8 Kitchen Remodel Loans: Compare Financing Options
Kitchen remodel financing options include personal loans, home equity financing, cash-out refi or government assistance. Compare these options to find what's best for you.
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One of the most important decisions for a kitchen remodel is how to pay for it. An unsecured personal loan is a relatively fast and convenient choice.
Other financing options include home equity loans and lines of credit, a cash-out refinance and government assistance. The best way to finance a kitchen remodel depends on your credit, home equity and renovation goals.
Here are our picks for best kitchen remodel loans, the pros and cons of getting one and other options to consider.
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- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Compare personal loan rates in just 2 minutes
Check rates from multiple lenders at once Explore loans up to $100,000 There’s NO impact on your credit score8 Kitchen Remodel Loans: Compare Financing Options
8.99-29.99%
$5K-$100K
None
- Must legally be an adult in your state.
- Must be a U.S. citizen, permanent resident or non-permanent resident with valid documentation.
- Must be employed, have sufficient income or have an offer of employment to start within 90 days.
- Origination fee: 0% to 7%.
- Late fee: None.
8.49-35.99%
$1K-$50K
560
- Minimum credit score: 560.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including the loan you're applying for.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
6.99-25.49%
$5K-$100K
660
- Must be a U.S. citizen or permanent resident.
- Must be at least 18 years old.
- Minimum credit score: 660.
- Must have several years of credit history with multiple account types and few or no delinquencies.
- Must have assets like retirement, investment and savings accounts.
- Origination fee: None.
- Late fee: None.
- Must be an existing Wells Fargo customer.
- Must provide personal information, including Social Security number or individual tax identification number.
- Must provide employment and income information; documentation may be required to verify this information.
- Late fee: $39.
8.98-35.99%
$1K-$40K
600
LendingClub is a good option for fair-credit borrowers and for co-borrowers who want to jointly apply for a loan.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Minimum credit score: 700.
- Must provide name, address, date of birth, Social Security number and employer information.
- Must show at least two years of credit history, two accounts and no bankruptcies.
- Average borrower annual income: $55,000.
- Average borrower debt-to-income ratio: 40%.
- Origination fee: None.
- Late fee: $29.
- Non-sufficient funds fee: $35.
8.99-35.99%
$2K-$50K
600
- Minimum credit score: 600.
- Must be a U.S. citizen.
- Minimum credit history: 24 months and 1 account.
- Minimum annual income: $3,500.
- Maximum debt-to-income ratio: 40% or 65% including mortgage.
- Origination fee: 0.99% - 9.99%.
9.12-29.99%
$2K-$45K
640
- Minimum credit score: 640.
- Must be a U.S. resident.
- Must be at least 18 years old in most states.
- Origination fee: 2.98% to 9.34%.
- Late fee: $15.
- Unsuccessful payment fee: $15.
- Must legally be an adult in your state.
- Must be a U.S. citizen, permanent resident or non-permanent resident with valid documentation.
- Must be employed, have sufficient income or have an offer of employment to start within 90 days.
- Origination fee: 0% to 7%.
- Late fee: None.
- Minimum credit score: 560.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including the loan you're applying for.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
- Must be a U.S. citizen or permanent resident.
- Must be at least 18 years old.
- Minimum credit score: 660.
- Must have several years of credit history with multiple account types and few or no delinquencies.
- Must have assets like retirement, investment and savings accounts.
- Origination fee: None.
- Late fee: None.
- Must be an existing Wells Fargo customer.
- Must provide personal information, including Social Security number or individual tax identification number.
- Must provide employment and income information; documentation may be required to verify this information.
- Late fee: $39.
LendingClub is a good option for fair-credit borrowers and for co-borrowers who want to jointly apply for a loan.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Minimum credit score: 700.
- Must provide name, address, date of birth, Social Security number and employer information.
- Must show at least two years of credit history, two accounts and no bankruptcies.
- Average borrower annual income: $55,000.
- Average borrower debt-to-income ratio: 40%.
- Origination fee: None.
- Late fee: $29.
- Non-sufficient funds fee: $35.
- Minimum credit score: 600.
- Must be a U.S. citizen.
- Minimum credit history: 24 months and 1 account.
- Minimum annual income: $3,500.
- Maximum debt-to-income ratio: 40% or 65% including mortgage.
- Origination fee: 0.99% - 9.99%.
- Minimum credit score: 640.
- Must be a U.S. resident.
- Must be at least 18 years old in most states.
- Origination fee: 2.98% to 9.34%.
- Late fee: $15.
- Unsuccessful payment fee: $15.
Our pick for
Kitchen remodel loans
SoFi Personal Loan
8.99-29.99%
$5,000-$100,000
None
Wells Fargo Personal Loan
7.49-23.74%
$3,000-$100,000
None
PenFed Credit Union Personal Loan
7.99-17.99%
$2,000-$50,000
700
What is a kitchen remodel loan?
A kitchen remodel loan is a personal loan used for a kitchen renovation. Loan amounts range from $1,000 to $100,000, and repayment terms are typically two to seven years. Rates are from 6% to 36%.
The loan is distributed in a lump sum and repaid, plus interest, in fixed monthly installments.
Kitchen remodel loans don’t require collateral, meaning your credit and income determine approval and your loan’s annual percentage rate.
Pros and cons of financing a kitchen remodel with a personal loan
Pros
No collateral: An unsecured personal loan doesn’t require you to use your home as collateral, so the lender can’t take your home if you fail to repay.
Fast funding: Some lenders can fund a personal loan the same day you apply. Most personal loans are funded within one week.
Fixed payments: Monthly payments are the same for the life of the loan. This can help you budget better than options with variable rates and payments.
Cons
Rates may be higher than other financing options: Your credit history is a key determinant of your rate, and even borrowers with strong credit may receive a rate that's higher than home equity options.
No tax benefits: Unlike home equity loans and lines of credit, you can’t claim a tax deduction on the interest you pay on a personal loan.
Fixed loan amount: A personal loan is distributed in a lump sum, so you can’t borrow more than the initial loan amount.
Steps to get a kitchen remodel loan
Get a firm cost estimate. The amount you plan to spend on the kitchen remodel could determine how you pay for it, so get a few quotes and settle on a budget first.
Pre-qualify. Once you have an estimate, pre-qualify to see potential loan rates and terms. Because this process doesn’t affect your credit score, you can pre-qualify with multiple lenders.
Compare lenders. If you get two similar offers, compare loan features like rate discounts, funding time and repayment term options to break the tie.
Apply. Gather documents like W-2s, paystubs and bank statements before you apply to make the loan application process smoother. A lender will do a hard credit check, which will cause your credit score to dip temporarily. Expect a decision within a day or two of applying.
Financing a kitchen remodel: Personal loans vs. home equity
A personal loan may be a good option if you don’t have much equity in your home or don’t want to use the home as collateral for the loan.
Monthly payments are often higher on personal loans because they tend to have higher rates and shorter repayment terms than home equity financing. However, many personal loans can be funded within a week, while a home equity loan or line of credit may take a couple of weeks or longer if the lender requires an appraisal.
Home equity loan
A home equity loan is a second mortgage you get in a lump sum and repay in fixed monthly installments for up to 30 years. Rates start in the single digits.
Compare to personal loans: Home equity loans are similar to personal loans, but the loan amount is tied to the home’s value. Credit and income requirements may be softer for equity financing, so those with less-than-perfect credit who have repaid much of their mortgage may be able to borrow more with a home equity loan than a personal loan.
» MORE: Best home equity loan lenders
Home equity line of credit
A HELOC is a credit line you draw from as needed, typically over a ten-year period. Repayment terms are often 20 years, and rates can be low but variable, meaning your monthly payments may fluctuate.
Compare to personal loans: Since you don’t borrow a HELOC all at once, it can be ideal if the project’s cost isn’t set and you want to be ready for surprise expenses. If you get a personal loan and unexpected remodeling costs come up, you can’t borrow more.
» MORE: Best HELOC lenders
Other kitchen remodel financing options
Cash-out refinance
With a cash-out refinance, you replace your existing mortgage with a new one that includes funds for a remodel.
Cash-out refinancing works best for a remodel if the rate on your new mortgage has a lower APR than your current mortgage. This type of financing also comes with closing costs so financial planners recommend homeowners stay in the home long enough for the monthly savings to exceed the cost of refinancing.
Federal programs
The Federal Housing Administration has two programs that can help you finance a qualifying renovation:
Title I Property Improvement Loans are available for home improvements and repairs. If your renovation will cost more than $7,500, the loan must be secured by a deed of trust or mortgage.
The Energy Efficient Mortgage Program helps finance renovations that make your home more energy-efficient and can help lower your utility bills.
Kitchen remodel financing tips
The cost of a kitchen remodel can range from $27,500 to $158,500, depending on the materials used, the amount of work needed and additional features like new appliances. Here are tips to keep in mind when financing a future kitchen remodel.
Budget more than you think you’ll need. It's a good idea to add extra money to your project’s budget for unexpected expenses. Ask contractors how much wiggle room they think is reasonable when you’re gathering quotes.
Account for a future sale. If you plan to sell the home, consider how much your taste should factor into the kitchen update. For example, if you plan to sell in the next five years, consider changes both you and a future buyer might find appealing.
Prioritize updates. Prioritize your budget based on which updates are the most important. For example, top-of-the-line cabinets — which can be the most expensive part of a remodel — might not be a good use of your budget if your main goal is to knock down a wall and make more space.
Last updated on May 8, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Kitchen Remodel Loans: Compare Financing Options
- SoFi Personal Loan: Best for Kitchen remodel loans
- LightStream: Best for Kitchen remodel loans
- Wells Fargo Personal Loan: Best for Kitchen remodel loans
- Upgrade: Best for Kitchen remodel loans
- LendingClub: Best for Kitchen remodel loans
- PenFed Credit Union Personal Loan: Best for Kitchen remodel loans
- Rocket Loans: Best for Kitchen remodel loans
- Best Egg: Best for Kitchen remodel loans
