Home improvement loans: paying for a project without overborrowing

An unsecured personal loan can fund repairs or upgrades without using your home as collateral. Rates depend on your credit and income.

How they work

A home improvement loan is usually a personal loan used for a project. You get a lump sum and repay it in fixed monthly payments.

Compared with home equity

A home equity loan or line of credit is secured by your home. It may come with a lower rate, but you could lose the home if you can't pay. An unsecured loan doesn't put your home at risk that way, though a default can still lead to collections or a lawsuit.

Before you borrow

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Questions

Do I need home equity to get one?

Not for an unsecured personal loan. Lenders look at factors such as credit and income.

Do you make home improvement loans?

No. We're a referral service and don't make loans or credit decisions.

Sources

  1. CFPB, What is a debt consolidation loan?