Best Home Improvement Loans

Home improvement loan requirements include being at least 18 years old, being a U.S. citizen or permanent resident, having enough income or assets to make monthly payments, and having a credit score of at least 585. Specific lenders may also have other requirements depending on the type of loan you get.

Home Improvement Loan Requirements

Be at least 18 years old

You must legally be able to obtain a loan in your state to get a home improvement loan. In most states, you must be at least 18 years old.

Be a U.S. citizen or permanent resident

Lenders require you to be a U.S. citizen or a permanent resident to get a loan. You may also need a Social Security number (SSN) to apply. Some lenders allow applicants to use an Individual Taxpayer Identification Number (ITIN) or visa instead.

Have income or available assets

You must be able to pay off your loan. Lenders often require you to show proof of income so they know you'll have enough cash flow to make your monthly loan payments and afford other necessary monthly expenses.

Have a valid bank account

Most lenders will send your funds electronically. To get your funds this way, you'll need to give the lender your bank account information.

Have the necessary credit score for your loan or lender

Most home improvement loans require you to have at least fair credit, but the required score may change depending on your loan type. For example, if you get a home equity loan or home equity line of credit, you'll need a credit score of 660 - 700+. If you get a personal loan, you'll need a credit score of at least 585, or 660 if you want a loan with no origination fee.

Different lenders have different minimum credit score requirements. You can check your credit score for free on WalletHub.

Other lender-specific requirements

You may face additional requirements depending on the type of loan you choose. For example, American Express only extends personal loan offers to its existing customers, and LoanMe requires you to live in one of the 21 states where it operates.

To get started, compare home improvement loan offers and check to see if you're pre-qualified for free on WalletHub.

To get a home improvement loan, you need to first pick a loan type that meets your needs and compare offers from multiple lenders. The next step is to choose a loan offer based on factors like the APR range, loan amount and approval requirements, then submit an application. If you meet all of your chosen lender's requirements, you have a good chance of getting approved.

Steps to Get a Home Improvement Loan

1. Pick a loan type. There are different types of home improvement loans available to you, including personal loans and home equity loans, which can be used for almost any purpose. Another way to finance home improvements is by using a credit card.
2. Check your credit score. The typical credit score required for a home improvement loan is between 585 and 700, depending on the lender and type of loan. You can check your credit score for free on WalletHub.
3. Compare your options. After you've chosen the type of loan you want, you'll need to compare your options based on APRs, fees, loan lengths, loan amounts and approval requirements.
4. Choose a loan. Your final loan choice will depend on a number of factors, such as your financial standing and your willingness to use your home as collateral.
5. Pre-qualify (if possible). Depending on the loan type and lender, you may be able to pre-qualify for the loan you're interested in. You can use WalletHub's free pre-qualification tool to see your approval odds and your estimated rates with multiple lenders at once.
6. Apply for the loan. You can apply for a home improvement loan online, by phone or in person. You'll have to provide your issuer of choice with some personal and financial information, like your name, address, citizenship, credit history, employment status and income. More likely than not, your lender will do a hard pull of your credit history.

You should get your loan within 7 business days after applying, assuming you are approved. After you've received the money and chosen how to spend it on your home, you'll need to pay back the loan over time.

The best type of loan for home improvements is either a personal loan or a home equity loan, depending on things like the amount of funding you need and whether you're willing to risk your home as collateral. Both of these types of loans allow you to use the money for nearly any expense, including home improvements.

Best Types of Loans for Home Improvements

The most important distinction between using personal loans and home equity loans for home improvement is the presence or absence of collateral. Personal loans are unsecured loans that allow you to borrow based on your credit, income and other factors. Home equity loans let you borrow based on the difference between your home's value and the remaining mortgage balance, using your house as collateral if you default. Home equity loans will still consider your credit and income, too.

If you want a lower APR and a longer payoff period, and you don't mind using your house as collateral, you should use a home equity loan for home improvements. If you prefer having an unsecured loan with less stringent credit score requirements and faster funding, a personal loan is the better choice.

The best way to finance home improvements is to use a personal loan or a home equity loan. These loans can be used for almost any purpose, and they have long repayment periods, potentially large loan amounts and a wide range of APRs.

Personal loans are good for people who need quick funds and do not want to put something up as collateral. Home equity loans, on the other hand, are good for people who need more funding and are willing to use their home as collateral, but the loans do take longer to get. Other ways to finance home improvements include home equity lines of credit and credit cards.

Best Ways to Finance Home Improvements

Personal loans

Personal loans have funding amounts between $1,000 and $100,000 with repayment periods of 1 to 7 years and APRs ranging from 4% to 36%. You can usually expect to receive your funds within 7 business days of applying for the loan.

Home equity loans

The amount you can get from a home equity loan depends on your equity - the difference between what you owe on your mortgage and your home's worth. These loans have repayment periods of 5 to 30 years, plus APRs of 4% to 12%, and they require you to use your home as collateral.

Home equity lines of credit

Home equity lines of credit are essentially credit cards that let you borrow up to a certain amount of your home's equity. The repayment period is up to 20 years, and the APRs range from 3% to 10%.

Credit cards

You can borrow from a credit card up to your credit limit, which depends on your overall creditworthiness. Many credit cards have a 0% APR when you first open the account, but there is a higher regular APR once the introductory period ends.

Ways to Finance Home Improvements Compared

Overall, personal loans and home equity loans are the best ways to finance home improvements. However, saving up funds to pay on your own may also be an option if you feel you're not ready for a large commitment like a loan. If you are ready to start comparing offers, you can visit WalletHub's home improvement loan page.

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.