Discover the ease of home improvement loans

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Imagine the possibilities with a home improvement loan

Home Renovation and Home Improvement Loans through Prosper

Enjoy a pool or a new deck

Give yourself a place to relax and have fun every day.

Install energy efficient appliances

Lower your utility bills with solar panels, new washers, dryers, refrigerators, and more.

Increase your home value

Invest now with the help of a home improvement loan and boost your equity.

Redecorate your home

Freshen up your furnishings, rethink your color scheme, or redesign your lighting.

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Since 2005, over 1 million people have chosen Prosper to access low interest4 personal loans.

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3 quick steps to get your Home Improvement Loan

  • Prosper | Safe & Secure Low Interest Home Renovation and Home Improvement Loans through Prosper

    1. CHECK YOUR RATE

    Securely share your basic financial information to see what interest rate you may qualify for

  • Prosper | Flexible Online Home Renovation and Home Improvement Loans through Prosper

    2. CHOOSE YOUR MONTHLY PAYMENT

    Choose the loan length to customize your monthly payment and rate that work best for you to pay off over 3 years or 5 years.3

  • Prosper | Fast Next Business Day Online Home Renovation and Home Improvement Loans through Prosper

    3. GET YOUR FUNDS

    Receive your money lightning-fast1 through direct deposit

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“So it really is just a deck. But my new deck is attached to my home, and when I sit out there I am reminded of the power of my own mind—and my heart.” #MyProsperStory

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Frequently Asked Questions (FAQs) about Personal Loans for home improvements & renovations

Find answers to our community’s questions below, or visit our Help Center to learn more.

How much can I borrow for my home improvement?

When you apply for a home improvement loan through Prosper, you may be able to access home improvement financing anywhere between $2,000 and $40,000.2

The more complex question may be: how much will you need to borrow for your home improvement or home renovation project? Budget is top of mind for most people renovating or improving their home. When you estimate the costs of your project, it’s good to add an additional portion of expenses on top of your budget to account for unexpected costs.

How do home improvement loans work?

A home improvement loan is an unsecured personal loan taken out to finance home improvement or renovation.

Home improvement loans through Prosper are a versatile way to finance making your house feel more like a dream home. Just like other types of personal loans, a home improvement loan through Prosper has a fixed interest rate and a set monthly payment. You agree to repay it over one of the terms that you choose in your offer. Personal loans for home improvement through Prosper have no pre-payment penalties, so you can pay the whole thing off early and save on interest.

What type of loan is best for home improvement?

The best home improvement financing option depends on your situation. The most common methods are construction loans, personal loans, home equity loans, or home equity lines of credit.

It’s important to understand the differences between these four home improvement financing options to understand which is best for you.

Construction loans can be used to build a new home, add an addition, or renovate the home you’ve got. Whatever the project, in order to qualify, your lender will want to see evidence of a construction timeline, detailed plans, and a realistic budget. Keep in mind that it is usually harder to qualify for a construction loan than it is to obtain a mortgage or qualify for the other two loan types, but the size of a construction loan may be considerably larger than what is typically associated with personal loans for home improvements. Additionally, most construction loans come with variable interest rates and short terms. You’re generally expected to pay off the loan as soon as the construction project is complete.

Personal loans for home improvement (variously referred to as home renovation loans, home improvement loans, home improvement financing, home repair loans, and home remodel loans) are considerably more flexible than a construction loan. You don’t need to secure this kind of loan with any collateral, and you don’t need to own your home in order to get this kind of loan. You can use a personal loan for home improvement to buy new furniture or renovate your kitchen.

A home equity loan (aka HELoan) is a home financing option that requires borrowers to own their home. Home owners are able to tap into the equity they’ve built in their home (calculated by subtracting whatever they still owe on their mortgage from the estimated total value of their home). HELoans are generally large lump sum loans which borrowers will start repaying as soon as they receive the funds.

A home equity line of credit is a revolving source of funds that functions much like a credit card. Unlike a home equity loan, a HELOC does not involve closing costs and usually has a variable rate.

[1] https://www.bankrate.com/mortgages/construction-loans-explained/

Is a home improvement loan tax deductible?

Personal loans for home improvement are not tax deductible, but different types of loans for home improvement can be.

Home improvement loans can be tax deductible if they meet the following criteria:

  • If your home is used to secure the loan.
  • If the loan is used to improve the home. You cannot use the loan for repair or maintenance.
  • Lastly, the deduction amount cannot exceed $375,000 in a single filing. The limit is $750,000 if you’re filing jointly.

A personal loan is unsecured, meaning you do not use your home as collateral to secure a personal loan for home improvement. Unsecured personal loans for home improvement are not eligible for tax deductions because your home is not used to secure the loan.

A home improvement is a modification to the home that increases its value. Some examples of what the IRS defines a home improvement in this category include:

  • Energy efficiency improvements
    • Solar panels
    • Water heaters
    • Small wind turbines
    • Improving doors and windows
  • Accessibility improvements
    • Exit/entrance ramps
    • Expanding hallways and doorways
    • Installing lifts between floors
  • Improvements that raise retail value
    • Building additions
    • Finishing a basement
    • Finishing an attic
    • Adding bathrooms
    • Adding a swimming pool

Some examples of what the IRS defines as a repair (and is thus not tax deductible) include:

  • Replacing broken windowpanes or door frames
  • Fixing damaged flooring/carpet
  • Repairing/fixing broken hardware

This is not to be construed as tax advice and we recommend consulting with a tax professional for more information.

Is a home improvement loan worth it?

According to renofi.com, home improvement projects provide an average return on investment of 70%. Different projects will affect the value of your house in different ways.

It’s important to do your research to discover what kinds of home renovations or improvements provide the most value. Everyone has their own preferences, and preferences often change over time. According to renofi.com some of the most profitable renovation/improvements include but are not limited to:

  • Finishing a basement
  • Replacing a garage door
  • Repairing a home’s exterior
  • Replacing carpet with solid flooring
  • Adding a bathroom or making a bathroom more accessible
  • Kitchen renovations

Making improvements to your home’s energy efficiency can provide a return value regardless of whether you sell to recoup the investment. Solar panels and energy efficient appliances can significantly reduce the cost of utilities.

Learn more about financing home improvements & renovations

Check out these posts from Prosper’s blog to learn more about financing home improvement & renovation and decide what’s right for you