U.S. Bank Extends Home Improvement Loan Terms to Address Affordability

Regional bank boosts max loan durations to 6-7 years as remodeling boom faces affordability headwinds.

Mar. 30, 2026 at 8:53pm

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U.S. Bank is extending the maximum terms on its home-improvement loans to six or seven years, up from five years previously. The move aims to help merchants and borrowers tackle affordability challenges in the face of rising costs for consumers. Experts say growing affordability concerns could impact the home renovation industry, even as increased home equity provides some momentum for remodeling projects.

Why it matters

As affordability becomes a top concern for many American households, U.S. Bank's extension of home improvement loan terms is a strategic move to support the remodeling market. This comes at a time when rising costs for goods, housing, and other essentials are creating headwinds for consumer spending on home renovations.

The details

U.S. Bank's $692.3 billion-asset parent company announced it would offer loan terms of six and seven years to borrowers engaged in larger home-improvement projects, up from five years previously. 'By extending loan terms for home improvement purchases, we're helping merchants tackle affordability challenges head-on, drive higher conversion, and deliver financing experiences customers can trust,' said Emily Hartye, head of U.S. Bank Avvance and point-of-sale lending.

  • In October 2023, U.S. Bank launched its Avvance buy-now-pay-later platform for home improvements and other spending categories.
  • In January 2023, the Pew Research Center found that 62% of Americans were very concerned about the cost of housing.

The players

U.S. Bank

A regional bank based in Minneapolis that is extending the maximum terms on its home-improvement loans.

Emily Hartye

Head of U.S. Bank Avvance and point-of-sale lending, who said the loan term extensions will help merchants and borrowers address affordability challenges.

Robert Dietz

Chief Economist at the National Association of Home Builders, who said increased home equity has allowed more homeowners to finance remodeling projects.

Home Depot

A leading source of supplies and materials for renovation jobs, which reported a 3.8% decline in sales between November and January compared to the previous year.

Joint Center for Housing Studies at Harvard University

Estimated that annual remodeling spending jumped from $404 billion in 2019 to $611 billion in 2022 and stayed above $600 billion each year through 2025.

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What they’re saying

“By extending loan terms for home improvement purchases, we're helping merchants tackle affordability challenges head-on, drive higher conversion, and deliver financing experiences customers can trust.”

— Emily Hartye, Head of U.S. Bank Avvance and Point-of-Sale Lending

“The surge in home equity has allowed more home owners to finance remodeling projects that meet their needs, which include growth for aging-in-place remodeling projects.”

— Robert Dietz, Chief Economist, National Association of Home Builders

What’s next

U.S. Bank plans to continue expanding its Avvance platform and partnership with Skeps to broaden access to longer-term payment options for home improvement projects.

The takeaway

U.S. Bank's move to extend home improvement loan terms is a strategic response to growing affordability concerns that could impact the remodeling industry. By providing more flexible financing options, the bank aims to support merchants and consumers as they navigate rising costs and economic headwinds.