A garage is an indispensable part of your home and its curb appeal. It’s much more than just a place where you park your vehicle. If utilized well, it can be used as a workshop, a mother-in-law suite, a home gym, or a chilling zone for your kids. So if you’re ready to build a garage or add new garage doors, you’re making a smart decision. The only obstacle is the availability of ready funds for the home improvement project. You needn’t worry though. With garage financing, your dream of owning a beautiful, functional garage is very much possible.

Paying for a new garage in cash might not be an option for most homeowners. And, fortunately, there are plenty of ways to finance your garage addition in a budget-friendly way that works for your household.

However, before you begin your home remodel, always remember to follow your local building codes, especially if you’re altering the structure of your attached or detached garage. But, if you are just updating an existing garage, you may not require a permit. 

Read more: 9 Smart Garage Design Ideas for New-Age Homeowners

How much does a 30×40 garage cost?

Most straight wall metal garages cost about $12 per square foot. On average, the cost of a 30’x40′ straight wall garage comes to approximately $14,400. Garage accessories and garage installation labor will cost you extra.

How much does a 24×24 garage cost to build?

On average, most homeowners spend about $13,500 to $35,000 on a 24×24-foot attached two-car garage. This cost is for an unfinished interior. Detached or stand-alone garages cost between $18,000 to $47,000 for two-car options. 

Needless to say, your garage size and whether it’s attached or detached, can significantly impact the total cost. Moreover, the type of garage door you install, the type of siding you have, and your location will also affect the garage installation cost. 

How much does a garage door cost?

The total cost of a garage door depends on its materials, the way the doors operate, and the door style. On average, installing a single garage door installation costs anything between $500 to $2,000 while a double garage door costs between $1,200 and $1,500. The door material can impact the pricing the most. For example, a steel garage door is an inexpensive option at around $400 while a wood door is the most expensive choice, starting at $2,000. In case you do not have sufficient savings and are on a home renovation budget, you can even consider metal garage kit financing. 

Here’s a list of popular garage doors with their minimum costs:

  • Steel garage door: $400
  • Vinyl garage door: $600
  • Aluminum garage door: $800
  • Composite garage door: $1,500
  • Fiberglass garage door: $1,500
  • Wood garage door: $2,000

Can you finance a garage installation?

Yes, financing a garage addition can be done with a good loan option. Most homeowners opt for home equity loans, home equity lines of credit (HELOC), or personal loans. When it comes to personal loans, borrowers with all credit types (whether good or bad credit) can qualify. Keep in mind that while personal loans come with repayment terms of one to 10 years, HELOCs typically have repayment periods of up to 20 years. Moreover, unlike home equity loans, a personal loan does not require collateral. That’s the reason the interest rates are higher. The good news is that the funds can be used for just about anything. All in all, a personal loan is one of the easiest loan options for financing to build a garage.

You will of course have to do your research for the best loan option. There are some loan lenders who offer dedicated garage loans, and sometimes, even builders or suppliers help in financing a garage addition. 

What is the best way to finance a garage door?

As mentioned earlier, a personal loan is one of the easiest and quickest ways to get garage door financing. You can apply for a personal loan online and receive funds as quickly as 24 hours on approved loans. Most importantly, you can compare multiple personalized personal loan offers using just one loan application.

Looking for a home renovation loan for your garage installation project? Try Kukun’s easy loan options. 

Can you finance a detached garage?

Yes, you can get good garage financing for your detached garage. You could borrow a loan or line of credit, depending on your requirement. It’s a good idea to shop around with a few lenders. You can compare the loan rates and find the cheapest way to finance your detached garage. A reliable loan consultant will help you better understand how to finance building a garage. 

Keep in mind that you must apply for a loan only if you have a plan in place to pay off the debt. You must take full responsibility for making consistent monthly payments. Otherwise, you will risk negatively affecting your credit score rating. Always try to make on-time payments as it will help improve your credit score in the long run.

What credit score is needed to secure garage financing?

If you’re wondering how to get a loan for a garage, and what are the qualifications? Here’s an update for you. You may qualify for a personal loan — regardless of whether you have good credit or bad. However, if you have bad credit, you can expect higher interest rates and/or a big down payment. 

The rule of thumb loan lenders follow is that a higher credit score will help you secure lower interest rates. To apply for a home equity loan, you should have a minimum credit score of 620. In addition, you should have a 20% equity in your home. 

Read more: A Complete Guide on How Does Credit Score Affect Home Loans

What is the best way to finance a garage addition?

Garage financing through HELOCs

A home equity line of credits can be a great way to finance a home improvement. You can get a line of credit to use — based on the amount of equity you have in the home. Plus, it’s subject to credit scores. Typically, you would have a draw period of 10 years and a repayment period of 20 years or so. This type of loan is a little harder to get approval for.

Garage financing through personal loans

Since personal loans do not require any collateral, they do not pose as much of a risk for the borrower. However, they come with higher interest rates and shorter loan terms.

Your loan amount will depend largely on your credit score, credit report, income, and debt history. 

Garage financing through home renovation loans

Home renovation loans, such as the Federal Housing Administration 203(k) loan or the FHA loan, can be a good choice if you’re looking for funding up to $30,000. Because such a financial option is government-backed, it comes with low-interest rates and is easier to get. Furthermore, you could refinance your existing mortgage into a 203(k) loan — giving you the convenience of a single monthly payment.

Garage financing through a credit card 

Although funding your garage project can be done with a credit card, remember that it comes with really high-interest rates. Look for a credit card company that offers rewards and discounts. You can use the cash rewards toward your monthly card payments. The best way is to set up autopay to ensure that you don’t fall behind on your repayments.

Ready to apply for garage financing?

Choose the best loan program and get financing for a new garage or garage doors today. With Kukun, you can find all your funding options within minutes — without the inquiry impacting your credit score. You can then sort all the garage loan offers by comparing rates, repayment plan, available loan amount, length of the loan term, etc.

So, if you’re planning a home remodel, and thinking of building a new garage, expanding your existing garage, or replacing just the garage doors — Kukun can get you the most affordable financing options you need.

Garage Door Financing & Financing a Garage Addition was last modified: January 20th, 2021 by Ramona Sinha