What are the best home improvement Loans? If you are in need of the best home improvement loans to apply for, then this article is for you. In today’s article, we will be discussing the best home improvement lenders and companies.
We understand that searching for the right home improvement lender can be tiring and even daunting, especially for novices. This is because there are several online lenders and companies to choose from. To make your journey easier, we’ve compiled the lenders offering the best interest rates, terms, and features. Check them out in this review.
What Are Home Improvement Loans?
Before knowing the best home improvement loans, it is important to know what this type of loan is used for. So, what is a home improvement loan? A home improvement loan is a personal, unsecured loan that helps to cover the repair of your home, remodeling your kitchen, replacing your roof, or completing your basement.
The lenders of home improvement loans usually provide loans for up to $100,000, and you don’t need collateral. However, it is based on your personal and financial information, including your income, credit score, citizenship, etc.
Once you’ve gotten this loan, you will be required to pay in installments based on your lender. Note: Funding will be done maybe instantly or two to three business days after approval and verifications. Check out the next outline for the top lenders to shop for a home improvement loan.
5 Best Home Improvement Loans
If you are looking for a way to get the best home improvement loans to take care of your home inconveniences, I will be giving you some of the best home improvement loan lenders. This article has managed to compile a list of the best home improvement loan lenders. They include:
One of the best home improvement lenders is LightStream. They are known to offer home improvement loans of $5,000 to $100,000 to their borrowers as opposed to other online lenders who set their maximum amount to about $40,000 and nothing more. This easily grants individuals who are qualified to apply for funds on a much larger scale for home improvements. Some of the key information about this company is;
Competitive interest rates
You can get the best competitive interest rate with an APR discount for an Autopay enrollment. This also works with a rate beat program and it helps them stand out from a lot of other lenders.
Good Credit is needed
Also, they have loans that are specially targeted for people with really good and strong credit. In addition, they offer loans and the lowest rates to customers who have outstanding credit scores.
No prequalification is required
When you apply for a home improvement loan with LightStream, it gives you a result of a hard credit inquiry and this helps to lower your credit scores just by a few points.
Different Repayment Options
When you collect a loan with LightStream, they offer you a repayment term of 24 months to 144 months. However, if you decide to go for a much longer term, the interest you pay will likely be higher. The offered loan term of 85 months to 144 months will appeal to you when you take a loan amount of at least $25,000.
Meanwhile, Marcus is best known for offering loans based on small home improvement projects. Marcus offers loan amounts to customers ranging from the price of $3,500 to $40,000. This is actually a good loan offer if you are dealing with smaller home renovations or upgrade projects.
When dealing with this loan, you will most likely need strong credit in order to qualify. Also, Marcus is a loan lender for fairly smaller loans. Other key information to keep in mind are;
Access to Prequalification
Marcus gives customers the chance to apply for prequalification with just a soft credit inquiry. This is done so you can get a preview of the estimated rates and terms as well and this won’t affect your credit score. However, you should keep in mind that just because you applied for a prequalification doesn’t mean you are automatically guaranteed approval.
Zero Sign Up or Prepayment Charges
Also, they don’t charge customers a sign-up fee or even a prepayment fee on personal loans. You should keep in mind though, that if you were to pay the money late, you would get a negative review and it could affect your credit in a bad way.
But, you can actually postpone the payment of a loan you borrowed but this happens only if you have made previous payments on time in the past 12 times in a row. If you decide to run with this feature, you could get your loan term extended by a month.
3 Wells Fargo
Wells Fargo is a money lender that offers a secured loan option and you can use this money in a savings account or a CD as collateral instead of your house. This is a more secured loan option as they often have home equity loans that use your house as collateral. Here are some of the key details offered by the lender;
They have a high loan maximum
This means that they offer unsecured personal loans up to the amount of $100,000. They also offer personal loans of $250,000 depending on the amount in your CD or savings account.
You have to complete a formal loan application form before proceeding with anything. You will need to complete the form to be able to see their rates and their loan terms. This will all eventually lead to a hard credit core by a few points.
Flexible Repayment Term
They offer a loan term, of 12 months to 34 months for unsecured loans under the range of $5,000. Also, they offer a term of 12 months to 84 months for loans higher than $5,000. However, they may also have terms that extend up to 120 months for the loans that have been secured by a CD or a savings account.
4 Sofi Loan
This money lender allows customers to apply for a personal loan with a co-applicant. You can take this path if you do not have a strong credit score. Hence applying with a co-applicant who has a really good credit score can improve your chance of getting approved. Some of the key features offered by Sofi loans are;
Zero Late, Prepayment, and Origination Fees
SoFi does not have a record of charging, late, prepayment, or origination fees on any of it loans. You should be careful when dealing with this matter because if you pay your loan payments late, this has a negative effect on your credit scores.
Get Up to $5000 to $100,000 Personal Loan
The minimum amount of loan you will collect actually varies by state. Regardless, you can still collect loans from SoFi ranging from $5000 to $100,000.
Also, SoFi uses a soft credit inquiry that allows people to check their estimated rates. Customers can also check their credit scores before they even submit a formal application.
If you get approved for a loan from SoFi, you also get benefits like unemployment protection, career advice, access to financial planners, and so on.
5 Penfed Credit Union
This is a really good loan option for people with a fair credit score. You can apply for a loan with a credit score of 650. Also, Penfed Credit Union is a good option for people dealing with a really small house project that won’t consume so much.
This is because they offer competitive rates on all financial products and this includes personal loans for home improvements. In addition, they have fixed rates ranging from 7.74% to 17.99% with a repayment term of 60 months which is approximately 5 years. Other details you need to know are;
They have loan amounts that range from $600 to $50,000 and this is perfect for funding minor home projects.
Zero Origination Fee
Meanwhile, they do not charge an origination fee for deferring your loan ahead of time. However, they charge a $29 fee for all late payments.
You can also add a co-applicant and even file a joint application. This can help you qualify for a lower interest rate. However, to use this option, click on the “Yes” icon under applying with a co-borrower option when checking your rate.
Getting the necessary funds you need for your home improvements doesn’t have to be such a big hassle. These are some of the best loan lenders in the market today that offer the best financial aid to all individuals and help them fund their projects.