As a homeowner, you have a range of borrowing options. Personal loans, which are not secured against your home, are a solid financial choice for fast, flexible funding, often at fixed interest rates. Here are some of the best lenders offering personal loans that can be used for a wide variety of purposes.
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PSECU
PSECU is a not-for-profit credit union offering competitive personal loans for homeowners and lower fees than traditional banks, helping to save you money over the lifetime of a loan. Owned by its members, PSECU offers community-focused, digital-first financial services with a strong ethos of fairness, honesty and transparency.
Personal loans are available for up to $20,000 with fast approvals and flexible repayment terms ranging from three months to seven years. Members also benefit from a wide range of financial education resources, helping homeowners make informed borrowing decisions. PSECU also provides a free credit score service and a wide range of member-only discounts to help make your money go further.
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Best for: |
Pennsylvania homeowners or those eligible for membership who are looking for low rates and an alternative to traditional banking. |
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SoFi
A key player in the online lending space, SoFi is known for its member perks and financial advice services. Its personal loans come with low fixed rates and no prepayment penalty fees or late fees. Funds can be available on the day your loan is approved.
SoFi offers personal loans for up to $100,000, which are ideal for large home improvement projects or larger debt consolidation. Repayment periods range from two to seven years. There is also a reward points scheme, with rewards redeemable as cash or loan payments.
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Best for: |
Homeowners with excellent credit, a stable income and a need for a larger loan. |
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Upstart
Upstart is an AI-powered lending platform that partners with over 100 banks and credit unions to provide personal loans for homeowners based on more than just your credit score. Its algorithms will take into account factors such as your education and employment history when assessing your creditworthiness, and their AI systems are robustly trained to avoid bias.
Borrowers can get loans up to $50,000 and repay over three or five years, with no prepayment fees. Instant approvals are offered and once approved, funds will be in your bank account within 24 hours.
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Best for: |
Homeowners with limited credit or non-standard history. |
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LightStream
A division of Truist Bank, LightStream is known for its Rate Beat Program, where, if conditions are met, they will beat a competitor’s interest rate by 0.10%. Applications are fast and easy, and loans are available from $5,000 to $100,000 for almost any purpose.
LightStream aims to reward good credit and says that its customers typically have a strong credit history, evidence of an ability to save, and a stable income. Loans are approved the same day, and funds are typically also made available the same day.
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Best for: |
Homeowners with good to excellent credit, looking for low rates and a straightforward loan. |
How to Choose the Best Personal Loan for You
As with any financial decision, deciding what lenders offer the best personal loans needs some research and due diligence. There are a number of factors to consider when you are seeking a personal loan and it is important to remember that loan terms and availability will vary based on your individual circumstances.
Review these criteria before deciding on a lender, and always review their terms and conditions carefully before applying.
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Interest Rates: |
Look for the lowest possible APR and compare rates across multiple lenders. |
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Fees: |
Take note of origination fees, prepayment penalties, late payment fees or other loan charges. |
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Repayment Terms: |
Consider the length of the repayment term and how this affects the total cost of the loan. Longer terms mean lower monthly payments but more interest paid over time. |
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Credit Score Requirements: |
Check the minimum credit score required to qualify for the loan. |
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Debt-to-Income Ratio (DTI): |
Understand the lender’s DTI, which is the percentage of your monthly income that goes to paying off debts. |
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Loan Purpose: |
Some lenders may have restrictions on how you can use your loan. |
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Lender Reputation: |
Research lender reviews and prioritize good customer service and transparency. |
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Flexibility: |
Find out how flexible repayment options will be in case of financial hardship. |
Securing Your Homeowner Personal Loan
Whether it is for home improvements, debt consolidation or a once-in-a-lifetime vacation, a personal loan can be a good financial choice.
Research loan providers carefully and choose the one that is right for you, taking into account the above criteria and your personal financial circumstances.
