How Much Can I Get From a Personal Loan?

When planning a home improvement project, securing the right funding can make all the difference in turning your vision into reality. Personal loans offer a flexible way to finance renovations, but you may find yourself wondering, how much can you get a personal loan for? 

The answer depends on several factors that influence loan limits, but with the help of HFS Financial and our network of industry-leading lenders, you could qualify for amounts up to $300,000! 

In this article, we explore the factors to consider when seeking a loan and how financial institutions determine the loan amount you qualify for.

How much can you get from a personal loan?

The maximum personal loan amount available typically varies depending on the lender. For personal loans, amounts often range from $1,000 to $100,000 across most financial institutions. 

However, HFS Financial specializes in securing higher loans for home improvement projects, offering amounts up to $300,000. This can cover anything from minor upgrades like kitchen and bathroom remodels to large-scale renovations such as a full home remodel, a new deck, a pool installation, or any other interior or exterior home improvement project.

The loan amount you qualify for depends on a few key factors, which we’ll cover below.

Factors that influence your loan amount

• Credit score: Your credit score plays a major role in determining how much of a personal loan you can get. Lenders assess your creditworthiness to decide both the amount of the loan and the interest rate. 

Generally, a higher credit score means you’re more likely to qualify for larger loans at better rates. To improve your chances, it’s a good idea to check your credit report for any errors and ensure you’re paying bills on time before applying for a loan.

• Income and employment history: Lenders want to see that you have a stable and sufficient income to repay the loan. A higher income allows you to qualify for a larger loan. 

Additionally, a solid employment history is a positive indicator that helps secure larger loan amounts. HFS Financial evaluates your income and job stability to help you find a loan that fits your financial capacity, potentially up to the max personal loan amount of $300,000.

• Debt-to-income ratio: Your debt-to-income ratio (DTI) is the percentage of your monthly income that goes toward paying debts. A lower DTI ratio signals to lenders that you can manage additional debt, making you eligible for a higher loan amount. 

To increase your borrowing potential, consider paying off some existing debts before applying for a personal loan. Most lenders aim for a DTI ratio of around 36% or lower.

• Lender’s criteria: Different lenders have specific criteria they use to approve loan amounts. At HFS Financial, the focus is on securing loans specifically for home improvement projects, resulting in terms and limits more favorable to homeowners looking to increase property value through renovation.
• Loan purpose: When applying for a personal loan, indicating that it will be used for home improvements can positively influence the approval process. Since home improvements can potentially increase the value of your home, lenders may view these loans as less risky which can help you qualify for a larger amount.

How to estimate your loan eligibility

To get a general sense of how much you can get a personal loan for, it’s essential to consider all the factors mentioned in this article. By checking your credit score, calculating your DTI ratio, and evaluating your income, you can estimate the amount you might qualify for. 

HFS Financial also offers an online loan calculator to help you determine the loan size that fits your project’s budget and financial standing.

Secure the right loan for your home improvement project

Personal loans are a flexible and accessible way to fund your home improvement project, with amounts reaching up to $300,000 with HFS Financial. The loan amount you qualify for will depend on your credit score, income, and debt-to-income ratio, but HFS Financial is here to guide you through the process and secure the best option for your needs.

Ready to take the next step? Contact HFS Financial today to explore personal loan options tailored to your home improvement goals.