Written by: Eric Bank
Edited by: Lillian Guevara-Castro
Your past financial challenges shouldn’t prevent you from getting loans to fix up your house with bad credit. In fact, we’ve identified nine home repair loans that can help you fix, renovate, and redecorate your home.
Whether you have a leaky roof, tired landscape, or a shabby old couch, many lenders are waiting to offer you a bad credit loan.
Personal Loans to Fix Up Your House
Borrowers often overlook personal loans as financing options when considering how to spruce up their homes. But they are a type of unsecured loan and have the very real benefit of not using your home as collateral.
The following six bad credit loan networks can get you money quickly and give you repayment terms with affordable monthly installments that won’t put your home ownership at risk.
1. MoneyMutual
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
MoneyMutual remains our top pick among personal loan networks. To prequalify for a personal unsecured loan to fix up your home, you must demonstrate income of at least $800 per month from any dependable source. Once you prequalify, MoneyMutual will hook you up with a direct lender to finish the application process and get you your money as soon as the next business day.
2. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
CashUSA.com can prequalify you for a personal loan if you are a U.S. resident earning an after-tax income of $1,000 a month or more. It takes only five minutes to request the loan and get connected to a lender specializing in helping consumers with bad credit. With the loan proceeds available as soon as the next business day, a personal loan arranged by CashUSA.com is much faster than a home equity loan.
3. BillsHappen®
- Quick loans up to $5,000
- Submit one form, get multiple options
- All credit ratings welcome
- Requires bank account and SSN
- As seen on CNN, FoxNews, and others
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $5,000 | Varies | Varies | See representative example |
BillsHappen facilitates personal loans via its direct online lender network. To prequalify, you must be a U.S. citizen or permanent resident, 18 or older, and have a reliable monthly income. You can use the loan proceeds for any purpose, including purchasing new appliances for your kitchen or refurbishing your bedroom.
- Loans from $250 to $5,000
- Cash deposited directly into your account
- Get money as soon as tomorrow
- Bad credit OK
- More than 750,000 customers since 1998
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $250 to $5,000 | Varies | Varies | See representative example |
You can prequalify for a CreditLoan personal loan by completing a short loan request form. You’ll receive an immediate decision and, if approved, will be transferred to a direct lender’s website. Because the loan turnaround time is so quick, CreditLoan can be a timely solution to a broken hot water tank or storm damage to your roof.
- Loans from $500 to $10,000
- Get connected with a lender
- Simple form & quick funding
- Get your money as soon as next the business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 60 Months | See representative example |
Tribal and state-licensed lenders have been working with Bad Credit Loans since 1998 to provide personal loans to consumers with less-than-perfect credit. The company can prequalify your loan application and direct you to a loan provider in minutes. You can prequalify if you satisfy the company’s age, income, and residency requirements.
- Loans from $1,000 to $35,000
- Large lender network
- Fast loan decision
- Use the loan for any purpose
- Funding as soon as one business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
Available in all 50 states, PersonalLoans provides a lender-matching service that can arrange larger personal loans. That can come in handy when you face some major home repairs or want to add new space to your old house. To prequalify, you must reside in the United States, be age 18 or older, and earn at least $500 per month.
Home Equity Loans to Fix Up Your House
The following three resources can be quite helpful if you prefer to use a secured loan to repair your home. Bear in mind that your home serves as collateral to this type of loan, meaning you can forfeit your home if you default on the loan.
But if you are willing to take on that risk, home equity loans are cheaper than personal loans when you have bad credit.
7. eMortgage
- Get today’s mortgage rates from the top mortgage lenders and banks
- Easily compare and choose mortgage lenders with no obligations or fees
- Review current mortgage rates side by side
- Pick mortgage lenders that meet your specific needs
- Compare rates from pre-qualified and approved mortgage lenders — 100% online, 100% free
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1979 | 4 minutes | 8.5/10 |
Our top pick, eMortgage®, is an independent comparison service that works with a lender network to provide home refinancing loans. By filling out a short loan request form, you can get multiple quotes in minutes. With eMortgage®, you can get a secured loan based on your home’s equity to unlock money for repairing or renovating your home at a reasonable interest rate.
- Options for home purchase or refinance
- Get 4 free refinance quotes in 30 seconds
- Network of lenders compete for your loan
- Trusted by 2 million+ home loan borrowers to date
- Interest rates are near all-time lows
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 2004 | 4 minutes | 8.5/10 |
FHA Rate Guide is an online service that provides directory information about mortgage loan offerings and home equity loans. The company is private and not a part of the Federal Housing Administration. However, it can recommend lenders that offer either an FHA mortgage or home repair loans guaranteed by the FHA, and are available to folks with any type of credit.
- Easy to OwnSM programs give options for those with lower income, limited credit history, and low down payment needs.
- Provides the potential for minimal out-of-pocket expenses with seller contributions.
- Offers loans that don’t require monthly mortgage insurance.
- Requires less cash upfront for your down payment and closing costs.
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1852 | 6 Minutes | 8.0/10 |
Wells Fargo Home Mortgage serves all credit types, including homeowners with a minimum credit score below 620. This lender offers conventional mortgage options as well as home equity loans and home equity lines of credit based on the equity you’ve built up in your home. It is a direct lender offering various loan options, including FHA and conventional loans, for just about every homeowner’s need.
Can I Get a Home Improvement Loan With Bad Credit?
All the reviewed resources mentioned in this article work with consumers who have bad credit. While having a minimum credit score may mean you’ll have to pay a higher down payment, a higher annual percentage rate, and more fees, it need not cut you off from the market for home equity loans.
The six personal loan networks cater to consumers who have had previous credit challenges. They work with lenders that have years of experience finding ways to accommodate the needs of those with low credit scores and a troubled credit history.
In most cases, you can prequalify for an unsecured personal loan by showing a minimal amount of income, as low as $500 per month. Of course, the more income you can show, the easier it will be to receive loan approval.
A home equity loan or a home equity line of credit (HELOC) requires you to own your home. Moreover, you must have equity in your home, which is the excess of the home’s value above the current mortgage loan balance.
Home equity loans are a great way to finance home repairs, renovations, and additions. The interest rates are usually low, but not as low as those for primary mortgages.
Lenders often set a borrowing limit of 80% to 95% of your equity, in case they must assume the expenses of foreclosing on your home. The 5% to 20% cushion helps the lender recoup at least some of its costs when a homeowner defaults on a loan.
Home equity loans are collateralized by the underlying property, so credit history is usually only a secondary factor for a bad credit home loan. But you can still expect your credit report from each major credit bureau to be reviewed. Of course, you won’t have any luck getting a home equity loan if you are in the midst of foreclosure or bankruptcy proceedings.
How Can I Get a Loan to Fix My House?
The two approaches we discuss in this article can both provide you the loan proceeds you need to fix up your home.
If you’d like to use a personal loan, you can review the summaries we provide of six loan networks and find out more information by clicking on the START NOW links. It’s important that you read all the loan disclosure material before applying for an unsecured personal loan or any other type of home improvement loan.
To get a personal loan, fill out the short loan request form and submit it. The form asks basic questions regarding you, your income, and your expenses. Once submitted, you’ll receive an instant decision on whether you prequalify for the loan.
Successfully prequalified consumers will then be switched to the website of a direct lender on the loan network where you’ll be asked for additional information on the lender’s application.
You are under no obligation to submit the form or to accept any loan you are offered. In fact, the entire process doesn’t cost you anything and only takes a few minutes. Because it’s all done online, you can explore each loan option from the comfort of home, not in the office of some loan officer.
If you receive loan approval, you’ll get a written offer containing all the rates and terms. You can accept the loan by supplying your electronic signature after you’ve read the information thoroughly.
You may have to pay an origination fee separately or have it included in the loan. The loan proceeds will be wired to your bank account, usually by the next business day.
Your other choice is to apply for a bad credit home loan, which is like a second mortgage, or refinance your existing mortgage. Many homeowners with an FHA loan choose to use the agency’s streamline refinance program.
Streamline refinances require only limited borrower credit documentation and underwriting. The requirements include:
- You must already have an FHA-guaranteed mortgage that is up to date (not delinquent).
- The refinancing must provide the borrower with a net tangible benefit, such as a better interest rate or longer loan term.
- You cannot cash out more than $500 from an FHA loan refinancing. The way they help you fix up your home is by reducing your monthly payment so you can apply the money elsewhere.
Because of the cash out limit with FHA refinancing, many home fixer-uppers instead apply for an FHA 203k loan, which includes extra funds to pay for improvements to the energy efficiency of your home.
Of course, you can apply for a home loan (sometimes called a hard money loan or a construction loan) directly from a bank or online lending institution. Many offer very competitive loan programs to homeowners of every credit stripe.
How Hard Is it to Get a Home Renovation Loan?
It’s not hard to get a home equity loan. All you really need is a sufficient amount of equity in your home and be willing to pay the closing fees on the loan.
When you take out a home equity loan, you grant a lien to the mortgage lender, which can seize your home if you default. While this may make you uncomfortable, it’s the key to unlocking your home’s equity no matter your credit score.
Personal loans vary in their ease of access. It’s very hard to get a personal loan from a bank unless you are one of its best customers. However, online loan networks specialize in personal loans to consumers with a bad credit score.
You can use your personal loan to fix up your home without granting a lien to the mortgage lender. A bad credit score may limit the amount you can borrow, but it need not cut off all access to personal loans.
How Much Can I Borrow With A Low Credit Score?
If you are a homeowner who qualifies for a home loan, you can borrow up to 100% of the equity in your property. Most lenders set a slightly lower limit of 80% to 95% of your equity, just to be on the safe side.
Your equity increases when you reduce your mortgage balance and/or your home appreciates in value. Usually, you’ll need to have your home reappraised by the lender as part of the borrowing process.
Personal loan amounts vary by lender. For example, PersonalLoans will lend up to $50,000. However, the amount available to folks with bad credit is considerably smaller.
Nonetheless, you should be able to borrow $1,000 to $2,000 from a personal loan network even if you have bad credit. While that may not finance a new wing on your home, it can pay for a new refrigerator when the old one finally dies.
Another alternative is to use a credit card to pay for home repairs. However, if you have bad credit, you’ll face several obstacles:
- You may have a very low credit limit, as is usually the case for cardholders with bad credit. If you have a credit limit of $200 to $300, you may be able to buy some paint to redecorate a room or two, but major projects are out of the question.
- You probably have a high annual percentage rate. Consumers with bad credit can expect a credit card APR of 25% to 36%. This makes credit card debt quite expensive unless you repay the balance with each monthly payment.
In sum, using a credit card as a rehab loan when your credit is poor may be problematic.
Compare Loans to Fix Up Your House With Bad Credit
Our review of nine loans to fix up your house with bad credit showcases two types of loans that fit the bill. The first type is a personal loan, which doesn’t require collateral, but will probably be limited to a modest amount.
Home equity loans are the second way you can get a home rehab loan. You can get some limited help from an FHA mortgage, but a bank or credit union will give you more options. Home equity loans are less dependent on your credit history and credit score, depending instead on the equity in your home.
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