Sunroom Financing

Can you finance a sunroom?

Luckily, several options can make your dream of a sunroom come true. Not only can finance enable you to afford a sunroom, but the investment adds value to your home, so it’s a win-win situation.

How much does a sunroom cost?

Sunrooms come in all shapes, sizes, and grades with huge variations in cost. The average price of a three-season sunroom is around $25,000, while a four-season raises the price to $45,000.

Most contractors will quote you based on the square footage of your proposed sunroom and the figure usually includes both materials and labor. A three-season sunroom should cost between $80 to $230 per square foot while a luxury sunroom will be in the $200 to $400 per square foot range.

The total cost is made up of materials and construction costs, with construction costs making up somewhere between a third and a half of the price of materials. If you want to add an HVAC or electrical installation labor will likely cost more.

A three-season sunroom will likely cost between $10,000 and $40,000, and a four-season sunroom should be somewhere in the $15,000 to $80,000 range.

Best Sunroom Personal Loans

AXOS Bank

✔ Funding: Borrow $5,000 - $50,000
✔ Minimum Credit Score: 700
✔ APR: 7.15 - 17.99%
✔ Loan term: 3 - 6 years
✔ Funding turnaround: within 1-3 business days

AXOS Bank offers loans up to $50k and great refinancing options on existing loans. Best for borrowers with higher credit scores..

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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.

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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.

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SoFi

✔ Funding: Borrow $5,000 - $100,000
✔ Minimum Credit Score: 680
✔ APR: 4.99% to 19.53%
✔ Loan term: 2 - 7 years
✔ Funding turnaround: 1 - 3 business days

With SoFi personal loans, borrowers can get access to up to $100,000 with APR starting as low as 4.99% with extra bonus perks ($500 for each funded loan) and fast turnaround time. 24/7 customer support available.

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How do you finance a sunroom?

Personal Loan

A personal loan is a good way to finance a sunroom so long as you’re not looking for the entire cost of a large four-season model. Most personal loans have terms of 2 to 7 years so if you are proposing to build a sunroom that is going to cost $75,000, for instance, your monthly repayments are going to be pretty large. You’ll also be limited to lenders that will offer loans of up to $100,000 since most have limits of $35,000 to $50,000.

If you have a high income and good or excellent credit, this may be a good option for you. For one thing, a personal loan is easy to apply for and you could have your funding in just a couple of days. Interest rates are competitive, and with a five-year term, you are spreading the cost of your project over 60 months.

The story is not so good for anyone with a poor credit score. Lenders will be harder to find and the finance will usually have higher rates of interest and shorter terms, too. But loan providers can be found that will accept fair and even poor credit scores.

Through a Sunroom Company or Contractor

Many sunroom companies and contractors offer finance packages, often in conjunction with a partner loan company. This setup has the advantage of being straightforward to arrange, but you need to make sure that you can’t get a better deal elsewhere. Sometimes the lender offers 0% interest periods, which can reduce the costs of borrowing.

HELOC

Companies that provide home equity lines of credit (HELOC) give you a limit to spend based on the equity you have in your property. A HELOC works much like a credit card with you being able to use as much of your limit whenever you like for the draw period, usually five to 10 years. After this, you then pay off the loan with monthly repayments over perhaps the next 10 to 20 years.

A HELOC has the advantages of low interest rates and high credit limits but you should remember that your home is collateral for the loan. That means that, should you default, the loan company can seize your home and sell it to recover their money.

Home Equity Loan

A home equity loan is a second mortgage and carries with it the advantages of a long repayment period and a low interest rate. Though not as flexible as a HELOC it is usually cheaper. Once again, your home is the guarantee for the loan and, if things go wrong, you could lose it.

401(k) Loan

Borrowing money from your pension pot with a 401(k) loan is certainly an economical way of financing a sunroom. The one thing you need to check on is how taking capital out of your pension might affect your post-employment plans as it may have a negative impact, especially if you’re close to retirement age. Most 401(k) providers won’t allow you to borrow more than $50,000, so you’ll need to factor that into your plans.