At a Glance

The landscaping of a home represents who a person is. It’s only natural to want to redo the landscaping occasionally. By considering landscape financing options, a person can achieve the flora and fauna of their dreams without paying out of pocket up front.

In this article, you’ll learn:

Personal loans for landscaping

One of the most common options for financing is to use a personal loan for the project. For those unfamiliar, a personal loan allows a person to borrow a lump sum of money that they repay over time. These repayments will include any interest or fees associated with the loan.

On average, a personal loan will have a tenor of two to seven years, with interest rates ranging from 6%-36% depending on a person’s credit worthiness. With loan amounts going all the way up to $100,000, a personal loan can provide more than enough funds for a landscaping project.

Home improvement loans are a type of personal loan that you can use for home improvement projects, including new landscaping. Use the funds for materials, hiring a landscaping company, or other renovations.

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Credit score required for landscaping loans

When you apply for a landscaping loan, the lender will check your credit score and history to help determine whether to approve your application, what interest rate you’ll get, your repayment terms, and other features of the loan. The better your credit score, the lower the interest rate and better the repayment terms you’ll qualify for.

Most lenders prefer borrowers to have a credit score of at least 660 to get a landscaping loan.

However, some lenders, including online lenders and credit unions, may approve borrowers who have credit scores as low as 550. Keep in mind that in this case, you will have fewer loan options and will likely pay more over the life of the loan.

Pros and cons of landscaping loans

As with any form of borrowing, there are a few key pros and cons to consider prior to taking out a landscaping loan.

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  • Instant ability to complete your landscaping project.
  • Higher long-term cost.
  • Lower interest rates depending on your credit.
  • Potentially high interest rates.
  • Can spread payments out over a longer period of time.
  • Secured loans require collateral, which you could lose if you default.
  • Can use funds for any landscaping or home improvement needs.
  • Fees.
  • Unsecured loans do not require collateral.
  • Possible damage to your credit score.

How much will a landscape loan cost?

A landscape cost will, at a minimum, cost as much as the landscaping project itself. The all-in cost for a financing landscape project, however, depends on three primary factors:

  1. The total amount of the loan
  2. The loan’s interest rate
  3. The repayment term

For example, if you only borrow $5,000, you’ll owe less over time than if you borrow $10,000. Similarly, if your interest rate is 6% you’ll owe less than if your interest rate was 12%.

Additionally, repayment terms can affect how much you owe. Shorter repayment terms mean you have higher monthly payments but you’ll pay off the loan faster, while longer repayment terms give you lower monthly payments but you’ll be paying off the loan for longer, meaning you’ll accrue more interest.

When comparing loan options, be sure to get prequalified for the loan. This doesn’t impact your credit score but can help you get an estimate of total loan cost, interest rate, and monthly payments, which can help you calculate how much the loan will cost.

Factors to consider while getting a landscaping loan

Prior to applying for a landscaping loan, keep in mind some of the following considerations:

1. Your landscaping budget

The budget you set for your project will partially determine the type of financing you need. Alternatively, it may not be a high enough amount to warrant financing in the first place. If you can afford the expense out of pocket, it will always be cheaper than taking out a loan.

2. Your credit score

Your credit score will have a direct impact on the interest rate and fees you are provided with. With a good credit score, a financing loan can be relatively cheap. However, as your credit score slowly decreases, the cost of your loan will steadily increase.

3. Your goals with landscaping

Think about what the end goal with your landscaping project is prior to applying for the loan. After all, you don’t want to request too small an amount, which may force you to take out another loan later.

4. Scope of your project

Building off the prior consideration, consider the extent of your landscaping project. This will help you determine the exact value you need to take out with the loan.

Other options of landscape financing

Traditional finance landscaping options may not be right for you, but there is a myriad of other options to consider for your project.

1. Credit cards

For those with a high credit limit, putting the landscaping expense on your credit card can be an excellent choice. However, if you are going to carry a balance month over month then the interest rate that comes on credit cards may not be worth the long-term cost.

2. Builder financing

As opposed to loans for landscaping, many builders will offer their own method for how to finance landscaping in the form of a customized payment plan. This can be an excellent option, but the interest you are charged may be higher than a personal loan interest rate depending on your credit score.

3. Home Equity Loans and HELOC

For backyard landscape financing, home equity loans or a home equity line of credit could be excellent secured options for borrowing. These forms of debt use your home as collateral when taking out either a lump sum of money or a line of credit. The latter can be helpful if you aren’t certain what the total cost of your project will be.

Related: Home Equity Loans vs HELOC

4. Personal savings and cash

At the end of the day, your personal savings account and cash balance will always be the cheapest way to finance a loan. To finance backyard landscaping, using your personal finances won’t incur interest but it will drain your rainy-day fund if the money wasn’t set aside previously.

FAQs

Yes, landscaping can increase the value of a home appraisal depending on the amount of work done and the scope of that work.

On the low end, a landscaping project can cost as little as $50 if there are minor renovations being done, but major renovations can be as much as $7,000. The average landscaping project costs closer to $700, which can still be a tough expense for a person to pay upfront.

Yes, it’s entirely possible to get a landscaping loan with bad credit. However, you may not have ideal repayment terms and you’ll likely have a higher interest rate, so the loan will cost you more in the long-term. If you have poor credit, it’s best to take steps to improve your credit before you apply for a landscaping loan.