Financing a new fence can be straightforward and accessible, especially with good credit. From personal loans to credit cards to HELOCs and more, there are plenty of ways to go about it. To determine the best route for you, explore these fence financing options and their benefits and drawbacks.
Fence installation typically costs between $400 and $13,700, with an average cost of $3,178, according to data compiled by Angi, a home improvement advisor. However, your price will depend on factors like the size of your yard, fence height, the type of gate you choose, labor and material.
For example, wood is often cheaper than aluminum, vinyl or metal. Hiring a professional for installation will cost more than building the fence yourself. Regardless, you should consider saving between $1,500 and $6,000 for your fence or exploring financing options so you don’t have to pay for the project all at once.
Fence financing costs vary based on factors like loan type, interest rates and the project scope. Typically, interest rates range from 6% to 36% for personal loans, depending on your credit score and lender. For instance, if you took out a $5,000 loan for a fence, it might cost $417 to $808 in interest over three years.
Loan costs for fence financing vary depending on the loan type, eligibility criteria, interest rates and terms. Typical costs include the principal amount, interest and any associated fees.
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When deciding how to finance your fence, consider all the options. Each financing type has pros and cons, so one might fit your financial needs better. Here’s a detailed look at your choices.
Using a personal loan for a fence is a great option if you have short-term financing needs or want to fund this project without putting your home up for collateral. However, small personal loans are usually unsecured and have higher interest rates than a secured loan. Plus, you should be wary of taking on more debt if you’re already accumulating debt elsewhere, like on credit cards.
On the upside, personal loans typically come with a fixed interest rate and terms ranging from 12 to 60 months, meaning you’ll have predictable monthly payments for easier budgeting. You’ll get a lump sum for your home improvement project, which you can use however you like.
You can apply for a personal loan for fence financing online and expect funds the same or next day upon approval. The loan amount and interest rate depends on factors such as your credit score and debt-to-income ratio (DTI).
A home equity line of credit (HELOC) or home equity loan can be a smart way to finance building a fence by tapping into your home’s equity.
With a HELOC, you can access a revolving credit line and draw funds as needed during the draw period. This flexibility is particularly nice for ongoing projects or if unexpected expenses arise. You only pay interest on the amount you borrow, and the interest rates can vary by lender. After the draw period, the repayment phase begins, requiring monthly payments that can fluctuate based on the amount borrowed.
On the other hand, a home equity loan provides a lump sum up front, which you repay in fixed monthly installments over a set term. This option offers predictability in budgeting since you know your monthly payment amount.
However, remember that both HELOCs and home equity loans use your home as collateral, meaning defaulting on payments could risk foreclosure. Typically, the loan amount you can qualify for is capped at a percentage of your home equity, so ensuring you have sufficient equity to cover the fence installation costs is essential.
These financing options are best suited for homeowners with significant home equity who need either flexible or predictable payment structures for their projects.
Using a credit card to finance a fence installation can be convenient if you have a card with a low or 0% introductory APR. Typically, these promotional periods last from 12 to 21 months, during which you won’t accrue interest. Just be sure to get a card with a credit limit that covers your fencing project and that you can pay off the balance within the 0% APR period. After that period ends, interest rates apply.
Using a credit card for fence financing is ideal for those who can manage their spending responsibly and ensure the balance is paid off before the high interest rates kick in. It’s also useful for emergencies or immediate repairs, such as fixing a damaged fence.
However, because of potentially high APRs after the promotional period and the risk of accumulating debt, credit cards are generally a last resort for larger home improvement projects like fence installations.
Many fencing contractors and home improvement retailers offer financing plans directly, which can vary in terms of costs, fees and repayment schedules. This option is best for those who want to work with a trusted contractor or retailer and want seamless coordination between the purchase of materials and the installation process, as it comes in a bundle.
It can also be good for those wanting special financing offers or promotional periods to minimize interest costs. Home improvement retailers like Lowe’s and Home Depot often provide vendor financing options that cater specifically to fence projects.
However, borrowers should carefully review the terms and conditions, including potential deferred interest charges, to ensure they can manage payments effectively and avoid unexpected fees. Comparing financing options from different vendors or contractors can help secure the most favorable terms for financing a new fence installation.
Government assistance programs, such as state and federal initiatives, can be valuable for financing a fence, particularly for homeowners with limited means. The Section 504 Home Repair program, also known as the Single-Family Housing Repair Loans & Grants, is an example. Managed by the US Department of Agriculture (USDA), this program helps elderly homeowners, those with very low incomes and individuals with disabilities.
To qualify, applicants must own and live in the house, show they cannot obtain affordable credit elsewhere and have a household income below 50% of the area’s median income. Additionally, applicants must live in a rural area, be US citizens or legal permanent residents and be at least 18 years old. The assistance amount is based on the household’s financial situation, including real estate taxes, homeowner’s insurance and other debts.
Section 504 Home Repair Grants are more restrictive than loans. They can only be used to remove health or safety hazards and are only available to homeowners 62 or older. The maximum grant amount is $7,500, but grants and loans can be combined for up to $27,500.
However, selling the property within three years requires repaying the grant. While these programs offer attractive terms for eligible homeowners, they have strict eligibility requirements and funding limitations and can take a long time to process.
Following these steps can help you get a home improvement loan so you have the necessary funds to complete your fence project.
When it comes to fence financing, you have plenty of options. To choose, consider factors such as your financial situation, what your project entails and your credit score. From personal loans to government assistance, you can find a solution that fits your needs.
Yes, some lenders offer loans in this range to individuals with bad credit, though interest rates may be higher.
To fence one acre, you’ll need about 835 linear feet of fencing. This calculation assumes a square plot of land, but the actual amount may vary based on the shape and specific dimensions of your property.
The cheapest fence to install is often a chicken or hog wire fence. On average, hog wire costs between $6.50 and $15.50 per linear foot. Wood ranges from $10 to $45 per linear foot, and vinyl costs between $15 and $40 per linear foot.
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