Best Home Improvement Loans of 2025

Home Improvement Loans


Thinking of remodeling your kitchen, upgrading your bathroom, or giving your home a fresh new look in 2025? You're not alone. Home improvement projects are hotter than ever but unless you’ve got a hefty savings cushion, you’ll probably need a loan to cover the costs. The good news? Home improvement loans have evolved, and there are more options than ever with competitive rates and flexible terms.

Let’s explore the best home improvement loans of 2025 to help you pick the right one for your dream project.

What Are Home Improvement Loans?

Home improvement loans are personal or secured loans designed to help homeowners fund renovation or remodeling projects. They can be either unsecured (like personal loans) or secured (like home equity loans or HELOCs). The right loan for you depends on your budget, credit score, equity in your home, and the scope of your renovation.

Top Home Improvement Loan Options for 2025

Here’s a roundup of the best loan options available this year:

1. SoFi – Best Overall Home Improvement Loan

  • APR: 7.99% – 24.99%

  • Loan Amount: $5,000 – $100,000

  • Term Length: 2 to 7 years

  • Why It’s Great: No fees, fast funding, and competitive rates

SoFi tops our list thanks to its combination of generous loan amounts, no fees (including origination or prepayment), and great customer support. If you’ve got good to excellent credit and want a straightforward personal loan for your renovation, SoFi is a top pick.

2. LightStream – Best for Good Credit Borrowers


  • APR: 7.49% – 25.99% (with AutoPay)

  • Loan Amount: $5,000 – $100,000

  • Term Length: 2 to 12 years

  • Why It’s Great: Extremely fast approval and funding process

A division of Truist Bank, LightStream offers low rates and flexible terms for borrowers with solid credit histories. They also offer a Rate Beat Program, where they’ll beat any qualifying competitor's rate by 0.10 percentage points.

3. Upgrade – Best for Fair Credit


  • APR: 8.49% – 35.99%

  • Loan Amount: $1,000 – $50,000

  • Term Length: 2 to 7 years

  • Why It’s Great: Accepts lower credit scores

If your credit isn’t perfect, Upgrade is a solid choice. It offers fixed-rate personal loans with quick funding. While the APR can be higher, it’s a useful tool if you're improving your home to increase property value and want to build credit along the way.

4. Wells Fargo – Best for Secured Home Improvement Loans

  • Type: Home Equity Loan

  • APR: Starts around 6.99% (varies)

  • Loan Amount: Based on home equity

  • Term Length: Up to 30 years

  • Why It’s Great: Lower interest rates due to secured nature

If you’ve built up equity in your home, a secured loan like a home equity loan or HELOC from a trusted bank like Wells Fargo can be a smart, cost-effective option. These loans typically have lower interest rates compared to unsecured loans.

5. Discover – Best HELOC Alternative

  • Type: Home Equity Loan

  • APR: 6.49% – 9.99%

  • Loan Amount: $35,000 – $300,000

  • Term Length: 10 to 30 years

  • Why It’s Great: Fixed monthly payments

Discover offers home equity loans with no application or origination fees and fixed interest rates, making it easier to budget. If you prefer predictability and don’t want the variable rates of a HELOC, this is a great option.

Choosing the Right Loan for Your Project

Here are some key things to consider when picking a loan:

  • Your credit score: Unsecured personal loans typically require a credit score of 660 or higher for the best rates.

  • Equity in your home: If you have 15%–20% equity or more, you may qualify for a home equity loan or HELOC.

  • Loan amount needed: Smaller renovations may be funded with a personal loan, while larger projects may need a home equity loan.

  • Repayment terms: Do you need low monthly payments or a quick repayment schedule?

Tips to Get the Best Loan Terms

  1. Check your credit report: Fix any errors before applying.

  2. Compare lenders: Don’t settle for the first offer and use prequalification tools.

  3. Calculate total project costs: Always add a 10% buffer for unexpected expenses.

  4. Read the fine print: Watch out for prepayment penalties, origination fees, or variable rates.

Final Thoughts

Whether you’re upgrading your bathroom, building an addition, or simply modernizing your home, the right financing can make your renovation dreams a reality. With many great home improvement loan options available in 2025, there’s something for every type of borrower.

The key is knowing your financial situation and picking a lender that aligns with your goals. Happy renovating!
Location: United States

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