Lenders offer unsecured loans based on your credit or secured loans based on your property’s equity. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers.

If you’re doing your project over time, a HELOC allows you to use credit as you need it. Home equity loans and HELOCs often come with lower interest rates than personal loans—but you’ll need to consider closing costs. Like home equity loans, HELOCs are secured by the borrower’s home, and homeowners can commonly borrow up to 85% of their home’s value—less their outstanding mortgage balance. Lenders also typically prefer borrowers to have at least 20% equity in their home to be eligible for this type of financing. HELOCs also require a lengthier underwriting process, which can be more costly and time-consuming than a simple personal loan.

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Before securing a loan, you should know exactly how much money you need to pay for all project costs. Unless you have a HELOC, you only receive funding once — so don’t guesstimate. Knowing your credit score in advance can help determine if you qualify, preventing unnecessary loan applications and credit inquiries if you don’t meet their criteria. Selecting the right loan requires considering your project’s scope, your credit profile, your home equity, and your ability to repay the loan.

• We found that Choice Home Warranty has mixed online reviews, with numerous complaints on the BBB as of this writing, but nearly four stars on Trustpilot.
• Most have a holiday mode, which allows you to reduce the need for the HVAC system during long periods of absence.
• Interest rates can vary significantly based on your credit score, income, and the lender’s terms.
• Local government programs may offer additional financing options or incentives for home improvements, particularly for energy efficiency upgrades.