Are you thinking of extending your home space by building a deck? It’s indeed a wise decision. A beautifully installed deck not only adds to your living space but also provides you with a backyard retreat. If you’re planning on deck financing, we have good news for you. Financing a new deck is easier now than ever before. There are numerous deck financing options available to homeowners. Planned deck and patio financing will help in adding value to your property — without putting a financial strain on your lifestyle.

These loans for building a deck are affordable as well as manageable with easy monthly loan payments. So, go ahead and expand your living space, increase property value, and get years of outdoor enjoyment and entertainment for you and your family members.

Costs of building a deck

The average cost of building a deck is approximately $25 per square foot (for a pressure-treated wood deck, hardwood deck or a composite deck). Most homeowners spend between $4,390 to $10,090 for a new deck installation. Of course,  the total deck cost depends on the decking materials used, the size of the deck, the level it’s built on, labor costs, and the level of the home improvement project. 

For example, a basic deck with simple materials will cost you $15 per square foot, while a premium deck built using high-quality materials will cost you about $35 per square foot.

The size of the deck matters too. For instance, the national average for a 10×10 foot deck is $2,200, a 14×20 deck is $6,160 and a 20×20 deck is $8,800

Can I finance my deck?

Yes. Financing a new deck will make your home renovation project easy for you. Before beginning work on your new deck, you’ll need to secure financing that best suits your requirements. The best financing options and deck loans include home equity loans, home equity lines of credit (HELOCs), personal loans, and credit cards.

How to finance a new deck? What are the different options?

Home equity loan

You can avail of home equity loans for your deck and patio financing. This loan option allows you to borrow against your home’s equity. The available equity is calculated by keeping your mortgage debt in mind and your home is used as a collateral. Home equity loans come with a fixed interest rate and predictable monthly payments to pay back the loan amount. 

The relatively low-interest rate loan provides a lump sum of cash for the home remodeling upon closing. Moreover, it usually has a tax-deductible interest. All in all, a home equity loan is a good loan option if you know exactly how much your deck installation will cost.

Home equity line of credit (HELOC)

A home equity line of credit is like a cross between a home equity loan and a credit card. Basically, you get a revolving line of credit against your home’s equity. You can withdraw funds as needed and make adjustable interest rate loan payments.

If you have an ongoing deck installation project or if you’re uncertain about the total cost, this loan works well for you. That way, even if there’s an unplanned expenditure such as fence financing or floor financing, you can get more funds. 

HELOC, as compared to home equity loans, comes with higher, fluctuating interest rates. 

Personal loans

If you do not have enough equity in your home or do not want to put up your home as a collateral, a personal loan is a better loan for building a deck. It’s an especially great deck loan if the project is not very expensive or if you have a bad credit score and are having difficulty in getting a loan for a new deck. 

In most cases, you can easily fill the application form online and get funding the same day that you get the loan approval. Personal loans, however, come with higher interest rates than home-equity backed financing. 

Read more: Home window replacement financing & loans

Other ways to finance a deck and patio installation

If you do not want to leverage your home equity or take out a personal loan, you have other deck financing options. Some of these are:

Deck builder financing

If you have trouble sourcing your own deck financing, you can ask your building contractor if they offer financing — maybe through a third-party lender. If they do, and if they’re trustworthy enough, the method can be really convenient. 

However, you should compare your contractor’s fees and interest rates with other deck financing options before choosing builder financing. The research will go a long way in ensuring that you’re getting a reasonable deal.

Looking for a licensed deck builder? Use Kukun’s Find a Pro tool for the most reliable professionals!

Deck financing through credit cards

Using credit cards should be your last resort. Credit cards come with extremely high-interest rates. Most importantly, a credit card debt can be a clear red flag to the credit bureaus — bringing down your credit score drastically.

Therefore, use a credit card only if you can afford to pay back the borrowed amount on time and if you’re taking advantage of a promotional 0% APR or sign-up bonus. 

Home mortgage refinancing

If there has been a decrease in mortgage interest rates since you bought a house, refinancing your home mortgage is a good way to get access to more funds. That way, you can use the extra cash to upgrade your property. Like a home equity loan or a mortgage loan, mortgage refinance too uses your home as collateral. Needless to say, it’s not an advantageous loan option for smaller home improvement projects as the long-term interest and financing costs will make the remodeling cost more over the long run.

Is a deck worth the investment?

Adding a deck to your home is indeed a worthwhile home improvement project — with one of the best returns on investment. If you ever decide to sell your home in the near future, adding a deck will literally pay for itself. 

A well-installed deck is a good investment also because it increases your living area at a minimal cost per square foot. Moreover, it makes your property more marketable. Potential homebuyers love the fact that you have an outdoor extension of your home’s square footage and an area to relax with family and friends.

There’s no doubt that a deck makes for a convenient place to sit outside and enjoy the sunshine while being able to offer all indoor-style comforts. Adding a spacious, durable, and low-maintenance deck will add to your property’s market price as well as aesthetic attraction.

What is the cheapest way to build a deck?

The cheapest way to build a deck is if you do it yourself — with basic, entry-level decking materials. The cheapest decking material is pressure treated wood at $0.75 to $1.25 per linear foot. If you have basic hardware and construction skills, you can build your own deck. But, you must do adequate planning of the space, size, material cost, and the total deck installation budget. 

How do I get a loan for a deck?

If you’re considering adding a new deck or upgrading your existing outdoor decking, your first step should be looking for a home renovation loan for the deck project. Peruse through Kukun’s easy loan options and get the best loan for your deck financing. 

With over 20 lending partners in our loan program, we provide financing for a wide range of client profiles and contractors.  

Some of our lending partners, offering you the best financial options, include:

  • Lightstream
  • SoFi
  • Prosper
  • Upgrade

Last words

If your outdoor area looks a little incomplete, adding a deck to your home will do the trick. Plus, such an improvement will eventually recoup most of your expenses. Before tackling such a project, though, you must do your research and find a loan option that suits you in terms of affordability and flexibility. 

Read more: Basement remodel financing: How to finance finishing a basement

Deck Loans & Financing Options was last modified: November 21st, 2020 by Ramona Sinha