Best Secured Home Improvement Loans For Good & Bad Credit

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Why TGUC For Secured Home Improvement Loans?

Estimate your project cost
Use our Cost Estimator technology to receive real time market data for similar projects in your area.
Doesn’t impact credit score
Get your personalized loan offers within minutes – fast financing with great rates and terms.
Competitive loan options

Secured Home Improvement Loans up to $100,000; Terms up to 15 years; Competitive APR’s.

Choose a contractor
Finalize your project with a TGUC Financial vetted & approved contractor. For your convenience we will pay the contractor directly on your behalf.

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"I was so happy that TGUC provided a vetted contractor. This service saved me a TON of time, headache and money because I was able to get my work done quickly and within my budget."

-Courtney S., Salt Lake City, Utah

How TGUC Works For
Secured Home Improvement Loans

1 Pre-qualify

Fill out a form online to pre-qualify with no impact to your credit score.

2 Select offer

You receive an offer from TGUC directly since we fund loans.

3 Receive funding

After loan approval, your funds will arrive and the home improvement project starts.

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Why Secured Home Improvement Loans Are a Good Idea

If you have collateral to borrow a loan for your home improvement project, then secured loans are for you. Secured loans for home improvement projects will make your home collateral and allow you to borrow money for home improvements. Secured loans are different from unsecured personal loans since the lenders require an equity percentage.

A recent survey reported that personal loans and home equity loans are more budget-friendly than using credit cards for home improvement projects. If you have enough equity percentage in your home, borrowing a secured loan is the best option. This article covers what a secured home improvement loan is and its benefits.

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Are Home Improvement Loans Secured by Property?

Not all home improvement loans are secured by the property because a homeowner can also borrow an unsecured personal loan for home improvement without making their home collateral. A homeowner must make their property as collateral to borrow secured loans for home improvement projects.

A credit score is not the only criteria for borrowing secured loans. To borrow a secured home improvement loan, you need a good credit score and equity percentage. 

If a homeowner is not able to pay the money back, then it leads to foreclosure. Secured loans benefit homeowners who have fewer credit scores and need a substantial amount to spend on large home improvement projects.

Are Home Improvement Loans Secured or Unsecured?

Homeowners can borrow both secured and unsecured loans for home improvement projects. Home equity loans, a home equity line of credit, and cash-out refinance come under secured loans while personal loans are unsecured and you don’t need to have an equity percentage or collateral to borrow unsecured personal loans.

Homeowners can borrow both secured and unsecured loans for home improvements. There are several home improvement loans with fewer requirements for homeowners. Choosing a financing option for home improvements depends on the financial history and budget of a homeowner.

Can I still get a secured home improvement loan with bad credit?

Getting a home improvement loan with bad credit is a challenging task because having excellent credit is a significant criterion to qualify for secured home improvement loans. You can still apply for secured loans if you have bad credit, but you must meet the following requirements:

Home equity loan requirements are a good credit score, 20% of home equity, and a stable income. If you want to borrow a home equity loan with bad credit, you must have a low debt-to-income ratio.

Debt to income ratio is the difference between your monthly income and the debts you pay. A debt to income ratio of less than 28% is enough for borrowing money with a bad credit score. If the DTI exceeds more than 28%, then you can’t borrow a home equity loan with bad credit.

Best secured home improvement loans

Home Equity Loan

Home equity loans allow homeowners to borrow money against the property. If you are borrowing a large amount, the monthly payments differ from the equity loans. For instance, the interest rate for a 50,000 home equity loan is a 4.75% interest rate. A home equity loan, also known as consumer debt, is the difference between the current value of the home and the balance in the mortgage.

Home Equity Line of Credit

A home equity line of credit is similar to a credit card payment because your home secures your line of credit and you can borrow money against it. A homeowner can borrow up to 85% of the equity in their homes with the home equity line of credit.

In this loan option, homeowners have variable interest rates where that fluctuate every month.

Cash-out Refinance

Cash-out refinance is another secured loan option that replaces the existing loan amount with a new mortgage. Equity percentage is one of the significant criteria to borrow the cash for home improvements in the cash-out refinance option.

Many homeowners use cash-out refinance for their home improvement projects to reduce the interest rates of their primary mortgage.

Which is better, a secured or unsecured home improvement loan?

Many homeowners experience confusion when choosing between secured loans and unsecured loans for home improvement projects but choosing the financing option with fewer requirements for home improvement is the best choice.

If you borrow a secured loan for home improvement, you must make your home collateral and have an excellent credit score. You can borrow a lump sum in secured home improvement loans like home equity loans, but if you are not able to pay the amount back, then the loan lenders will seize your property. 

On the other hand, an unsecured personal loan doesn’t have as many requirements as secured loans. Income verification is one of the significant requirements while borrowing an unsecured loan. TGUC Financial offers unsecured personal loans for home improvements with a low credit score and no extra fees. 

If you are going to choose unsecured home improvements loans with bad credit, TGUC Financial is a suitable option for you. 50,000 secured home improvement loan terms differ for both secured and unsecured loans. For secured loans, the term is up to ten years and for unsecured loans, the loan term is up to seven years.

Three Benefits of a secured home improvement loans

Secured home improvement loans benefit homeowners in various ways if they have collateral, including: 

  • Since you are borrowing money with collateral, you don’t need an excellent credit score for borrowing secured home improvement loans because the minimum credit score requirement for borrowing secured loans is above 600.
  • Homeowners who have large renovations need to borrow a lump sum and secured home improvement loans offer higher loan amounts for homeowners with an 80-90% of equity percentage.
  • The interest rates in secured loans are both fixed and variable. For instance, a home equity line of credit has variable interest rates. If you borrow a secured home improvement loan, then you have the option to borrow both fixed and variable rates.

How do I qualify for a secured home improvement loan?

To qualify for a secured home improvement loan, you must fulfill the requirements below:

Credit History

Homeowners don’t need an excellent credit score while borrowing secured loans but, having a good credit history is necessary. Loan lenders will check your payment history and length of credit history while lending you the loan amount.

Debt to Income Ratio

If you want to borrow secured loans with bad credit scores, the debt to income ratio is significant. The borrowers should check their debt to income ratio before borrowing for making improvements.


Collateral plays a vital role in borrowing secured loans. If you don’t have enough equity percentage or assets as security, you will not qualify for the loans.

Identity Proofs

Having identity proof will make you qualify for the home improvement loans faster. Birth certificates, citizenship certificates, drivers’ licenses, passports, and state-issued IDs are important identification proofs to borrow secured loans.

Income Verification

Income verification is the basic requirement in borrowing for both secured and unsecured loans for home improvement projects. Lenders require bank statements, debt history, and tax information to qualify you for borrowing the loan.

Secured Loans

The home equity loans, home equity lines of credit, and cash-out refinancing are secured loans. If homeowners want to borrow from a secured loan, they first have to qualify for all the requirements. Secured loan options will ask for an excellent credit score, an equity percentage, and they may make you use your home as collateral.

Financing your home with equity loans is a good idea, but a homeowner should also consider the risk of foreclosure in home equity loans.

A homeowner can choose the cash-out refinancing option if they are looking for a loan with low-interest rates. Cash-out refinancing is a mortgage loan that has different loan terms for a new mortgage, there is a risk of foreclosure with this option, too.

Borrowers of secured loans will have a longer repayment period You have to make your home as collateral, there is a risk of foreclosure
Homeowners have lower interest rates in few secured loans financing options. This is an added advantage. Homeowners cannot use the loan amounts for every renovation. Secured loans have a specific purpose.
Homeowners can borrow a lump sum since you make your home as collateral. Homeowners should have an excellent credit score
If you have a good source of income, you have tax deductions. The interest rates might fluctuate in secured loan options. Example: HELOC(Home Equity Line of Credit)
Homeowners have a credit utilization advantage in the secured cash-out refinance option. Homeowners have to pay higher closing costs and origination fees in some secured loan options.


If you have an excellent equity percentage and collateral, you can choose among the secured loans option listed above. However, a homeowner will also be able to borrow a loan without collateral in the unsecured loan option. Determine your budget and choose the option that suits your home improvement project.

Borrowing a loan for home improvement is always the best choice to increase the value of your home in the market. We hope you have learned what a secured home improvement loan is and how to qualify for it in this article.

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Frequently Asked Questions

Do we have closing costs in the secured home improvement loans?

Yes. Homeowners have closing costs between 2-5% in the secured loan option.

What is the monthly payment for a 50,000 home equity loan?

The average monthly payment for a 50,000 home equity loan is $524.


What is the maximum equity percentage to borrow the equity loans?

The homeowners can borrow up to 85% of the equity in their homes. 

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