Fence Financing: Installation Cost & Loan Options

Installing a new fence can be a terrific way to add privacy, improve safety, mark property lines, beautify your property, and increase your property value—but it doesn’t come cheap. 

It’s a smart way to increase the value of your property, but you might need to consider how you’ll pay for the new fence if you don’t have cash reserves to cover the expense. 

Keep reading to find out how fence loans work, financing options, top lenders, and the pros and cons of each financing option. We’re confident you’ll have a better idea of which financing option makes the most sense for your situation.

Can you finance a fence and fence installation? 

According to home services company Angi, most homeowners spend between $1,776 and $4,571 for fencing. The cost can depend on the style, height, and length of the fence. You may also need to factor in permits and zoning fees, painting services, and soil grading if you need to level your yard first.

Professional installation costs more, but if you’re confident in your ability, you might save money going the DIY route. 

It’s common to finance the costs of a fence, and many good financing options are available. You will pay interest and fees if you decide to use a fence loan rather than pay cash. The interest and fees can vary depending on which fence loan option you go with. 

Your options might include a personal loan, home equity line of credit (HELOC), home equity loan, retail financing, credit cards, and cash.

How to finance a fence

At a glance, here are the major types of financing available if you need to cover the costs of a fence, each of which we’ll describe below. 

Financing method	Best for
Personal loan	Short-term loans
HELOC	Flexible financing
Home equity loan	Larger loan amounts
Fence companies	Promotional offers
Credit card	Emergencies
Cash	Avoiding debt

Personal loans – Best for short-term loans

You can secure fence loans (aka personal loans) online with little time or hassle. Many providers can approve and supply funds the same day you apply. Personal loans are an excellent form of short-term financing, with terms lasting two to 10 years.  

Borrowers use personal loans for almost any type of home improvement loan, from swimming pools to new decks to kitchen remodels. The benefit is that you can take out a loan without putting your home on the line. However, because they tend to be unsecured, personal loans may have higher interest rates than secured ones.

Here are four of the highest-rated lenders offering personal loans to consider to finance your fence installation:

Lender

Credible

LightStream

SoFi

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Credible – Best marketplace

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LendEDU rating: 5.0 out of 5

• Hassle-free comparison shopping
• Customer support team to assist you throughout the process

Credible’s platform distinguishes itself through a user-friendly interface that simplifies the complex process of comparing loan terms, interest rates, and repayment options. This accessibility empowers users to make informed decisions without feeling overwhelmed by the technicalities of financial jargon. 

Credible’s commitment to transparency is evident in its presentation of prequalified rates¹. It provides detailed breakdowns of offers without hidden fees or clauses, fostering a trust-based relationship with its users.

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LightStream – Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Competitive interest rates
• Quick and easy online application
• No home equity required

LightStream distinguishes itself in the marketplace not only through its competitive rates but by offering a loan experience tailored for individuals with excellent credit histories. 

Its streamlined online application process stands out for its efficiency, allowing applicants to move from application to approval without unnecessary hurdles. What sets LightStream apart is its no-fee policy, which includes no origination, late, or prepayment fees, making it a cost-effective option for borrowers. 

LightStream’s unsecured loans don’t require collateral, preserving your home equity while still facilitating the necessary financing for your fence project. This unique combination of favorable terms, speed, and the absence of extraneous costs positions LightStream as a premier choice for those with impeccable credit seeking to finance their home improvement projects without compromising their financial flexibility.

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SoFi – Best for good credit

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LendEDU rating: 5.0 out of 5

• Transparent fees and terms
• Offers flexibility in payment
• Unemployment protection

SoFi solidifies its reputation in the financing sector not just by catering to consumers with good credit but by prioritizing a transparent and flexible loan experience.

SoFi’s transparent loan terms mean borrowers can expect straightforward, understandable conditions without hidden fees or surprises. The flexibility in payment options further enhances borrower satisfaction, providing the ability to adjust repayment plans in response to changing financial circumstances. 

This adaptability makes SoFi an attractive option for individuals with good credit seeking fence financing. They not only benefit from competitive rates but gain peace of mind knowing they’re partnering with a lender that supports them through prosperous and challenging times.

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Upgrade – Best for fair credit

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LendEDU rating: 4.9 out of 5

• Accepts borrowers with fair credit
• Offers personal loans for various purposes
• Fast approval and funding

Upgrade sets itself apart in the lending market by addressing the needs of individuals with fair credit, offering options for those who may feel marginalized by traditional lending standards. Its diverse range of personal loan options, including those tailored for fence financing, caters to a broad spectrum of financial needs and projects. 

A hallmark of Upgrade’s service is the rapid approval and disbursement process, which is beneficial for borrowers who need to move forward with their projects without delay. For those with average credit scores, finding a loan that balances competitive rates with flexible terms can be challenging, but Upgrade meets this need by offering loans that are accessible yet financially prudent so borrowers can undertake their fencing projects with financial support that recognizes and accommodates their unique credit situations. 

Upgrade’s commitment to a straightforward and efficient loan experience ensures that applicants can navigate the borrowing process with ease, from application to funding. This efficiency, combined with an understanding of the nuances of fair credit lending, makes Upgrade a valuable resource for individuals seeking to enhance their property’s value and security through fence installation, without compromising on the speed or quality of service.

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To compare other options, check out our guides to the best personal loans and the best home improvement loans.

Pros and cons of personal loans for fence financing

Consider the pros and cons of this approach.

Pros

• Doesn’t use your house as collateral for the loan

• Easy process to qualify for a loan 

• Fast funding

• Installment payments are the same month to month

• Fixed interest rate

• Helps build credit

Cons

• Higher rates than secured loans

• Increases debt

• Fees and interest

HELOC – Best for flexible financing

Similar to a loan that leverages your home’s equity, a HELOC uses a revolving line of credit, much like a credit card. You only borrow as you need it, as opposed to taking out a large sum and making a monthly payment like you would with other types of financing. 

A HELOC is a terrific financing option for ongoing projects. Here is our highest-rated HELOC lender.

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Figure – Best overall HELOC

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LendEDU rating: 4.9 out of 5

• Easy online application
• Fast funding
• Must draw 100% of your credit line (minus fees) when you close on the loan
• Rates (APR): 8.35% – 16.55% (fixed)

Figure redefines the HELOC landscape with its streamlined, technology-driven approach, catering to homeowners looking for efficient access to their equity. Its digital-first application process simplifies the submission of necessary documents and information while speeding up the approval timeline, distinguishing Figure from traditional lenders bogged down by lengthy, manual processes. 

This quick turnaround is advantageous for projects requiring immediate funding, such as urgent fence repairs or timely upgrades. Figure’s competitive rates appeal to a broad spectrum of homeowners and help keep the cost of borrowing reasonable. 

Coupled with the flexibility of a HELOC for funding home improvement projects such as fence installation, Figure empowers homeowners to leverage their home’s equity with confidence and convenience. The combination of a user-friendly online platform, fast funding, and favorable terms positions Figure as the leading choice for homeowners seeking to maximize their financial resources without compromising on speed or quality of service.

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To compare other options, check out our guide to the best home equity lines of credit.

Pros and cons of using a HELOC to finance a fence

Here’s what to consider before using a HELOC for your fence financing.

Pros

• Use HELOC funds for any purpose

• Only pay interest on the money you borrow

• Lower interest rate than a personal loan or credit card

• Possible tax benefits when you use funds from a home equity loan or HELOC to improve the property

Cons

• Home used as collateral to secure the loan

• Lending process can be lengthy

• Must pay interest on the amount borrowed

• Repayment schedule can be flexible, but you may pay more interest over a longer time

• Some lenders (including Figure) require an initial draw, which might be more than you need for your fence project

Home equity loans – Best for larger loan amounts 

Home equity loans are second mortgages where you borrow a lump sum against the equity you’ve built in your house. Most come with a fixed interest rate and regular installment payments. Your home is on the line if you can’t repay, but home equity loans often carry lower interest rates than unsecured loans.

To compare options, check out our guide to the best home equity loans.

Pros and cons of using a home equity loan for fence financing

Here’s what to know about this option.

Pros

• Money is disbursed upfront

• Fixed interest rate

• Regular installment payments

• Lower interest rates than personal loans and credit cards

Cons

• Home is used as collateral on the loan

• Funding isn’t flexible—you must specify the loan amount when applying

• Longer closing process with a home equity loan

• If you don’t borrow enough, you may not have sufficient funds to finish the project

Fence companies that finance – Best for promotional offers

Many contractors and fence companies offer financing plans, often in partnership with a bank or other lender. These can be convenient and may come with promotional offers worth considering. 

When financing with a fence company, be aware that financing is often through a third party—such as a credit union or credit card issuer—and doesn’t allow you to shop around for the best loan terms. It’s also possible you won’t qualify for the promotional offer being advertised. 

If you’re considering financing through a fence company, compare the rates and fees your contractor offers against others in the area and those you could get with other forms of financing.

Pros and cons of fence company financing

Here’s what to consider about retail financing.

Pros

• Convenient

• May have valuable promotional offers

• May be able to start the project sooner

• Doesn’t require your home as collateral like a home equity loan does

• May have more flexible credit requirements

Cons

• May be limited to one “preferred” lender

• May not be able to shop around for the best rate or terms

• May have a higher interest rate

• Terms on the loan you qualify for may be different than the promotional offer

Credit cards – Best for emergencies

Paying for your fence project with a credit card is an option, but we recommend it as a last resort. If you live on a busy street, and a portion of your fence is damaged so your pets or children can get out, patch it up as soon as possible. Don’t spend time waiting for financing. 

Here are other aspects that could make this a smart financial move:

• You’ve just signed up for a new credit card that requires a certain amount of spending to qualify for a bonus.
• You’ve just signed up for a new credit card that offers a 0% intro APR.
• Your fence installation budget is low, and you’re confident you can have your balance paid in full within one billing cycle.

Pros and cons of paying for a fence with a credit card

Here’s what to know.

Pros

• Readily available funds

• May be able to open a new card at 0% APR

• May build credit with a strong payment history

Cons

• High interest charged each month

• Adds to your debt

• Hard to pay off the balance if you only make minimum payments

• Can increase your debt utilization and decrease your credit score

Cash – Best for avoiding debt

This is our top choice. Using your available cash to pay for a fence means you’ll avoid financing and monthly payments. But it also means you’ll have less cash for other purposes, so if you’re saving up, you may want to preserve your cash by financing your fence. 

Pros and cons of paying cash for a fence installation

Here’s what to know before you proceed with paying cash.

Pros

• No monthly payment

• No financing fees

• No need to shop around or find a loan provider

• Doesn’t add to your debt

Cons

• May take a long time to save up enough cash

• Won’t help build your credit

• You’ll have less cash for other purposes

FAQ

Can you get fence financing with bad credit?

Most fence financing options require a reasonable credit score, but certain lenders may offer solutions for those with low credit scores or past financial difficulties. These options may come with higher interest rates or terms that could make your loan more expensive in the long run.

Is there a difference in cost between privacy fence financing and other fence installations?

The cost of fence financing can vary based on the type of fence you plan to install. Privacy fences, due to their designs and materials used, can often be more expensive than other types. The amount needed to finance a privacy fence could be higher than simpler fencing options.

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

The credit score requirements for fence financing may fluctuate depending on the lender. Many lenders require a decent credit score (often around 660 or higher). Always consult with the lender to understand the specific requirements.

Should I sign up for my fence contractor’s credit card? 

Whether to sign up for a fence contractor’s credit card depends on the terms of the card and your financial condition. If the card offers favorable terms, such as low interest rates or no-interest financing for a specific period, it might be a viable option. However, it’s essential to read all terms to avoid potential pitfalls, including high interest after the promotional period ends.

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