How To Use a Personal Loan for Home Improvement Projects

A woman lays new wood flooring in her home after being approved for her home equity line of credit.

Are you envisioning a refreshed kitchen, a cozy nook in your living room, or finally fixing that leaky roof to make your house truly feel like home? Home improvement dreams can become reality, but there’s always the question of the best way to pay for it. Luckily, there's a solution that might just fit the bill: personal loans for home improvement projects.

For military families, finding the right financing option can be a challenge. But personal loans for military members offer a flexible and accessible solution for those looking to enhance their living spaces. In this blog, we’ll explain how personal loans work and how they can be beneficial for home improvement projects.

What Are Personal Loans?

A personal loan is a sum of money that individuals can borrow from a bank, credit union, or online lender to address personal expenses.

Unlike loans for specific purposes like buying a car or a house, personal loans can be used for many different things such as consolidating debt, making home improvements, covering medical bills, paying for holiday expenses, or funding PCS moves.

How Personal Loans Work

Personal loans, unlike some other types of loans, are usually unsecured. That’s why you may also hear them referred to as “unsecured personal loans.

In an unsecured loan, borrowers aren't required to provide valuable assets such as a house or car as collateral. Instead, lenders evaluate the approval of a personal loan based on factors such as the borrower's credit score, credit history, income, and repayment capacity. Utilizing this data, lenders determine both the interest rate and the loan amount available to the borrower.

With a personal loan, you’ll most likely have a fixed interest rate. This means that the interest stays the same for the entire loan term. The loan term, by the way, is the length of time over which you’ll be paying back the loan. Typically, most loan terms are between one and five years, but they can be longer. It just depends on the lender and what you agree on. Throughout the loan term, the borrower makes monthly payments to pay off the loan balance.

How Are Personal Loans Beneficial for Home Improvement?

While there are many different types of loans out there – and some are specifically designed for home improvement – personal loans have a few unique benefits.

First of all, personal loans afford flexibility regarding loan amounts and repayment terms. Whether you're dreaming of a big renovation project or just a minor upgrade, you can customize the loan amount to meet your precise needs. Additionally, you have the freedom to choose a repayment period that aligns with your budget and financial goals.

A personal loan also allows you to preserve your home equity so it can be used in other cases, such as emergencies or future investments. Unlike home equity loans or home equity lines of credit (HELOCs), which leverage your home as collateral, personal loans grant access to funds without depleting the equity in your home.

And with personal loans, you can get your hands on the cash faster than some other loan types that drag you through paperwork and evaluations. In many cases, all you have to do is fill out your loan application online, and boom! Approval can roll in within just a few days. That means you can dive right into your home improvement plans without waiting around.

Armed Forces Bank Access Loans for Your Home Improvement Project

Turn your plans into reality with the financial support of a military personal loan from Armed Forces Bank. Offering quick and hassle-free access to funds, the Armed Forces Bank Access Loan ensures fast approvals, easy funding, and flexible credit options tailored to military members, whether active duty, retired, or existing bank customers.

You can use your personal loan for your home improvement project and more –  making significant purchases, paying off debt, covering unexpected expenses, etc. – all without the burden of high-interest credit cards.

With borrowing options ranging from $250 to $15,000, fixed terms and rates for confident budgeting, and the convenience of automated payments, Armed Forces Bank provides a seamless lending experience.

Plus, for those with limited credit history or less-than-perfect credit, Armed Forces Bank offers expanded borrowing options to meet your needs. Apply online in minutes, and if you're an existing customer, your loan proceeds will be quickly deposited into your account.

Join the family-owned bank committed to serving military families since 1907, and let Armed Forces Bank help you achieve your financial goals with their flexible and transparent personal military loans.

Ready to get started on your home improvement project?

Existing customers can apply for our Access Loan in just minutes. If you are new to Armed Forces Bank, a new checking account will be setup first and then your loan proceeds will be deposited there. 


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Subject to credit approval. Restrictions Apply. Direct deposit relationship required. Origination fee, 10% or $100 whichever is less. Annual Percentage Rate (APR) is based on credit score. Only one personal loan allowed to any borrower at any time. Loan terms are based on the loan amount.