Home Improvement Loans in 2026: Compare Costs and Options
A new kitchen comes with two price tags: the contractor’s bill and the cost of borrowing. The second can be surprisingly large. A $20,000 loan repaid over five years at 12% costs about $6,693 in interest, before any fees. At 20%, the interest rises to about $11,793.
The right financing depends on your project, your credit and the mortgage you already have. An unsecured personal loan can leave a low-rate mortgage untouched. A home equity loan or line of credit may offer a different price, but puts your home behind the debt. A cash-out refinance reprices the entire mortgage, not just the renovation budget.
This guide compares current provider terms, explains the trade-offs and adds New York financing and contractor checks. Start with written project estimates and the amount you can repay comfortably. A lender’s maximum is not a renovation budget.
Home improvement financing: key takeaways
- Compare APR, fees and the cash you actually receive—not just the monthly payment.
- Check a second loan against the cost of replacing your existing mortgage.
- New York homeowners should check NYSERDA financing for eligible energy upgrades before borrowing.
- Discover Home Loans has closed; FreedomPlus now operates as Achieve Personal Loans.
Compare home improvement financing
The providers below serve different needs. Their advertised ranges are not personalized offers or a ranking of the cheapest loans. Approval, pricing, state availability and available terms depend on underwriting. Compare the same net proceeds and repayment period.
| Provider | Published amount and repayment terms | Published APR and origination fee |
|---|---|---|
| LightStream | $5,000–$100,000; up to 20 years for eligible home projects | Check current amount-specific rate; no origination fee |
| Upstart marketplace | $1,000–$75,000; 3 or 5 years | 6.30%–35.99%; fee 0%–12% |
| LendingPoint | $1,000–$36,500; 24–72 months | 7.99%–35.99%; origination or other fees up to 10% |
| Best Egg | $2,000–$50,000; 36–60 months | 6.99%–35.99%; fee 0.99%–9.99% |
| Achieve | $5,000–$50,000; 24–60 months | 6.25%–35.99%; fee 1.99%–9.99% |
| SoFi | $5,000–$100,000 in most states; 2–7 or 10 years | Check current offer; fee and no-fee options vary |
| Prosper | $2,000–$50,000; 2–6 years | 8.99%–35.99%; fee 1%–9.99% |
PropertyNest Data compilation, as of September 2026. Sources: LightStream, Upstart, LendingPoint, Best Egg, Achieve, SoFi and Prosper. Advertised ranges are not borrower averages or guaranteed offers. State, amount, term and eligibility restrictions apply. Lowest APRs require qualifying credit and conditions. Confirm pricing and net proceeds for the exact loan.
LightStream: larger unsecured projects and longer terms
LightStream, a division of Truist Bank, advertises unsecured home improvement loans of $5,000 to $100,000, with terms that can extend to 20 years. Availability depends on loan amount, purpose and credit profile.
Its no-fee structure can help when the contractor needs the full amount you borrow. Its lowest rates require excellent credit; advertised pricing includes a 0.50 percentage-point AutoPay discount that must be selected before funding. Check the current rate for your exact amount and term rather than applying a headline rate to every project.
A long term can shrink the monthly bill while increasing lifetime interest. It also means you could still be paying for a remodel long after its fixtures need replacing. Same-business-day funding is conditional on approval, verification and completing required steps by the lender’s cutoff.
Upstart: compare the offer, including its origination fee
Upstart is a lending marketplace; partner financial institutions originate its loans. Its published personal-loan range is $1,000 to $75,000, with three- or five-year terms and APRs of 6.30% to 35.99%. State minimums and available offers vary.
The platform considers information beyond a credit score, but that does not guarantee approval or a low rate. According to Upstart’s explanation of its process, origination fees can range from 0% to 12% and are taken out of loan proceeds. A soft rate check differs from the hard inquiry that can accompany proceeding with an application.
For a renovation, the net deposit deserves particular attention. A $20,000 loan with a 12% deducted fee leaves $17,600 for the project while you still owe the full principal plus interest. Ask whether the offered loan is unsecured; some partner products have collateral provisions.
| Deducted origination fee | Fee in dollars | Cash available for the project |
|---|---|---|
| 0% | $0 | $20,000 |
| 5% | $1,000 | $19,000 |
| 9.99% | $1,998 | $18,002 |
| 12% | $2,400 | $17,600 |
PropertyNest Data calculation, as of September 2026. Hypothetical $20,000 principal with the stated fee deducted before disbursement. You repay the full principal plus interest. These are arithmetic examples, not lender quotes or sample customer averages.
LendingPoint: check income eligibility and fees
LendingPoint’s personal loans range from $1,000 to $36,500, with APRs of 7.99% to 35.99% and terms of 24 to 72 months. Its disclosed minimum annual income is $35,000. Meeting that requirement alone does not establish eligibility.
The company discloses origination or other fees of up to 10%, depending on the loan and state. Its separate purchase-financing program has different limits; those should not be confused with a personal loan for a renovation.
Prequalification uses a soft credit inquiry, while accepting and proceeding with a loan can involve a hard inquiry. Review the final amount financed, proceeds and payment schedule. Do not assume that a longer term or a lower monthly payment is the less expensive offer.
Discover Home Loans: no longer a new-loan option
Discover’s home-loan business announced its closure in July 2025 and no longer originates residential mortgage loans. It also stopped servicing Discover Home Loans on February 2, 2026.
That makes the old recommendation to obtain a new Discover home equity loan obsolete. Existing borrowers should follow their current servicer’s instructions. This change concerns Discover Home Loans, not a claim that every Discover-branded product has closed.
Best Egg: account for the fee before setting a budget
Best Egg advertises personal loans of $2,000 to $50,000, APRs of 6.99% to 35.99%, and terms of 36 to 60 months. Origination fees range from 0.99% to 9.99%; loans with terms of four years or longer carry a fee of at least 4.99% under its published terms.
The fee is deducted from proceeds, so a $20,000 approval may not cover a $20,000 contract. Compare the APR and the amount deposited with other offers. There is no prepayment penalty, but repaying early does not turn an upfront fee into money available for construction.
Best Egg offers different loan products, including secured options. Confirm the collateral requirements of the specific offer rather than assuming that every product is an unsecured personal loan.
Achieve, formerly FreedomPlus: current name and terms
FreedomPlus became Achieve Personal Loans in 2022. Its current personal-loan terms list $5,000 to $50,000, APRs of 6.25% to 35.99%, terms of 24 to 60 months, and origination fees of 1.99% to 9.99%.
Achieve lists a minimum credit score of 560, with a higher 660 minimum for loans of at least $35,000. These are eligibility thresholds, not approval promises. The lowest APR has additional restrictions, including excellent credit, a short term and a smaller loan.
Some discounts depend on a qualified co-borrower, retirement assets or paying creditors directly. A discount intended for debt consolidation may not apply to money used for renovations. Request an offer for the actual purpose and include the origination fee in the comparison.
Bank of America: a HELOC for staged spending
Bank of America’s home equity line of credit lets qualifying homeowners borrow as work progresses. It advertises no application or annual fee and no closing costs on lines up to $1 million. Ask about every condition, including charges if you close the account early, before treating an offer as cost-free.
The bank lists a minimum credit score of 660 and at least 15% home equity. Income, existing debts, the property and other underwriting still matter. Its introductory pricing lasts six months; the ongoing variable rate is tied to prime. Obtain both rates and their assumptions in writing.
A fixed-rate conversion option is available for eligible balances. Compare its rate and repayment term with leaving the balance variable. Borrowing more to qualify for a discount can still cost more in dollars.
Pennymac: examine the whole cash-out refinance
Pennymac offers cash-out refinancing, which replaces an existing mortgage with a larger one and provides cash after the old balance and closing costs are paid. The new rate applies to the entire replacement loan.
That distinction matters if you already have a low mortgage rate. Financing a $50,000 project by refinancing a $300,000 mortgage means pricing a new $350,000 debt, before any financed costs. A separate home equity loan may leave the original mortgage intact.
Pennymac says maximum loan-to-value limits vary by program, commonly 70% to 80% for conventional and FHA cash-out loans, with different VA limits. Ask for the limit for your property and program. Compare a written Loan Estimate, closing costs, remaining mortgage term and total interest—not simply the cash offered.
| Hypothetical financing | Monthly principal and interest | Future interest over stated loan terms |
|---|---|---|
| Keep $300,000 mortgage at 3% with 25 years left; add $50,000 at 9% for 10 years | $2,056.01 for 10 years; then $1,422.63 for 15 years | $152,795.64 combined |
| Replace mortgage with $350,000 at 7% for 30 years | $2,328.56 for 30 years | $488,281.14 |
PropertyNest Data amortization calculation, as of September 2026. Hypothetical fixed rates, on-time monthly payments and no fees, taxes, insurance or prepayments. The alternatives have different payoff dates: 25 years versus 30 years. Figures include the existing mortgage, not just the project. These are not current Pennymac or home equity loan offers; actual closing costs can change the comparison.
SoFi: compare available terms and fee choices
SoFi’s current personal-loan guide lists unsecured loans from $5,000 to $100,000 in most states and repayment terms of two through seven years or 10 years. Not every amount and term is offered to every applicant.
The guide says some borrowers see options without an origination fee and others can choose a one-time fee in exchange for a lower interest rate. Compare both offers using APR, net proceeds and total payments. A lower rate is not automatically the better deal if a fee absorbs the savings.
Confirm current pricing through SoFi’s rates and terms and the actual offer. Discounts have conditions. Do not budget around unemployment protection or payment relief unless it is explicitly included in your loan agreement.
Prosper: smaller loans still require a cost comparison
Prosper’s personal loans, originated by WebBank, range from $2,000 to $50,000. Published terms run from two to six years, with APRs of 8.99% to 35.99% and origination fees of 1% to 9.99%.
The $2,000 starting amount may suit a smaller project, but it does not establish that Prosper is the lowest-cost option. Compare the fee and minimum loan size with a bank or credit union and with the cost of postponing nonessential work.
Checking a rate uses a soft inquiry; approval and final terms depend on underwriting. There is no prepayment penalty. Borrow only what the project requires after accounting for any fee withheld from the proceeds.
PropertyNest Data: how we made this comparison
We checked the providers’ own disclosures and product pages, plus NYSERDA, the Consumer Financial Protection Bureau, the IRS and New York’s attorney general. We compared available amounts, repayment terms, fees, collateral and practical restrictions. This is a selected-provider comparison, not an exhaustive market ranking or a claim that every reader can obtain the lowest advertised APR.
Provider ranges are sourced figures. PropertyNest’s payment, fee and equity tables are calculations using stated hypothetical assumptions; they are not customer quotes, lender approvals or a PropertyNest borrower average. We did not submit credit applications or collect a representative sample of loan offers. Rates can change after this review.
What does a $20,000 renovation loan cost?
The monthly payment covers principal and interest. A five-year term means 60 payments. The table below holds the amount and term constant so you can see the cost of a higher rate without mixing different loan sizes.
These examples have no fees, so the interest rate equals the APR. For a real offer with an origination fee, use the lender’s disclosed payment and APR. Do not add the fee twice, and do not calculate the monthly payment by treating a fee-inclusive APR as the contract interest rate.
| Fixed annual rate, with no fees | Monthly payment | Total interest over 60 payments |
|---|---|---|
| 8% | $405.53 | $4,331.67 |
| 12% | $444.89 | $6,693.34 |
| 20% | $529.88 | $11,792.66 |
| 30% | $647.07 | $18,824.08 |
PropertyNest Data calculation, as of September 2026. Hypothetical fully amortizing loans with monthly payments and no fees; APR equals the stated interest rate. Totals use unrounded payments and are rounded to cents. Actual final payments and lender calculations may differ slightly.
How much of your equity can you borrow?
Equity is the home’s value minus debts secured by it. The lending limit is usually based on combined loan-to-value, or CLTV: total secured borrowing divided by the property value. An 85% CLTV limit does not mean you can borrow 85% of your existing equity.
For a hypothetical $500,000 home with a $300,000 mortgage and no other liens, equity is $200,000. At an 85% CLTV limit, total secured borrowing could be $425,000. Subtracting the existing $300,000 leaves $125,000 of potential additional borrowing, before fees and underwriting.
| Hypothetical maximum CLTV | Maximum combined secured debt | Less $300,000 mortgage: additional borrowing room |
|---|---|---|
| 80% | $400,000 | $100,000 |
| 85% | $425,000 | $125,000 |
| 90% | $450,000 | $150,000 |
PropertyNest Data calculation, as of September 2026. Assumes a $500,000 accepted property value, a $300,000 mortgage and no other secured debt. Borrowing room = value × CLTV limit − existing secured debt, before costs. These are hypothetical limits, not approvals or promises that a named lender offers 90% CLTV. A lender may count an existing HELOC’s full limit.
Personal loan, home equity loan or HELOC?
An unsecured personal loan supplies a lump sum without taking a mortgage lien. That can be useful when you have little equity or want to preserve an existing mortgage. Fixed payments are easier to budget, but a high APR and upfront fee can make the financing expensive. Default still damages credit and can lead to collection.
A home equity loan also supplies a lump sum, secured by your home. If you already have a mortgage, you generally make two payments. Check whether the rate is fixed or adjustable and compare closing costs.
A HELOC allows repeated borrowing during a draw period. Rates are usually variable. Payments can rise with rates and again when repayment of principal begins. A lender may freeze further draws in certain circumstances, so an unused credit line is not a guaranteed emergency fund. Both home equity products can put your home at risk if you cannot repay.
| Term for $20,000 at 12% | Monthly payment | Total interest |
|---|---|---|
| 3 years | $664.29 | $3,914.30 |
| 5 years | $444.89 | $6,693.34 |
| 7 years | $353.05 | $9,656.59 |
PropertyNest Data calculation, as of September 2026. Hypothetical fixed-rate, fully amortizing loans with no fees or prepayments. The seven-year option saves $311.24 a month versus three years but adds $5,742.29 in interest. Not a loan quote or an average.
New York energy upgrades: check NYSERDA first
NYSERDA’s residential financing programs support eligible efficiency and clean-energy work in existing one- to four-family properties. Homeowners must complete the required energy assessment and work through applicable program and contractor requirements.
These are repayable loans, not rebates for any renovation. Stand-alone additions, new construction and extensive gut rehabilitation are excluded. Interest rates depend on the program and eligibility; use NYSERDA’s rate tool and request current terms.
| Program | Loan amount and term | How repayment works |
|---|---|---|
| Smart Energy Loan | $1,500–$25,000; 5, 10 or 15 years | Monthly payment by check or ACH; borrower remains responsible after sale |
| On-Bill Recovery Loan | $1,500–$25,000; 5, 10 or 15 years | Utility-bill repayment; participating utility and savings test required |
PropertyNest Data compilation from NYSERDA, as of September 2026. Eligible existing one- to four-family homes and qualifying projects only. On-Bill Recovery requires estimated monthly energy savings above the loan payment. Loans above $13,000 must meet a project payback test of under 15 years. Program underwriting, assessment and contractor requirements apply.
Before you borrow: a practical New York checklist
- Price the work. Obtain itemized estimates for the same scope, including permits, materials, labor and contingencies. Keep an emergency reserve separate from the project.
- Check the contractor. New York requires a written home-improvement contract for work exceeding $500. Verify required local licensing, insurance, start and completion dates, materials and the payment schedule. The attorney general advises against paying the full price upfront and explains escrow or bond protections.
- Review credit before applying. Use AnnualCreditReport.com to review your credit reports and dispute errors. Reports and credit scores are different; PropertyNest’s credit-score guide explains the distinction.
- Compare written offers. Match net cash received, repayment term, APR, monthly payment, total payments and every fee. Check whether a rate inquiry is soft or hard before submitting it.
- Protect the existing mortgage. Compare keeping it with a separate renovation loan against replacing it through a cash-out refinance. Include costs and interest on the whole new mortgage.
- Match financing to the contract. Funding and contractor deadlines should align. Confirm what happens if work is delayed or costs rise before committing the proceeds.
Is home improvement loan interest tax-deductible?
Not automatically. The IRS’s home-mortgage interest rules generally require itemizing deductions and using a loan secured by the qualifying home to buy, build or substantially improve that home. Interest on an unsecured personal loan used for a personal renovation generally does not qualify as home-mortgage interest.
For newer qualifying acquisition debt, the general limit is $750,000 of debt, or $375,000 if married filing separately, across qualifying mortgages. These are debt limits, not deduction amounts; older debt and other circumstances have special rules. Principal repayments are not deductible interest, and closing costs are not all automatically deductible. Keep contracts, invoices and records showing how proceeds were used, and check the rules for the tax year you file.
What if your credit is limited or your budget is tight?
A smaller project, staged work or a local assistance program may be more manageable than a high-cost loan. A co-borrower takes on repayment responsibility; adding one is not merely an application shortcut. Ask your bank or credit union about available terms, and compare any contractor-arranged financing with an independent offer.
For a promotional credit card, check the end date, the regular APR and whether the offer uses deferred interest. The financing should still fit your budget without assuming a future refinance, a larger tax refund or a higher resale value. A renovation can improve your daily life without paying for itself at sale.
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