Using a Personal Loan for Home Improvement

Whether you want to breathe new life into your kitchen, remodel a bathroom, or build an addition, home improvements and remodel projects are expensive. As such, you may not have the funds on hand necessary to cover all your expenses. If that's the case, consider taking out a personal loan for your project.

Personal loans for home improvement projects are surprisingly common. They allow you to fund your home renovation without depleting your savings account or retirement fund. Additionally, applying for a personal loan for home improvement is quick, easy, and can be done completely online!

What is a Personal Loan for home improvement?

A home improvement loan is a personal loan used to pay for home repairs or remodels. This type of loan is just like any other personal loan, and the application process is identical.

You can use a home improvement personal loan to cover the costs of a new roof, upgraded kitchen cabinets, bathroom updates, or even a new HVAC or plumbing system. Just about any home improvement project you can dream up can be covered by the right personal loan.

Depending on the type of loan you choose, you may receive a lump sum of money upfront — or, in the case of a Line of Credit, be able to withdraw money as needed to pay for your renovation projects.

Personal Loans for home improvement Depending on the type ofts.

You’ll then pay back the home improvement loan plus interest and fees over an agreed-upon period set by your lender.

Types of Personal Loans for home improvement

Depending on the type of financing available in your state, you may be able to choose from a variety of home improvement loans, including:

Installment Loan

An Installment Loan is one of the most common types of financing for home improvement projects. With an Installment Loan, you receive a lump sum of money upfront that you’ll repay over time via fixed monthly payments — or installments. If you need a lot of cash on hand for your home improvement project, an Installment Loan can be a good option.

Personal Line of Credit

Rather than receiving a lump sum of money upfront, you might consider opening a credit line. Personal Lines of Credit are similar to credit cards in that they allow you to access money when you need it most up to your approved credit limit.

With this flexible financing option, you can withdraw funds (up to your limit) at any time. You can then repay what you owe all at once or over time. Best of all, you’ll only pay interest on the amount you withdraw and not on the entire amount you’re approved for.

Personal Lines of Credit are a good option if your home improvement project might take several months or years because your credit line stays open for as long as you need it.

Home equity loan

As the name suggests, this type of loan allows you to tap into your home equity, which is the difference between what you owe on your mortgage and what your home is currently worth. If you take out a home equity loan, you’ll receive all the cash you requested at once like you would with an Installment Loan. You’ll then make fixed monthly payments over the life of the loan.

Home equity line of credit

A home equity line of credit or HELOC is like a combination between a home equity loan and a personal line of credit. It’s similar to home equity loans in that the loan amount is based on the difference between your home's current value and what you owe on your mortgage.

However, unlike a home equity loans where you get a lump sum of cash, a HELOC is a credit line that allows you to withdraw funds periodically as needed. As such, HELOCs are a good option if you need a sizeable amount of money but aren't sure how much or how long you'll need access to it.

Benefits of getting a Personal Loan for your home improvement project

When you choose a personal loan for home improvement projects, you can:

  • Fill out an application quickly, often online, from the comfort of your own home.
  • Submit your application and get approved right away.
  • Receive money fast, usually by the next business day.

How to get a Personal Loan for home improvement

Here’s how to get a personal loan for home improvement:

  • Compare lenders: Since home improvement loans vary from lender to lender, do some research and explore your options. Be sure to compare the rates and terms of the loans that interest you.
  • Fill out an application: Once you find a loan that meets your needs and budget, fill out the application form online or in person. You’ll need to share details like your name, email, income, and employment status. In addition, you’ll be asked to provide documents like a government-issued ID, paystubs, and bank statements.
  • Wait for approval: Many lenders offer quick approvals, so you won’t have to wait weeks or months for a decision. Some will provide your loan offer the same day you apply or within 24 hours.
  • Receive the funds: Once approved for a personal loan online or in-store, you’ll receive your funds via direct deposit, check, cash, or prepaid card (depending on your lender). If you choose a personal line of credit or HELOC, you may be able to draw funds from it right away with a special check or card.

At Advance America, we offer same-day approval and funding when you apply for a personal loan before 10:30 AM EST. Otherwise, you should get your money on the next business day.

Get your Personal Loan for home improvement today

We offer a variety of online personal loans that can be used for home improvement and repair projects, including Installment Loans, Lines of Credit, and Payday Loans. Apply online and get approved in minutes, regardless of your credit score!

About the Author

Jalin Coblentz has contributed to Advance America since 2023. His experiences as a parent, full-time traveler, and skilled tradesman give him fresh insight into every personal finance topic he explores.

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