Get a $240,000 Personal Loan: Find and Qualify for a Large Loan

What are the payments on a $240,000 personal loan?

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Can you qualify for a $240,000 personal loan?

Yes, if your financial profile is strong. At this level, lenders take a closer—and broader—look at your credit, income, and existing debt than they would for a smaller loan.

But that deeper review is also what makes a large, unsecured loan possible without collateral. Knowing what underwriters weigh most helps you shop prepared.

Here’s what to expect. 

Credit score requirements

Lenders offering unsecured personal loans of $240,000 typically look for prime credit or super-prime credit profiles. That usually translates to a FICO score of 700 or higher, with the lowest APRs going to scores of 740 and up. If your score sits a bit lower, approval is still possible, but typically at less favorable terms.

Payment history factors heavily into your credit score, so a good track record will help you qualify for the best rates. Recent delinquencies, high credit utilization, multiple recent hard inquiries, and a short credit history all work against you for a loan this size.

With personal loan prequalification (which involves a soft credit pull with BHG), you can see the rates and terms you qualify for without impacting your credit score.² It's a useful way to comparison shop and set expectations for the full application.

Debt-to-income ratio

Debt-to-income ratio (DTI) measures your total monthly debt obligations as a percentage of your gross monthly income. Many lenders look for a DTI below 36%, though this varies by lender and credit profile.

At $240,000, a lender will evaluate your existing obligations closely, including your mortgage or rent, car payments, student loans, credit card minimums, and any other installment debt.

Certain factors can improve your odds even if your DTI is on the higher end. These include high verifiable income, a stable earnings history, significant cash reserves, and a long track record of on-time payments.

Lenders serving high-income borrowers, such as BHG Financial, evaluate your entire financial profile and may be more willing to offer large personal loans to borrowers with elevated DTIs.

Documentation checklist

Having your paperwork ready keeps things moving and helps you get funded faster. 

Most lenders will ask for:

• Government-issued photo ID
• Proof of income (W-2s, 1099s, or recent tax returns)
• Recent pay stubs or bank statements (typically the last two to three months)
• A complete list of current liabilities
• Business ownership documentation, if applicable (business tax returns, profit and loss statements)

Some lenders, including BHG Financial, design the application process to minimize paperwork. At BHG, a dedicated U.S.-based loan specialist guides you through each step, and approval decisions can come in as little as 24 hours.³

An unsecured personal loan isn't the only path to borrowing $240,000. If your credit profile, DTI, or income doesn't align with unsecured underwriting requirements (or the quoted APR isn’t ideal), secured alternatives may offer lower rates in exchange for collateral.

HELOC or home equity loan

Home equity financing typically carries lower interest rates than unsecured personal loans because your home secures the debt.

A HELOC gives you a revolving credit line to draw from as needed, while a home equity loan hands you a lump sum at a fixed rate. Both options require sufficient equity. Most lenders allow borrowing up to 85% of your home's appraised value minus your outstanding mortgage balance.

The main risk of home equity financing is that your home serves as collateral. The approval process also typically takes several weeks and requires an appraisal, which can be challenging if you need immediate funds. If you're deciding between equity-based borrowing and an unsecured option, it can help to compare HELOCs to personal loans before choosing a lender.

Cash-out refinance

A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash.

Rates are often lower than unsecured personal loans, but closing costs can be substantial, and the process takes longer—typically 30 to 45 days. It also resets your mortgage term, which affects your long-term interest costs.

Blended approach

Combining a smaller unsecured personal loan with a home equity product can help you reach $240,000 while keeping each loan within a lender's individual limits. While this adds complexity, including multiple payments and fee structures, it may provide a lower blended rate than a single unsecured loan with a high APR.

The core trade-off with these equity-based approaches is speed and collateral. Unsecured personal loans protect your assets, and funds typically arrive in days instead of weeks. Secured products generally offer lower rates, but put your property at risk and take longer to close.