You can’t just lay down some asphalt and call it a driveway for your house. Asphalt is still quite affordable, but modern businesses provide amazing financing alternatives that make other driveway kinds affordable. In a hot, sunny region, you may want to think about an elevated concrete or brick drive that is significantly cooler, or even granite pavers that are maintenance-free and last a century. Excellent sources of finance make it possible to build a driveway that is larger and better.
Why Must I Construct or Upgrade My Current Driveway?
A driveway is necessary for a variety of reasons. A driveway not only makes it simpler to enter and exit your home without damaging your car or its tires, but it can also raise the value of your property by up to 20%.
A well-kept driveway paving can also last for a long time with little to no upkeep needed.
The Best Driveways
Do you need assistance deciding which paved driveway is ideal for your property? Here are a few of the options that homeowners find to be the most popular:
- Asphalt is driveway material that is simple to build. It is also quite affordable, and due to its dark color, it helps to melt snow. You will need to get it resealed about every four years.
- Due to its low cost and long-lasting sturdiness, concrete is by far the most popular choice and is easily customizable in terms of design, pattern, or color.
- Stone or brick. Brick or stone may be slightly more expensive to install, but what they lack in affordability they more than make up for in aesthetic. Additionally, you have a wide range of color choices, guaranteeing that anything you select will be special.
- Gravel is a great option if you want to cut costs, complete a simple DIY job, and have a variety of color options. Additionally, gravel is ideal for assisting with water drainage.
Options for Financing a Driveway
Fortunately, depending on your present financial condition, there are a number of methods you can finance a new driveway.
Unsecured personal loans are a fairly typical source of concrete driveway financing. Because they sometimes don’t require collateral, personal loans are safer for borrowers but riskier for banks and credit unions.
A personal loan has a fixed interest rate, so your monthly payments will be predictable and easy to budget for. Due to the fact that personal loans are unsecured, one potential disadvantage is that you might not be able to get as good of a deal as you could with other forms of financing, like a home equity loan. If your credit score is less than optimal, this is especially true.
Each lender has a minimum credit score requirement, and a higher credit score can significantly lower interest rates. Your interest rates and loan terms may not be what you expected, depending on your credit score. To get a better understanding of the terms you might be eligible for shop for several driveway payment plans.
Home Equity Loan
Similar to personal loans, a home equity loan is a one-time lump sum payment with a fixed interest rate and predetermined monthly installments. However, because your home is used as security, unlike a personal loan, it is a secured loan. This implies that the lender may seize your home if you go into default.
However, keep in mind that a home equity loan has two benefits over a personal loan: much lower interest rates and a longer loan duration. In contrast to home equity loans, which may have a 20-year repayment period, personal loans typically mature in two to five years. If your driveway installation is particularly substantial, expensive, and involved and you require additional time to pay it off, that could be useful.
How to Apply for Financing for a Driveway
You must complete the application process in order to be authorized for driveway financing if you choose to utilize a personal loan, home equity loan, or another type of financing from a bank or credit union.
To approve your loan, lenders will in any case need to know your credit score, credit history, total debt, and income. Using the loan offer engine will save you time and prevent pointless hard credit pulls. Find out what rates and terms top lenders are providing by responding to a few simple questions.
The Bottom Line
It costs money to finance, install, and renovate a new driveway or an old one. Having said that, it does enhance the curb appeal of your home and can raise its market value. The good news is that there are many practical monthly payment choices for financing a driveway. There are several options for financing a driveway, including personal loans and using the equity in your home. A company that makes asphalt or concrete, or one that specializes in home repair, may even be able to help you get financing for driveway paving.