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The Best Home Improvement Loans of 2021

Houses are a lot like people. No two are identical. They all have different needs and assets, but one thing they all have in common is that they all require love and care as the years go by.

Loans are a lot like people, too. They’re all very different from one another. What’s more, it’s hard to learn their ins and outs if you don’t spend a lot of time with them. When your house is seriously overdue for some of the aforementioned love and care, however, you don’t always have time to compare every last one of the hundreds and thousands of loans that exist.

That’s where Homeowner Funding comes in. As a National Residential Improvement Association-affiliated contractor, our goal is to make it easy for you to get the financial assistance you’re looking for. That’s why we’ve compiled this handy list of the best home improvement loans of 2021!

How Home Improvement Loans Work

Loans for home improvements are not unlike other kinds of loans, except that their terms are specifically optimized to pay for remodels, renovations, and repairs. While you normally cannot deduct the interest from your taxes as you can with mortgage loans, home improvement loans have other advantages.

For starters, they’re often easy to budget for due to having fixed payment amounts. More importantly, while mortgage loans use your house as collateral—meaning that the lender can seize the property should you default during repayment—home improvement loans are typically based solely on income and credit score, eliminating the danger of foreclosure.

Our 2021 Home Improvement Loan Picks

As part of the NRIA org network, Homeowner Funding has access to information about all the best home improvement financing options currently available. When it comes to home improvement loans, here are some of our favorites:

Best Loans for Large Projects


Home improvements aren’t cheap. The bigger the scope, the bigger the price tag. Fortunately, Lightstream—a division of Suntrust Bank—offers unsecured personal loans ranging from $5,000 to $100,000. That’s more than enough to pay for even the largest home improvement projects.

Although borrowers need a credit rating of at least 600 to be eligible for Lightstream’s home improvement loans, interest rates start at just 3.99%, and can go even lower if you sign up for automatic payment. Borrowers can also apply for a joint loan to further lower their rate, or to increase their loan amount.

Best Loans for Small Projects


Not all home improvement projects require tens of thousands of dollars to complete, but that doesn’t make them any easier to undertake without financial help. Especially in the case of emergency repairs, you may find yourself needing a small influx of money fast.

Perfect for those who aren’t able to apply for a home equity line of credit—or who simply don’t want to—the home improvement loans offered by PenFed Credit Union start as low as $600, with a maximum of $20,000. Interest rates start at 5.99% and funds are usually available within one business day.

Best Loans for Veterans


Have you ever served in the US Armed Forces? If so, you may be eligible to receive a Veterans Affairs home loan. Offered through private lenders like the Navy Federal Credit Union, these loans are partially guaranteed by the VA, meaning that should a borrower default, the U.S. Government will repay a portion of what they owe.

The Navy Federal Credit Union’s VA loans come with such benefits as 0% down payments, a lower minimum credit score, and no obligated loan insurance. With an A+ rating from the Better Business Bureau, it’s no wonder that Navy Federal serves an estimated 10 million veterans and active US Armed Forces members.

Best Loans for Bad Credit


Sometimes the people who have the hardest time receiving financial assistance are the ones who need it the most. Individuals with bad credit may find it difficult finding home improvement loans with reasonable terms. Good thing Avant approves borrowers with credit scores as low as 580.

While the APR on Avant’s loans does start a little high at about 9.95%, that’s still relatively affordable and competitive with many other loans available to subprime borrowers. Similarly, the $35,000 maximum may be lower than loan amounts provided by other lenders, it is high enough to cover the cost of most major home improvement projects.

Other Ways to Finance Home Improvements

Loans are among the most useful resources for homeowners looking to finance home improvements, but they’re not your only option. If you’re interested in information about grants or other NRIA fund-approved programs, contact Homeowner Funding today and let us help you find the financial assistance you’ve been seeking.

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Joe D.

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