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So you’ve daydreamed enough and you’re ready to build a garage. You have plotted the plans in your head over and over again and can envision yourself showing it off to all of your friends. However, you may be trying to overcome one last obstacle - paying for a new garage. The answer is simple, garage financing! Keep reading to learn more about building and financing an attached or detached garage.
Can you finance building a detached garage or garage addition?
Yes, you can finance building a detached garage or garage addition. Most commonly homeowners use home equity loans, lines of credit, or personal loans. Borrowers with all credit types can qualify for personal loans. Personal loans do not require collateral but home equity loans do require collateral. Home equity loans are less risky for the lender so typically the rates are lower. In most cases, lines of credit do not require collateral. Similar to personal loans, lines of credit can be used for just about anything. Overall, personal loans can be the easiest financing option for building a detached garage or garage addition.
What credit score is needed to secure garage financing?
You may qualify for a personal loan for garage financing no matter if you have good or bad credit. If you have bad credit the interest rate can be higher. However, if you make on-time payments it can help improve your credit score in the long run. Having a higher credit score can help you secure lower interest rates in the future. If you are considering using a home equity loan you should have a minimum credit score of at least 620 and 20% equity in your home. Lines of credit can be more difficult to qualify for compared to personal loans and home equity loans.
Do you need a permit to add-on a garage or update your garage?
In most cases a permit is required to add an attached or detached garage. However, if you are updating an existing garage a permit may not be required. Typically a permit is only required if you are altering the structure of a garage.
Can I get a mortgage for a garage?
While you may be able to get an FHA 203k renovation loan for a garage you cannot get a mortgage for a garage. If you use the FHA 203k loan the garage must meet FHA health and safety standards. We will talk more about FHA 203k loans a little later on.
How much does it cost to add a garage to your home?
On average homeowners report spending about $35,000 on a 24x24-foot attached two-car garage with an unfinished interior. Detached, meaning stand-alone, garages cost about the same. On average detached garages cost between $18,000 to $47,000 for two-car options. The size of your attached or detached garage can significantly impact the cost.
How much does it cost to build a 2 car garage with an apartment?
Adding an apartment or living space to your two-car garage can increase the cost significantly. You can order pre-made design kits to save money. The kits usually cost between $30,000-$40,000 not including installation, permits, or other building expenses.
How much do garage doors cost?
On average garage door installation costs between $500-$2,000. Installing a double garage door typically runs between $1,200 to $1,500. As far as the cost of the actual garage door - the material can impact the cost. Steel garage doors are an inexpensive and popular option. On average, steel garage doors start around $400. The downside is it can be hard to customize steel garage doors and style choices can be limited. Other more expensive garage door material options can include vinyl, aluminum, composite, fiberglass, and wood.
Steel garage doors start around $400+
Vinyl garage doors start around $600
Aluminum garage doors start around $800+
Composite garage doors start around $1,500+
Fiberglass garage doors start around $1,500+
Wood garage doors start around $2,000+
Can you finance garage doors?
Yes, garage doors and installation can be financed.
How To Finance Building A Garage:
What is the best way to finance a garage?
One of the easiest and quickest ways to secure garage financing is by using a personal loan. You can apply for a personal loan online and receive funds as soon as 24 hours on approved loans. In addition, the funds can be used for just about anything. This means you can check other home improvement projects off your list while increasing your home’s value. Acorn Finance is a secure online platform that can help you compare multiple personalized personal loan offers using just one application.
Garage Financing Alternatives
Can you build a garage with a 203k loan?
If you do not have another garage on-site you should be able to use a 203k loan program. If you already have a garage on-site the 203k loan program considers building another garage a luxury item. If you do not have a garage and want to build one with an in-law unit on top, the garage must share a wall with the existing structure to be qualified for the 203k program.
How much can you borrow on a 203k loan?
A 203k loan allows you to borrow up to $35,000 for home repairs. For borrowers with credit scores 580 and higher a minimum down payment of 3.5% is usually required.
Is it hard to get a 203k loan?
Getting a 203k can be complicated compared to getting a personal loan. While most lenders work with the FHA many of them do not offer 203k rehab loans. In addition, lenders may advise against 203k rehab loans because it takes more time and effort for them to get borrowers approved.