Patio Financing: Finance Decks & Patios

What is patio financing?

Patio financing options available to you can help you to cover these high costs in more affordable payments. How you choose to fund your patio project depends on your credit, your income, how much the project is likely to cost, and how much home equity you have available.

What are my options for financing my patio?

Personal Loans

Getting a personal loan is a popular option for patio financing as it does not require you to put your home up as collateral. You can also find personal loans with lower rates that use the value of your home as collateral, but try to avoid this if you can.

With a personal loan from an online lender, the application process is simple and you can typically receive funding within a week or less, so it is a good option if you are looking for fast funding. If you have a good credit rating, you can find good rates and terms, too.

You should be aware that most personal loans require you to have a good to excellent credit score and a low debt-to-income ratio. If you do not meet these requirements, you may still be able to obtain a loan of this type if you select a personal loan that allows for a co-signer.

Most personal loans have terms of 5 to 7 years with loan amounts ranging from $1,500 to $100,000. Many will also come with origination fees up to 5.99% which will be taken away from the full loan amount, in which case you will receive less than you actually applied for.

Home Equity Financing

Home Equity financing options are best if you have enough equity to cover the cost of the new patio and are happy to use your home as collateral. You will find that interest rates are lower than with other financing options, due to the collateral, and this interest is even tax-deductible, although there is a limit.

Home Equity Loans

One Home Equity financing option is to take out a Home Equity Loan. These loans are paid out to you in a lump sum which you are then required to pay back in monthly payments, with the added interest. Home Equity Loans are best used if you know exactly how much you will need to cover the total costs of the home improvement project.

Home Equity Line of Credit

The other Home Equity financing option is a Home Equity Line of Credit or HELOC. This is where you are given a line of credit which you can then draw from as and when you need to, with interest only needing to be paid on the amount you actually use.

This is a good option if you don’t know exactly how much your project is going to cost and you want to be able to cover any unexpected costs easily.

HELOCs typically have an open credit line of up to 10 years with repayment terms up to 15 years. It should be noted that interest rates for this type of financing are variable, so they may rise during your term.

0% APR Credit Cards

As you are probably aware, credit cards often have much higher APRs than most other financing options, however, if you are confident that you will be able to pay off the cost of your new project relatively quickly, a 0% APR credit card is an affordable option.

Many credit cards come with a promotional period, usually of around 3 to 18 months, where any purchases you make during that time are free of interest. This means that you will only have to pay the total cost of the project, with no interest on top, as long as you are able to pay back the full amount within the promotional period.

You will need to have good to excellent credit with a low debt-to-income ratio in order to qualify for the full amount that you need to cover the costs of your new patio.

Be aware that APR is likely to be high after the promotional period has ended, so it is important that you are confident you will be able to make repayments quickly, or at least that you will be able to afford the amount with added interest should you need to.

Mortgage Refinance 

Another option for patio financing is to refinance an existing mortgage. This is likely to be your last resort as it has more risks than other financing options and will take a considerable amount of time to be completed. This is only really the best option if you are looking to finance particularly expensive home improvement projects.

What are the pros and cons of a loan for my patio?

Pros

• a new patio adds value to your home
• patio financing allows you to make more affordable payments, over a long period of time
• a new patio enables you to entertain at home
• a new patio encourages you to spend more time outside

Cons

• loans can be expensive
• taking on debt is a risk if you can’t afford it
• It’s not wise to do if you don’t own the home

Can a Patio be financed?

Yes, a patio can be financed. Building a deck or patio can create additional living space while increasing your home value. While financing may increase project costs, it can still be a smart investment. The 2019 Cost vs. Value Report ranks a deck addition as the fourth most valuable home improvement project for homeowners. So what is the best way to finance a deck? For most homeowners a personal loan is one of the easiest ways to finance a deck. Other options can include home equity loans or a home equity line of credit. You may even be able to find a credit card with a 0% promotional period that can be used for patio financing. Credit card promotional periods are typically 18 months or less. The average cost of building a patio is between $3,000 to $7,000 so you may need more than 18 months to pay off the loan. Some contractors may offer financing. If your contractor offers financing they are most likely providing personal loans for customers. Most personal loans are issued as a lump sum that can be repaid over a certain term with interest. As long as the interest rate is fixed, the minimum monthly payment should not change during the loan term. This can make the loan easy to manage. In addition, you may be able to pay the loan off early and save money on interest.

Is adding a new patio to your home a good investment?

In most cases, adding a new patio will increase home value making it a good investment. In order to maximize your ROI, you should make sure your new deck is built properly using quality materials. A high quality deck that executes style and functional features can be  a wow factor for home buyers. Inman.com reports that professional decks have an average ROI of about 73 percent. They also mention that higher-quality wooden decks tend to have a higher ROI. Decks can also enhance curb appeal, which also increases home value. Inman.com also reports that landscaping can increase home value as much as 28 percent and make it sell much faster. If you use a personal loan to finance a deck, you can borrow up to $100,000. This means you can borrow enough for a high quality deck with features such as an outdoor kitchen finished by landscaping. Homes with an outdoor kitchen can see ROI’s as high as 200 percent depending on the area. 

Is a permit required to build a new patio?

Whether or not a permit is required for building a new patio usually depends on the area. Local governments usually require permits for new construction or renovations. In most areas, the local government determines if you need a permit or not based on the height of the deck. Whether or not the deck is attached to your home or not can also affect the need for a permit. We strongly encourage homeowners to find out from the city if a permit is required based on their plans. Contractors should also know if you need a permit or not. Building a deck without a permit in an area where a permit is required can cost you extra time and money if you get caught. In addition, contractors can lose their licenses if they build without a permit where one is required.

How to pay for a new patio?

A new patio, deck, or patio cover can all be financed, with the choice of a number of different loans. Which funding you choose depends on the amount you are looking to spend and your individual needs, but your options include personal loans, home equity financing, and credit cards.

What is the cost for a new patio?

The total cost for a new patio varies depending on the materials you choose, the size of the patio or deck, and the labor costs.

If you are looking for something relatively basic, gravel and concrete are likely to be the most affordable material options. A gravel patio will cost around $1.40 per square foot and a concrete patio will cost around $8.50 per square foot. Other basic materials, such as vinyl, flagstones, and pressure treat wood, will cost around $15 per square foot.

According to Home Guide, with these more inexpensive materials, you can expect to pay:

• $2,200 for a 10x10 foot patio
• $6,160 for a 14x20 foot patio
• $8,800 for a 20x20 foot patio

If you are looking to add a deck or patio that is made with more premium materials, such as hardwood or composite materials, you can expect to pay at least $30 per square foot. This means that your patio could cost anywhere between $14,000 and $20,000.

Labor alone is likely to cost you $8 to $22 per square foot, and with the added costs of features such as benches, footings, railings, stains, stairs, or posts, and additional fees, such as insurance, property taxes, and permits, adding a patio can be a very expensive project if you’re looking for a premium finish.

What are the requirements for a loan to a new patio?

The requirements for patio financing depends on the type of loan and the lender you choose to work with. That being said, you can expect lenders to look at your personal credit score, your annual income, and debt-to-income ratio, payment history, and how much equity you have, if applicable.

How can I compare personal loans for patio financing?

There are a number of things that should be considered when comparing personal loans for patio financing. This includes:

Requirements

The requirements you meet, as mentioned above, will determine the loan amount you will be able to receive and the interest rate you will be offered. Lenders need to have confidence that you will be able to make your monthly payments, on time and in full, with added interest. Most lenders will require you to have a credit score of at least 650, although you may still be able to find a lender who will offer you a loan with a score lower than this, but interest rates are likely to be on the higher end.

APR

The annual percentage rate (APR) includes not only the interest rate but also any added fees, such as origination fees. As you can probably guess, it is best to look for the lowest possible APR as this will mean that the loan will be more affordable than those with higher APRs.

Loan Terms

Most personal loans will come with terms between 3 and 5 years, however, you may find some with terms as short as 1 year or as long as 7 years. Although a longer term may seem like the best option, it may mean that your loan will cost more in the long-term as interest builds up.

Patio financing can provide you with the capital you need to create your dream outdoor space and add value to your home while making smaller, more affordable payments over a longer period of time.

If you are looking to obtain patio financing with a personal loan, PrimeRates is here to help. Our application process takes only minutes to complete, after which we will provide you with loan offers that are best suited to you so that you can connect with a lender directly through us. You may even receive funding in just 1 business day. If you are looking for a home improvement loan, get started with PrimeRates today.

How much does it cost to finance a new patio?

The cost of financing a new patio with a patio loan is based on the size of the patio, the materials, labor costs, and any additional features like landscaping or outdoor furniture. The choice of materials has a significant impact on cost. Common materials like concrete, pavers, bricks, or natural stone vary in price from $1 to $30 or more per square foot. Installation costs depend on the complexity of the design and local labor rates. Labor can cost anywhere from $5 to $15 per square foot. The overall size and the complexity of the patio design also affect the cost. More intricate designs with curves and multiple levels require more labor and materials. Features like fire pits, outdoor kitchens, seating walls, and lighting can add to your expenses. New patios can range from $1,800 for a small, basic patio up to $5,000 or more for larger or more elaborate designs. Patio home loans offer varying interest rates and terms which can affect the total cost over time. Get detailed patio loan quotes from contractors and shop around for the best financing terms that fit your budget. 

Can you finance a patio?

Many homeowners get patio loans to finance patio projects when they prefer not to pay the entire cost upfront. Here are some common financing options:

Home Improvement Loans: These are unsecured personal loans specifically for home improvement projects. They don't require home equity and are based on your credit score and income.

Home Equity Loan: This type of loan allows you to borrow against the equity you've built up in your home. You receive the money as a lump sum and can use it to fund your patio project. Home equity loans typically have fixed interest rates and set repayment terms.

Home Equity Line of Credit (HELOC): Similar to a home equity loan, a HELOC also lets you borrow against your home's equity, but it works like a credit card. You can draw from a line of credit as needed, which is ideal for ongoing projects like patio construction. Interest rates are usually variable.

Cash-Out Refinance: This involves refinancing your existing mortgage for more than you owe and taking the difference in cash. It's another effective way to access a large sum of money for major improvements like adding a patio.

Credit Cards: For smaller projects or short-term financing, credit cards can be a convenient option, especially if you qualify for a card with a 0% introductory APR offer.

Contractor Financing: Some patio construction companies partner with finance companies to offer financing options directly to their customers. This can sometimes include special financing terms like deferred interest.

Refinancing: If you're considering major renovations, refinancing your mortgage to cash out some of your home equity can provide funds for your patio.

When considering financing, compare interest rates, fees, and repayment terms to find the best option for your financial situation and the cost of your patio.

Is patio financing a good option?

Financing a patio can be advantageous if it aligns with your financial circumstances and home improvement goals. If you don’t have much equity in your home, a personal loan may be the best choice. A well-constructed patio can increase your home's value, making the investment in a patio worthwhile. If you plan to enjoy the patio for many years, financing could be a sensible approach. 

What are the typical terms of patio loans?

Patio loans vary widely in terms of length, interest rates, and loan amounts depending on the lender and your creditworthiness. The repayment period for patio loans ranges from 1-5 years to 10-15 years, depending on the loan amount and lender policies.PrimeRates streamlines the process of comparing patio loan offers, making it fast and simple. Discover the ideal loan for you in just minutes by using Primerates, without affecting your credit score.

Can I use a home loan for a patio?

You can use a home loan for patio financing. Using a personal loan for either or both of these can be beneficial because these loans often offer lower interest rates than some types of loans or credit cards, and the interest may be tax-deductible if the loan is secured by your home and used for substantial home improvements.

Why Choose PrimeRates for Patio Financing

PrimeRates provides homeowners with some of the most competitive personal loan offers for deck financing. Within minutes of submitting an application you can receive multiple personalized personal loan offers. PrimeRates has an elite list of lending partners that specialize in unsecured loans for home improvement projects. Whether you have good credit or bad credit, PrimeRates can help you secure a personal loan. PrimeRates lending partners offer personal loans up to $100,000 with rates starting at 3.99% and terms up to 12 years. You may assume that to find the best personal loan offer you have to apply with a handful of lenders and see who you qualify for. However, applying to multiple lenders can actually impact your credit score. In addition, it can be very time consuming. PrimeRates saves customers time and money while helping them navigate the personal loan marketplace. You can submit a basic application that does not affect your credit score to see which lenders you qualify for. 

How to apply for patio financing loans

Most banks, credit unions, and online lenders offer patio financing loans. Most lenders will have an online application process to get started. However, if you use a bank or credit union you may have to go into a branch at some point to finalize the loan. Overall, online lenders can offer competitive rates and usually have less strict approval requirements. Most homeowners prefer the convenience of an online lender. The key to having a good experience with an online lender is to stick with reputable lenders. To save yourself time and potential stress of qualifying a lender, you can apply for patio financing at PrimeRates. PrimeRates only partners with top-rated credible lenders. Here are 4 easy steps to apply for patio financing. . .

#1. Visit PrimeRates.com

#2. Apply and get pre-qualified in less than 1 minute

#3. Receive multiple personalized loan offers

#4. Select the best loan offer and get funds quickly

Conclusion

In conclusion, you have a variety of options available for patio financing. Unsecured personal loans are less risky and do not require collateral. Other options such as home equity loans require collateral. When you use a home equity loan you have to borrow against the equity in your home. If you default on a home equity loan you may lose your home. If you default on an unsecured personal loan you may lower your credit score but you won’t lose your home. Primerates has lending partners with minimum credit score requirements as low as 580. If you have credit challenges you should apply with a cosigner to increase your chances of approval.