Using a Personal Loan to Finance a Backyard Remodel

Susan GuilloryUpdated February 28, 2023

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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.

Renovating your backyard can make your property more beautiful, create an outdoor oasis, and add value to your home.Backyard home improvement can also be costly. But you can choose to do smaller scale renovations, or you can do the work in stages. And even if you don’t have the money set aside for the expense, you can still accomplish a home remodel in your backyard. For instance, you can finance backyard remodel costs with a personal loan. Read on to learn how to make your dream backyard a reality.

What Is a Backyard Remodel?

Remodeling your backyard can be as simple as planting some shrubs and adding new flower beds, or as elaborate as installing a pool, a deck, and an outdoor kitchen. Other aspects you might consider for your remodel include:

A new patio
Customized lighting
Built-in speakers
Fire pit
Play area
Fencing

Before you look into how to finance backyard home improvement costs, it makes sense to decide exactly what you want to do to beautify your space, and then figure how expensive it will be. For instance, if you want to add an outdoor kitchen, outdoor kitchen financing could help with the costs.You might also decide to break up your remodel into smaller projects to keep costs down.

Factors That Impact Backyard Remodel Cost

Determining how much a backyard renovation will be depends on several factors:

What you want to do
Whether you do it yourself or hire professional help
The quality of the materials you choose
How large your space is

Typical Costs of Backyard Remodel Projects

Here’s a breakdown of some common costs for backyard home improvement.

Service	Costs
Fixing lawn, planting shrubs, building patio	$500-2,000
Fire pit	$300-10,000
Outdoor kitchen	$7,500-15,000
Landscaping	$1,000-15,000
In-ground pool	$45,000-50,000
Patio	$5,000-35,000

As you can see, prices vary wildly. This is because there are different types of materials you can use that range in price. In addition, it depends on the scope of the work you want to do. You could put in a simple concrete patio, for instance, which will cost about $5,000, but if you use stone tiles and choose a unique design, the price can be up to 7 times that amount. You'll also have to factor in the cost of caring for your backyard remodel. For instance, if you install a pool, there are ongoing pool maintenance costs. Also, the cost of labor for professional help differs from one region of the country to another.Recommended: How Much Does Pool Resurfacing Cost?

How Does Backyard Remodel Financing Work?

There are many ways to use a personal loan, including as a backyard loan. Here’s how it works: You borrow what you need for the project, then make monthly payments, including interest, until the loan is paid off.Some loans may require repayment within a year or two, while others have repayment periods of five years or more.The better your credit is, the lower the interest rate you may qualify for. If you don’t have good credit, be aware that you may only qualify for a loan with high interest, which means you’ll pay more to get the money for your backyard project.

Backyard Remodel Financing Pros

With backyard financing, one advantage is that you don’t have to wait until you’re able to save up enough money to do your renovations. You can get started on the project quickly, which means you’ll be able to enjoy your new space sooner.Financing your backyard remodel can also significantly increase the value of your property. You may be able to get a higher price for your home when you sell it. And until then, you’ll be able to spend countless hours in your new backyard space relaxing and entertaining.And finally, when you borrow money with a personal loan and make your monthly payment on time each month, it may help you build your credit score.

Backyard Remodel Financing Cons

However, there are disadvantages to backyard remodel financing that you need to be aware of as well. For example, you will be taking on debt with a personal loan. Be sure you will be able to make your monthly payments and pay it off on time.Additionally, when you take out a loan to pay for a backyard renovation, you will be charged interest on the money you borrow. If you get a low interest rate, it might be worth it, but if your interest rate is high, you should carefully consider whether financing makes sense for you.

Financing Backyard Remodel Tips

As you’re considering backyard remodel financing, the following tips may help you figure out the best options for your project and how to pay for it.

1. Choosing Landscaping With Low Maintenance Cost

Decide what your backyard renovation will consist of. Landscaping may be a priority, so factor in the initial costs for that as well as what it will take to maintain your yard’s new look. For example, if you want to lay sod, consider how much you might spend having to water your yard regularly to keep it healthy and growing. If you’re planting shrubs, add on the costs of fertilizing and watering them. You may want to opt for drought-resistant varieties to keep your expenses down.

2. Determining the Right Financing Option

If you think that financing your backyard renovation is one of the reasons for personal loans that might work for you, be sure to do your homework. First, study up on tips and tricks for getting a personal loan. Next, shop around to find the best rate and terms. You may also want to explore other possibilities for financing, such as using a credit card for your renovation expenses. Some credit cards have high interest rates, though, so factor in that cost if yours does. Another idea for financing is to open a line of credit that allows you to borrow some money now, pay it back, and then borrow more later during the next phase of your remodeling project. Personal lines of credit and home equity lines of credit (HELOC) are two you might want to look into. However, with a HELOC, your home is used as collateral, so make sure you are comfortable with that. A personal line of credit may be secured with collateral or unsecured without collateral. Investigate your different options.

3. Determining if Your Home Value Will Improve

Before spending the money on a backyard remodeling project, find out whether it will increase the value of your home. Also, is it worth it to do extensive and expensive renovations? Or would something simpler be a better choice? Do some research online to find out what a backyard remodel will do to the value of your home. You can also check with a local real estate agent to get a sense of whether upgrading a backyard helps increase the value of homes in your area. Recommended: 6 Ways to Avoid Home Improvement Fraud

Personal Loans With Lantern

A backyard remodel can make your outdoor living space more beautiful and functional, and upgrade your property. While it can be costly, you can simplify your remodel and add a patio and do a little landscaping, say, or you can choose to do more extensive renovations all at once or in stages. The materials you use and the scope of the project will help determine how much you pay.Whether you go all out with your backyard remodel or do something smaller, you can finance your backyard project with a personal loan with Lantern by SoFi. Our online marketplace makes comparing personal loans interest rates easy and convenient. Just fill out a simple form, and you can shop for loans from multiple lenders to find the one that best suits your needs.Find and compare personal loan options with Lantern!

Photo credit: iStock/PC Photography

Frequently Asked Questions

Can you finance a backyard remodel?

Can you use a personal loan for a backyard home improvement?

What are backyard loans?

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About the Author

Susan Guillory

Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.

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