Familiarize yourself with your credit history. Your credit reports carry the most weight for lenders making a loan decision. In the U.S., you are entitled to one free credit report each year, which can be accessed through https://annualcreditreport.com. Credit reports can also be paid for through the three credit bureaus or through a third party business.
Home improvement loans are unsecured, meaning they’re approved based on the borrower’s credit history and income and do not require collateral. They are offered by online lenders, banks, or credit unions and work similarly to personal loans. Once approved, you’ll receive funding through direct deposit or paper check, and then be able to pay for your building supplies and contractors.
If you're looking to sell your home in the near future, you may want to consider re-doing the landscaping, repaving the driveway or repairing cement patios to boost your curb appeal. Whether you do the work yourself or hire a landscaper, a home equity loan can help you cover the costs. After all, investing in the labor, cement, pavers, plants, irrigation, topsoil, mulch and removal of your old landscaping can add up fast.
Whether you want to give your kitchen a fresh look, build the deck you’ve wanted, or want to make a few bigger home repairs, one of the decisions you’ll face is how to pay for your home improvement. Sure, you could use your credit cards or maybe take advantage of in-store financing, but one of the most convenient ways to pay for larger projects is with a home improvement loan.
Finally, compare those fees carefully. When you meet with a lender, up-front costs will start with a credit report running $50 to $80 and possibly an appraisal, which should cost less than $300. Some lenders use your property-tax valuation, others won't. Often, you can reduce lending fees in a competitive market. And if you're asked for a nonrefundable application fee, beware; reputable lenders try to keep up-front fees low.
Before applying, be sure to check your credit history for inaccuracies, and if you find any, dispute them. You’ll want to make sure your credit is in tip top shape so you can get the best rate from lenders. If your credit score is subprime, consider a bad credit loan instead. It’s also important to get a few estimates prior to applying for a loan so you have an idea of how much money you need to get the job done.
The product requires an origination fee of $50, which may be financed (for TX homestead properties, the origination fee can't be financed). The origination fee is waived if you are already a Chase home equity customer. The customer is responsible for a $50 annual fee after the first year, except for TX homestead properties. The annual fee is waived for customers who secure a new Chase Home Equity Line of Credit and open a new or have an existing Chase Premier, Chase Premier Plus or Chase Sapphire checking account.

* The actual loan amount, term, and APR amount of loan that a customer qualifies for may vary based on credit determination and state law. Minimum loan amounts vary by state. **Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Avant branded credit products are issued by WebBank, member FDIC.


3 LightStream will offer a rate .10 percentage points lower than the rate offered by a competing lender subject to satisfactory evidence being provided that you were actually approved for a lower rate with another lender for the same loan terms offered by LightStream by no later than 2 p.m. Eastern time one business day prior to loan funding. The Rate Beat program excludes secured or collateralized loan offers from any lender and the competitive offer must be generally available to any customer with a similar credit profile. Terms are subject to change at any time.

* Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
A credit card can be a better option for borrowing smaller amounts of money for your home improvements with lower interest rates than a personal loan. Credit cards can offer 0% interest rates for a set period of time on your larger purchases, which might include a new kitchen or bathroom suite. A credit card works best if you can pay it off quickly.
Home remodeling loans offer an influx of cash for homeowners with big remodeling plans but pocketbooks that won't quite stretch far enough for costly home improvements. When you own a home, remodeling loans can make it possible to build on an addition, put in skylights, add a pool or make any change you want.  But you should know what to expect before jumping in and signing on the dotted line of a home improvement loan.
Interest rates on personal loans generally range from about 6% to 36%. As with most credit products, the rate you receive depends a lot on your credit score. The better your score, the lower your rate and the less interest you’ll pay over the life of the loan. The interest rate also affects your total monthly payment, as does the term length; a longer term means lower monthly payments, but more interest.
3 LightStream will offer a rate .10 percentage points lower than the rate offered by a competing lender subject to satisfactory evidence being provided that you were actually approved for a lower rate with another lender for the same loan terms offered by LightStream by no later than 2 p.m. Eastern time one business day prior to loan funding. The Rate Beat program excludes secured or collateralized loan offers from any lender and the competitive offer must be generally available to any customer with a similar credit profile. Terms are subject to change at any time.

Home-equity lines of credit. These mortgages work kind of like credit cards: Lenders give you a ceiling to which you can borrow; then they charge interest on only the amount used. You can draw funds when you need them — a plus if your project spans many months. Some programs have a minimum withdrawal, while others have checkbook or credit-card access with no minimum. There are no closing costs. Interest rates are adjustable, with most tied to the prime rate. Most programs require repayment after 8 to 10 years. Banks, credit unions, brokerage houses, and finance companies all market these loans aggressively. Credit lines, fees, and interest rates vary widely, so shop carefully. Watch out for lenders that suck you in with a low initial rate, then jack it up. Find out how high the rate rises and how it's figured. And be sure to compare the total annual percentage rate (APR) and the closing costs separately. This differs from other mortgages, where costs, such as appraisal, origination, and title fees, are figured into a bottom-line APR for comparison.


Whether you hire a contractor or take on the work yourself, begin with an accurate estimate of what the project will cost. Lenders will insist on a specific figure before they work with you. If you're hiring a contractor, start with a firm bid, broken down into labor and materials. Then add on 10 percent for surprises. On work you'll do yourself, compile a detailed materials list with quantities, costs, and an accurate total. Include permit fees and equipment rental. Then add a cushion of 20 to 30 percent to be safe. Once you know how much you need to finance your home improvement project, how much will you get? Despite the promises and hype lenders make in their ads and promotional materials, how much you can borrow hinges on your credit rating, the loan-to-value ratio, and your income. These factors also help determine the interest rate, the length of the loan, and whether you'll pay points. Your credit rating. The best rates and terms go to homeowners with an A rating—no late payments in the last 12 months and no maxed-out credit cards. One or two late payments or overdrawn credit cards probably won't knock you out of the game, but you might end up with a higher interest rate and a smaller loan.
4 After receiving your loan from us, if you are not completely satisfied with your experience, please contact us. We will email you a questionnaire so we can improve our services. When we receive your completed questionnaire, we will send you $100. Our guarantee expires 30 days after you receive your loan. We reserve the right to change or discontinue our guarantee at any time. Limited to one $100 payment per funded loan. LightStream and SunTrust teammates do not qualify for the Loan Experience Guarantee.
We know from personal experience that a large number of older homes in Northern and Southern California are still in great shape and can be updated, upgraded and expanded to meet the needs of a growing family. It’s a great solution for families that love their neighborhoods and the cost of renovation is usually substantially less than the cost of purchasing a larger home.
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
When you borrow money to build a house, there’s no collateral to back up the loan the way there is in a traditional mortgage — at least not yet. This makes lenders nervous, so you have to jump through some additional hoops before they’ll fork over the cash. Expect a thorough inspection of the architectural plans and your builder, as well as your finances.
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

Until recently, borrowing money for a new kitchen, second-story addition, or other home improvement meant going to the bank, seeing a loan officer, and hoping for the best. Today, however, you have many more options to help finance home improvements. A mortgage broker, for example, can offer more than 200 different loan programs. And brokers are just one of the many lenders eager to put together a loan that fits your situation—even if your credit history is less than perfect.
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