Driveway Financing

Can you finance a new driveway?

Yes, it is possible to finance a new driveway. Many lenders and financing institutions offer home improvement loans or personal loans specifically for projects like driveway installation or renovation. By opting for financing, you can spread out the cost of the new driveway over time, making it more affordable and manageable within your budget. It's recommended to research different lenders, compare loan options, and choose a financing solution that best suits your needs and financial situation. Be sure to consider factors such as interest rates, repayment terms, and any associated fees before making a decision.

What are the different types of driveway surfaces?

• Concrete - Concrete is one of the most popular options because it’s affordable and durable. While normal concrete isn’t all that appealing, there are other options for choosing dyed concrete, textured concrete, or having it stamped so it has a pattern. Concrete driveways generally do crack over time, though it usually takes decades. If you live somewhere with extreme cold or big temperature swings, concrete may age more quickly.
• Brick - Brick is one of the most visually appealing choices, is highly customizable, and looks as expensive as it is.
• Asphalt - Easier to install than concrete, black is good in cold areas as snow melts more quickly, but will literally burn your feet in the summer if you live anywhere where it gets above about 80F regularly. It also has to be resealed every 3-5 years.
• Gravel - Visually appealing and great for security, it’s readily available and easy to install. The downside of gravel is that it travels, especially if you don’t have a curb surrounding it. It’s best not used in most very snowy regions since you can’t shovel the snow without shoveling the gravel.
• Crushed Stone - much like gravel, and has the same pros and cons. It does tend to stay put and turn into a hard surface, which is not something gravel will do.
• Paved - any type of paving will give you the most flexibility in the way it looks. You can create interesting shapes and color contrasts. This is one of the most long-lasting and visually appealing options, but it is also one of the most expensive, especially if you have a lot of driveway to cover.
• Cobblestone and basalt - has the same pros and cons as paved, but usually require a specialist company to install, so can be more expensive than simple paving designs.

How much does it cost to pave a driveway?

You can work out what your driveway will cost by square footage - most driveways cost between $3 and $15 per square foot. Since paving is generally more expensive, you should expect to pay $10 - $30 per square foot, including labor costs. That means a 450 sq. ft. paved driveway will cost $4,500 to $13,500, depending on where you are, the material of your paving, and how complicated the design or nature of your driveway is.

Is a concrete driveway a good investment?

A concrete driveway can be a good investment for several reasons:

1. Durability: Concrete is known for its strength and durability, making it a long-lasting option for driveways. Properly installed and maintained, a concrete driveway can withstand heavy vehicles and various weather conditions, minimizing the need for frequent repairs or replacements.
2. Low Maintenance: Concrete driveways require minimal maintenance compared to other materials. They are resistant to stains, oil spills, and other common driveway contaminants. Regular cleaning and occasional sealing can help maintain its appearance and extend its lifespan.
3. Curb Appeal: A well-designed and properly installed concrete driveway can significantly enhance the curb appeal of your home. It adds a clean and polished look to your property, increasing its aesthetic value and potentially attracting potential buyers if you decide to sell in the future.
4. Property Value: An attractive and functional concrete driveway can positively impact the overall value of your property. It is considered a desirable feature for many homebuyers, as it provides convenience, durability, and an appealing first impression.
5. Cost-Effective: While the initial cost of installing a concrete driveway may be higher compared to some other materials, its long-term durability and low maintenance requirements can make it a cost-effective choice. Avoiding frequent repairs and replacements can save you money in the long run.

What is the cheapest way to pave a driveway?

When it comes to paving a driveway, the cheapest option is typically gravel. Gravel driveways are relatively inexpensive to install and require minimal upfront costs. Here are some reasons why gravel is considered a cost-effective driveway paving option:

1. Affordable Materials: Gravel is widely available and relatively inexpensive compared to other paving materials such as concrete or asphalt.
2. Minimal Installation Costs: The installation process for a gravel driveway is relatively simple and requires less labor compared to more complex paving methods. This can help keep the overall installation costs lower.
3. Lower Maintenance Costs: Gravel driveways typically require less maintenance and fewer repairs compared to paved surfaces. Basic maintenance tasks, such as occasional regrading and adding additional gravel, can be done at a lower cost.

Best driveway paving financing options

How you choose to finance your driveway will depend on the type of driveway you plan to get and your creditworthiness. Here are your options:

• Savings: if your preferred driveway surface is inexpensive and you only have a short driveway, you may be able to finance its installation yourself.
• Personal Loan: this is the most versatile option as most lenders will lend anywhere from $1,000 to $50,000, depending on your income and credit score. This is a good option if you want to spread the cost over 2-5 years. Personal loans generally have relatively low interest rates, though if you have fair or bad credit, borrowing can be expensive.
• Credit Cards: If you have good or excellent credit and your driveway is going to be relatively inexpensive, consider looking for a credit card with a long 0% APR introductory rate or low interest rate to pay for your driveway. If you can achieve a long period (6-21 months) you can pay off your driveway without paying interest, or only paying a little. Just make sure you transfer any remaining balance before your APR returns to the normal rate.
• HELOC: A Home Equity Line of Credit is where you are given a maximum credit limit (like a credit card) and you can use that credit as and when you please. A HELOC is secured by your home’s equity, so while you can get higher limits and lower interest rates, but your home is at risk if you default.
• Home Equity Loan: A home equity loan is where you take out a loan that is secured by your existing equity in your home - it is essentially a second mortgage. This is a good way to release equity but will mean you own very little of your home outright and puts your home at risk if you were to default.
• Cash-Out Refinance: This is another name for “remortgaging”, so you refinance your current mortgage to have a larger mortgage. This is generally only possible if your house price has increased since you purchased it, or your home is worth significantly more than your mortgage.
• 401(k) Loan: Some 401(k) plans allow you to borrow from your future retirement savings, interest- and credit-check-free. There are limits to how much you can borrow and most do not allow you to contribute to your retirement savings until you have paid off the loan, so make sure you research the terms before using this form of financing.