount of money to take one out. And you can use personal loans for home improvements or pretty much anything else. That’s not your only option, though.… read full answer
How to Get Home Improvement Loans with No Equity:
Take out an unsecured personal loan. You’ll usually need a credit score of 660+ to get an unsecured personal loan, but some lenders accept applicants with scores as low as 585. These loans have absolutely no collateral.
Get a secured personal loan. If you’re willing to put up something other than your home as collateral (e.g. a car, stocks, or money in a bank account), you can take out a secured personal loan even with bad credit. These loans tend to have lower APRs than unsecured personal loans, but if you default the lender can keep your collateral.
Get a government-backed home improvement loan. The government offers a few loan options that don’t require any equity. The U.S. Department of Housing and Urban Development helps insure property improvement loans of $7,500 or less. These are called FHA Title 1 loans. If you’re a veteran, you can also look into a renovation loan through the Veterans Administration.
All in all, if you don’t have any home equity, there are still plenty of avenues for you to pursue. A personal loan is probably the most convenient.
However, there are both pros and cons to getting a home improvement loan with no equity. The biggest benefit is that you won’t risk losing your home because you won’t be able to secure a loan with it. You’ll also likely get quicker approval and funding timelines if you apply for a personal loan rather than a home equity loan.
Drawbacks to getting a home improvement loan with no equity include the fact that you may not be able to borrow as much as you could with a home equity loan. You’ll also likely have much higher APRs if you get your home improvement financing through a personal loan rather than a home equity loan.
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