Deck & Patio Financing: Costs for New, Remodel, or Repair

If you’re hoping to enjoy the warmer months even more by adding a patio or deck to your outdoor space but don’t have all the cash up front, you have financing options. You’ll have your pick of home equity financing, personal loans, contractor financing and more.

How much does it cost to build a deck or patio?

On average, a new deck costs more to build than a new patio, according to home improvement advisor, Angi — and generally adds more value to your home. But costs can vary widely depending on the size of the deck or patio and the materials used. It also depends on the location of your new outdoor living space and how elaborate the design is.

Building a new deck usually costs between $4,000 and $12,000, with an average of around $8,000, or about $30 to $60 per square foot. A new patio, on the other hand, may cost anywhere from $800 to $14,000, with an average of $4,000, or $5 to $50 per square foot.

Again, those ranges reflect the size of the structure and the materials used, plus how difficult it is to construct in your chosen location. For example, if you’re installing a patio and the ground is sloped, it’ll take more work — and therefore more money — to complete.

Calculate your loan costs for patio and deck financing

How much you’ll pay for your loan depends on the lender, the type of loan, your interest rate and loan terms, which varies depending on your eligibility. You can play around with how much you might pay by using our deck and patio financing calculator. Based on average costs for a decks and patios you may be able to accomplish your project with a personal loan of $5,000, up to a $10,000 loan.

Patio and deck financing options

If you don’t have the extra cash lying around to fulfill your dream of a new outdoor space — and most people don’t — there are a number of deck and patio financing options.

Personal loans

With average loan amounts ranging anywhere from $1,000 to $50,000, a personal loan should certainly be enough to cover the costs of a new deck or patio and then some. And you typically have two to seven years to repay the loan, so you may not even have to stretch your monthly budget too far.

Interest rates for personal loans typically range from 6% to 36%, but you’ll need a pretty good credit score of at least 720 to qualify for the best rate. Even if you don’t have the best credit score, you may still get a more reasonable rate than credit cards — making personal loans some of the best home improvement loans on offer.

HELOC or home equity loan

One of the smartest ways to leverage your home’s equity is to make improvements on your house, and a deck or patio is a great addition that adds value to your home. You generally need at least 20% equity in your home to qualify, although some lenders may accept less.

One option is a home equity loan, which offers a lump sum like a personal loan. Normally, home equity loans come with fixed interest rates and terms, meaning you repay the loan in equal monthly installments over the loan’s life. You can typically land a better rate with a home equity loan than a personal loan since your home acts as collateral. However, your home is at risk if you can’t repay the loan.

Another possibility is applying for a home equity line of credit (HELOC). A HELOC is a revolving line of credit — similar to a credit card — where you can borrow as much or as little as you like up to your approved limit. This option might be a good choice if you plan to make it a DIY project and aren’t sure how much it will cost. That way, you don’t risk borrowing more than you need.

Credit cards

Financing a deck or patio on a credit card may not seem like the best idea because of high interest rates. But, if you’re only putting in a small patio that costs a couple thousand dollars, it might not be a bad option. Plus, if you can pay it off quickly, that’ll help to minimize interest charges.

Alternatively, you could apply for a card with a 0% introductory rate and enjoy interest-free financing for up to 18 months. It’s typically easier to qualify for a credit card than a loan, but depending on your credit score and income, you might only qualify for a small credit limit.

Contractor or vendor financing

Some contractors offer in-house financing or through a third-party lender. If the financing is handled in-house, there may not even be a credit check, but you should watch out for hidden fees or surcharges. Sometimes, you may get a short-term promotional deal from a contractor, although those may be limited to larger operations.

If you plan to install the deck or patio yourself, you could look into financing deals from large home improvement retailers, like Home Depot or Lowes, where you buy your materials. These stores often have 0% financing for up to six months or more, which can give you time to pay down the balance as you go. But read the fine print so there aren’t any surprises down the road.

Government assistance

If you’re looking to repair a deck or patio rather than install one from scratch, there are a few government-backed loans you may want to consider. These types of home improvement loans are fairly strict, but deck or patio repair may be covered if it’s included with other renovations, rehabilitation or repairs.

FHA 203(k) ) rehabilitation mortgage insurance program. The 203(k) program involves refinancing your home and rolling the cost of repairs and renovations into your new mortgage. Credit requirements are typically more lenient than other loan types, but you’ll need to meet other criteria.

HUD Title 1 property improvement loan program. Title 1 loans are similar to the 203(k) program, except that loans under $7,500 are unsecured. Plus, you might get better rates than other loan options if you meet the eligibility requirements.

How to get a deck or patio loan

Qualifying for deck or patio financing depends on the loan type, your credit score and other factors, but here are some basic guidelines to get you started.

1. Define your budget. Whether you want a patio or deck to spruce up your yard, estimate how much you can afford to borrow and try to stick to it.
2. Get multiple estimates. It’s helpful to get detailed estimates from multiple contractors to compare costs of materials, labor and other charges.
3. Check your credit score. Finding out your credit score can help you decide which loan options make the most sense.
4. Estimate your home’s equity. If you think home equity financing is the right move, figure out how much your home is worth versus what you owe to see if it’s an option. In general, you’ll need about 20% equity to qualify.
5. Prequalify. If possible, prequalify with multiple lenders to get an idea of what interest rates and loan terms you may qualify for.
6. Read the contract. Be sure to read the terms and conditions and watch for any hidden fees before you sign.

Bottom line

Adding a deck or patio to your yard is an excellent way to enhance your outdoor space. Plus, it adds value to your home, so it can provide a good return on your investment if you decide to sell. And with so many financing options — such as personal loans, HELOCs, home equity loans or contractor financing — you can save your emergency fund for when you really need it.

Frequently asked questions

Is building a deck or patio a good investment?

Adding a deck or patio should increase your home’s value, but how much depends on the materials used to build it. Plus, specific features you add to it may also increase its value, such as installing new patio doors or adding a built-in firepit, hot tub or pool. To know which patio and deck materials add the most value, consider asking a local real estate agent.

Are there any tax breaks if you build a patio or deck?

If you’re using a personal loan or contractor financing, there are no tax breaks for adding a deck or patio. However, if you use a home equity loan for deck or patio financing, you may be able to deduct the interest paid on the loan. Speak to a tax professional for more details.

How do most people pay for a deck or patio?

Some people may save until they can afford to build a patio or deck or use a windfall like a year-end bonus or tax refund. But most people use deck or patio financing to spread out the project’s cost.

Can you pay for a deck in installments?

Most financing options, such as personal loans, contractor financing, government loans or home equity financing, are also known as installment loans. You repay the deck or patio financing in equal monthly installments over a fixed period.

Read our other guides on home improvement

• Best home improvement loans
• Pool financing
• Hot tub financing
• Septic tank financing

• Roof financing
• Deck & patio financing
• Landscaping financing
• Fence financing