Loans for Landscaping: Evaluate Your Options

Are you looking to get the overgrown mess you call a backyard in order? While you may look forward to creating a personal outdoor oasis, the landscaping for these projects doesn’t come cheap. 

Thankfully, loans for landscaping are available to get you the funds you need. Let’s look into the best loan types to get you the yard you yearn for.

Average Cost of Landscaping 

According to Angi.com, the average cost of landscaping projects in 2024 is $3,502. However, the typical price range of a landscaping project can vary from $1,261 to $6,023 depending on the scope. The size of your yard, the type of landscaping, the cost of landscaping labor and whether your home is new all play a large role in the price of the landscaping project.^[1] 

How you pay for landscaping can depend on the type of project and the landscaper you’re working with. If landscapers charge by the size of your yard, you could pay anywhere from $4.50 to $12 per square foot. You may also pay based on labor costs, which can be between $50 to $100 per hour. However, not all landscaping projects are equal. If you are working on backyard landscaping or landscaping for a new home, you can expect to pay higher rates. 

With labor and material costs on the rise, many homeowners are using loans for landscaping projects that will increase the value of their home in the long term. Let’s look at some of the most popular options for landscaping loans. 

4 Landscaping Financing Options

Here are the most popular types of loans for landscaping:

Personal loans

Personal loans are typically unsecured loans that get you a lump sum of money. You repay it in monthly intervals at a fixed interest rate. With an unsecured personal loan, you don’t have to put up any collateral. 

• Pros: The main pros of a personal loan are that there are no restrictions on how you use the funds and can pay them back with a fixed interest rate. This gives you the freedom to buy anything you need for your landscaping plans while easily incorporating the payments on the loan into your financial plans.
• Cons: Unsecured personal loans can come with higher interest rates than secured loans and additional fees that you must pay upfront. If you have a less-than-stellar credit history, you may also have trouble qualifying for a personal loan for landscaping.

Home equity loans

Home equity loans are a type of second mortgage that allow you to borrow a lump sum against your home’s equity. You can use this lump sum much like a personal loan: on any landscaping expenses you may need. You also repay the loan the same way as a personal loan with fixed-rate monthly payments over a set period, usually 20 to 30 years.

• Pros: Since you use your home’s equity as collateral for the loan, you are more likely to qualify for the loan and more likely to receive a larger amount of money than a personal loan and enjoy substantially lower interest.
• Cons: Using your home’s equity as collateral makes the transaction much riskier. If you fail to make payments on the loan, you could lose your home to foreclosure.

Home equity lines of credit (HELOCs)

Like home equity loans, HELOCs allow you to utilize your home’s equity. Instead of a lump sum payment, you get access to a line of credit that you can borrow from. This is a great option if you aren’t sure how much your landscaping project will cost. With a HELOC, you only have to repay and make interest payments on the money you withdraw, so you have more control over the size of your loan. Once your withdrawal period is complete, you will have to repay the loan over a period of years with a variable interest rate. 

• Pros: The flexible withdrawal period allows you to take out money from the HELOC as you need it, similar to a credit card. 
• Cons: HELOCs usually have variable interest rates during the repayment period, making them harder to plan for in the long run. 

Financing through your landscaping company

Your landscaping company may offer its own financing on certain projects. While this option may only be available for large, expensive projects, it can make getting the funding more straightforward. When the landscaper knows the details of the project they are undertaking, they will understand the need for each dollar they lend you.

• Pros: Receiving financing from the same source that is completing the project can make the entire process much simpler by only having to interact with one organization.
• Cons: These types of transactions typically come with high interest rates, even for borrowers with good credit.

How to Get a Loan for Landscaping

1. Check your finances: Whether or not you qualify for a landscaping loan depends on certain financial measurements. These include your credit score, debt-to-income (DTI) ratio, income level and employment history. You can check your credit score by looking at your monthly credit card statement to see if your credit card company provides credit scores, talking to a HUD-approved credit counselor or using a credit reporting company that offers free credit scores. Also, if you don’t know your DTI ratio, divide the amount you spend on monthly debt payments by your monthly income.
2. Choose the best loan option: Once you’re familiar with your personal financial situation, you’ll be able to choose the best type of landscaping loan for you. If you have a large project to fund in a home that you’ve lived in for a long time, a HELOC or home equity loan may be right for you. If you have a good credit score and only a small project that you’d like to complete, a personal loan may be the best option.
3. Get multiple quotes: Now that you know what type of landscape financing you want, it’s essential to compare offers from multiple lenders. The most important factor to consider during this stage is the annual percentage rate (APR) that each lender offers. APR represents the interest payments and upfront fees that you pay for the loan, giving you the most accurate representation of what you would pay for the loan in a year.
4. Apply for the loan: The final step is to apply for the landscaping loan that fits your project’s and financial needs. The application process will depend on the type of loan you apply for and the lender, so make sure to follow their specific instructions when applying. 

Alternatives to Landscaping Loans

Using a loan isn’t the only option to fund your landscaping needs. Let’s have a look at a few alternatives.

Cash

If you have enough cash saved up, it may be wise to use it instead of taking on debt to fund the project. 

• Pros: Using cash will allow you to avoid taking on debt and paying more in interest, so it could save you money in the long run.
• Cons: Using a large amount of cash could eat into your emergency fund. If a critical system in your home breaks, such as your air conditioning, you may not have enough left to pay for both the critical repairs and the landscaping.

Credit card

Using a credit card is also an option to fund your landscaping projects, but it comes with some risks as well. 

• Pros: You could qualify for a 0% introductory APR credit card that essentially lets you borrow money for free as long as you pay off the balance before the introductory period ends. 
• Cons: If you can’t pay off your credit card balance by the time your 0% introductory period ends, you’ll have to pay high interest rates. If you use a card that doesn’t offer a promotional 0% APR period, you’ll start paying high interest as soon as you start carrying a balance.

Final Thoughts on Landscaping Financing

If you need funds for a beautiful new front yard or a big new pool, there are many options for you to choose from. No matter what kind of landscaping you need, remember to thoroughly research the pros and cons of multiple financing options before choosing what’s best for you.