Driveway Paving Financing Options
The cost of repaving your driveway could cost you thousands of dollars. If you don’t have the cash on hand, there are several driveway financing options including personal loans and home equity loans.

Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.
If your driveway has big cracks, potholes, chunks of eroding pavement, a weathered and aged appearance, or missing pieces of brick or cobble, it may be time to get it repaved.
The project can cost around $1,000 to $10,000, according to HomeAdvisor, so some homeowners may need to find outside financing in order to complete the home improvement project.
The best options for driveway financing including personal loans, home equity loans, and home equity lines of credit.
Best Driveway Paving or Repaving Financing Options
Personal Loans
Personal loans are a common method for homeowners to finance a new driveway or to repave an existing driveway. A personal loan is an unsecured loan, which means there is not an asset that serves as collateral for the loan and can be used as a home improvement loan.
This makes the loan riskier for the lender, so interest rates typically are higher than they would be for a secured loan. The application process, however, is much easier, and borrowers can get the proceeds from their loan within a couple of days.
Driveway Financing Loans

- Fixed-rate loans starting at 4.99% APR* with AutoPay and excellent credit
- Funds available as soon as the same day
- Minimum credit score of 660

- Fixed rates beginning at 7.99% APR
- You can check rates without hurting your credit score
- Minimum credit score of 620

- Rates are typically between 8.41% and 35.99% APR1
- Funds can be received in as fast as one business day
- A minimum credit score of 600 in most states
Interest rates & fees
The interest rates and loan terms on personal loans can vary dramatically among lenders. So, it’s especially important to do your research and make sure that you are choosing the right personal loan for you. Interest rates typically vary from around 5% to 36% and loan maturity can range from two to seven years.
Lenders also charge origination fees that can range from 0% (no origination fee) to 7% of the loan amount. Borrowers who have credit scores above 720 have the best options when choosing lenders and tend to get the most competitive rates and loan terms.
If you only qualify for a personal loan with high fees or a high interest rate, this can be an expensive option for repaving a driveway. But, if you do qualify for a low-cost personal loan, it may be a good choice.
>> Read More: Best Personal Loans
Using Home Equity for Driveway Financing
A home equity loan or home equity line of credit (HELOC) are other ways that homeowners can finance their driveway improvements. Both of these options allow homeowners to borrow against the equity they have built up in their homes.
Home Equity Options for Driveway Work

- HELOCs with no in-person appraisal needed
- Apply completely online in minutes
- Fast access to your equity

- Home equity loans with low fixed rates
- Borrow up to 90% of your home’s value
- Loans up to $500,000
Interest rates & fees
Since the debt obligation is secured by the borrower’s home, lenders typically charge a lower interest rate than they might for an unsecured personal loan. Home equity loan rates are currently as low as 4.09% and HELOC rates are as low as 4.75%.
Borrowers may have to pay loan origination fees and closing costs equal to 2% to 5% of the loan amount, although some lenders do not charge these fees or may waive these fees for current customers.
In addition, it’s important that homeowners are sure they can meet all of the monthly payment obligations. The lender can foreclose on your home if you cannot make the payment on your home equity loan or HELOC.
>> Read More: Best Home Equity Loans & Best HELOC Rates
The Cheapest Option: Using Cash
Saving the money and paying cash for your driveway repair is the cheapest financing option. Paying cash lets you avoid both the interest charges as well as the high origination fees that often come with payment plans.
It could take you a few months or longer to save the money, but it might be better than getting a loan for a relatively small home improvement project.
Driveway Company Financing
Finally, you might be able to finance your driveway repair with a line of credit from the paving company or a home improvement center. Many home improvement centers have promotional financing offers that give you 0% interest for an introductory period.
If you take a financing offer like this, however, it is important to pay off the debt during the promotional period. Otherwise, interest usually accrues from the date of purchase at rates of over 20%.
Weighing Your Options
Repaving your driveway can fix wear and tear and can add curb appeal to your home. The project can be relatively inexpensive if you have a small driveway and use asphalt or blacktop surfacing.
The cost, however, can be much higher if you have a particularly large driveway or use more expensive materials. Saving the money and paying cash for the repair is the cheapest option, but there are a few other financing alternatives if you don’t want to wait to start the repairs or prefer a payment plan.
Cost to Pave or Repave a Driveway
Asphalt or blacktop driveways are the cheapest to install and repair. The cost of installing an asphalt driveway is generally around $3 to $4 per square foot, while repaving it costs around $1 to $3 per square foot, on average. So, installing a 1,000-square-foot asphalt driveway could cost between $3,000 and $4,000 while repaving it would cost around $1,000 to $3,000.
Installing concrete driveways usually costs more than asphalt at around $6 per square foot while repaving should be slightly cheaper. Brick and cobble driveways can be many times more expensive to install, from $10 to $70 per square foot, depending upon the cost of the individual stones or bricks.
The total cost of paving or repaving your driveway includes the materials, tools, and labor costs if you are not going to do the work yourself.
Recap of Driveway Paving or Repaving Financing Options
If you’ve decided to finance paving or repaving your driveway through a personal loan, home equity loan, or home equity line, here is a recap of lenders you may want to consider:
Lender | Loan Type | Rates (APR) |
LightStream | Personal loan | 4.99% – 16.99%* with AutoPay |
Upgrade | Personal loan | 7.99% – 35.97% |
Upstart | Personal loan | 8.27% – 35.99%1 |
Figure | HELOC | 3.49% – 13.25% |
Spring EQ | Home equity loan | 5.205%+ |
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
Author: Kimberly Goodwin, PhD
