Having a sunroom in your house is like a dream come true. Just imagine, a four-season sunroom, the morning sun, and a hot cuppa, heaven! The popular home addition is typically a glassed-in living space — allowing you to enjoy the outside world while sitting inside. And that’s why any home improvement would include updating it. Are you too considering a sunroom installation, and looking for sunroom financing? This article will list out all the viable loan options for you.

What is a sunroom?

A sunroom, aka solarium, sun porch, patio room, or garden room, is an enclosed room (part of a porch) that’s made using transparent glass in addition to a brick wall or wood knee wall. It’s specifically designed to let in as much sunlight as possible. A sunroom is usually attached to your home — either on the side or back of the house. 

A sunroom is a great addition to your home. You can enjoy nature while being protected from the elements, including the cold winds, rain, and even bugs. And since a patio enclosure is full of screened sunroom windows, you can open them up to enjoy the fresh air whenever you want.

So, if you’re in two minds about a sunroom addition, don’t be. Just go ahead and do it! There are various sunroom financing options available that will offer you an affordable solution to make manageable monthly payments over time.

Read more: Sunroom vs screened porch: Which is the right choice for you

Why finance a sunroom?

Unless you’ve collected enough cash over the years, you’ll need the patio enclosure’s financing to get the home improvement project rolling. In order to know how to finance a sunroom addition, you must do thorough market research though.

Before you decide which type of sunroom is best for your home, you’ll need to begin with a budget for your home renovation. And then, the best financing option. There are various patio enclosure’s financing options that allow you to make monthly payments on your sunroom addition. Consider how much you can afford to pay every month.

Read more: Best house siding financing for good & bad credit  

How much does it cost to put in a sunroom?

Most sunroom additions cost anywhere between $8,000 and $80,000 or $25 per square foot to $300 per square foot — with the national average just above $30,000. If you want to opt for prefabricated kits for a sunroom, the price may range between $5,000 and $30,000.

Is a sunroom cheaper than a home addition?

If you’re constructing a prefabricated sunroom, it will cost you less than a stick-built room addition. The reason is that there’s less building material required. Also, since most of them are easy to install, you can even do it yourself — minimizing your labor cost as well as installation cost. 

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Does a sunroom add value to your home?

A well-designed and installed sunroom can recoup about half of its return on investment or ROI. Furthermore, a sunroom can increase the overall value of your house — by around 4% to 6%.

Moreover, there’s more to a sunroom than its monetary value, your patio enclosure can improve the quality of your life all-year-round. You can bask in the sunshine or soak up the gorgeous weather at any time of the year. A sunroom, fitted with window covers, is as good as any other room. It significantly increases the livable space in your home. 

Do sunrooms need foundations?

If you’re planning to build a sunroom from the ground up, the construction will require you to start with a slab foundation. In case the land where you want to construct your sunroom is not graded and leveled, you’ll have to construct a level framed foundation first. You can use either concrete or cement block walls.

How much does it cost to convert a screened porch to a sunroom?

In case you already have a screen room or porch in your home, then you can easily convert the existing space into a three-season room or four season room with glass panels. Converting a porch into a sunroom can cost you anywhere between $300 and $400 per linear foot. An enclosed porch conversion will cost you less.

What are the different sunroom financing options?

When it comes to exploring your sunroom financing options, the ideal way to pay for your new sunroom is by using your existing home equity. After all, you’ve worked hard to build good equity in your property. 

So, why not turn this equity into a financial solution to pay for the cost of the sunroom? 

Of course, your sunroom financing will depend on your financial situation, credit score, credit report, and the current interest rates.

Some of the best home improvement loans where you can use equity financing are given below: 

  • Mortgage refinance

If you’re looking at some of the best home loans available, refinancing your mortgage is a good option. It gives you a chance to pay off a high-interest loan with a lower-interest new loan. Your new loan would be on the principal amount remaining on your current loan — ensuring lower monthly payments. Mortgage refinancing is a good option if you do not want to pay cash for your new sunroom.

  • Cash-out refinancing

If you have sufficient equity in your home, refinancing and getting cash for a new sunroom is also an option. In a typical cash-out refinance loan, you can exchange most of your home equity for cash to update a sunroom. How this type of financing works is that you replace your current mortgage with a new one, the loan lender pays off the current mortgage balance and gives you a check for a part of your home equity. 

  • Home equity loan

Home equity loans help you get a lump sum of cash for your home improvements, including a sunroom addition or upgrade. The amount you can borrow depends on your credit score and your home equity. This type of loan may have a higher interest rate than other home equity loans but will have fixed interest rates.

  • Home equity line of credit (HELOC)

If you’re looking for flexibility in your sunroom financing, a home equity line of credit (HELOC), with variable interest rates, is for you. The loan uses your current home equity as a kind of security. There’s a draw period, often for ten years, during which you can borrow funds. After this comes the repayment period when you pay back the loan over time through monthly payments.

Read more: Swimming pool financing & loans

Pros and cons to financing a patio enclosure

Sunrooms come with many benefits. The most obvious one is the availability of abundant sunlight which can improve your health. Apart from bettering your personal health and well being, a sunroom adds great value to your home. 

We understand that home improvement projects can be a big expense and that’s why financing your sunroom addition can be looked into. 

Let’s take a look at some of the advantages as well as disadvantages of financing a new sunroom or patio enclosure.

Read more: Best patio design plans according to an expert architect

Sunroom financing pros

  • Increases the square footage of your home.
  • Adds to your home’s value.
  • Creates value for potential buyers.
  • Makes your home more comfortable by giving you more livable space.
  • You can get a feel of the outside by being inside. 

Sunroom financing cons

  • Sunroom installation, especially installing vinyl siding, is best done by an experienced contractor.
  • Can be affected by harsh climate and elements of nature.
  • May lower your home value if you live in a historically significant home.

Read more: Patio financing: Great ways to finance concrete patios & more

How adding a sunroom affects property tax

A commonly asked question is whether adding a sunroom will increase the property tax the homeowner has to pay. The simple answer to that question is, yes, the property tax will increase. Let’s take a look at why.

When you add a sunroom to your home, you’re adding square footage, and that automatically means you will be charged extra property tax. However, the return on investment (ROI) on a sunroom is a minimum of 51% by the time the home is sold, which means the sunroom actually adds value to your home. 

Here’s how the increase in property tax is calculated by the government. Adding a sunroom requires you to pull permits from your local governing county before you begin work on the project. Every time a permit is pulled, the county sends that information to the tax assessor. This assessor will visit your home after you’re done building your sunroom, reassess the value of your home, and charge you an increased property tax value based on the new assessed value.

However, not all new constructions get assessed immediately. That means you will need to pay the increased property tax only after the county tax assessor has revalued your home, and not before that time.

How long does it take to build a sunroom?

While the entire process of building a sunroom takes between two and four weeks to complete, there are a number of factors that affect that timeline. 

To begin with, you will need to find a contractor who is available to take on your project. Spring and summer are the most popular times of the year to build sunrooms and decks, so getting quality help to build your sunroom will not be easy. However, fall and winter are when a lot of contractors will have time on their hands, and may even offer you a sizable discount.

Once you have your crew together, they will begin by checking the structural integrity of the platform you’re building your deck on, and solidifying the same if required.

The next step is to build a deck, unless you’re constructing your sunroom on a concrete slab, followed by constructing the walls and ceiling. This step also includes the installation of all doors and windows.

The final step of the process is to install an HVAC system, lighting, interior decoration, and other creature comforts.

The cheapest way to build a sunroom

While there are a lot of sunroom DIY kits available, the most inexpensive way to build a sunroom is to do everything yourself from the ground up. But this is doable only if you know your way around tools. Building an 8 foot by 12-foot sunroom is possible for as little as $500.

Here are some tips:

  1. Size your sunroom is multiples of 4 feet. Size and design your framing, doors, and windows in a way that allows for future expansion.
  2. To use the sunroom as a living space with some indoor plants, choose a vertical front wall design. 
  3. A slanted front design is best suited for easy roofing and is ideal for a greenroom.
  4. True solar south is the ideal direction to orient your sunroom.
  5. Clear acrylic windows are a cheap option.
  6. Use 2×4 studs to frame your sunroom.
  7. It would be prudent to make separate weather-stripped window frames so you can replace the windows with screens during the summer.
  8. Brick or concrete flooring is a great idea to add thermal mass to your sunroom and give you some warmth during the winter months.

Do you need planning permission to build a sunroom?

While you will not need planning permission to build a sunroom, you will definitely need to pull permits before you can begin construction.

The process of pulling permits involves you filling out an application and submitting your sunroom plans as well as your plot plans to the concerned city department. Depending on where you live, you may be able to do this online, or in the case of smaller towns, in person.

It may take up to 30 days to review and approve your application, after which you will be given a field card which must be placed in a location that is both visible from the road as well as accessible to inspectors so they can sign off on your project.

Remember, you will need to pull these permits irrespective of whether you’re installing a prefabricated sunroom or building one from scratch.

Last words

Are you considering adding a sunroom but wondering what it costs, and how you’ll pay for it? We hope this guide will help you understand the cost, benefits, and all your sunroom financing options. 

Want to apply for a loan? Peruse Kukun’s easy loan options and initiate your loan application process today!

Read more: Why getting a sunroom price estimate is crucial

Sunroom Financing: Patio Enclosures Financing & Loan Options was last modified: September 21st, 2022 by Ramona Sinha
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