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What is a landscaping loan?

A landscaping loan is a personal loan used to finance an outdoor project. Personal loans are unsecured, which means collateral isn't required. Some lenders offer fast funding so you can receive the money within a day or two.

To determine the cost of a landscaping loan, you need to know the loan amount, its annual percentage rate and the repayment term.

APRs for landscaping loans are from 6% to 36%, and repayment terms can be two to seven years. Your rate and loan amount are based on information like your credit and income. The lowest rates often go to borrowers with high credit scores, strong income and little existing debt.

A $5,000 landscaping loan with a 10% APR repaid over two years would cost $5,537. The same loan with a 36% APR would cost $7,086.

Once you know the loan amount, calculate monthly payments to see whether a personal loan fits your budget and is an affordable option.

» MORE: Compare personal loans for decks and patios

Pros and cons of landscaping loans

Pros

• Fast funding. If you’re approved for a loan, some lenders offer same day funding. Generally, you won’t wait more than a week to receive funds.

• Fixed payments. Personal loans have fixed interest rates and are repaid in predictable, fixed monthly installments. You know exactly what you owe each month and when the loan will be repaid.

• Easily compare offers. Many lenders let you pre-qualify for a personal loan to see potential your rate, term and loan amount before applying. Pre-qualifying doesn’t impact your credit score.

Cons

• High rates. Personal loan APRs are often higher than other financing options like home equity loans and lines of credit.

• No tax benefits. Interest on personal loan payments isn’t tax-deductible. If you use home equity to pay for a home improvement project, you might be able to deduct the interest.

• High borrower standards. Lenders typically favor borrowers with strong credit and high income. While some lenders accept bad credit, rates can be high.

» MORE: Home improvement loans for bad credit

How to get a loan for your landscaping project

Here are four steps to getting a landscaping loan with the best rates and features for your project.

1. Check your credit. Comb through your credit report for any errors before applying. You can get a free copy of your report with NerdWallet or at AnnualCreditReport.com. 

2. Compare lenders. Pre-qualify with multiple lenders to feel confident you're getting the best rate and terms available. If deciding between two lenders, compare loan features like low rates, fast funding or autopay discounts to break the tie. 

3. Gather documents. Many lenders require income verification and some form of identification. Collect documents like W-2s, bank statements and a government-issued ID to help expedite the application process.

4. Apply. Many lenders let you apply online, though a local bank or credit union may require a branch visit. In most cases, lenders can fund an approved loan within a few days. 

» MORE: How to apply for a personal loan

Landscaping loan alternatives

Before applying for financing, consider whether you can save up and pay for the project with cash. This is the interest-free (and cheapest) way to pay for new landscaping.

High interest rates on most credit cards make them an expensive financing option. But for smaller DIY projects that require some shopping, a credit card may do the trick. A credit card for home improvements can help you avoid interest or earn rewards.

Here are three credit card options for DIY and small outdoor projects:

• Use a 0% APR card when you feel confident you can pay off the balance during the promotional period — typically 15 to 21 months. If you can’t pay the card’s balance by the end of the introductory period, you’ll pay the card's regular APR.

• A rewards card can get you cash back or other perks when you make certain types of purchases. Some cards have rewards specifically for home improvement purchases. Try to avoid carrying a balance or the interest you end up paying could offset the rewards.

• Store credit cards can reward you for buying most of your landscaping supplies from one store. Store cards’ lower credit requirements make them more accessible to fair-credit customers. You may be limited to using the credit card at the store that issues them.

Home equity loans and lines of credit have lower rates and longer repayment terms than personal loans and require collateral. Here are a few things to know about using your home equity to pay for your project.

• Collateral: With both options, you use your home as collateral to borrow from your equity. This helps to keep rates low, but it means a lender can take your home if you fail to repay.

• Tax benefits: You can write off the interest you pay on a HELOC or home equity loan if you use them to finance a home improvement project. The tax benefits are the same for both products, and they aren’t available for personal loans or credit cards.

• Long repayment terms: The long repayment terms on HELOCs and home equity loans — typically 30 years — keep their monthly payments lower than personal loans. 

• Time: A HELOC or home equity loan requires a home appraisal, which can mean weeks before you receive funding. If your renovation is small, it may not be worth the potential costs and effort.

Compare home equity loans and HELOCs to decide which is best for your landscaping project.

How much does landscaping cost?

A full landscape installation costs between $1,256 to $6,041, according to home improvement website Angi. The overall cost will depend on the size of your project; a new flower bed can cost below $1,000 while a gazebo can reach nearly $10,000.

Once installed, prepare your budget for ongoing yard maintenance and repair costs. Yard cleanup, tree trimming and a fresh coat of paint can cost a couple hundred dollars or more a year.