If you think you’re ready to tackle a major home improvement project, your first question may be how to pay for it. Whether you need to get a new roof or renovate your whole house, a home improvement loan can help you access the money to make it happen.
But qualifying for home improvement loans with bad credit can be a challenge. That doesn’t mean you’re completely out of luck, though. Here’s what you need to know.
The Best Bad Credit Home Improvement Loans of 2020
Bad Credit Home Equity Loans for Home Improvement
Bank of America: Best lender with no minimum loan amount.
loanDepot: Best lender for borrowers with FICO scores as low as 500.
Guild Mortgage: Best lender for financing up to 97% of your home’s appraised value.
SunTrust Bank: Best lender for online loan comparison, application and documentation.
Methodology: The best bad credit home improvement lenders are selected based on consumer ratings, minimum FICO credit scores and product availability.
Best lender with no minimum loan amount.
- Mortgage types offered: Conventional, VA, FHA, refinance, home equity
- Minimum FICO score: 620
- Maximum loan-to-value ratio: 100%
- Maximum debt-to-income ratio: 55%
- Loan amounts: Up to $5,000,000
- Total closing costs: Varies
- J.D. Power overall satisfaction rating: Four out of five
Bank of America has a wide variety of mortgage products.
The lender offers annual percentage rate or closing cost discounts for qualifying Bank of America and Merrill Lynch clients.
Home equity lines of credit have no annual, balance transfer or cash advance fees or closing costs.
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Best lender for borrowers with FICO scores as low as 500.
- Mortgage types offered: Conventional, FHA, VA, ARM, Refinancing (conventional), Refinancing (FHA), Refinancing (VA), Home equity loans
- Minimum FICO credit score: 500 with conditions
- Maximum debt-to-income ratio: 43% for FHA
- Maximum combined loan-to-value ratio: 90%
- J.D. Power satisfaction rating: Four out of five
LoanDepot mortgages have a lifetime guarantee, which means if you ever decide to refinance an existing loanDepot loan, the company will waive the lender fees and reimburse appraisal fees.
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Best lender for financing up to 97% of your home’s appraised value.
Before You Apply
- Mortgage types: ARMs, conventional, FHA, jumbo, manufactured home, refinance, reverse, USDA and VA
- Minimum FICO credit score: 600
- Maximum loan amount: varies
- Better Business Bureau rating: A+