GreenSky Loans Overview 2023

GreenSky Loans is a Goldman Sachs firm that works solely with its GreenSky Professional contractors, that means with a purpose to get a house enchancment mortgage you should be working with a contractor who makes use of GreenSky financing providers.

GreenSky Loans itself will not be a lender, however as an alternative works as a go-between connecting you, the home-owner, and federally insured banks to search out the very best financing choice in your challenge.

It’s a totally different solution to get a house enchancment mortgage than it’s possible you’ll be used to. This text will clarify the variations, plus execs and cons, to let if this lender is best for you.

What Is GreenSky Loans?

GreenSky is a service supplier for contractors and different distributors that enables them to supply their prospects residence enchancment loans to finance their residence enchancment tasks. Situated in all 50 states, GreenSky has funded over 22 billion in shopper loans, funding every little thing from kitchen remodels and deck rebuilds to HVAC installations.

Not like different private loans, you’ll be able to’t merely apply for a GreenSky mortgage on-line. As an alternative, every little thing should undergo a “GreenSky Professional” (a contractor or service provider who makes use of GreenSky’s monetary providers).

The contractor will provide help to fill out a kind, apply for the mortgage, after which, as soon as the mortgage funds, has direct entry to the GreenSky direct cost card known as a Buying Cross. This streamlines the method, serving to your contractor have fast entry to funds in order that your challenge can proceed with out a hitch.

One small draw back we’ve discovered with GreenSky is as a result of every little thing is run by the contractor, GreenSky’s web site will not be marketed for the common shopper. All the knowledge is directed at contractors, making some shopper data tough to search out. Fortunately, we dove into the wonderful print and FAQs and located a very powerful data you want earlier than you join a GreenSky Mortgage.

Methods to Apply for a GreenSky Dwelling Enchancment Mortgage

In case your contractor or vendor has supplied you a house enchancment mortgage by GreenSky, then making use of is straightforward. To begin, all you want is to be a minimum of 18 years outdated and have a U.S. handle, social safety card, and driver’s License.

Should you match these fundamental standards, the contractor can take an image of your driver’s license and the mortgage software will auto-populate.You then simply add in some pertinent data like your Social Safety quantity, annual earnings and requested mortgage quantity after which the appliance is full.

From there, GreenSky will approve or deny your software after a verify of your credit score historical past and presumably even fund the mortgage the identical enterprise day.

Even if you’re initially denied, GreenSky will robotically ship you an alternate provide known as an Instantaneous Counteroffer (ICO). This can be a good function for these with lower than good credit score because it doesn’t require one other exhausting credit score pull which may harm your credit score rating.

How Does the GreenSky Mortgage Work?

A GreenSky Dwelling Enchancment Mortgage works in a different way than a private mortgage that different on-line lenders provide as a result of it capabilities extra like a bank card than a lump sum mortgage.

Mainly, when you’re authorized for a mortgage, you obtain a digital GreenSky direct cost card known as a Buying Cross. This 16-digit go works like a bank card with the contractor submitting bills for approval. Then, GreenSky sends a textual content or an e-mail to you for authorization of the acquisition and as soon as licensed, the expense is paid for.

Whilst you do apply for a mortgage quantity and thus have a credit score restrict, you don’t should take all the cash out without delay and are solely accountable for what you spend on your property enchancment challenge. Needless to say GreenSky will decline any purchases that aren’t immediately associated to the house enchancment challenge.

From there you might have 4 to 6 months (relying on the mortgage’s phrases) to make use of the cardboard for residence enchancment purchases.

Forms of GreenSky Loans

With regards to your precise mortgage, GreenSky will give you a number of decisions, relying on whether or not you’re what GreenSky calls a “money purchaser” or a “funds purchaser.”  Mainly, GreenSky has loans which might be useful should you’re planning on paying off the mortgage shortly or loans which have decrease rates of interest should you’re planning on paying the mortgage off somewhat bit at a time.

Your contractor ought to go over all of your mortgage choices along with your particular month-to-month funds and rates of interest, however a fundamental understanding of the several types of loans supplied will provide help to make an knowledgeable determination.

GreenSky Deferred-Curiosity Loans

Greatest for Fast Payoff

Key Options

  • Deferred curiosity
  • Larger curiosity than different choices

GreenSky provides deferred-interest loans that means that you can keep away from paying curiosity throughout a set promotional interval of 6 to 24 months. Should you repay the deferred-interest mortgage in full earlier than the promotional interval ends, you keep away from paying curiosity all collectively. If not, you pay the curiosity that accrued throughout that interval and something that continues to accrue after.

GreenSky Deferred-Curiosity Loans

Rate of interest ranges

6.99% to 29.99%

Minimal credit score rating

None disclosed

Mortgage quantities

As much as $65,000

Reimbursement Schedule

Promotional interval of 6 to 24 months then a time period as much as 7 years


$39 account activation charge

Extra Info About GreenSky Deferred-Curiosity Mortgage

A deferred-interest mortgage works by deferring the curiosity till after a set interval is over. Whereas this implies you may have the ability to keep away from paying curiosity, that doesn’t imply the curiosity doesn’t exist. 

Mainly, in the course of the promotional interval, curiosity is billed to you, however you’re not accountable for paying for it till that set interval is over. Should you repay the mortgage in the course of the promotional interval, the curiosity is waived and also you keep away from paying curiosity in any respect. But when not, you’ll should pay all of the curiosity that accrued to date and something that continues to accrue after. 

Every billing interval, the invoice will present the mortgage stability, the curiosity billed (even should you’re not accountable for it but), and the date that the promotional interval ends. This lets you maintain observe of the curiosity even should you’re not accountable for it but. 

Some GreenSky deferred-interest loans require minimal funds in the course of the promotional interval and a few don’t – simply take note of your particular mortgage phrases to grasp your particular mortgage. Needless to say paying the minimal cost is not going to repay the mortgage earlier than the promotional interval ends, so that you’ll have to pay greater than the minimal funds to keep away from paying curiosity.

GreenSky’s web site doesn’t specify precise curiosity ranges, however we discovered a number of printed charge sheets for GreenSky retailers. The charges are aggressive  however on the upper aspect. So, whereas it’s an ideal selection should you’re planning on paying off the mortgage in the course of the promotional interval, you may find yourself paying a lot of curiosity should you don’t. 

GeenSky Diminished-Fee Loans

Greatest for Longer Reimbursement Intervals

Key Options

  • As much as 12-year compensation interval
  • APR 0% to 11.99%

GreenSky provides a Diminished Fee Mortgage with aggressive charges and lengthy compensation intervals. A GreenSky Diminished Fee Mortgage is an efficient mortgage choice if you’ll want longer than just a few months to repay your mortgage.

GeenSky Diminished-Fee Loans

Rate of interest ranges

0% to 11.99%

Minimal credit score scores

None disclosed

Mortgage quantities

As much as $65,000

Reimbursement Schedule

As much as 12 years


$39 account activation charge

Extra Info About GeenSky Diminished-Fee Loans

With aggressive charges and lengthy compensation intervals, a GreenSky Diminished Fee Mortgage may be a very good choice if you’ll be able to’t repay your mortgage shortly.

Whereas GreenSky does declare to supply curiosity free loans for individuals with good credit score, most everybody will find yourself with an rate of interest of some form. GreenSky’s web site doesn’t checklist particular rate of interest ranges, however a number of printed charge sheets for GreenSky retailers present charges starting from 5.99% to 11.99%.

We’d love extra data on the GreenSky web site itself, however these charges are aggressive and we like that the GreenSky Professional ought to stroll you thru all of your choices together with the specifics in your month-to-month cost earlier than you formally signal for the mortgage.

Simply do not forget that each forms of loans have a $39 origination charge that’s charged along with your first month-to-month cost.

GreenSky Break up-Fee Loans

Greatest for Photo voltaic Panel Financing

Key Options

  • Splits mortgage into two separate loans
  • Deferred curiosity and low rates of interest

GreenSky Break up-Fee Loans are supplied to individuals working with a GreenSky Power Effectivity Service provider. With this mortgage, you basically break up your mortgage into two separate loans, maximizing the advantage of every kind.

Extra Info About Break up-Fee Loans

Rate of interest ranges

0% – 29.99%

Minimal credit score rating

None disclosed

Mortgage quantity

As much as $65,000

Reimbursement Schedule

As much as 12 years


$39 account activation charge

A GreenSky Break up-Fee Mortgage permits individuals to separate their whole authorized credit score restrict into two separate loans: a deferred curiosity mortgage and a lowered charge mortgage. With this mortgage, most individuals plan on paying off the deferred curiosity portion in the course of the promotional interval. This capitalizes on the promotional 0% curiosity then the remaining mortgage has a decrease rate of interest that may be paid off extra slowly.

A GreenSky Break up-Fee Mortgage particularly works for vitality tasks like photo voltaic panels as a result of most individuals anticipate a tax break or rebate with set up–which they then use to cowl the deferred curiosity mortgage.

Simply bear in mind you’re getting two separate loans, and also you’re obligated to pay for each no matter whether or not you find yourself getting the anticipated tax break or rebate.

Alternate options to GreenSky Loans

Should you’re not working with a GreenSky Professional or just wish to take a look at different choices to cowl your property enchancment prices, take a look at some alternate options under or learn our greatest methods to finance your property enhancements.

Dwelling Fairness Mortgage

A safe mortgage like a house fairness mortgage may be a very good choice to cowl your property enhancements for a decrease price. As a result of residence fairness loans use your property as collateral you usually get decrease rates of interest which might make borrowing extra reasonably priced. The draw back is your own home is in danger, in order all the time we recommend you learn the mortgage paperwork rigorously to grasp what you’re signing up for.

Different Private Mortgage Lenders

It’s all the time value procuring round to see what charges you may get from different lenders. Whereas most private loans are particularly for residence enchancment tasks, you’ll be able to merely apply the mortgage to your challenge. Many on-line lenders additionally mean you can pre-qualify so that you could verify their charges forward of time with out affecting your credit score rating, making it simple to match totally different choices.

Credit score Playing cards

Should you’re taking a look at a smaller challenge, a bank card may cowl your property enchancment bills. Many playing cards provide 0% curiosity throughout a promotional interval very like GreenSky, however not like GreenSky, you’re not penalized with retroactive curiosity should you don’t repay your mortgage from the promotional interval. Be sure that to learn the wonderful print should you go this route as a result of many bank cards have excessive APRs after the promotional interval.

Execs and Cons of GreenSky Loans

GreenSky generally is a nice choice should you’re planning on financing a house enchancment challenge and paying it off in the course of the promotional interval. We love the potential for a zero-interest mortgage and even the lowered charge loans have aggressive charges. Simply make sure that to verify your mortgage paperwork rigorously so that you perceive your cost schedule and any charges you may expertise.

Under is how we consider GreenSky Loans stacks up as a complete that will help you resolve if taking out a house enchancment mortgage with GreenSky is best for you.


  • Mortgage funds shortly, even identical day
  • Possibility for zero-interest should you pay the mortgage stability off in promotional interval
  • Joint mortgage supplied
  • No prepayment penalties
  • Prequalifying attainable if you wish to keep away from a tough credit score pull that impacts your credit score rating


  • Should use a GreenSky contractor
  • $39 activation charge
  • Web site is geared towards the contractor

Continuously Requested Questions (FAQ) About GreenSky Loans

Should you’re nonetheless questioning about GreenSky Dwelling Enchancment Loans, take a look at our solutions to essentially the most generally requested questions.

What Credit score Rating Do You Want for a GreenSky Mortgage?

GreenSky doesn’t have a disclosed minimal credit score rating, however usually a good rating or above is required. This doesn’t imply which you can’t apply with spotty credit, simply know that you simply may get the next APR or be denied altogether.

You probably have a spotty credit rating, GreenSky does have an Instantaneous Counteroffer service that may be useful. In brief, should you’re denied for the mortgage you requested for, they’ll ship a counteroffer as another choice, all supplied with out a second credit score pull. 

We love that GreenSky has this provide for these with spotty credit, however in the end the higher your rating the higher your provide from GreenSky.  Should you’re trying to enhance your rating, take a look at these methods to enhance your rating this yr.

Who Owns GreenSky Financing?

Goldman Sachs acquired GreenSky, LLC in 2021. Whereas Goldman Sachs owns GreenSky, the precise financing of GreenSky’s loans goes by many alternative federally insured banks all through the nation.

The quick reply is sure. The lengthy reply is extra sophisticated. GreenSky has achieved loads in the previous couple of years to earn the belief of its prospects, however GreenSky has run into some bother within the final couple years. 

In 2021, the Client Monetary Safety Bureau (CFPB) introduced a go well with in opposition to GreenSky for permitting contractors to take out loans for his or her prospects with out the purchasers authorizing them. In brief, individuals had been having loans taken out of their identify by their contractors with out their information or consent. 

CFPB believes that GreenSky was a minimum of conscious of the issue and didn’t take the correct actions in opposition to it. CFPB is requiring GreenSky to refund or cancel 9 million in loans, pay a $2.5 million civil penalty, and create new procedures to keep away from it taking place sooner or later.

Now, GreenSky coaching supplies remind retailers repeatedly that they will’t request a mortgage with out a buyer’s consent. It’s apparent that GreenSky is doing its finest to forestall any future issues. 

Contributor Whitney Hansen covers banking and investing for The Penny Hoarder. She additionally writes on different private finance matters.

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