Proper fence installation financing involves getting an accurate estimate and knowing how you’ll pay before the builders break ground. This guide will explain how to finance a fence and review some of your options.
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Installing a fence lends peace of mind, and it can increase your home’s curb appeal and resale value. Whether you want to create a safe space for your children or pets, or just want a little privacy from your neighbors, new fencing can be a worthwhile investment.
While fence installation may be the smart choice for the value of your house, paying for that added value can be a challenge for many homeowners. This guide will explain the average installation cost and help you find the best way to finance a fence.
In this guide:
How to finance a fence: 3 methods
Here are three options to consider when shopping for a home improvement loan to pay for your new fence.
You can secure personal loans for fence financing online with little time or hassle. Many providers approve and supply funds the day you apply.
Borrowers use personal loans for pretty much anything, from swimming pools to new decks to kitchen remodels. Their particular 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 come with higher interest rates than secured loans.
Here are two of our highly-rated personal loan partners offering personal loans that can be used to finance fence installation costs:
4.99% – 16.99%*
$5,000 – $100,000
LightStream, our best overall personal lender, offers a home improvement loan that can be used for financing the costs of a new fence. Available to borrowers with good-to-excellent credit, LightStream will beat other companies’ interest rates by 0.10 percentage points as part of their “Rate Beat” program.**
- Credit score category: Excellent, good
- Soft credit pull to check rates: Not available
- Deposit time: As soon as the same day
- Origination fee: 0%
- Late fee: None
- Discounts: 0.50% interest rate reduction for enrolling in autopay
- Repayment terms: 24 – 144 months***
7.99% – 35.97%
$1,000 – $35,000
Upgrade offers personal loans that can be used for fencing projects, and their lower minimum credit score makes them an option for more customers. They also offer low minimum loan amounts, making them ideal for funding cheaper fencing projects.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As soon as the next day
- Origination fee: 2.9% – 8%
- Late fee: $10
- Repayment terms: 36 or 60 months
Home equity loans
Another financing option is to take out a home equity loan. These are sort of like second mortgages, letting you borrow against the equity you’ve built in your house. Your home is on the line if you can’t repay, but home equity loans typically carry lower interest rates than unsecured loans.
Here is our highly-rated partner offering home equity loans that can cover the costs of a new fence:
As low as 5.205%
$20,000 – $500,000
5 – 30 years
Spring EQ offers home equity loans that can be used for financing a fencing project. If approved, funds can be made available in as few as 11 days.
- Minimum credit score: 640
- Maximum loan-to-value: 90%
- Origination fee: $700 – $2,000
To compare other options, you can check out our guide to the best home equity loans.
Home equity lines of credit (HELOC)
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, rather than taking out a large sum and paying it off over time.
A HELOC is a great financing option if you’re committing to ongoing projects, but you’ll typically face higher interest rates than for home equity loans.
Here is our highly-rated HELOC partner:
4.99% – 13.25%
$15,000 – $150,000
5, 10, 15, or 30 years
With no hidden fees for its HELOC, Figure allows you to borrow up to $150,000 after an online application process that takes less than five minutes. You can prequalify for a loan without any effect on your credit score.
- Minimum credit score: 640
- Maximum loan-to-value: 80%
- Rate reduction: 0.75% for Autopay and Quorum discounts
- Draw term: 5 years
- Fees: An origination fee 0% – 4.99%, $0 prepayment fee
To compare other options, you can check out our guide to the best home equity lines of credit.
Other methods of fence financing
Apart from personal loans and lines of credit, builder financing and credit cards could help you cover the costs of your fence project.
Many contractors or fence companies offer their own financing plans among other payment options. This can be a convenient choice and often works out well if you trust the contractor, but beware that it might put more power in your contractor’s hands.
Compare the rates and fees your contractor offers against others in the area and those you could get with other forms of financing.
Paying for your fence project with a credit card is an option, but we recommend it as your last resort. Here’s what 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.
How much does fence installation cost?
According to HomeGuide, the most common cost of a 150-foot-long privacy fence is $2,711. The cost varies significantly depending on materials, the size of your lot, and labor. A private contractor or professional installers will cost more than doing it yourself, but you may prefer the end product.
The most important factor of the cost is materials, and there’s a ton of wiggle room here. For example, your cost will be higher if you go with a custom wrought-iron fence that surrounds a large house than a chain link or vinyl fence to enclose a small patch of lawn.
You may also need to factor in permits and zoning fees, painting services, and soil grading if you level your yard first.
You can limit the damage to your wallet by installing yourself or making small concessions. For instance, do you need ornamental post toppers, or would the standard option suffice? That’s completely up to your budget.
Frequently asked questions
The answer depends on the type of loan you’d prefer and the lender. Most lenders require good credit, with a minimum score in the mid-600s. If you don’t think your score qualifies, look for home improvement loans designed for borrowers with bad credit.
If you have time to prepare before financing a fence installation, work on building better credit as soon as possible to improve your qualification outlook.
We don’t encourage this option. For projects like a fence installation, taking on debt via credit card is usually not a great route. If you do, you should find a card with a competitive rate and a good introductory offer, not one offered by a contractor.
*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.
**LightStream will offer a rate .10 percentage points lower than the rate offered on any competing lender’s unsecured loan provided that you were approved for that lower rate (with the same loan terms offered by LightStream) no later than 2 p.m. Eastern time two business days prior to loan funding. The Rate Beat Program excludes secured or collateralized loan offers from any lender, and the competitive offer must be available to any customer with a similar credit profile. Terms are subject to change at any time.
If you believe you have been approved by another lender for a lower qualifying rate, contact LightStream customer service. We will work with you to determine your Rate Beat eligibility and obtain the necessary documentation.
***Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of three years would result in 36 monthly payments of $303.99.
Author: Tyler Rice