Deck Financing

What are the pros and cons of deck financing?

PROS

• Affordability: Financing allows you to spread the cost of your deck project over time, making it more affordable in the short term by breaking down the payments into manageable installments.
• Immediate Access: Financing enables you to start your deck project right away without having to wait until you have saved up enough money. This is particularly beneficial if you want to enjoy your deck during the current season or if you have time-sensitive plans.
• Flexibility: Financing options provide flexibility in terms of repayment terms and loan amounts. You can choose a loan that suits your budget and repayment capabilities, allowing you to customize the financing to your specific needs.
• Increased Property Value: Adding a deck to your property can increase its value and appeal to potential buyers if you decide to sell in the future. By financing the project, you can potentially enhance your property's market value.

CONS

• Interest Payments: Financing involves paying interest on the borrowed amount, which increases the total cost of your deck project. Depending on the interest rates and repayment terms, the overall cost can be higher than if you were to pay for the deck in cash.
• Debt and Obligations: Taking on a loan means taking on a financial obligation. You will have to make regular payments over a specific period, which can impact your monthly budget and limit your financial flexibility until the loan is fully repaid.
• Qualification Criteria: Depending on the financing option and lender, there may be certain qualification criteria you need to meet, such as credit score requirements or income verification. If you don't meet these criteria, securing financing may be challenging or result in less favorable terms.
• Potential Risks: If you fail to make timely payments or default on your loan, it can negatively affect your credit score and financial standing. It's crucial to assess your ability to meet the loan obligations and choose a financing option that aligns with your financial situation.

How long do decks last?

Decks can last for a varying length of time depending on factors such as materials used, construction quality, maintenance, and exposure to weather conditions. According to the North American Deck and Railing Association (NADRA), the typical lifespan of a deck ranges from 10 to 30 years. However, this estimate can vary significantly based on the following factors:

1. Wood Decks: Traditional wood decks, such as those built with pressure-treated lumber, cedar, or redwood, generally have an average lifespan of 10 to 15 years. Proper maintenance, including regular cleaning, staining, and sealing, can help extend their longevity.
2. Composite Decks: Composite decking materials, which are a blend of wood fibers and recycled plastics, tend to have a longer lifespan. High-quality composite decks can last 25 to 30 years or more with regular maintenance, such as cleaning and periodic inspections.
3. Environmental Factors: Decks exposed to harsh weather conditions, excessive moisture, or intense sunlight may have a shorter lifespan. Climate, regional weather patterns, and the level of maintenance play a significant role in determining how long a deck will last.
4. Construction Quality: The construction quality of the deck, including the foundation, framing, and attachment methods, can affect its durability and lifespan. Well-built decks with sturdy construction techniques are likely to last longer than those with subpar construction.

What is the cost of building a new deck?

The cost of building a new deck can vary widely depending on various factors, including the size, materials used, design complexity, and location. According to HomeAdvisor, the average cost of building a deck in the United States ranges from $4,380 to $10,080. However, it's important to note that these figures are general estimates and costs can differ significantly based on specific project requirements and regional variations.

Deck financing calculator

How much does it cost to build your own deck?

The cost of building your own deck can vary depending on several factors, including the size of the deck, the materials used, and your location. It's important to consider the cost of materials, tools, and any necessary permits or inspections. While it's difficult to provide an exact figure without specific project details, the cost of building your own deck can be significantly lower than hiring a professional contractor.

According to HomeAdvisor, the average cost range for DIY deck construction is between $1,500 and $3,000 for a basic 10x10-foot deck, excluding labor costs. However, it's essential to note that this estimate may not include all potential expenses, such as specialized tools, hardware, and finishing materials.

When planning to build your own deck, it's recommended to research and obtain accurate pricing for the specific materials and tools you intend to use. Consider consulting with local home improvement stores, online resources, and DIY deck building guides to gather detailed cost information and create a comprehensive budget for your project.

Will a deck increase my home’s value?

One of the benefits of adding a deck is that it helps to increase your home’s value. In fact, according to the 2021 Remodeling Cost vs Value Report, a deck addition increased home value by 63.2% to 65.8%. It is worth noting that this added value will depend on how well you maintain your deck - a deteriorating deck will be seen as a liability, not an asset.

What credit score do I need to qualify for deck financing?

The specific credit score required to qualify for deck financing can vary depending on the lender and the financing option you choose. Generally, a good credit score is desirable to secure favorable terms and interest rates for financing. While there is no universally set minimum credit score, here are some general guidelines:

1. Prime Financing: Prime financing options, such as home equity loans or personal loans from traditional banks, typically require a credit score of 650 or higher. A higher credit score may increase your chances of approval and qualify you for more favorable loan terms.
2. Subprime Financing: Some lenders specialize in providing financing options for individuals with lower credit scores or less-than-perfect credit histories. These subprime lenders may be more lenient with credit requirements but often charge higher interest rates and fees.

How to apply for deck financing

To apply for a deck or patio loan, follow these steps:

1. Research lenders: Look for lenders that offer home improvement loans or personal loans specifically for deck or patio projects.
2. Gather documentation: Prepare necessary documents, such as identification, proof of income, and proof of homeownership.
3. Check credit score: Review your credit score to determine your eligibility for different loan options and interest rates.
4. Estimate project cost: Determine the estimated cost of your deck or patio project to know how much financing you will need.
5. Compare loan options: Compare loan terms, interest rates, repayment periods, and any associated fees from different lenders.
6. Submit application: Complete the loan application with accurate information and submit it to the chosen lender.
7. Provide additional information: Be prepared to provide additional documentation or answer questions from the lender during the application process.
8. Await approval: Wait for the lender to review your application and provide a decision on loan approval.
9. Review terms: If approved, carefully review the loan terms, including interest rate, repayment schedule, and any additional fees or conditions.
10. Accept the loan: Once you are satisfied with the terms, accept the loan offer and proceed with the funding process.