Best Home Improvement Loans

It is not hard to get a home improvement loan if you are at least 18 years old and a U.S. citizen or permanent resident with enough income to make monthly payments and a credit score of at least 585. The better your credit is and the more income you have, the easier it will be to get a good home improvement loan.

Specific requirements can differ depending on the lender and type of loan, however. You can find more details below.

Common Types of Home Improvement Loans

Personal loan

Personal loans can be used for just about anything, including home improvements. Personal loans are common for home improvements because they don't require you to put your home up as collateral, and they often have low credit requirements.

Home equity loan

Home equity loans let you borrow against your equity in the home – the value minus your mortgage balance. A home equity loan is given in a lump sum and has a fixed interest rate. Requirements typically include a credit score of at least 620, a debt-to-income ratio of less than 50%, and at least 15%-20% equity in your home.

Government loan

The U.S. Department of Housing and Urban Development offers a home improvement loan known as a Title I Loan, which can be either secured or unsecured. Title I loans are for homes that have been built and occupied for at least 90 days. The borrower must also have a debt-to-income ratio of 45% or less, a detailed description of the materials needed, work involved and cost of the improvements being done, and ownership of or a long-term lease on the home.

If you don't want your mortgage or equity tied to your home improvement expenses, an unsecured personal loan is a great option to consider. Personal loans for home improvements offer quick funding, don't require any collateral and have relatively low credit requirements. Below is a list of some of the easiest personal loans to get for home improvements.

Easy Home Improvement Loans to Get

*According to multiple third-party sources

For more information, check out WalletHub's complete picks for the best home improvement loans. You can also pre-qualify with multiple lenders at once using our free pre-qualification tool.

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 average 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.

If you don't know what your score is, you can check your latest credit score for free. But your credit score isn't the only factor that goes into approval for a home improvement loan.

To get the best sense of your odds, try using WalletHub's free pre-qualification tool to see which lenders offer good chances of acceptance.

The best bank for home renovation loans is Wells Fargo because the company offers up to $100,000 in funding, which can help you finance costly home improvement projects. Wells Fargo loans also have APRs of 7.49% - 23.74%, depending on your creditworthiness, and repayment periods of 12 - 84 months. You'll need a credit score of 660+ to qualify, according to multiple third-party sources.

There are many other banks that offer home renovation loans with good terms, as well. For your convenience, below is a comparison of the best banks for home renovation loans.

Best Banks for Home Renovation Loans

For more information, check out WalletHub's picks for the best banks for personal loans and the best home improvement loans overall.

You can also use mortgages, home equity loans and credit cards to help finance home renovations. Keep in mind that you will have to use your home as collateral if you get a mortgage or a home equity loan.

The cheapest way to borrow money for home improvements is to ask for a loan from a friend or family member. If you borrow money from someone you trust, there is a good chance that their terms will be better than if you get a conventional loan or use a credit card. You can see other cheap ways to borrow money for home improvements below.

Cheap Ways to Borrow Money for Home Improvements

1. Borrow from friends or family members
2. Cash-out mortgage refinance
3. Home equity loan
4. Home equity line of credit
5. Government loan (e.g. HUD/FHA loan)
6. Credit card
7. Home improvement loan

Keep in mind, if you want to get a loan or a new credit card to finance your home improvements, you'll need to have a high credit score and income to get the best terms.

If you're interested in a personal loan, you may be able to pre-qualify before you officially apply, which will help you narrow down your search to the cheapest options you have a good chance of getting approved for. You can use the free pre-qualification tool on WalletHub to see if you pre-qualify with multiple lenders at once.

Finally, it's worth noting that even though borrowing money to improve your home may seem appealing, saving your money is the cheapest way to pay for your home improvements. If you use money you've saved for your home improvements, you won't have to make interest payments or be subject to expensive fees.

To apply for a Navy Federal Credit Union personal loan, first decide which way you will apply (online, by phone or in person), then enter your personal and financial information on the application. Next, verify the accuracy of the information, submit the application and wait to receive a decision.

How to Apply for a Navy Federal Credit Union Personal Loan

1. Decide which way to apply. You can apply for a Navy Federal Credit Union personal loan online, by phone or in person. Applying online is the best way because it typically offers the fastest decision.
2. Enter your personal information on the application. Navy Federal Credit Union requires the following personal information on the application: full name, driver's license or government ID, current home address, email address, phone number, date of birth and Social Security number.
3. Enter your financial information on the application. Navy Federal Credit Union requires the following financial information on the application: your current employment and income, employer's name and contact information, and NFCU Access Number.
4. Double check the application for accuracy. To ensure that your Navy Federal Credit Union personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.
5.  Submit your application. Navy Federal Credit Union will typically provide a decision on your application within 3 to 11 business days.

If you are approved for a Navy Federal Credit Union personal loan, you will generally receive the funds within 1 to 3 business days after approval. After that, it's your responsibility to make monthly payments until you have fully paid back your loan, including interest.