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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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Last updated on December 13, 2023
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✅ Fact checked and reviewed
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✅ Fact checked and reviewed
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One of the most important decisions of a kitchen remodel comes before you even start: 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 the price of the project, your credit, how much equity you have in your home and your goal with the renovation.
Here are our picks for kitchen remodel loans, the pros and cons of getting one and other options to consider.
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NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Why trust NerdWallet
- 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.
NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Limited-Time Offer
EXCLUSIVE OFFER
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Don't miss out on a better rate
Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 4/30/24. Click on "View details" for offer terms*.
SoFi Personal Loan
5.0
NerdWallet rating
Est. APR
8.99-29.99%
Get a 0.50% discountLimited-time offer
Loan amount
$5K-$100K
Min. credit score
None
on SoFi's website
View details
Kitchen Remodel Loans: Compare Financing Options
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Est. APR ▾ ▾ | Loan amount ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
|---|---|---|---|---|---|
Limited-Time Offer SoFi Personal Loan Top 3 most visited 🏆Visit Lenderon SoFi's website on SoFi's website Read Reviewon NerdWallet on NerdWallet | 5.0 /5 Best for Kitchen remodel loans Rate discount | 8.99-29.99% Get a 0.50% discountLimited-time offer | $5,000-$100,000 | None | Top 3 most visited 🏆Visit Lenderon SoFi's website on SoFi's website Read Reviewon NerdWallet on NerdWallet |
Upgrade Top 3 most visited 🏆Visit Lenderon Upgrade's website on Upgrade's website Check Rateon NerdWallet on NerdWallet | 5.0 /5 Best for Kitchen remodel loans Rate discount | 8.49-35.99% | $1,000-$50,000 | 560 | Top 3 most visited 🏆Visit Lenderon Upgrade's website on Upgrade's website Check Rateon NerdWallet on NerdWallet |
LightStream Top 3 most visited 🏆Visit Lenderon LightStream's website on LightStream's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Kitchen remodel loans Rate discount | 7.99-25.49% | $5,000-$100,000 | 660 | Top 3 most visited 🏆Visit Lenderon LightStream's website on LightStream's website Check Rateon NerdWallet on NerdWallet |
Wells Fargo Personal Loan Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Kitchen remodel loans | 7.49-23.74% | $3,000-$100,000 | None | Check Rateon NerdWallet on NerdWallet |
LendingClub Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Kitchen remodel loans Flexible payments | 8.98-35.99% | $1,000-$40,000 | 600 | Check Rateon NerdWallet on NerdWallet |
PenFed Credit Union Personal Loan Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Kitchen remodel loans | 7.99-17.99% | $2,000-$50,000 | 700 | Check Rateon NerdWallet on NerdWallet |
Best Egg Visit Lenderon Best Egg's website on Best Egg's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Kitchen remodel loans Secured loans Wide range of loan amounts | 8.99-35.99% | $2,000-$50,000 | 600 | Visit Lenderon Best Egg's website on Best Egg's website Check Rateon NerdWallet on NerdWallet |
Rocket Loans Visit Lenderon Rocket Loans' website on Rocket Loans' website Check Rateon NerdWallet on NerdWallet | 4.0 /5 Best for Kitchen remodel loans Fast funding Rate discount | 9.12-29.99% | $2,000-$45,000 | 640 | Visit Lenderon Rocket Loans' website on Rocket Loans' website Check Rateon NerdWallet on NerdWallet |
Our pick for
Kitchen remodel loans
Limited-Time Offer
EXCLUSIVE OFFER
AD
Don't miss out on a better rate
Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 4/30/24. Click on "View details" for offer terms*.
on SoFi's website
on NerdWallet
SoFi Personal Loan
5.0
NerdWallet rating
Est. APR
8.99-29.99%
Get a 0.50% discountLimited-time offer
Loan amount
$5,000-$100,000
Min. credit score
None
Visit Lenderon LightStream's website
on LightStream's website
Check Rateon NerdWallet
on NerdWallet
LightStream
4.5
NerdWallet rating
Est. APR
7.99-25.49%
Loan amount
$5,000-$100,000
Min. credit score
660
Check Rateon NerdWallet
on NerdWallet
Wells Fargo Personal Loan
4.5
NerdWallet rating
Est. APR
7.49-23.74%
Loan amount
$3,000-$100,000
Min. credit score
None
Visit Lenderon Upgrade's website
on Upgrade's website
Check Rateon NerdWallet
on NerdWallet
Upgrade
5.0
NerdWallet rating
Est. APR
8.49-35.99%
Loan amount
$1,000-$50,000
Min. credit score
560
Check Rateon NerdWallet
on NerdWallet
LendingClub
4.5
NerdWallet rating
Est. APR
8.98-35.99%
Loan amount
$1,000-$40,000
Min. credit score
600
Check Rateon NerdWallet
on NerdWallet
PenFed Credit Union Personal Loan
4.5
NerdWallet rating
Est. APR
7.99-17.99%
Loan amount
$2,000-$50,000
Min. credit score
700
Visit Lenderon Rocket Loans' website
on Rocket Loans' website
Check Rateon NerdWallet
on NerdWallet
Rocket Loans
4.0
NerdWallet rating
Est. APR
9.12-29.99%
Loan amount
$2,000-$45,000
Min. credit score
640
Visit Lenderon Best Egg's website
on Best Egg's website
Check Rateon NerdWallet
on NerdWallet
Best Egg
4.5
NerdWallet rating
Est. APR
8.99-35.99%
Loan amount
$2,000-$50,000
Min. credit score
600
What is a kitchen remodel loan?
A kitchen remodel loan is a personal loan that you use to pay for a kitchen renovation. You get this type of loan in a lump sum and repay it, plus interest, in monthly installments.
Loan amounts range from $1,000 to $100,000, and repayment terms are typically two to seven years. Rates are from 6% to 36%.
These loans don’t require collateral, meaning approval and the loan’s annual percentage rate are based on information like your credit and income.
» MORE: Best personal loans for home improvement
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.
» MORE: Personal loans vs. home equity loans
Home equity loan
A home equity loan is a second mortgage that you get in a lump sum and repay in fixed monthly installments for a term of up to 15 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 who have less-than-perfect credit but 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 that you draw from as you need it over a period of up to 10 years. 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 estimate isn’t firm or when surprise expenses come up. If you get a personal loan and then unexpected remodeling costs come up, you can’t borrow more.
» MORE: Best HELOC lenders
Steps to get a kitchen remodel loan
Get a 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 what loan amount and rate you could be approved for. Because this process doesn’t affect your credit score, you can pre-qualify with multiple lenders to compare offers.
Compare lenders. If you get two similar offers, compare loan features like funding time, repayment term options and credit-building assistance to break the tie.
Submit an application. 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 when you apply, which will cause your credit score to temporarily dip. Expect a decision within a day or two of applying.
» GET STARTED: Pre-qualify on NerdWallet
Financing a kitchen remodel with a personal loan: Pros and cons
Pros
No collateral: With an unsecured personal loan, you don’t have to use the home as collateral, so the lender doesn’t have the right to take it if you fail to repay.
Fast funding: Some lenders can fund a personal loan the same or next day after you apply. Most personal loans are funded within one week.
Cons
Rates may be high for bad-credit borrowers: Because your credit history is a key factor on a personal loan application, borrowers with bad credit scores (629 or lower) may not qualify, or may qualify for an APR on the high end of a lender’s range.
No tax benefits: Unlike with home equity loans and lines of credit, you can’t claim a tax deduction on the interest you pay on a personal loan.
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. Financial planners also recommend homeowners plan to stay in the home long enough for the monthly savings to exceed the cost of refinancing.
» MORE: Find a lender that offers cash-out refinances
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
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 or additions. Some contractors say homeowners should expect to spend as much as 20% more than they’re quoted, but it can vary by project. Ask contractors how much wiggle room they think is reasonable when you’re gathering quotes.
» MORE: How to save on your kitchen remodel
Account for a future sale. If you’re planning 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 December 13, 2023
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
