HELOCs for Landscaping Projects

Many people don’t realize you can use a HELOC for landscaping. If you have equity in your home and big dreams of a backyard oasis, you may be able to qualify for a home equity line of credit.

Below, we share the top HELOC lenders. We also provide a step-by-step guide to applying for a HELOC and discuss the pros and cons to consider before you do.

Best HELOCs for landscaping 

Finding lenders, researching customer service reviews, and determining whether a lender is legitimate can take time. So, we’ve done the heavy lifting for you.

The lenders below offer HELOCs at competitive interest rates and have numerous other features that make them good choices for borrowers.

You should always do your due diligence when deciding which lender is best for you, but the lenders below are a good place to start.

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Bethpage FCU

Best credit union

4.7 _/5

LendEDU Rating

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Why we picked it

Bethpage Federal Credit Union is perfect for landscaping projects. Whether you’re installing a new patio, pool, or complete garden overhaul, Bethpage’s competitive rates and flexible terms can accommodate your large-scale plans. 

Its well-rated customer service ensures you get the support to handle substantial home improvement projects.

• No application, origination, or appraisal fees
• Convert part of your HELOC to a fixed-rate option
• 12-month fixed introductory rate for qualified borrowers
• $0 closing costs

Loan details

Rates (APR)	12-month intro rate of 6.99%, then starts at 8.50%
Loan amounts	$15,000 – $400,000
Repayment term	5, 10, 15, or 30 years
Origination fee	Up to 4.99%

Eligibility requirements

• Must be a credit union member (membership is open to anyone who opens a $5 savings account)
• Minimum credit score of 670 or above
• Bethpage has several additional requirements to be eligible for a HELOC, but it doesn’t disclose them in detail on its website. It recommends you speak to a home lending specialist

LendingTree

Best for comparison shopping

4.5 _/5

LendEDU Rating

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Why we picked it

LendingTree is ideal for those who want to compare multiple HELOC offers to find the best fit for their landscaping project. By providing access to a network of lenders, LendingTree allows you to compare rates, terms, and conditions easily, ensuring you secure the best possible financing. This can be beneficial if you’re looking for the most cost-effective way to finance your landscaping dreams while still getting favorable loan terms.

• Fixed interest rates
• No in-person appraisal is needed
• Option to redraw up to 100% of funds
• Funding can be available in as few as 5 days
• Check your rate without affecting your credit score

Loan details

Rates (APR)	Starting at 6.99%
Loan amounts	$10,000 – $2 million
Repayment details	LendingTree’s lenders offer repayment terms between five and 30 years, and withdrawal periods of two to 20 years.

Eligibility requirements

LendingTree isn’t a lender itself, so it has no eligibility requirements to compare lenders in its network. Its website notes that most borrowers have a minimum credit score of 620, a debt-to-income ratio below 43%, and a loan-to-value ratio below 95%.

How does it work to finance landscaping projects with a HELOC? 

According to the Zillow Home Value Index, home values have increased 3.9% in the past year. As such, many people have more home equity that they can use to finance landscaping projects. One way to do this is to apply for a HELOC.

When you apply for a HELOC, banks can approve you for a line of credit up to a certain limit—usually 80% to 90% of the available equity in your home. You can use these funds for anything you like. Many people use a HELOC to renovate and improve their homes, including landscaping.

Pros and cons of using a HELOC for landscaping

As with any lending product, there are pros and cons to consider. Here are some examples.

Pros

• Several lenders to choose from

  A HELOC is a popular consumer lending product, so borrowers have many choices when picking a lender. In addition to local banks, borrowers can apply to online lenders if available in their state.

• Easy application process

  Homeowners know that applying for a mortgage can be a lengthy process. However, getting a HELOC is a relatively easy application process. You can often get access to your line of credit within a few weeks, depending on the lender.

• Promotions available

  Many HELOC lenders offer promotions to compete in the marketplace. These might include a low interest rate for a period of time or a promotion like 90 days without a payment. These promotions and introductory rates can benefit borrowers who only want to access their line of credit temporarily.

Cons

• Your home is the collateral

  The biggest drawback to a HELOC is that your home is the collateral for the loan. Even if you make your mortgage payments on time but fall behind on your HELOC payments, your HELOC lender has the right to start foreclosure proceedings on your house.

• Variable interest rates

  The interest rate on home equity lines of credit is variable. That means that your rate can fluctuate depending on economic factors. Not having consistent monthly payments makes it challenging to budget now and in the future.

• Limit to borrowing

  Your HELOC is limited to a percentage of your home equity. If your landscaping project exceeds budget, you can’t borrow more than the limit. You can, however, always pay down your line of credit to create more space.

How to apply for a HELOC for landscaping projects

Here are the steps to take to apply for a HELOC.

1. Check your equity

To qualify for a home equity line of credit, you must own at least 15% to 20% of your home, depending on the lender. To calculate home equity more accurately, speak with a qualified real estate agent to get a ballpark figure of your home’s worth.

The equity in your home is the value of your home minus what you owe on your home. Lenders typically allow you to borrow anywhere from 80% to 90% of your total equity.

2. Create a landscaping plan

Now that you know approximately how much equity you have in your home, create a landscaping plan with a budget. You can create a landscaping plan independently or with a landscape architect.

Estimate the cost of supplies and labor. Then, add about 20% to your total to cover unexpected costs and expenses related to your outdoor renovation project. 

This is helpful information because if the landscaping you want costs more than the maximum HELOC you’re eligible for, you might have to adjust your plan.

3. Research lenders

Not all lenders are created equally. Lenders have different criteria, interest rates, fees, and eligibility requirements. Most lenders require a 650 or above credit score to be eligible for a HELOC. Find three to five lenders that allow you to prequalify to compare offers.

4. Compare all criteria

When deciding which lender to choose, make sure you compare all criteria. Some lenders offer lower interest rates but might have higher fees or closing costs. Ask as many questions as you need to feel comfortable with your choice. Once you’ve selected a lender offering the best total HELOC package, fill out an application.

5. Submit your application and documents

When filling out your HELOC application, your lender will likely need several documents, including your license, social security card, income verification, and anything else your lender requires. Gathering your documents ahead of time can help ensure that the process goes quickly.

6. Decide how much to withdraw

Unlike a home equity loan, which deposits a lump sum into your checking account, a HELOC is a line of credit. That means that you can use it as needed up to your limit. 

A HELOC operates similarly to a credit card, where you can use the HELOC, pay down what you can, and use it again. Work with your landscaper or do your own calculations to decide how much you need to take out in each stage of your renovation.

Alternatives to a HELOC for landscaping

If you’re unsure whether a HELOC is right for you, consider the following options.

Personal loan

Personal loans are unsecured loans for various purposes, including landscaping projects. They typically have fixed interest rates and repayment terms, making budgeting easier. However, due to the lack of collateral, they often have higher interest rates than HELOCs.

Some financial institutions and specialized lenders offer specific loans for home improvement and landscaping projects. These loans may come with competitive rates and terms tailored to such projects, making them a suitable alternative to HELOCs.

Home equity loan

Like HELOCs, home equity loans allow you to borrow against the equity in your home. They provide a lump sum with fixed interest rates and repayment terms. This option is best for homeowners who prefer predictable monthly payments and need a specific amount for their landscaping project.

Cash-out refinance

A cash-out refinance involves refinancing your mortgage for more than you owe and taking the difference in cash. This option can provide a large sum for landscaping, potentially at a lower interest rate than a personal loan or credit card. However, it resets the term of your mortgage, and you may end up paying more in interest over the life of the loan.

Credit card

A credit card might be a viable option for smaller landscaping projects. Many credit cards offer rewards or cash back on purchases; some come with introductory 0% APR periods. However, credit cards generally have higher interest rates than HELOCs and home equity loans, so carrying a balance can be expensive.

Savings or emergency fund

Using your savings or an emergency fund to finance a landscaping project is a straightforward option. It lets you avoid taking on debt and paying interest, but it’s essential to ensure that using these funds won’t leave you without a financial cushion for emergencies.

Ask the expert

Erin Kinkade

CFP®

Your landscaping costs and the amount you need to borrow will impact the best financing type. My first recommendation is always a savings account earmarked for home maintenance or specific home improvement goals. If you don’t have this, shop for a HELOC or a home equity loan. If you can budget repayment within 12 to 18 months, a 0% introductory offer credit card could be a choice. The key is to know the cost of the project and to make sure repayment fits into your budget.

FAQ

Can I use a HELOC for any type of landscaping project?

Yes, you can use a HELOC for various landscaping projects, including installing patios, pools, irrigation systems, and general garden overhauls. The flexibility of many HELOCs allows you to access funds as needed, making it suitable for small- and large-scale landscaping projects.

How do I determine the amount I can borrow with a HELOC for landscaping?

The amount you can borrow with a HELOC depends on the equity you have in your home, your credit score, and the lender’s specific terms. Typically, lenders allow you to borrow up to 85% of your home’s value minus any outstanding mortgage balance. Checking with individual lenders for specific borrowing limits and requirements is best.

How long does it take to get approved for a HELOC for landscaping?

Approval times for a HELOC can vary depending on the lender and your individual financial situation. The process can take anywhere from a few days to a few weeks. 

Home appraisal, credit checks, and document verification contribute to the timeline. We recommend starting the application process well before you need the funds for your landscaping project.

How we chose the best HELOCs for landscaping projects

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best HELOCs for landscaping