Shared Equity Agreements

Loan Options for Fence Financing: Which One is Right for You?


When it comes to financing your fence project, there are several options to explore, from retailer promotions to personal loans and home equity solutions. In this comprehensive guide, we’ll walk you through each option, highlighting their pros and cons to help you make an informed decision for your fence financing needs.

White picket fences may sound idyllic, but the cost of installation can quickly add up to thousands of dollars, depending on the size of your yard and the materials you use. This can make it difficult to repair or get a new fence if you don’t have the cash on hand. Fortunately, there are other low-cost ways to fund your fence financing project.

Check with retailers

As you shop around for fencing supplies, be sure to check with home improvement retailers in your area like Lowe’s and Home Depot, which may offer zero-interest promotions on fence financing.


Here is a list of the benefits and the drawbacks to consider.

  • Pay back less than what you owe
  • Become debt-free in less time
  • Avoid bankruptcy
  • Negative impact on credit score
  • Additional fee accrual
  • Remains on your credit history for 7 years

Apply for a home improvement loan

A home improvement loan, a type of personal loan, is an unsecured form of debt that can be used to fund your fence installation. Personal loans come with fixed APRs, terms, and loan payments, so you’ll know how much you’ll pay each month and when the loan will be completely repaid.


Here is a list of the benefits and the drawbacks to consider.

  • It comes with fixed rates and monthly payments
  • Set repayment term lets you know when the loan will be paid off
  • Typically unsecured, so you won’t risk losing assets if you default
  • Will need good credit to qualify for a personal loan at an affordable rate
  • APRs won’t lower if market conditions improve and variable rates drop
  • Funds come in a lump sum, so you’ll need to know how much you’ll need before you apply

Consider a HELOC or home equity loan:

A HELOC (Home Equity Line of Credit) is a type of loan that allows homeowners to borrow money against the equity in their home. It works like a credit card with a predetermined credit limit, and you can borrow and repay funds as needed. Interest rates on HELOCs are often lower than those of personal loans or credit cards.

How can I use a HELOC or home equity loan for a fence?

You can use a HELOC or Home Equity Loan to finance your fence by tapping into the equity in your home. These loans can provide a cost-effective way to fund home improvement projects, such as fence installation. Keep in mind that your home serves as collateral, so failing to repay the loan can result in the loss of your home.

Home equity investments

A new type of equity financing has emerged, giving you another option for your home improvement loan. It is similar to home loans but with some nuances that set it apart. Home equity investors (also known as shared equity agreement companies) offer home equity financing without any interest or monthly payments. Instead, they buy a share of the future appreciation of your home. You get a lump-sum now and return the investment plus the agreed share in home appreciation when the term ends, or you sell the home.

Use a rewards credit card:

What is a rewards credit card?

A rewards credit card is a type of credit card that offers incentives or rewards for every purchase you make. These rewards can include cashback, travel miles, or points that can be redeemed for various benefits, such as gift cards or merchandise.

How can I use a rewards credit card for financing a fence?

You can use a rewards credit card to pay for your fence project and earn rewards while doing so. If your credit card offers cashback or points for home improvement purchases, using it for your fence expenses can be a convenient way to accumulate rewards. However, ensure you can pay off the balance in full to avoid high-interest charges.

Save up and pay cash:

Why should I consider saving up and paying cash for a fence?

Saving up and paying cash for a fence has several advantages. It allows you to avoid taking on debt and incurring interest charges. Additionally, you won’t be tied to monthly loan payments, which can free up your finances for other expenses. Paying cash also eliminates the risk of damaging your credit score if you were to default on a loan.

How can I save up for a fence?

To save up for a fence, you can create a budget, set aside a portion of your income each month, and consider cutting back on non-essential expenses. You can also explore ways to increase your income, such as taking on a part-time job or selling items you no longer need. Over time, your savings will accumulate, allowing you to pay for your fence project in cash.


Can you finance a fence?

Yes, you can finance a fence. Many lenders, including banks, credit unions, and specialized fencing companies, offer financing options to help you cover the cost of your fence project. These financing options can come in the form of personal loans, home improvement loans, or credit cards.

What credit score do I need for fence loans?

The credit score requirements for fence loans can vary depending on the lender and the type of loan you’re applying for. Generally, a good to excellent credit score (above 700) will increase your chances of qualifying for favorable loan terms and lower interest rates. However, some lenders may offer financing options for individuals with lower credit scores, but the terms may not be as favorable.

Can you finance a fence with bad credit?

Yes, it’s possible to finance a fence with bad credit, but it may be more challenging to secure favorable loan terms. If you have bad credit, you may have to explore alternative financing options, such as subprime lenders or secured loans. Keep in mind that loans for individuals with bad credit often come with higher interest rates.

How much does a fence cost?

The cost of a fence can vary widely depending on several factors, including the type of material used, the size of the fence, and the region where you live. On average, you can expect to pay anywhere from a few hundred to several thousand dollars for a fence project. It’s recommended to obtain quotes from multiple fence companies to get a more accurate estimate based on your specific needs.

Do fence companies offer financing?

Yes, many fence companies offer financing options to help customers cover the cost of their fencing projects. These financing plans can be convenient and may come with competitive interest rates. Be sure to inquire with your chosen fence company about their financing options, terms, and eligibility requirements.

Key takeaways

  • Explore various fence financing options to find the one that suits your needs.
  • Check with home improvement retailers for zero-interest promotions.
  • Consider a home improvement loan for fixed rates and predictable monthly payments.
  • HELOCs and home equity loans can tap into your home’s equity but come with certain risks.
  • Rewards credit cards offer financing with potential cash back or travel rewards.
  • Saving up and paying cash can help you avoid debt but may not be feasible for urgent fence projects.
View Article Sources
  1. Federal Trade Commission – Home loans and HELOCs
  2. CFPB – Credit cards

    HUD – Home improvement loans

    Best Loans for Home Improvement – SuperMoney