Garage Financing

Lenders that offer garage financing

LightStream

LightStream

✔ Funding: Borrow $5,000 - $100,000
✔ Minimum Credit Score: 660
✔ APR: 2.49% - 19.99%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: as soon as same business day

LightStream offers up to $100k personal loans as soon as same business day without origination fees and easy to use mobile app.

FIND MY RATE

Upgrade

Upgrade

✔ Funding: Borrow $1,000 - $50,000
✔ Minimum Credit Score: 660
✔ APR: 5.94% to 35.97%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: as soon as next business day

Upgrade offers borrowers with fair credit scores to obtain loans up to $50k. Joint applications are allowed. Origination fees may apply.

FIND MY RATE

Best Egg

Best Egg

✔ Funding: Borrow $2,000 - $50,000
✔ Minimum Credit Score: 640
✔ APR: 5.99 - 29.99%
✔ Loan term: 3 - 5 years
✔ Funding turnaround: 1 - 3 business days

With Best Egg personal loans, borrowers with fair to good credit can get funding for 3-5 years and have the option to use the loan for a variety of purposes.

FIND MY RATE

What is the best way to finance a garage?

• Personal Loan: This is a good option for most people looking to finance small garages, or for those with a high income who can borrow closer to a lender’s maximum (which is usually $35,000 - $100,000).
• In-House Financing: Many garage companies (those who sell kits and those who build custom garages) will offer financing for your garage. This is usually through a partner lender. This can be a good option; just make sure you compare what they offer with what you can get through an independent personal loan lender.
• HELOC: A Home Equity Line of Credit is like a credit card but in the form of a bank account - you’re given access to a line of credit secured against your equity in your home and can use it as and when you please, only paying interest on the money you borrow.
• Home Equity Loan: A home equity loan is essentially a second mortgage, where you take out a loan secured on the equity you own in your home.
• Cash-Out Refinance: This is another term for mortgage-refinancing, where you increase your mortgage amount so you can use the additional cash for your garage. This is only an option if your home is worth a decent amount more than your mortgage.
• 401(k) Loan: Some 401(k) plans allow you to borrow from your future retirement fund. This is a good option if you want to avoid a credit check and interest, but make sure you find out exactly what it means for your future retirement plans, as they may not allow you to continue paying in until the loan is paid off.

Does adding a garage increase home value?

Yes, provided the garage is well built and in a convenient area, it will increase your home’s value.

What are my options when it comes to buying a garage?

• Detached Garage: This is likely what you’re thinking about when you’re imagining your future garage. They generally match the exterior of your home if you choose a custom-built garage.
• Prefab Garage: This is another name for a “Garage Kit” and is a good option if you are happy to install your garage yourself. If you’re looking for the cheapest option, a metal garage is usually the most affordable option.
• Attached Garage: This will be a more costly option since it will be much like adding a room to your home (though you won’t have the same finishing and furnishing costs).
• Portico Garage: If you want the convenience of an attached garage but don’t want the cost of an attached garage, you can consider a portico garage. This is where you connect a detached garage to your home via a covered walkway. This area can provide further storage.
• Barn Garage: Barn and wooden garages usually provide additional loft space for storage. They are a good choice if you live in a semi-rural area and want your garage to fit in with the look of your home.
• Car Port: If you have no interest in storing anything valuable in your garage and just want a covered area to get in and out of your car, a carport can be a much more cost-effective option than a full garage.

How do people afford to build a garage?

While you may get a handful of people who pay for their garage out of pocket, most people seek financing so they can spread the cost of their garage over a term of months or years.

Is it cheaper to build or buy a garage?

Buying a garage kit is generally the most affordable option, especially if you do the labor. Kits usually cost less than $10,000 (plus a few beers and burgers for your friends who help put it up).

How much does it cost to build a 20 by 20 garage?

20x20 feet is the minimum size of a 2 car garage, so is a good size if you want to store two vehicles or store one and use the other side for storage or as a workshop. As a very general guide, you can expect to pay around $28,000 for a 20x20 garage.