5 Deck Loans: Finance Your Deck or Patio
Personal loans are a fast way to finance your new deck. Compare personal loans to home equity options and credit cards to choose the one that best fits your plans.
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A backyard deck or patio can serve as a change of scenery for a family dinner or a peaceful place to sip your morning coffee. If you’re planning a new deck or patio, a first step is deciding how you’ll pay for it.
The average deck can cost $16,000 to $22,000, depending on what it’s made of, according to Remodeling Magazine’s 2021 Cost vs. Value report.
If you need to finance the deck, your options include a personal loan, home equity loan or line of credit and credit cards — and each choice has pros and cons.
A personal loan is among your fastest options — many lenders can fund a loan in a week or less. Here are five lenders that offer personal loans for decks and patios, plus details about other financing options and when each is appropriate.
A backyard deck or patio can serve as a change of scenery for a family dinner or a peaceful place to sip your morning coffee. If you’re planning a new deck or patio, a first step is deciding how you’ll pay for it.
The average deck can cost $16,000 to $22,000, depending on what it’s made of, according to Remodeling Magazine’s 2021 Cost vs. Value report.
If you need to finance the deck, your options include a personal loan, home equity loan or line of credit and credit cards — and each choice has pros and cons.
A personal loan is among your fastest options — many lenders can fund a loan in a week or less. Here are five lenders that offer personal loans for decks and patios, plus details about other financing options and when each is appropriate.
Our picks for
Personal loans for deck financing
on SoFi's website
SoFi
Est. APR
Loan Amount
Min. Credit Score
on SoFi's website
on LightStream's website
LightStream
Est. APR
Loan Amount
Min. Credit Score
on LightStream's website
on Upgrade's website
Upgrade
Est. APR
Loan Amount
Min. Credit Score
on Upgrade's website
on Goldman Sachs's website
Marcus by Goldman Sachs
Est. APR
Loan Amount
Min. Credit Score
on Goldman Sachs's website
on Prosper's website
Prosper
Est. APR
Loan Amount
Min. Credit Score
on Prosper's website
How to compare personal loans for deck and patio financing
Qualifications. The interest rate and loan amount you get are based primarily on your credit profile, income and existing debts. Lenders want to know that you can pay your monthly expenses, plus the additional loan payments. Some lenders cater to people with bad credit (629 or lower FICO), while others seek borrowers with good or excellent credit (690 and higher FICO).
APR. A personal loan’s annual percentage rate is the entire cost of the loan, including interest and any fees. A lower APR means a cheaper loan.
Loan terms. Most lenders offer terms between three and five years, though terms can be as short as one year or as long as seven years. You may get a lower APR on a longer-term loan, but loans with longer terms often cost more in the end. Calculate your payments to see what you would pay overall.
Special features. Some lenders offer features like pre-qualification, which lets you see your rate with a soft credit pull before formally applying. Others may let you defer a payment after enough on-time payments or give you a rate discount for setting up automatic payments.
3 ways to finance deck additions
How you finance your deck depends on factors like how much home equity you have, your credit and income, and the cost of your project. Knowing how much your deck will cost can help inform which option to choose.
1. Personal loans
An unsecured personal loan doesn’t require you to pledge your home as collateral, so the interest rate may be higher than with a home equity loan or line of credit.
When they’re best
Personal loans are best if you don’t have enough home equity to cover the project cost or you don’t want to use your home as collateral for the new deck. They're also best when you need the funds quickly.
Things to consider about personal loans
Fast funding. Many online lenders can fund a loan within a day or two, while banks can take a few days to a week. In both cases, you’ll likely get your funds faster with a personal loan than with home equity financing.
Unsecured. Getting an unsecured loan means that if you fail to repay, the lender can’t take your house or car. They may, however, garnish your wages or take you to court. If you pay the loan on time, your credit will benefit; if you miss payments, your credit score will likely drop.
High credit and debt standards. Because lenders assess only your finances and creditworthiness, many have high credit standards and require a low debt-to-income ratio. You can apply for a joint or co-signed personal loan if you think you won’t qualify for a low rate on your own.
How to get started
Your first step to getting a personal loan should be to compare options. Pre-qualify with multiple online lenders on NerdWallet to see what rates lenders can offer, then begin the application process.
2. Home equity loans and lines of credit
Home equity loans and lines of credit have lower interest rates than other financing options because they’re secured by your home.
Home equity loans have low fixed rates and let you borrow a specific amount in a lump sum. Your monthly payments — which are also fixed — go toward both interest and principal.
Home equity lines of credit have variable rates, but give you the flexibility of borrowing only what you need and repaying interest only on that amount. HELOCs have two phases: the draw period, when you borrow, and the repayment period.
When they’re best
Equity financing works best if you’re comfortable using your home as collateral and you have enough equity to finance the project.
Home equity loans are best if you know how much you’ll need for the project. You typically can't borrow more money from your equity once you’ve gotten a loan.
Home equity lines of credit are best if you think you might incur more expenses along the way. You should be comfortable with some variation in your interest rate with this option.
Things to consider about HELOCs and home equity loans
Tax benefits. When you use equity to pay for a home improvement, the interest you pay is tax-deductible up to a limit. The tax rules are the same for both HELOCs and home equity loans.
Secured financing. Home equity options have lower rates than personal loans and credit cards partly because your home is used as collateral.
Long repayment terms. Both home equity loans and lines of credit often have repayment terms of over a decade, while personal loan repayment terms are shorter.
How to get started
Compare home equity loans and lines of credit to decide which option is best for you. Then, compare lenders to find the one that best suits your project.
3. 0% APR credit cards
Credit cards tend to have higher average APRs than personal loans and home equity options. However, if you can pay off the cost of your project in a year or so, a 0% APR credit card may be the cheapest option.
These cards come with promotional periods — typically 15 to 18 months — when purchases you make don’t accrue interest.
When they’re best
These cards are best when you can qualify — meaning you have strong credit and little existing debt — and when you can pay the balance in full by the end of the promotional period.
Things to consider about credit cards
High credit standards. Cards with a 0% APR introductory period typically require good or excellent credit to qualify. You may be approved for the card, but you may not be approved for the full amount you plan to spend on the new outdoor area. In that case, you can use the card for supplementary expenses or unexpected costs.
High rates after the promotional period. If you use a 0% APR credit card to finance a deck or patio and don’t pay off the balance, interest begins to accrue on the card when the promotional period ends. Check the card’s post-promotion APR and evaluate whether you'd be comfortable paying it.
Monthly payments. Cardholders should plan to make monthly payments. If you’re late with your minimum payment, a lender can cancel the promotion, leaving you with the balance and the card’s regular interest rate.
How to get started
Compare 0% APR cards to find the one with features and rates that fit your needs. Once you’ve found the one that works best for your plans, get ready to apply.
Last updated on August 16, 2021
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 30 lenders. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read our editorial guidelines.
To recap our selections...
NerdWallet's Deck Loans: Finance Your Deck or Patio
- SoFi: Best for Personal loans for deck financing
- LightStream: Best for Personal loans for deck financing
- Upgrade: Best for Personal loans for deck financing
- Marcus by Goldman Sachs: Best for Personal loans for deck financing
- Prosper: Best for Personal loans for deck financing
Frequently asked questions
You can use the funds from a cash-out refinance to pay for your new deck; however, if the project is too small it may not be worth it. Calculate how much you can borrow in a cash-out refinance, then consider how much you may pay in closing costs. If the closing costs are steep, it may not be worth refinancing your mortgage to put in a deck.
You can pay for a new deck with a home equity loan or line of credit. To do so, you need enough equity to cover the cost of putting in a new deck. Consider whether you’re comfortable using your home as collateral for the deck and if the project cost is enough to make the underwriting process and closing costs worth it.
You won’t likely recoup the entire cost of a deck. The average cost to put in a wood deck is $16,766, according to Remodeling Magazine. The resale value is $11,038. For a composite deck, the average cost is $22,426 and the resale value is $14,169.
