Deck Financing: How to Pay for Your New Deck or Patio

Adding a deck to your home can expand your living space, increase your property value, and provide your family with years of outdoor enjoyment and entertainment. But depending on how elaborate your plans are, a deck can range from thousands to hundreds of thousands of dollars. 

If you’re looking at options to pay for it, we have you covered. We’ve researched the best deck financing options, the pros and cons of each method, top lenders, the cost of financing, and how to choose a deck loan that works for you. 

Best deck financing options 

The main options for deck loans include a personal loan, home equity line of credit (HELOC), home equity loan, builder financing, or a credit card. 

Option	Best for	Choose this method if
Personal loan	Mid-term financing	You don’t want to use your home as collateral on a loan.
HELOC	Flexible loan needs	You have a home with enough equity and need a flexible loan.
Home equity loan	Large upfront lump sum	You have a home with equity and know how much you need to borrow.
Builder financing	Convenience	The builder can offer better terms than a personal loan provider.
Credit card	Short-term or immediate financing	You don’t have other options or have a 0% APR card you can use.

How to use a personal loan to finance a deck

A personal loan is a solid option for financing home improvements such as a deck because it has regular installment payments you can pay off faster than a HELOC or home equity loan, which will cost you less in the long run. In addition, updating or adding a new deck or patio to your home increases your home value.

Your home isn’t at risk with a personal loan either.  

How it works

Getting a personal loan for a deck is straightforward. Your credit history, debt, and income are the primary factors when the lender makes a decision. 

The basic process is to find lenders, get prequalified, compare loan options, choose a loan, submit required documents, sign the closing documents, and receive your funds. 

Getting prequalification can be valuable because you can see whether you’re likely to be approved, what rate you’ll qualify for, how much you’ll qualify to borrow, and what terms lenders can offer. Sometimes, the process is as simple as submitting your information online. 

Pros and cons

Pros

• Loan could be paid off faster

• Set loan amount, interest rate, and installment payments

• Home doesn’t act as collateral

Cons

• Higher interest rate than a home equity loan or HELOC

• Lower loan amounts are likely

• Need to qualify with your credit, income, and debt-to-income ratio

Where to get one

You’ll find no shortage of providers for personal loans. You can find one online or at your local bank or credit union. Take a look at our recommended picks below. 

Lender or marketplace	Rates (APR)	Loan amounts
Credible1	7.49% – 35.99%	$1,000 – $200,000
LightStream	7.49% – 25.49%	$5,000 – $100,000
Upgrade	8.49% – 35.99%	$1,000 – $50,000

Credible – Best marketplace

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LendEDU rating: 5.0 out of 5

• Broad selection of loan types and lenders
• Transparent interest rates and terms
• Connects borrowers to lenders without directly lending money

Credible operates as a dependable marketplace that bridges the gap between borrowers and an extensive network of lenders and loan types. It offers transparency, presenting all necessary information on interest rates and terms at the outset. This approach facilitates easy and effective comparison, ensuring borrowers can make informed decisions without the hassle. 

Credible doesn’t lend money itself, but its role as a facilitator in the loan procurement process is invaluable for those seeking to navigate their lending options with clarity and confidence.

LightStream – Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Allows for substantial loan amounts
• No requirement for home equity
• Offers attractive interest rates for borrowers with stellar credit profiles

LightStream distinguishes itself by offering substantial loan amounts, which can be beneficial for ambitious deck or patio projects. Because it’s a personal loan, it doesn’t require home equity, which is a significant benefit for new homeowners and makes it a more accessible financing option. 

LightStream’s competitive edge is further sharpened by low interest rates for borrowers with excellent credit. This combination of features makes LightStream an outstanding choice for those with strong credit histories looking to finance large-scale home improvement projects without compromising on financial efficiency.

Upgrade – Best for fair credit

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LendEDU rating: 4.9 out of 5

• Accepts borrowers with fair credit
• Offers flexible payment terms
• Provides quick loan decisions and expedited fund disbursement

We like Upgrade for its inclusivity. It caters to borrowers with fair credit scores who may find doors closed elsewhere. Its flexible payment terms are designed to accommodate various financial situations, making the repayment process more manageable. 

Upgrade’s efficiency is notable, with its quick decision-making process and fast disbursement of funds. This ensures that borrowers can proceed with their projects without unnecessary delays, highlighting Upgrade’s commitment to customer satisfaction and accessibility.

How to use a HELOC to finance a deck

A HELOC is our next top choice for financing a deck due to its flexibility and affordability. Using a HELOC for home improvements can grant you access to large loan amounts and lower interest rates by using the home as collateral on the loan. 

How it works

To get a HELOC, you’ll submit an application and send in your documents. The lender will check your credit, have a third party appraise your home, and approve on your title. Then you’ll close on your loan. You’ll have an account attached to the HELOC, usually with checks and a debit card, which you can use when you need it. 

You’ll make monthly payments whenever you borrow money, but the amount will change depending on how much you borrow and whether your account is in the draw period. If you can’t make payments, the bank can start foreclosure proceedings against you.  

Pros and cons

Pros

• Lower interest rates than a personal loan or credit card

• Only borrow what you need

• Flexible borrowing and repayment

Cons

• Puts your home at risk

• Can take much longer to process than other loan types

Where to get one

You can find HELOC lenders at most banks, credit unions, and online lenders. See details about our recommended HELOC lender below. 

Figure – Best overall HELOC

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LendEDU rating: 4.9 out of 5

• Competitive fixed rates: 8.35% – 16.55%
• Fully online application process and funding in a few days
• Must borrow 100% of your credit line (minus fees) at closing

Figure has earned its place as our top choice for a HELOC thanks to its online application process, setting a standard for convenience and efficiency. This digital-first approach not only simplifies the application process but also speeds up the time it takes to receive funds, with many borrowers seeing funding in just a few days. This is a significant advantage for those looking to start on home improvement projects right away.

Figure’s competitive fixed rates make it an attractive option for borrowers with good credit, allowing for cost-effective borrowing. This combination of quick, convenient access to funds and favorable borrowing costs positions Figure as a leading choice for homeowners seeking flexible and efficient financing options. 

Figure requires borrowers to draw 100% of the credit line when they close on the loan, so this option is best if you’re planning a major renovation. If this matches what you’re looking for, Figure’s HELOC could provide the right blend of speed, convenience, and affordability.

How to use a home equity loan to finance a deck

With a home equity loan, you get all your funds upfront. It has a set loan amount, a fixed interest rate, and a repayment schedule from the get-go, which is helpful if you like predictability.

How it works

To get a home equity loan, you’ll find a lender, apply for a loan, schedule an appraisal, complete documentation requirements, get the funds, and start making payments back to the lender. 

The process of evaluating your home and loan application takes between six and eight weeks. Interest rates are among the best you can get for a loan. 

Pros and cons

Pros

• Low, fixed interest rate

• Set repayment period

• Funds disbursed upfront

Cons

• Must take all money in a single lump sum

• Takes longer to process than other loan types

• If you run out of money, you’ll need to use cash or apply for another loan

Where to get one

Home equity loans are available from banks, credit unions, and some online lenders. Always shop around to get the best rates, terms, and conditions for your loan. Check out our list of the best home equity loans.

How to use builder financing to finance a deck

Some builders offer financing for their services, often in partnership with a third-party lender. You’ll see offers similar to those you would get with personal loan providers, but when you’re looking at financing through a builder, it’s common to see only one lender choice. You may also see a promotional offer (e.g., 0% APR for 12 months) with a preferred lender. 

How it works

Builders direct customers to apply for a loan with a third-party lender, which is usually a personal loan lender. You’ll apply for the loan as you would with any other lender. 

Pros and cons

Pros

• Convenient

• No need to find a loan on your own

• Builder may be able to access funds quickly

• May have a promotional offer

Cons

• May have a high rate

• May not be able to shop around for a loan

Where to get one

You can get these loans through established builders and deck contractors.

How to use a credit card to finance a deck

We don’t recommend using a credit card as a deck loan due to the high interest rates. The one exception is if you apply for a card with an introductory 0% APR offer. 

How it works

Swiping a credit card is easy, but if you’re working with a contractor, ask whether they take credit cards and whether a fee applies. Then, consider applying for a credit card well in advance of your deck project. Look for cards with a 0% APR offer on purchases for 12 to 18 months. 

If you have a card with an introductory 0% APR offer, make sure to make your purchases within the allowed time frame.  

Pros and cons

Pros

• Easy to use

• Only use what you need

• May qualify for an introductory 0% APR offer

Cons

• High interest costs

• Don’t have a payoff plan

Where to get one

Many credit card companies offer 0% introductory APRs to borrowers with good to excellent credit. 

How much extra will a deck loan cost?

Use a loan calculator to compare the cost of financing a deck to paying in cash. You’ll see how much interest you’ll pay over the life of the loan and how much more you’ll pay when you choose a longer term. 

Here are examples to give you an idea of how much extra you might pay for a deck by financing it with a deck loan. We’ve included examples with different APRs, terms, and original costs. 

Here are examples of costs for a $20,000 deck loan:

Rate + term	Monthly payment	Total interest paid
8%, 5 years	$406	$4,332
8%, 2 years	$905	$1,709
4%, 5 years	$368	$2,100
4%, 2 years	$868	$844

And here are our examples for an $8,000 deck loan:

Rate + term	Monthly payment	Total interest paid
8%, 5 years	$162	$1,733
8%, 2 years	$362	$684
4%, 5 years	$147	$840
4%, 2 years	$347	$338

How to choose the best deck loan for you

Even with all the knowledge in the world, the right deck loan for you can depend on a number of variables. Try asking yourself these questions to narrow down how you should plan to finance your deck. 

• Do you know the total cost of materials and labor? If so, a loan with an upfront sum, such as a personal loan or home equity loan, may work well. 
• Do you need a larger loan amount? Home equity loans or HELOCs could offer larger loan amounts. (Personal loans may also offer larger loan amounts.) 
• Can you pay off the loan fast? A personal loan or a credit card with a 0% APR may work. 
• Are you uncomfortable using your home as collateral on a loan? If so, choose a personal loan or a credit card with a 0% APR offer. 
• Does your builder offer 0% financing? You may want to consider using the preferred partner lender your builder recommends if the terms are excellent. 
• Are you in a hurry to repair a damaged section of your deck? Your credit card could be the right option. 
• Do you want flexible financing you can also use for other projects in the future? Consider opening a HELOC. 

While some deck loans are better than others, the right one will depend on what works best for your situation. Always shop around for the best rates, terms, and loans for you. 

Recap: Deck financing 

Lender	Product	Rates (APR)
Credible	Personal loan marketplace	7.49% – 35.99%
LightStream	Personal loan	7.49% – 25.49%
Upgrade	Personal loan	8.49% – 35.99%
Figure	HELOC	8.80% – 17.45%