You’ll create a more inviting space and enhance your property value when you invest in a backyard remodel. Nothing feels better than coming home from a day of work and having a charming space where you can decompress or gather with friends and family. But finding the money to make this transformation happen isn’t always easy, particularly if you’re self-employed. You’ll need to spend more time tracking down financing when you don’t have a consistent income.
Fortunately, however, following a few steps can help you land the financial help you need to make your backyard remodel come to life. Read this guide to learn more!
Breaking Down the Costs
The scope of your backyard project will impact its total price. But you can follow a few general pricing guidelines to start understanding how much you’ll need in your budget. Are you replacing or adding a new deck? If you opt for natural wood, you could keep the price under $15,000, depending on the size. If you’re hoping for composite, which requires minimal maintenance, you may end up spending over $20,000.
Adding a patio instead of a deck can trim some dollars off your costs. A small concrete patio might come in under $5,000. Upgrading to more decorative pavers could notch the price over $10,000. And if you introduce walkways or retaining walls to connect and frame your new space, you’ll add even more to the costs. You can save some money by taking on the labor yourself. Even with the cost savings, though, you’ll chew up a lot of time planning the project, gathering materials, and doing the work.
Once you have a deck or patio in your outdoor space, you’ll want to introduce lighting to make it more functional and enchanting at night. Plan on at least $1,000 to cover pathlights or spotlights. And if you really want a comprehensive entertaining space that includes a pool, know that costs could easily exceed $50,000. Make a point of securing a few bids from reputable contractors before moving forward with one.
Finding Financing Options That Meet Your Needs
Paying for a backyard upgrade might sound daunting. If you can’t pay for everything at once, you’ll want to seek financing from other sources. A home equity line of credit (HELOC), for instance, lets you use your home as collateral. You’ll end up paying interest on the amount borrowed, and you can borrow only what you need.
As another option, you can consider personal loans. While this method can be faster, you’ll end up paying higher interest rates, which can translate to more money over time. Be aware that you may have shorter repayment periods, as well. It’s worth checking with the contractor you hire to see if they offer financing. Sometimes you can find more favorable deals, including zero-interest periods.
When you’re self-employed, it can feel harder to find a lender willing to consider your situation. After all, you may not have regular pay stubs. Some lenders will look at bank statements and deposits instead of relying on tax returns to approve loans. Bank statement loans from Griffin Funding, for example, can be an excellent option when you need flexible terms.
Being Prepared with Extra Documentation
Lenders will want as much information as possible to make an informed decision on your potential as a loan recipient. And since you may not have W-2s as a self-employed individual or freelancer, you’ll need to have other documents ready. Gather a folder with these documents before you approach a lender.
Have your tax returns, bank statements covering at least one year, and proof of self-employment. You’ll want profit-and-loss statements, too, plus invoices to show that you have forthcoming contracts. If you have gaps in bank deposits, be ready to explain what accounts for the inconsistencies.
Planning Funding Around Your Construction Timeline
A backyard upgrade won’t happen overnight. In fact, it can be a time-consuming process, depending on the season and material needs. It could take several weeks to move through the design phase alone. As a result, you’ll need to be mindful of your funding throughout the project timeframe. When you exit the planning phase, which can take a few weeks, you’ll need to be ready to draw money to help cover costs related to permits and supplies.
After that, construction could take a few weeks, as well. Be ready to pay the remainder of your balance after the project is over. Some contractors may provide a payment window after the completion date, but be clear on this before committing to a project. And ensure that you have a little extra cushion to cover costs in case the total is higher than planned.
Investing in a Backyard Update
When you pursue a backyard upgrade, get your finances in order first. And when you’re self-employed, explore different financing options that enable you to pursue the project you want. Stay patient and persistent throughout the process. In the end, you’ll have a stunning outdoor space that will make it easier to relax at home.
