Retaining Wall Financing

Can you finance a retaining wall?

Financing a retaining wall is possible if you are not able to pay for it upfront. Or perhaps you just prefer to save your cash for an emergency. Retaining walls can be expensive, even the small ones. There are a few loan options you can take when building a retaining wall. Some banks may give you a new loan with an included amount you can take in cash. You can also apply for a construction loan with a rollover.

If you are building a home that needs a retaining wall, a construction loan might make sense. However, using a construction loan solely for the purpose of building a retaining wall is not the answer. Construction loans are strict and require inspections before the money can be released so they can ensure you are progressing with the wall or house. You also have to pay for each inspection, so construction loans can be expensive.

If you are doing extensive home improvement projects, including building a retaining wall, you might want to use or consider a secured loan such as a home equity loan. To qualify for a home equity loan you will need to have equity in your home and be willing to use it as collateral. In exchange for the collateral, lenders may be more willing to offer up a low interest rate.

Homeowners do not always have equity in their home or do not always want to use their home as collateral. In some cases, your retaining wall project might not be expensive enough for a secured loan and all the effort that goes along with securing it. Homeowners often use home improvement loans, also known as personal loans, to finance a retaining wall. You can use a personal loan to pay for materials, labor, and other related expenses. You can even use one personal loan to pay for multiple home improvement projects as long as you borrow enough money.

What is the best way to finance a retaining wall?

In most cases, a personal loan is one of the best ways to finance a retaining wall. Since unsecured personal loans do not require collateral they are often an easier financing option than a secured loan. However, with no collateral, the lender is taking on more risk with the loan. As a result, interest rates might be higher than a secured loan. Ultimately, there are pros and cons to all financing options. You'll need to determine what type of loan is best for your needs and situation.

How do you get retaining wall financing?

If you need help finding financing for a retaining wall and aren't sure where to begin, start by checking loan offers at Acorn Finance. Within 60 seconds or less you can get prequalified for a home improvement loan with no impact on your credit score.

This way you don't need to spend hours online researching lenders that might be willing to give you loans. It will also help you from potentially submitting applications to lenders who might reject them. When you submit a loan application, they usually do a hard pull of your credit and may drop your score several points. It's best not to submit an application unless you know you are very likely to get approved.

You can also apply for retainer wall financing through a bank or credit union. Check their interest rates and what kind of monthly payments and APRs they offer. Sometimes credit unions will offer better rates than banks, but it depends on your personal situation.

What credit score do you need to finance a retaining wall?

Most banks or lenders will want you to have a good to excellent credit score before they are willing to give you a loan. This generally means 690 or higher. Some lenders are specifically for fair-credit borrowers, and they might be willing to work with you if your credit score is lower.

Sometimes a lender might also be willing to work with you if your credit is low, but your debt-to-income ratio is also low. This shows them you are making enough money to cover all your debt and living expenses.

How much can I borrow to finance a retaining wall?

This depends on your credit score and sometimes, your debt-to-income ratio, what the lender can offer, and other factors. If you are considered a low-risk borrower, you will be able to borrow more for financing. If you are using a home equity loan, you might be able to borrow up to 85% of your home's equity.

Most personal loan companies offer loans between $20,000-$50,000. Some lenders even offer loans up to $100,000. Your credit score and other requirements will determine if you can borrow the maximum amount or not though. Just because the company offers a certain amount doesn't mean every borrower will qualify for that amount.

Some lenders may offer you more than others. Always shop around before choosing your lender to see how much you can get.

You can't add the financing to your existing mortgage because lenders do not allow borrowers to change the terms of their lending contracts. You will need to refinance your mortgage or apply for a new mortgage to replace the one you have.

What is the lowest rate you can get for retaining wall financing?

This depends on how much you are financing and your credit score. A good personal loan interest rate is considered to be between 9%-13%. If your credit score is 720 or above, you may qualify for an even lower interest rate.

Here is a breakdown of the rates you can expect based on your credit score:

760 or greater= 9.30%

720-759=13.32%

680-719=17.82%

640-679=22.16%

If your credit score is less than 640, you may only be able to get an APR of 30% or greater, which is not very cost-effective. If you don't qualify for a low-interest loan, you might want to consider spending a few months raising your credit score before applying for another loan to start your retaining wall.

Here are some basic ways you can try to raise your credit score:

Lower your existing debt

Don't use more than 30% of your credit card limits

Keep your information updated

Wait until negative remarks or credit inquiries disappear off the record

Lower your debt-to-income ratio

Does adding a retaining wall increase home value?

Yes, adding a retaining wall can increase the value of your home. Landscaping design often does not have styles that come and go like interior design. Even if you sell your home years and years after the retainer wall, you should still be able to get value from it.

Any type of landscaping will add curb appeal and add to the value of your home. It can add up to 15% to the value of your home with an average return of 100 to 200 percent.

However, if you don't keep up with the maintenance of your retainer wall well and it ends up being unsightly, it most likely won't add real value to your home and you may be stuck losing money. A retainer wall also needs to be built to last. Proper construction is essential, and the main goal should be ensuring it does the job it needs to.

Adding on curb appeal also needs to be considered. The more landscaping and plants you add, the better the retainer wall will look. This will encourage buyers to appreciate the value of your wall and the functions and aesthetic that it adds to the home.

Before selling your home or putting it on the market, make sure your retainer wall is in good shape and doesn't need any repairs.

How much value does a retaining wall add?

This depends on how well it is built and with what materials. Most walls will add up to 15% of your home. If you have a decorative one or one with unique landscaping, you will probably get even more value-added to your home. Always ask the appraisal what the addition is and if there is anything you can do the retainer wall to make it better.

A retainer wall adds value to your home for a few simple reasons:

Improves the stability of your home. It holds the soil together and makes it much harder to be washed away when it rains or floods. The home can also not be affected by earthquakes or other weather problems.

Makes the outdoor space appear more beautiful. Your garden or outdoor area will benefit from having extra plants and landscaping.

Prevent soil erosion. Prevents soil issues and destruction of the property. Buyers will know their land is better protected and won't suffer from washed-away structures. The retainer wall will also keep nutrients in the soil and allow your crops and flowers to live longer.

Increases property space. The retainer wall will allow you to use space that might be on a hill or that was otherwise not available because of sloping. With added outdoor space, you can sell your home for more.

If other homes in your area have retainer walls, the appraiser will probably get a better idea of what value it adds to your property. Always ensure the wall is repaired and doesn't have any damage before having someone come look at your home.

How much does a 50-foot retaining wall cost?

This depends on where you are building the wall and what kind of wall you are building. There are several types of retaining walls and the costs will vary.
Anchored retaining walls are secured at one or more points by cables. The cables are usually anchored in the soil or rock sitting behind the wall.
Sheet pile or piling retaining walls are thinner than other kinds of retaining walls. They are made of long vertically set beams or wooden planks and one-third of the length is usually buried into the ground.
Cantilevered retaining walls are usually made of concrete or masonry that has been poured and set in place. They are shaped like an upside-down T. The footing of the wall is set underground and provides additional support against the pressure of the soil being retained.
Gravity retaining walls rely on their own mass to withstand the pressure of the soil behind them. They are built with stone or concrete and are best for domestic situations.

The type you choose depends on where you live. It's a good idea to consult with a contractor or other professional to see what they might think is the best. Some materials might be better for your unique situation than others.

The price can range from about $137.50 to $250 per square foot. Some contractors might instead ask you to pay them an hourly rate rather than paying for the wall. In this case, they will likely charge about $55 per hour.

In some cases, you might also need to hire a construction engineer to check the area and boundaries. This will be an additional cost, ranging from about $120-$180 an hour. Sometimes after the job is done, you will also need to get additional soil. If you are worried about the way the wall looks, you might also want to spend some money buying plants or doing landscaping to make the wall look more appealing. This isn't necessary of course and is a personal preference.

Once you have decided what kind of retainer wall you want and the materials you want to use, ask the contractor for an estimate of the final cost. This will give you an idea of how much you need to finance or budget.

What is the most expensive part of installing a retaining wall?

The most expensive part is usually paying to get the wall installed based on square feet. You can spend up to $14,000 for longer walls, while smaller ones can be closer to $3,000. You will also be looking to pay quite a bit for labor at around $50-$75 an hour. Higher-end materials will always cost more money, sometimes as much as $125 per square foot.

The final price depends on several things though such as:

The type of material

Width, length, and height of the wall

Reinforcement

Decorative finishes

Engineering

Overall, the most expensive part is typically paying for the high-cost materials and for the labor.

When should a retaining wall be installed?

A retainer wall should be built when the weather is nice and there aren't any storms or other issues coming. Trying to install a retainer wall in the rain or when a storm is coming will not be effective. It will also take longer and cost you more in labor fees.

You may need to install a retainer wall for several purposes, the main ones being:

To manage water runoff

Provide usable land

Provide extra seating

You need to control downhill erosion

Your home is downhill from soil fault lines

Your foundation is threatened by a sliding hill

Consult with a contractor and an engineer any time you are building a retainer wall.

What is the purpose of retaining walls?

A retaining wall is generally a very rigid wall. It is built to prevent soil or other organic material from moving downhill or shifting. They can also be used to create stepped levels for landscaping purposes. They can also be built to keep soil from going onto a road or public footpath.

Sometimes retaining walls are necessary if too much soil has built up or if a sloped area has been partially excavated and the remaining soil requires support.

They are generally used for:

Landslide prevention

Property expansion

Creating a barrier against bodies of water

Garden aesthetics

Slope stabilization

What is the most cost-effective retaining wall?

You can use cheaper materials to build a retainer wall if you aren't able to get full financing or don't want to spend too much money on it. If you decide to build a cheaper one though, you might spend more money on repairs in the long run. If you prefer to build the wall yourself but need financing for materials, you can use a personal loan. Always make sure your wall is stable.

Here are some tips for savings costs:

Consider using treated pine rather than hardwood

Natural stone might be less expensive in some cases

Interlocking concrete blocks can resemble stone and be a cheaper option

Use concrete sleeps to avoid fewer repairs and maintenance

Use railway sleepers to withstand ground and water contact

Can I get retaining wall financing online?

Some lenders will give financing completely online. Others might require a meeting in person or a phone call. Most lenders offer an online loan application at the very least. To check offers online without impacting your credit score, go to Acorn Finance. Our lending partners can offer APRs as low as 6.99%, depending on credit score.

Need retainer wall financing? Check offers with no impact on your credit score!