At a Glance
Adding a lovely fence to your property can provide several benefits ranging from an added layer of security to pure aesthetics. Installing a fence is no cheap feat, though, and the cost can easily get into the thousands depending on the type of fence, the length, and other factors.
Given this potentially high cost, it’s completely reasonable to assume that one may not be able to afford the expense out of pocket. Fortunately, there are fence financing options available.
For example, a fence loan is like any other type of loan in that you borrow money from a lender to pay for the total cost of the fence installation. Or, a more complex alternative includes home equity lines of credit.
You can quickly learn about the different options and what may be best for you with this comprehensive guide.
Starting with the basics, a fence finance loan is like any other type of loan in that you borrow money from a lender to pay for the total cost of the fence installation. After borrowing the money, you begin monthly repayments that encompass the portion of the principal due that month, interest, and any potential fees.
To qualify for such a loan, you will need to provide both personal and financial information, such as your address and all streams of income. Depending on the type of lender, you may receive the funds in as little as 24 hours.
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What are some fence loan options?
Fencing financing can look different depending on the type of financing a person chooses. Given these different options, it’s important to break down each to ensure you are making the best choice:
1. Personal loans
One of the more basic options of financing for a fence is taking on a personal loan. These loans can be used for virtually any purpose, making them excellent for a more unusual expense such as fence installation. Amounts that can be borrowed range from under $100 all the way up to $100,000, depending on the lender.
When applying for a personal loan for fence financing, your credit score will be considered as one of the factors that help determine the APR you are offered. This annual percentage rate can vary from 6% to 36%, on average. An added benefit of personal loans is that they are typically unsecured, meaning no form of collateral is needed to take out the loan.
2. Home equity loans
Home equity loans are a more unique type of fencing financing than the options on this list. They essentially work as a second mortgage, allowing you to borrow money against the equity that you have built in your home. These are more dangerous loans, however, as your home serves as collateral if you can’t meet payments.
On the other hand, home equity loans usually offer a lower interest rate than other unsecured loans. The minimum borrowing amount for a home equity loan is around $10,000, meaning this option should be reserved for a fence loan of a larger amount.
3. Home equity lines of credit (HELOC)
Like a home equity loan, a home equity line of credit (HELOC) allows you to borrow money against your home’s equity. However, the money is available to you as a revolving line of credit, meaning you only borrow what you need and repay that amount. This option is best for those who need ongoing fencing financing options, such as a person with multiple properties.
Related: Home Equity Loans vs. HELOC
What credit score do I need for fence loans?
To receive a favorable interest rate on a fence loan, it’s recommended that you have a credit score of at least 680. No credit check fence financing is extremely rare, and even if you can find a lender willing not to run a check the interest rate will likely be sky-high.
Pros and cons of fence financing
All financing options, no matter how great, have their own pros and cons. Here are some that you need to know when looking at how to finance a fence:
Other fence financing options
It may be the case that none of the above options for how to finance a fence work for you personally or monetarily. If this is the case, consider some of the following fence installation financing as alternative options:
1. Fence financing options from retailers
The retailer who is providing you with the fence itself may also offer financing. At the very least, it’s worth inquiring to see whether they have financing and what it looks like, so that you may compare their offer with other options.
2. Consider credit cards
For some with a strong history of repayment on credit cards, using such a card can be an excellent strategy. However, considering that this is a large purchase that will likely take a long time to repay, this should be treated as more of a final option. It can be a leading option assuming you have a 0% introductory APR, you’re attempting to reach a spending bonus amount, or you’re just confident you can have the full balance paid off within one cycle.
3. Budget in advance and use cash
Ask yourself if the fence you want to install really needs to be installed urgently. If the answer is no, consider putting money away each month until you reach the amount that the fence will cost. This will require no extra interest payments and once you pay, your obligation is complete. While this may be a difficult strategy for larger fence projects, it is an excellent option for smaller ones.
Can you get fence financing with bad credit?
Regardless if you have good or bad credit, you can likely qualify for fence financing. However, if you have bad credit, your options may be more limited. Your best financing option with bad credit would likely be a personal loan, which you can qualify for with some lenders with a credit score of 550 or above (though most lenders prefer at least 620).
Know that if you have bad credit, your chances of getting approved are lower. Additionally, your approval amount may be lower and your interest rate can be much higher. To increase your chances of getting approved and improve your interest rate, take steps to raise your credit score.
The question of whether you can get a loan for a fence is extremely common and the answer is yes. Personal loans are a very common type of fence financing. A fence company that finances its own installations may also exist. A home equity loan is another type of fencing loan that exists but is riskier because it is a secured loan with your home as collateral. However, there are many options when it comes to financing a fence.
At the end of the day, the decision between saving money for a fence installation or borrowing money is a person-to-person decision. If you are extremely confident you can fully pay the loan off without a detrimental impact to your finances, and you want the fence now, borrowing money can be a good strategy. However, if you don’t have the best credit or simply don’t need the fence now, saving up and paying it out of pocket is also an excellent choice. Consider your personal and financial situation before making any type of borrowing decision.
Installing a fence is no cheap task. In fact, the average fence installation cost at Home Depot, a leading company in the field, was $4,600 in recent years. This amount can range from $1,000-$100,000 depending on materials used and the complexity of the task, among other factors. Given this, many people may not be able to afford the expense up-front and out-of-pocket.
First, determine how many linear feet of fencing you’re going to need. Then, think about what materials you want to use. Types of materials you can use for fencing and cost can vary significantly. (For example, a new fence can range from $1 to $50 or more per linear foot.)Once you have measurements and an idea of the cost of materials, you should be able to estimate the cost of your fence.
If you’re considering hiring a professional to complete the project, have them come out for an estimate. It’s a good idea to get estimates from at least three professionals. Then, you can compare those costs with the cost of doing it yourself, and decide which is more affordable.