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Many people said the process was fast and easy and the customer service was excellent. Customer service reviews on third-party websites are mixed, but that’s common in the industry. Some people report an easy application process and friendly customer service, while others had complaints about the quality of SoFi’s service. SoFi has a 2.8 out of 5-star average rating at Trustpilot and a 3.7/5 star average rating from ConsumerAffairs. Nathan connects with individuals, communities, and news outlets to help educate them on money matters and stimulate financial awareness. He believes that achieving financial success begins with identifying your priorities and facing them head on.
Lenders always charge higher rates to people with lower credit scores. The lower your credit score , the higher the odds that you’ll have to make trade-offs when it comes to home improvement financing. For example, you might need to accept a smaller loan in exchange for a lower rate, or put up collateral to obtain a larger loan at a reasonable rate. Although they offer more flexibility than personal loans, personal credit lines have the same drawbacks as personal loans — and then some. The main difference between these two lending products, is the disbursement of funds and the repayment period. A home equity loan will disburse the funds in a single lump sum.
How to get a home improvement loan
While a Title 1 loan must be used for home upgrades, FHA restrictions are a bit more flexible. Unlike a 203 Rehab Loan, you may DIY or hire contractors at your discretion. This loan type allows you to finance the purchase of run-down properties a private lender wouldn’t consider otherwise.
Another difference between home equity loans and HELOCs is that HELOC interest rates are adjustable; they can rise and fall over the loan term. But interest is only due on your outstanding HELOC balance — the amount you’ve actually borrowed — and not on the entire line of credit. A home equity line of credit is another great way to borrow from your home equity without refinancing.
Approval requirements
The actual rate you receive depends on multiple factors, including your credit score, annual income and debt-to-income ratio. The best rate you can qualify for is not necessarily the best loan you can qualify for. Consider additional factors including loan amount, fees, customer service and other features before choosing a lender.
When you have excellent credit, you improve your chances of getting a lower interest rate — with or without a secured loan. On the other hand, bad credit, or even fair credit, will increase your loan rates significantly for personal loans or credit cards. Some personal loans charge up to 35% APR to less qualified borrowers. SoFi offers benefits like fast funding, flexible repayment terms, and zero fees. On top of that, the lender also offers low rates, high loan amounts, and unemployment protection. Unless you have bad credit or need a smaller loan, SoFi is going to be the best option for your home improvement needs.
Best for Small Loans and Flexible Repayment Options
By refinancing an existing loan, the total finance charges incurred may be higher over the life of the loan. Before you consider home renovation financing, consider your long-term goals for the home improvement project you have in mind. The world’s second-largest bank by market capitalization, Wells Fargo is also the leading mortgage lender in the U.S. In 2016, the bank issued $249 billion in residential mortgages for a market share of 13%. Each municipality offers different programs with different terms. A quick internet search is all it takes to find such a program.
Interest rates for these loans are competitive, although better rates are available to borrowers with better credit. The term length of your home improvement loan depends on the type of loan you choose. Loans backed by your mortgage tend to have longer repayment periods. A home equity loan or home equity line of credit may last up to 20 years, and FHA caps its property improvement options at 20 years. Creditworthiness is weighed heavily during the application process—lenders offer the best rates to borrowers with excellent credit. To determine their risk, loan providers look at your credit history and use either your FICO or VantageScore.
Wells Fargo Personal Loan
Credit cards use revolving credit and have variable interest rates. They’re readily available to most of us, but interest rates tend to be high. Also, missing payments can rack up fees, increase your balance and negatively affect credit.
The rates are fixed and, believe it or not, competitive with those offered by some credit cards and banks . To get a home improvement loan, first compare lender offers with other options, check your rate and monthly payments, prepare documents and apply. This is not a commitment to lend from Discover Personal Loans.
The best personal loans are available from several private lenders and credit unions. The application process can be much faster than for the other financial instruments on this list, especially if you work with an online lender like Lightstream. Lenders offset risk by charging significantly higher annual percentage rates . Specializing in personal loans, this online platform provides access to loans from $2,000 to $35,000, with terms of two to five years. Assuming you qualify for a reasonable APR, P2P loans have a number of advantages.
This fact—combined with the minimum credit score requirement—makes the platform a better fit for those with a strong credit profile. Applicants with excellent credit also are more likely to get favorable terms. LightStream does not allow co-signers, but prospective borrowers can submit a joint application. LightStream is a consumer lending division of Truist, which formed following the merger of SunTrust Bank and BB&T. The platform offers unsecured personal home improvement loans from $5,000 to $100,000. Although a number of lenders offer smaller loans than the LightStream minimum, few lenders offer a higher maximum loan.
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