Deciding to renovate or remodel your home is an exciting decision. Not only can remodeling projects increase your home’s value, but they also allow you to customize your living space to match your lifestyle and taste. However home remodels and renovations often come with a hefty price tag. If you don’t have the available cash to fund the project out-of-pocket, you may need to finance your home remodeling dream with a loan.
Discover offers personal loans and home equity loans that provide affordable financing options for home improvement projects of all sizes. Keep reading to learn more about using a Discover loan for your home remodel.
Overview of Discover Home Improvement Loan Options
Discover offers the following loans that can help finance home remodeling projects:
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Personal Loans – Unsecured loans from $2,500 to $35,000 for home improvements. Quick application and funds available in as little as 24 hours.
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Home Equity Loans – Loans using your home equity as collateral. Borrow $35,000 to $200,000 for home remodeling.
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Cash-Out Refinance – Refinance your mortgage and take cash out to pay for home renovations.
Let’s take a closer look at the key details of each loan option.
Discover Personal Loans
A Discover personal loan is an unsecured loan that offers fast access to funds. Here are some key features:
- Loan amounts from $2,500 to $35,000
- Fixed rates from 6.99% to 24.99% APR
- Terms from 24 to 84 months
- No home equity or collateral required
- Online application with funds available in as little as 1 day
Personal loans are a great option if you need a smaller loan amount (up to $35,000) quickly and don’t want to use home equity. The unsecured structure also means there is no risk of foreclosure.
Discover Home Equity Loans
Discover home equity loans allow you to leverage your home’s equity for larger remodeling projects. Key features include
- Loan amounts from $35,000 to $200,000
- Competitive fixed interest rates
- Long repayment terms up to 20 years
- Use for remodeling, repairs or any other purpose
- Tax deductible interest payments
Tapping into your home’s equity can provide more affordable financing for bigger home remodels compared to high-interest credit cards or personal loans.
Discover Cash-Out Refinance
A cash-out refinance lets you refinance your existing mortgage into a larger loan to pull cash out for home renovations. With Discover, you can potentially get over $100,000 in cash.
Benefits of a cash-out refinance include:
- Access to your home equity without another loan
- Potentially lower interest rate than original mortgage
- Consolidate high-interest debts during refinance
The major downside is closing costs, which can be 2-5% of the total loan amount. Run the numbers to see if a cash-out refi makes sense for your situation.
How Much Can You Borrow for a Home Remodel?
The amount you can borrow for your home renovation project depends on the loan option:
- Personal Loans – Up to $35,000
- Home Equity Loan – Between $35,000 to $200,000
- Cash-Out Refinance – Up to 80% of your home equity
With a personal loan or home equity loan, the lender will approve you for a specific loan amount based on factors like your income, existing debts, and credit history.
For a cash-out refinance, you can potentially borrow up to 80% of your total home equity, minus your existing mortgage balance.
Run the numbers to estimate how much cash you can get from a refinance using Discover’s cash-out refinance calculator.
Discover Home Remodel Loan Requirements
To qualify for a Discover home improvement loan, you’ll need to meet certain requirements:
For a Personal Loan:
- A minimum individual or household income of $25,000
- Be at least 18 years old
- Have a valid Social Security Number
- Have a credit score of 660 or higher
For a Home Equity Loan:
- A credit score of 620 or higher
- Have sufficient equity in your home
- Meet Discover’s debt-to-income standards
- Provide home value and mortgage details
For a Cash-Out Refinance:
- Have at least 15-20% equity in your home
- Have a credit score of at least 620
- Show sufficient income to support the new loan
Meeting these requirements helps ensure you will get approved and that the loan is affordable.
How to Apply for a Discover Home Remodel Loan
Ready to move forward with your home renovation dreams? Here are quick steps for getting a Discover home improvement loan:
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Check your loan eligibility – Use Discover’s loan calculators to estimate potential loan amounts, payments, interest cost and more.
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Compare loan options – Decide which type of home improvement loan works best for your project.
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Start your application – Complete Discover’s quick and easy online application to get the process started.
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Submit documentation – Provide documents to confirm your income, employment, and home value if required.
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Get a decision – Receive a loan decision as fast as the next business day.
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Review loan offers – Compare multiple loan offers side-by-side if you are pre-qualified for different loans.
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Accept your loan – Review final terms, e-sign documents, and get funds deposited directly into your bank account.
The online process is convenient and completing a single application provides loan offers for multiple products. This saves you time instead of applying separately for a personal loan, home equity loan, and refinance.
Use a Discover Loan to Create Your Dream Home
As you can see, Discover offers flexible home improvement loan options including personal loans, home equity loans, and cash-out refinancing.
Borrowing against your home’s equity can provide more funds at lower rates compared to unsecured loans or credit cards. Just keep in mind the home is collateral for the loan.
For quick access to smaller amounts, an unsecured personal loan up to $35,000 is a great alternative with funds available in as little as 1-2 days.
Ready to turn your home into the house of your dreams? Check your rate with Discover today to get personalized home improvement loan offers to finance your next remodeling project!
Best for fast funding
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Annual Percentage Rate (APR)
7.99% to 24.99%
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Loan purpose
Debt consolidation, home improvement, wedding or vacation
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Loan amounts
$2,500 to $40,000
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Terms
36, 48, 60, 72 and 84 months
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Credit needed
Good
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Origination fee
None
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Early payoff penalty
None
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Late fee
$39
- No origination fees, no early payoff fees
- Same-day decision (in most cases)
- Option to pay creditors directly
- 7 different payment options from mailing a check to pay by phone or app
- Late fee of $39
- No autopay discount
- No cosigners or joint applications
Whos this for? Discover® Personal Loans is ideal for those who need funding in a pinch for a home renovation thats more of an emergency since borrowers can receive their funds as early as the next business day. Of course, to get your funds quickly, you must submit an application that is complete and doesnt contain errors (youll also want to make sure the loan is funded on a weekday).
Standout benefits: Discover® doesnt charge an origination fee for its personal loans.
Best for long repayment terms
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Annual Percentage Rate (APR)
8.99% – 29.49% when you sign up for autopay
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Loan purpose
Debt consolidation/refinancing, home improvement, relocation assistance or medical expenses
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Loan amounts
$5,000 to $100,000
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Terms
24 to 84 months
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Credit needed
Good to excellent
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Origination fee
No fees required
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Early payoff penalty
None
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Late fee
None
- No origination fees required, no early payoff fees, no late fees
- Unemployment protection if you lose your job
- DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
- Can have more than one SoFi loan at a time (state-permitting)
- May accept offer of employment (to start within the next 90 days) as proof of income
- Co-applicants may apply
- Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
- No co-signers allowed (co-applicants only)
Fixed rates from 8.99% APR to 29.49% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Whos this for? SoFi offers repayment terms that are longer compared to those of most other lenders: Borrowers have 24 to 84 months to pay back the loan. This can be ideal for borrowers who favor smaller monthly payments over a longer repayment term.
Standout benefits: SoFi offers personal loan amounts up to $100,000, making it ideal for those who have more costly, higher-lift home improvement projects to take on.
Home Improvement Loan: Financing a Bathroom Remodel :30 | Discover
FAQ
How hard is it to get a Discover home equity loan?
What credit score do you need for a home renovation loan?
What is the maximum loan amount for Discover Home Loans?
What are the benefits of a home loan from discover?
Benefits of a home equity loan or mortgage refinance from Discover include low fixed interest rates and $0 application fees, $0 origination fees, $0 appraisal fees, and $0 costs due at closing.
Can discover® personal loans help you plan a home renovation project?
Or maybe you have an emergency repair? Discover® Personal Loans has resources to help you plan for your next home renovation project. If you’re a homeowner, there’s a decent chance the idea of tackling a renovation project has crossed your mind.
How do I get a home improvement loan?
To get a home improvement loan, you’ll need to determine your budget, compare loan options and shop around for rates, choose a loan type that best suits your needs, and apply for the loan. Home equity loans, home equity lines of credit (HELOCs), and cash out refinances all require similar steps for approval.
How much does a discover personal loan cost?
For example, if you get approved for a $15,000 loan at 13.99% APR for a term of 72 months, you’ll pay just $309 per month. You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan.