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Putting vinyl siding on your house can improve its curb appeal and help add weatherproofing. But vinyl siding materials and installation can be costly. If you don’t have the money on hand, you’re probably wondering how to pay for it. The good news is, there are a number of options available. Read on for information about seven vinyl siding financing options you may want to consider for your project.
What Is Vinyl Siding?
Vinyl siding is a durable product made primarily of polyvinyl chloride (PVC). It can be an affordable way to weatherproof a home while also enhancing its exterior. Vinyl siding comes in a variety of colors and textures, and can look similar to wood siding.Vinyl siding can be low maintenance and durable. The type of vinyl siding you choose and the installation will affect your overall cost.
Costs of Vinyl Siding
The average cost of installing vinyl siding is $11,506. But the cost will vary depending on the size of the home, the type of siding, and the contractor who’s doing the work. Most homeowners spend between $6,104 and $16,908. Here’s a breakdown of what helps determine the cost:
Labor
If you plan to hire a professional to install your siding, you can expect to pay about $3.70 per square foot, on average. So, for example, the labor cost for installing 1,300 square feet of vinyl siding could be around $4,810.
Materials
The cost of your siding could vary significantly—from about $2 to $12 per square foot—based on the style, thickness, and quality. Some questions to consider: Do you want vinyl siding that looks like brick, stone, or logs? Do you like vertical siding, or is traditional horizontal siding more to your taste? Are you looking at insulated siding to help keep your home warmer and/or cooler? Answering these will help you choose the best siding for the job.
Size
Because vinyl siding is priced by square foot, you can get a rough idea of what the cost will be by measuring the exterior of your house. The bigger your house, the more you can expect to pay.
Location
Where you live could also affect the cost of your project. If labor or other costs tend to be higher in your city or state, you can expect your vinyl siding bill to be higher.
Design
The shape of your house can affect the price. If your home has angles, high peaks, gables, or other design elements that make the job more complex, the bill may be more than it would be if you have a more traditional home with a straightforward shape.
Siding Finance Options
When it comes to vinyl siding financing, there are several options available. Each has pros and cons to consider.
Personal Loan
You can use a personal loan for just about anything, including a home improvement project such as financing vinyl siding. A personal loan is an installment loan, which means the borrower receives a lump sum and repays it in fixed monthly payments over a predetermined length of time. The amount you can borrow with a personal loan typically ranges from $1,000 to $50,000—but the maximum amount of personal loan funds can be higher. Although the average interest rates of personal loans can vary, a borrower’s creditworthiness determines the loan amount, interest rate, and other terms. The approval process is typically fairly quick and straightforward. Because a personal loan is usually an unsecured loan, the borrower doesn’t have to worry about using an asset as collateral. But the interest rate may be higher on an unsecured personal loan than for a secured loan that is backed with collateral.
Home Equity Line of Credit (HELOC)
When it comes to lines of credit, you may want to compare a personal line of credit vs HELOC. A HELOC is a type of revolving credit. Instead of borrowing a lump sum and making fixed monthly payments, a HELOC allows you to draw funds as needed (up to a limit) during what’s known as the draw period. The money you repay is added back to your credit limit, so it’s available to use again.A HELOC is secured, and your home is the collateral. Your approval and your credit limit will be based, in part, on the amount of equity you have in your home. You typically must have at least 10% to 20% equity to qualify for a HELOC. Because it’s secured, you may get a lower interest rate with a HELOC than with a credit card or personal loan. But if you default, your lender could foreclose on your home.
Contractor Financing
Your contractor may offer financing for your vinyl siding. Usually, the contractor doesn’t loan you the money directly, but acts as a middleman between you and a lender they partner with. In some cases, the loan may be interest-free for a limited period (maybe a year or 18 months). And if you’re confident you can pay off the balance in that time, it may be worth considering. But you should be clear on what will happen if you can’t pay off the entire loan before the term is up. If it’s a deferred interest loan, you could end up owing interest backdated to the day you signed the paperwork. Be sure to read the fine print.
FHA 203(k) Loan
An FHA 203(k) loan is a government-backed loan designed to help lower-income buyers who want to improve an older property that is their primary residence. You can use it to refinance your existing mortgage or to purchase a home. The mortgage combines the home’s purchase price with the expected home renovation costs. The renovation portion of the funds are placed in a separate account the borrower can use to pay for improvements like vinyl siding. The eligibility requirements can make it tougher to get this type of financing. But if you’re willing to compile a renovation proposal and cost estimate, you may want to discuss this option with an FHA-approved lender.
Home Equity Loan
A home equity loan is similar to a HELOC in that you secure this type of financing using your home as collateral. You’ll likely need to have at least 10% to 20% in equity to qualify for a home equity loan.What makes a home equity loan different from a HELOC is that it’s an installment loan instead of revolving credit. It has predictable monthly payments, a predetermined loan length (anywhere from five to 30 years), and the borrower receives the money in a lump sum. Because it’s a secured loan, the interest rate may be more competitive than with other types of financing. But the potential drawbacks are similar to a HELOC. If you default on your loan, for example, the lender might choose to foreclose. And if you decide to sell your home, you’ll have to repay whatever you still owe on the home equity loan (also called a second mortgage) as well as your primary mortgage.
Credit Cards
Depending on how much you expect to spend, it may make sense to use a credit card for vinyl siding financing—especially if you have strong credit and can qualify for a card that offers a low or 0% introductory APR. This option allows you to borrow only what you need for your project. However, if you aren’t sure you’ll be able to pay off your charges in full each month, or before the introductory rate expires (typically in 12 to 18 months), this strategy may not be a good fit for you. The interest you’re charged on your unpaid balance once the promotional rate expires will be based on the card’s standard APR. Before opening a new credit card account to pay for vinyl siding, you may want to assess your goals. Are you looking for cash-back rewards or points you can apply to travel or other purchases? Or do you simply want as much interest-free time as possible to pay off your vinyl siding purchase? Once you decide what you want from the card, it may help you find one that’s a good fit.
FHA Title 1 Loan
An FHA Title 1 Loan is another government-backed loan created to help homeowners renovate and repair the house they live in. But borrowers can expect more flexibility and less paperwork than with an FHA 203(k) loan. Borrowers who own a single-family home may be able to qualify for up to $25,000, even with limited equity. You will have to put up your home as collateral if the loan is more than $7,500. But the loan approval and loan terms will be based on your personal creditworthiness, not your home equity—and you won’t have to have the home appraised as part of the application process.An FHA-approved lender can provide more details about this type of financing.
Financing Vinyl Siding Pros
Financing vinyl siding can have several benefits for homeowners. Instead of coming up with a lump sum of cash out of pocket, you can borrow all or a portion of what you’ll need, then repay what you owe in manageable monthly payments. Here’s how that might help with your project:
If your home is in need of repair and you don’t have enough money saved to get the work done right away, financing could help you get new siding installed before the repairs get even more expensive.
If you’re planning to put your home on the market soon, and you’re thinking that improving the energy efficiency or curb appeal with vinyl siding might get you a better asking price or quicker sale, financing may help you accomplish that goal.
If you expect to stay in your home for a while and want to make improvements for your own enjoyment and to increase the home’s value, vinyl siding installation financing can help with that, too.
Even if you have enough cash available to make your purchase, you may want to consider financing siding instead—especially if it will empty your bank account and leave you strapped.
Financing Vinyl Siding Cons
Of course, it’s also important to consider the downsides of vinyl siding financing, including:
Some borrowing options are more expensive than others. If you can’t get affordable financing—with an interest rate and other terms that work for your needs—you may decide it makes sense to hold off on the project.
Though contractor financing can be convenient, it may be helpful to shop for local vinyl siding companies and financing options separately. The contractor who offers the best financing package may not do the best work—and vice versa. You may want to keep your payment options open until you’ve done your research.
Keep in mind that unless you finance with a fixed-rate loan, your interest rate could fluctuate over time. If interest rates go up and you’re still making payments on a line of credit, credit card, or variable-rate loan, your payments could increase.
Interest rates aren’t the only factor that can make borrowing expensive. Keep in mind that upfront costs, such as closing costs and fees, can make some financing options more expensive than others.
If homeowners can’t qualify for affordable financing, saving up to pay with cash could make more sense than borrowing.
Financing may help potential home sellers increase value and curb appeal.
Contractor financing may not offer the best deal with the contractor you want to work with.
Financing can help homeowners improve and enjoy their forever home.
Financing with a variable interest rate could mean a higher payment if interest rates rise.
Financing may help homeowners stay on track with other savings goals.
Some borrowing options can have significant upfront costs, such as closing costs and fees.
Exploring Personal Loan Rates
As you’re evaluating the best way to pay for vinyl siding, it’s a good idea to shop around for the financing option that makes the most sense for you. When you’re ready to look at personal loans, Lantern by SoFi can help make the process quicker and more convenient. In our marketplace, you can easily compare personal loan rates and other terms offered by multiple lenders.Find and compare personal loan rates today with Lantern.
Frequently Asked Questions
Can you finance vinyl siding?
Can you use a personal loan to finance vinyl siding for your home?
What options are available to you to finance vinyl siding?
Photo credit: iStock/Kevin Brine
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About the Author
Kim Franke-Folstad
Kim Franke-Folstad is an award-winning journalist with 30 years of experience writing and editing for newspapers, magazines and websites. Her work for SoFi covers a range of topics related to personal finance, including budgeting, saving, borrowing, and investing.
