12 best home improvement loans for aging in place

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You can use home improvement loans to cover the expenses of any home improvement project without putting your capital at risk. (Shutterstock)

Staying at home as you age is called “aging in place,” and it’s a goal for many Americans. Nearly 90% of Americans over 65 want to stay at home as long as possible, according to a survey by the National Conference of State Legislatures and the AARP Public Policy Institute.

Fortunately, if your goal is to age in place, you don’t have to risk the equity in your property — or your home — to make safety and accessibility upgrades. You can use a personal loan to improve your home.

Credible, it’s easy to view your prequalified personal loan rates from various lenders, all in one place.

What is “aging in place”?

Aging in place means making a conscious decision to stay in your home for as long as possible as you age rather than moving out or moving to an independent living community or assisted living facility.

People who choose to age in place often have to make modifications to their homes to make aging in place more comfortable, if not possible. These upgrades may include installing grab bars or a walk-in shower in the bathroom, widening doorways to accommodate a wheelchair or walker, or replacing exterior stairs with ramps. .

But paying for these home improvements on top of others pension costs can be a challenge.

What is a renovation loan?

A home renovation loan is an unsecured personal loan that you take out to finance home renovations. You will repay the loan in monthly installments at a fixed interest rate for a certain period of time.

Unlike a home equity loan Where home equity line of credit, a home improvement loan doesn’t require you to put your home up as collateral, so it won’t deplete your principal. And if you come across financial problems and you cannot afford to pay, you do not risk losing your house.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit.

Best home improvement loans for aging in place

If you plan to age in place, The following 10 credible partner lenders can help you finance needed home renovations with a home improvement loan:

Best lenders for large loans

LightStream

  • Loan amounts: $5,000 to $100,000
  • Terms: 2 to 7 years (12 years for renovation credits)
  • Minimum credit score: 660
  • Costs: No prepayment, origination or late payment fees

SoFi

  • Loan amounts: $5,000 to $100,000
  • Terms: 2 to 7 years old
  • Minimum credit score: don’t divulge
  • Costs: No prepayment or setup fees

The best lenders for small amounts

LendingPoint

  • Loan amounts: $2,000 to $36,500
  • Terms: 2 to 6 years old
  • Minimum credit score: 580
  • Costs: Setup fee from 0% to 7%; no prepayment penalty

OneMain Financial

  • Loan amounts: $1,500 to $20,000
  • Terms: 2 to 5 years
  • Minimum credit score: None
  • Costs: Setup fees vary by state; no prepayment penalty

The best lenders for good credit

Axos Bank

  • Loan amounts: $10,000 to $50,000
  • Terms: 3 to 6 years old
  • Minimum credit score: 700
  • Costs: Set-up commission from 0% to 2%; $15 late fee; $25 insufficient funds fee; no prepayment penalty

Discover

  • Loan amounts: $2,500 to $35,000
  • Terms: 3 to 7 years old
  • Minimum credit score: 660
  • Costs: $39 late fee; no assembly costs

Marcus of Goldman Sachs

  • Loan amounts: $3,500 to $40,000
  • Terms: 3 to 6 years old
  • Minimum credit score: 660
  • Costs: No application fees, late fees or prepayment fees

Best lenders for bad credit

Before

  • Loan amounts: $2,000 to $35,000
  • Terms: 2 to 5 years
  • Minimum credit score: 550
  • Costs: Administration fees up to 4.75%; no prepayment penalty

Upgrade

  • Loan amounts: $1,000 to $50,000
  • Terms: 2 to 6 years old
  • Minimum credit score: 560
  • Costs: Set-up fee from 2.9% to 8%; no prepayment penalty

Reached

  • Loan amounts: $1,000 to $50,000
  • Terms: 3 to 5 years
  • Minimum credit score: 580
  • Costs: Setup fees from 0% to 10%; a late fee of 5% of the overdue balance or $15 (whichever is greater); $15 ACH return or refund check fee; no prepayment penalty

Other Lenders to Consider

The following two lenders are not Credible partners, so you won’t be able to easily compare your rates with them on the Credible platform. But they may also be worth considering if you’re looking for a home improvement loan.

Federal Naval Credit Union

  • Loan amounts: $250 to $50,000
  • Terms: 3 to 15 years old
  • Minimum credit score: don’t divulge
  • Costs: Late payment and returned payment charges; no setup fees or prepayment penalties

NCP Bank

  • Loan amounts: $1,000 to $35,000
  • Terms: 6 to 60 months
  • Minimum credit score: don’t divulge
  • Costs: No prepayment penalty

Methodology

Credible assessed the best home improvement loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, length of financing, loan terms and fees. Credible’s team of experts gathered information from each lender’s website, customer service, and via email support. Each data point was checked to ensure it was up to date.

Home improvement loan vs home equity financing

A personal home improvement loan is an unsecured loan. It makes it different from home equity loans or home equity lines of creditwho use the real estate of the owners as collateral.

A home equity loan, also known as a second mortgage, lets you borrow against the equity in your home in one lump sum. A home equity line of credit (HELOC) also allows you to borrow against the equity in your property, but you receive the money in the form of a revolving line of credit – similar to a credit card – instead of a lump sum.

Another option is a reverse mortgage, also known as a home equity conversion mortgage. Reverse mortgages are complicated, and if you get sick and have to leave the house for 12 months or more, the lender can cancel the loan, forcing you to sell the house in order to pay off the loan and avoid foreclosure.

Home improvement loans offer a few advantages over home equity loans and HELOCs, including:

  • Don’t deplete your capital — Since unsecured personal loans are not secured by the equity in your home, home improvement loans do not deplete the equity you have accumulated or put your home at risk.
  • Usually faster to secure — Many lenders can approve a home improvement loan within days, compared to two to six weeks for a home equity loan or line of credit. This makes it a good option for home improvement projects with more pressing deadlines.
  • Predictable payments — Most personal loans are fixed rate loans, so you pay them off in predictable monthly payments. HELOCs, on the other hand, are usually variable rate loans. If interest rates go up, your monthly payment goes up, which could make your payments unaffordable.

If you’re ready to apply for a home improvement loan, Credible lets you compare personal loan rates to find the one that suits your needs.

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