App version: 0.1.0

Guide to Deck & Patio Financing Options

4 Deck & Patio Financing Options
Kelly Boyer Sagert
Kelly Boyer SagertUpdated September 20, 2022
Share this article:
Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Adding a deck or patio to your home can increase the value of your property and give you a beautiful outdoor space to entertain family and friends.The cost of a deck depends on the size of the project, the materials used, how extensive the design is, and any additional features you include. Fortunately, you don’t have to have the cash up front. There are a number of deck and patio financing options available that can help you build a beautiful deck for your yard. Here’s what you need to know to get your deck project underway.

Typical Costs Associated with Deck Financing

The national average cost of building a deck is $7,696, but the price ranges from $4,160 to $11,257. Factors that determine how expensive your deck will be include:
  • Deck materials
  • Labor
  • Deck awning
  • Deck furniture
  • Permits

Deck Materials

You can build your deck with pressure-treated wood, hardwoods, or composite materials (typically plastic mixed with wood fibers). The most affordable option is pressure-treated wood, which costs about $10 to $17 per square foot . Decks made with hardwoods or composite materials can run approximately $15 to $25 per square foot. These prices don’t include additional features, such as railings or built-in seating. The size of the deck you’re building and the scope of the project will impact how much material you need.

Labor

Labor costs for building a deck range from $8 to $22 per square foot. The price can vary based on the size of the deck and the materials used. Extras like stairs and built-in seating can also add to labor costs. Any estimates you get from contractors should cover both the materials and labor costs. As you’re speaking to contractors, be sure to do your research and get referrals from other clients who have worked with them. It’s important to find someone reputable you can trust to help protect yourself from home improvement fraud.

Deck Awning

To provide protection from the sun and rain, you may decide to include an awning with your deck. A retractable awning can range from $2,000 to $3,500 installed. The price will depend on its size and the material it’s made of. A motorized awning will cost more than a mechanical awning that you hand crank open and closed. 

Deck Furniture

To enjoy your new deck, you’ll want attractive furniture that’s comfortable and stylish. There is a wide range of deck furniture options costing from a few hundred to a few thousand dollars. When choosing furniture, consider how much space you have, how many people you want to seat, and how you want to organize the different pieces. Pick shapes and styles that complement your deck design. 

Permits

Permit requirements and prices differ by locale. Check your local government office for the  specifics. On average, building permits cost $50 to $300 for smaller jobs, and $500 to $2,000 for larger ones. If you’re hiring a general contractor, confirm that they’re getting all the necessary permits for the job.

New and Used Deck Financing Methods

To pay for your project, there are a number of deck financing options you may want to consider, including:

Home Equity Loans

If you have equity in your house, you may be able to get a home equity loan that lets you borrow against that equity for financing a deck. Typically, you’ll get a lump sum to use. You pay it off by making fixed monthly payments over a set term.

Pros:

  • Because the loan is secured with your home as collateral, interest rates will likely be lower than with many other options.
  • You can usually get a long-term home equity loan, which means lower monthly payments.
  • Depending upon the amount of equity available, you may have access to a significant amount of money. 

Cons:

  • If you default on the loan, the lender could foreclose on your house.
  • You’ll have less equity in your home because you’ve tapped into it.
  • You’ll likely have to pay closing costs on the loan. 

HELOCs

A home equity line of credit (HELOC) is another one of the loans to remodel your home that you may want to consider for financing a new deck. A HELOC is a revolving line of credit that lets you borrow against the equity you have in your house. During what’s called the “draw period,” you can borrow what you need when you need it and pay it back.  

Pros:

  • Interest rates will typically be lower than with other options since the loan is secured with collateral.
  • The money can be used for different purposes, including deck financing.
  • You can borrow only the amount you need. 
  • By making payments on time, you can strengthen your credit score.

Cons:

  • A lender can repossess your house if you default on your payments. 
  • You’ll have less equity in your home. 
  • Interest rates for a HELOC are variable instead of fixed. 
  • You may be tempted to keep borrowing and overspend. 

Credit Cards

Another option is to use your credit cards for deck financing.

Pros:

  • Making credit card payments on time can build or strengthen your credit score. 
  • By paying off the balance in full at the end of the billing cycle, you won’t incur any interest charges. 
  • You could earn reward points or miles.

Cons:

  • Credit cards typically have higher interest rates. 
  • Late payments can damage your credit score. 
  • It can be easy to overspend. 

Builder Financing

The deck builder you’re working with may offer financing. This will typically be through a third-party lender. 

Pros: 

  • The process is streamlined since you’ll be working with the same party on both building and financing the deck. 
  • The financing will typically be an unsecured loan, meaning there’s no collateral involved. 

Cons:

  • Not all deck contractors offer financing.
  • It can be tempting to sign the contract for financing a new deck on the spot without fully understanding the terms and fees.  

Personal Loans

Personal loans are either secured and require collateral, or unsecured with no collateral i needed. When you take out a personal loan, you receive a one-time sum and pay it back with interest in regular monthly installments. 

Pros:

  • This versatile form of funding can be used for deck and patio financing among many other things.
  • Making payments on time can help build your credit score.
  • If you have a good credit score, you may be able to get lower interest rates than you would with some other financing options.
  • Personal loans are often unsecured, requiring no collateral.
  • Getting the loan approved can be fast, especially for emergency personal loans.

Cons:

  • Interest rates will likely be higher than they are for home equity loans or HELOCs.
  • Some lenders may charge significant fees and penalties, including late fees and prepayment penalties.
  • Monthly payments can be higher than they are for some other options.
  • Some personal loans are secured, requiring collateral. 
  • Applying for a personal loan requires a hard credit check that can temporarily have a negative effect on your credit scores. 

Considerations When Comparing Personal Loans for Deck Financing

When comparing personal loans, look at the following factors in order to help make the best choice:

Terms

The terms of a loan mean all of its conditions, including the amount of time you have to pay it back, the interest rate, fees, potential penalties, and so on. When comparing personal loans for your new deck financing, read the terms carefully and watch for any hidden fees or conditions that could prove costly. 

APR

The annual percentage rate (APR) of the loan is the cost of borrowing money. It includes the interest rate on the loan plus any fees that might come with it. In contrast, the interest rate is just that—the interest rate on the loan and nothing else. The APR is a more accurate representation of what you’ll pay. When comparing loans, look at the APR of each one.

Requirements

Typical requirements for a personal loan include having the required credit score, providing proof of employment and income, and having a level of debt that the lender considers manageable. In addition, lenders may require collateral for loan and/or an origination fee. Each lender can have different requirements, so evaluate options carefully.

Exploring Personal Loan Options

A new deck can extend your living space and add to the value of your home. The cost of the project will depend on how extensive it is, but there are ways to finance it and get the deck you’ve always wanted. If you’re exploring personal loans for your deck, Lantern by SoFi makes it easy to compare personal loan rates. By filling out one simple form, you’ll be able to check out offers from multiple lenders to find the one that fits your needs and qualifications. Get your personal loan rate with Lantern and apply in just minutes!
Photo credit: iStock/PC Photography
LCPL0522013

Frequently Asked Questions

How can you pay for a new deck?
Is it hard to get financing for a deck?
What are things to consider before getting deck financing?

About the Author

Kelly Boyer Sagert

Kelly Boyer Sagert

Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
Share this article: