Home improvement loan rates are dependent are a number of factors. The most common factor is borrower credit rating and score but that is not the only thing to consider. You must also consider the type of loan that you are interested in and the scope of the project that will be done. Many of the underwriting considerations look at total risk factor of the loan and the ability of the borrower to repay the obligation. Unsecured loans have a higher risk to the lender than do secured loans but the secured loan option is not as common unless you are thinking about an equity based loan.
Home improvement loan rates can be broken down into two categories. The two most common home improvement loans are credit cards for home improvement and unsecured loans for home improvement. Rates for home improvement credit cards can be as low as 0% for 18 months. This is a very popular option with both consumers and contractors. These types of cards are often called same as cash or buy now and pay later.
The industry is moving away from this type of language since the recent credit card reform legislation. Do not worry though, there are still quite a few fantastic 0% credit cards that are available for home improvement projects. The second type of home improvement loan is what is called an unsecured loan. Unsecured home improvement loans simply mean that there is no collateral need to secure the lenders interest. Rates for these types of loans can vary for as low as 4.99% to the much higher depending on credit, loan amount and overall risk. The best way to determine what 0% cards and unsecured rates you would qualify for is to use the simple search function to determine what is available to you and in your state.