Deck Financing: Installation Cost & Loan Options


Adding a backyard deck can transform your outdoor space, offering a versatile area for relaxation and gatherings. To bring your deck vision to life, you’ll need to consider the installation costs and financing options available. This article delves into the factors influencing deck construction expenses and explores various financing avenues to help you make an informed decision.

A backyard deck offers an inviting space for family gatherings and leisurely moments. As you embark on the journey to create your dream deck, it’s essential to estimate the total cost and decide on the most suitable financing approach. This article discusses the key aspects of deck financing, from understanding construction expenses to exploring financing alternatives.

How much does it cost to build a deck?

The cost to build a deck can vary widely based on various factors, such as location, size, height, design, and the quality of the materials. However, on average, homeowners might expect to spend between $15 to $50 per square foot. This means for a basic 200-square-foot deck, you could expect to pay anywhere from $3,000 to $10,000, with the average reported cost being around $7,000. For more complex or luxurious designs, the price can exceed $50,000 or more.

“If the deck is ground level with no concrete work or support posts, then $3000 is OK since there is also no railing. To refresh your deck with new wood decking and new railing, you are looking at $35 per square foot,” says Srdan Popovic, owner of Evergreen Deck LLC in Wake County, North Carolina.

“To build a brand new deck in a state or county that requires permitting and inspections, such as North Carolina, a 200-square-foot deck will cost $45-$50 per square foot or $9000 to $10,000. The design also matters. It’s easier to build a 16×12 deck than 8×25,” Popovic adds.

What factors determine the cost of a new deck?

Several components can influence the final cost of building a deck.

  1. Material: The type of material you choose is a significant determinant. Natural wood (like cedar or redwood) is often more expensive than composite materials but can offer a classic look and feel. Composite decking, while usually more expensive upfront, often requires less maintenance and can have a longer lifespan.
  2. Size: The bigger the deck, the more materials and labor required, which naturally increases the cost.
  3. Design Complexity: A basic rectangular deck is typically less expensive than a deck with multiple levels, intricate patterns, or unique shapes.
  4. Railings: Adding railings or balustrades will increase the cost, especially if you opt for decorative or premium materials.
  5. Features: Built-in features such as seating, planters, or a pergola can raise the price. Other amenities, like outdoor kitchens, fire pits, or hot tubs, can further elevate costs.
  6. Foundation: The type of foundation used—whether it’s concrete piers or helical piles—can vary in cost. Also, decks that are elevated or multi-story require additional support, raising the price.
  7. Labor: Depending on where you live and the local cost of labor, contractor fees can vary significantly. The expertise of the contractor, too, can influence the labor costs—highly experienced contractors might charge more, but their experience can ensure a well-built deck.
  8. Permitting and Inspection: Depending on local regulations, you may need a permit to build a deck, and this can carry an associated cost. Inspections might also be necessary, incurring additional fees.

How do contractors price a deck?

Contractors typically price a deck in a few standard ways:

  1. Per Square Foot: Many contractors offer a basic rate per square foot, which includes both labor and materials. This rate can increase based on the factors mentioned above.
  2. Materials and Labor Breakdown: Some contractors might itemize the quote, giving separate prices for materials and labor. This approach provides a clear breakdown but can be more complex to navigate.
  3. Package or Tiered Pricing: Some contractors offer package deals based on common sizes or types of decks. For example, a contractor might offer a fixed price for a basic 200-square-foot wooden deck, with add-ons available for railings, multi-levels, or other features.
  4. Additional Costs: Always ask about additional costs. These could include fees for design services, permits, inspections, or any unforeseen challenges that arise during construction, like leveling the ground or addressing utility lines.

In any situation, it’s crucial to obtain multiple quotes to compare and to ensure the contractor has a good reputation and positive reviews. Remember, while cost is essential, the quality of the build will determine the deck’s longevity and future maintenance needs.

Exploring deck financing options

When it comes to financing your deck project, you have several options to consider:

1. Personal loans

Personal loans are a popular choice for financing deck construction. These unsecured loans are available through banks, credit unions, and online lenders. They offer flexibility, allowing you to cover both material costs and labor expenses. If you’re approved for a personal loan, you’ll receive a lump sum payment promptly, enabling you to meet construction deadlines.

Your creditworthiness influences your loan terms, including interest rates. A higher credit score often translates to lower interest rates, reducing the overall cost of the loan.

2. 0% introductory APR credit cards

Another financing avenue is utilizing a 0% introductory APR credit card. These cards offer a promotional period during which you won’t incur interest on your debt. However, it’s vital to pay off as much of the debt as possible before the promotional period ends to avoid higher interest rates.

To qualify for this option, a good to excellent credit score is typically necessary. Using this method effectively requires careful planning to ensure you clear the debt within the promotional window.

3. Home equity loan or line of credit

Home equity loans and lines of credit are secured financing options that involve using your property’s equity as collateral. Home equity loans offer fixed monthly payments and low interest rates, while home equity lines of credit (HELOCs) provide more flexibility with variable rates and borrowing only what you need.

However, using your home as collateral comes with risks. HELOCs, though flexible, can have fluctuating interest rates.

4. Home equity investments

Home equity investments, also known as shared equity agreements, give homeowners the option of cashing out on their equity without getting further into debt. Here is how it works.

An investor gives you a lump sum in exchange for a share in the future value of your home. When you sell your home (or when the contract term ends), the investor gets a share of the sale. When home prices increase, the investor also wins. However, if your home drops in value, the investor will usually also share in the loss.

4. Builder or store financing

Some deck builders offer financing directly, with terms varying by company policy. Alternatively, you can explore financing options from home improvement brands like Lowe’s. It’s crucial to understand the terms, fees, and interest rates associated with these programs.

Comparing financing options

When evaluating financing choices for your new deck, consider these factors:

  • Annual percentage rate (APR): Seek the lowest APR to minimize overall costs.
  • Repayment terms: Compare repayment durations and monthly rates.
  • Personal qualifications: Some options require good credit scores and low debt levels.

Applying for personal and home equity loans

Applying for a personal loan

To secure a personal loan for your deck project, follow these steps:

  1. Shop around for lenders to find the best terms.
  2. Review your credit report for accuracy.
  3. Choose a lender and submit your application.
  4. Provide information such as credit score, income, and employment history.
  5. Receive the lump sum upon approval.

Applying for a home equity loan

Applying for a home equity loan involves more documentation:

  1. Prepare documents like pay stubs, tax returns, and credit card statements.
  2. Loan lenders assess your finances and credit score.
  3. Minimum FICO® Score requirements may apply.

Financing your deck construction is a pivotal step in turning your outdoor dreams into reality. With various financing options available, take time to compare terms, rates, and personal qualifications. Proper planning ensures you’ll enjoy your new deck without unnecessary financial strain.


1. What factors can affect the cost of building a deck?

The cost of building a deck can vary based on factors like the size of the deck, the materials used, and the labor costs. For example, a larger deck or one made from high-end materials may lead to a higher overall cost.

2. What are the benefits of using a personal loan for deck financing?

Using a personal loan for deck financing offers flexibility in covering both materials and labor costs. It provides a lump sum quickly, making it ideal for projects with tight deadlines. Additionally, borrowers with better credit scores may enjoy lower interest rates, reducing the loan’s total cost.

3. How do I choose the best financing option for my new deck?

When comparing financing options, consider factors such as the annual percentage rate (APR), repayment terms, and your personal qualifications. Seek the lowest APR, evaluate repayment durations, and match your financing choice to your credit score and financial situation.

4. What documents are required when applying for a home equity loan?

When applying for a home equity loan, you’ll likely need to provide documents like pay stubs, tax returns, bank statements, and credit card statements. Lenders will also evaluate your credit score and financial history to determine your eligibility.

5. How can I ensure I receive my deck financing promptly?

To receive your deck financing promptly, shop around for lenders, review your credit report for accuracy, and provide the necessary financial information. Some lenders even offer same-day funding for approved borrowers.

9. Should I factor in potential fluctuations in interest rates when considering a HELOC?

Yes, it’s important to consider potential fluctuations in interest rates when opting for a home equity line of credit (HELOC). Since HELOCs have variable rates, your interest payments can change over time, impacting the overall cost of your financing.

10. Can I apply for both a personal loan and a home equity loan simultaneously?

Yes, you can apply for both a personal loan and a home equity loan at the same time. But keep in mind that lenders will assess your creditworthiness for each application. Applying for multiple loans can influence your credit score, so it’s important to choose the financing option that best suits your needs.

Ready to embark on your deck journey? Explore financing options today and create the outdoor oasis you’ve envisioned.

Key takeaways

  • Estimate the total cost of deck construction, considering factors like size and materials.
  • Explore financing options such as personal loans, 0% APR credit cards, home equity loans, and builder/store financing.
  • Compare APR, repayment terms, and personal qualifications when evaluating financing choices.
  • Applying for personal loans involves shopping for lenders, checking your credit report, and providing necessary information.
  • Home equity loans require more documentation and assessment of your financial situation.
View Article Sources
  1. Home equity loans and HELOCs – FTC
  2. What the best way to make use of equity? – My Credit Union
  3. Financing your home improvements – HUD
  4. Home Equity Investments – SuperMoney
  5. How to Use Home Equity to Fund a Home Renovation – SuperMoney