For home improvement projects, the question isn't just which personal loan is best — it's whether a personal loan is the right tool at all. HELOCs and home equity loans typically price 200–400 basis points below personal loans for borrowers with sufficient equity. Cash-out refinancing can be even cheaper for borrowers who would refinance anyway. Personal loans win when speed matters, when equity is limited, or when the project is small enough that closing costs eliminate the rate advantage of equity-secured options.
Compare lenders
Personal-loan lenders for home improvement, ranked by editorial fit. LightStream specifically offers 12-year terms for home improvement (longer than the standard 7-year cap).
| Lender · Best for | APR range | Loan amount | Min. credit | Fees | Funding | Terms | Soft pull? | |
|---|---|---|---|---|---|---|---|---|
| LightStream Lowest rates · excellent credit |
6.94% – 25.29% | $5,000 – $100,000 | 700 (effective) | None | Same day possible | 2–12 years | No | Check rates → |
| SoFi Best overall · prime credit |
8.99% – 25.81% | $5,000 – $100,000 | 680 | No origination | 1–3 days | 2–7 years | Yes | Check rates → |
| Marcus by Goldman Sachs No fees, ever |
6.99% – 24.99% | $3,500 – $40,000 | 660 | None | 1–4 days | 3–6 years | Yes | Check rates → |
| Discover Personal Loans Best for direct-creditor consolidation |
7.99% – 24.99% | $2,500 – $40,000 | 660 | None | 1–7 days | 3–7 years | Yes | Check rates → |
| Best Egg Quick funding · fair to good credit |
8.99% – 35.99% | $2,000 – $50,000 | 600 | 0.99% – 5.99% origination | 1–3 days | 3–5 years | Yes | Check rates → |
APRs and product details reflect publicly available lender information; actual offers depend on credit profile, income, state, and lender underwriting. iLoans.ai may earn a commission if you apply through these links. Advertising disclosure.
LightStream
- APR range
- 6.94% – 25.29%
- Loan amount
- $5,000 – $100,000
- Min. credit
- 700 (effective)
- Fees
- None
- Funding
- Same day possible
- Terms
- 2–12 years
SoFi
- APR range
- 8.99% – 25.81%
- Loan amount
- $5,000 – $100,000
- Min. credit
- 680
- Fees
- No origination
- Funding
- 1–3 days
- Terms
- 2–7 years
Marcus by Goldman Sachs
- APR range
- 6.99% – 24.99%
- Loan amount
- $3,500 – $40,000
- Min. credit
- 660
- Fees
- None
- Funding
- 1–4 days
- Terms
- 3–6 years
Discover Personal Loans
- APR range
- 7.99% – 24.99%
- Loan amount
- $2,500 – $40,000
- Min. credit
- 660
- Fees
- None
- Funding
- 1–7 days
- Terms
- 3–7 years
Best Egg
- APR range
- 8.99% – 35.99%
- Loan amount
- $2,000 – $50,000
- Min. credit
- 600
- Fees
- 0.99% – 5.99% origination
- Funding
- 1–3 days
- Terms
- 3–5 years
Detailed lender reviews
LightStream
What we like
- Persistent rate leader for excellent-credit borrowers
- No fees of any kind
- Up to 12-year terms for home improvement
- Rate Beat Program — beats competitor rates by 0.10%
- Same-day funding when approved before 2:30 PM ET
What to watch for
- No soft-pull pre-qualification on its own site
- Effectively requires 700+ FICO
- No accommodations for fair-credit applicants
For borrowers with excellent credit, LightStream typically wins on rate by 50–200 basis points. The trade-off is that you have to apply (or pre-qualify through a marketplace like Credible) to see your rate.
SoFi
What we like
- No origination, late, or prepayment fees
- Loans up to $100,000 — among the highest in the prime market
- Soft-pull pre-qualification on SoFi.com
- Unemployment protection and member benefits
- Same-day funding in many cases
What to watch for
- Effective minimum credit around 680
- Strong income documentation required for the largest loans
- Some advertised rate discounts require setting up direct deposit
A consistent top pick for prime borrowers. The combination of no fees, large loan amounts, soft-pull pre-qualification, and member benefits makes it the most-recommended single lender on the consumer side of the market.
Marcus by Goldman Sachs
What we like
- No fees of any kind, including no late fees
- Defer-a-payment reward after 12 on-time payments
- Customizable monthly payment date
- Backed by Goldman Sachs
What to watch for
- Loan amounts capped at $40,000
- No co-signer option
- Term length limited to 6 years
A clean, no-frills option for prime borrowers. The combination of competitive rates, zero fees, and the unique defer-a-payment benefit makes Marcus a strong fit for consolidation up to $40,000.
Discover Personal Loans
What we like
- No origination fees, late fees, or prepayment penalties
- Direct creditor payment for debt consolidation
- 30-day satisfaction guarantee on funded loans
- Strong customer support reputation
What to watch for
- Loan amounts capped at $40,000
- Funding can take up to a week — slower than competitors
- No autopay rate discount
A solid no-fee option for borrowers consolidating credit-card debt. The direct-creditor payment feature removes the friction of paying off cards yourself after funding.
Best Egg
What we like
- Approves credit scores starting at 600
- Fast funding — usually next business day
- Secured option available for lower rates
- No prepayment penalty
What to watch for
- Origination fees up to 5.99%
- Maximum 5-year term limits payment flexibility
- Reduced rates require minimum income thresholds
A solid mid-tier option for fair- and good-credit borrowers. The secured loan option (using your vehicle as collateral) can lower rates meaningfully for borrowers willing to pledge an asset.
How to choose
Home improvement borrowing is one of the few categories where the wrong choice of instrument (personal loan vs. HELOC vs. cash-out refi) can cost more than the wrong choice of lender.
- Compare against HELOC first. If you have $50,000+ in home equity and the project is over $25,000, a HELOC at 7–9% APR typically beats personal loans at 8–14% APR. The trade-offs: variable rate, secured by your home, and longer application process.
- Compare against cash-out refinance. If you're already considering refinancing your mortgage and your current rate is above current rates, a cash-out refinance for the project amount may price below both personal loans and HELOCs. Closing costs are 2–3% of the new loan amount.
- Choose personal loan for speed. HELOCs and cash-out refis typically take 30–45 days. Personal loans fund in 1–7 days. If contractor scheduling is the binding constraint, the personal-loan rate premium is often worth the speed.
- Use LightStream's 12-year term for large projects. LightStream specifically offers 12-year terms for home improvement loans (vs. the 7-year cap on most personal loans). For larger projects where monthly payment matters, this is meaningful.
- Don't finance fixtures and finishes that exceed home value impact. A $40,000 kitchen renovation that adds $25,000 to home value generates negative home-value ROI. Some borrowing is still rational (you live in the home), but don't pretend it's an investment.
- Factor in closing costs and fees. Personal loans typically charge no closing costs. HELOCs charge $0–$2,000. Cash-out refis charge 2–3% of the loan amount. Add these to the comparison.
- Consider DTI impact for future borrowing. A new personal loan adds to your debt-to-income ratio, which can affect future mortgage refinancing, HELOC applications, or other borrowing. Plan accordingly.
Frequently asked questions
Should I use a personal loan or HELOC for home improvement?
For projects over $25,000 with sufficient home equity, a HELOC typically prices 200–400 basis points below personal loans. For smaller projects, faster timelines, or limited equity, personal loans are simpler. Run the math on both before deciding.
What's the maximum I can borrow with a personal loan for home improvement?
Most major lenders cap personal loans at $50,000–$100,000. SoFi and LightStream go up to $100,000. For projects over $100,000, HELOCs, home equity loans, or construction loans are typically required.
How long is a typical home improvement loan term?
Most personal loan lenders cap home improvement loans at 7 years. LightStream specifically offers 12-year terms for home improvement, which produces lower monthly payments at the cost of more total interest.
Are home improvement loans tax-deductible?
Personal loan interest used for home improvement is generally NOT tax-deductible (unlike HELOC and home equity loan interest, which can be deductible if used for "substantial improvements" to the home that secures the loan). Talk to a tax professional for your specific situation.
Can I use a home improvement loan for any project?
Generally yes for personal loans. Lenders rarely audit how funds are used. HELOCs are similarly flexible. The exceptions are specific government-backed home improvement programs (FHA 203(k), etc.) that have project-type restrictions.
Is a home improvement loan worth the interest cost?
Depends on the project and the financing alternative. Major renovations financed at 8% over 7 years can produce returns through home appreciation, energy savings, or quality of life. Cosmetic projects financed at high APRs generally lose money.