Debra Calnan
Debra Calnan, Lamacchia Realty, Inc.Phone: (508) 282-1458
Email: dcalnan@lamacchiarealty.com

Home improvement loans with bad credit: A quick guide to your options

by Debra Calnan 01/27/2025

Person on tablet

A good credit score is a basic requirement for traditional home loans, but can you get home improvement loans with bad credit? Home improvement loans meant specifically for remodeling, renovating or repairing your home have similar financial requirements, but can offer a bit more flexibility. Here are the important things to know:

What credit score is needed for a traditional home improvement loan?

Lenders generally require a minimum credit score of 660-700 to qualify for a home improvement loan. While some approve lower scores, the trade-off is usually a much higher interest rate on the loan.

Can I get a renovation loan with bad credit?

The Federal Housing Administration (FHA) offers loans for borrowers with lower credit scores. If you need financing with lower credit, both the FHA 203(k) renovation loan and FHA Title I loan programs are worth investigating.

How can I borrow against my house with bad credit?

To borrow against your house, you need to take out a home equity loan or a home equity line of credit (HELOC). These options use your home as collateral, and allow you to borrow money against the total value. Home equity loans are better for large, one-time projects, while a HELOC is more helpful for funding smaller ongoing projects.

How to build up your credit to get a home improvement loan?

The best ways to build and increase your credit score are to:

  • Enable automatic bill pay to guarantee on-time payments.
  • Avoid "hard checks" on requests for new credit cards or loans.
  • Improve your debt to income ratio.

Unfortunately, improving your credit score won't happen overnight. If you're in need of a time-sensitive renovation, consider these options for obtaining financing - regardless of your credit history.

About the Author
Author

Debra Calnan

Hi, I am Debra Calnan, I have been an active member of my community for over 30 years and I am so excited to be turning that community focus toward Real Estate. My decision to enter the field of Real Estate evolved from a life long love of helping others and a desire to be part of a business that helps guide them through one of the biggest investments of their lives. I enjoy helping people Sell their home and Buyers find the right home and guide them through the process to make those dreams become a reality.

I am down to earth, hard-working and a person of integrity. I am also dedicated to great client services. Allow Lamacchia Realty to guide you through the real estate process. We are here to help make the process go as smooth and stress-free as possible. We think of our clients like family and hope that our first transaction turns into a long term relationship where you will want to refer me to your family and friends.