Financing a garage can be expensive and energy-consuming, but there are multiple options available. If you're planning to build or renovate a garage, it's important to consider all financing options and what loan to build a garage best suits you. On Compacom you can get garage financing without affecting your credit score. It offers quick and easy financing options for individuals looking to build or expand their garage during a home renovation. On Compacom, you can find several personal loan options, regardless of your credit score, to finance your garage. You can simply compare multiple loan offers based on factors that matter to you, such as interest rates, payment amounts, and loan terms. Finance your new garage quickly and make your home renovation dream come true.

Your repayment plan can be put into action with the help of a personal loan. It often comes with repayment terms ranging from one to seven years and amounts to $35,000, while home equity loans may have repayment periods of up to thirty years. In either case, you need to make regular monthly payments.

When Apply for Garage Financing Personal Loans

There are several cases when financing a garage makes sense, including the following occasions:

  • When you have equity in your house to fund the project.
  • You need cash quickly.
  • Your credit score is poor.
  • When you don't have enough fundings to cover the full cost of the construction.
  • You don't want to use your home as collateral.
  • If you have a plan for repaying the loan.

Personal loans do not require collateral, and the funds are usually received quickly. However, they tend to have higher interest rates. You might get financing from suppliers or builders, as some of them offer help to pay for the construction. Don’t forget to try saving up to avoid long-term debt. This may take time, but still be a good choice not to take on many financial obligations.

Benefits of Garage Financing with the help of Loans

Choosing to finance your garage construction provides you with several benefits. Electrical and building materials are not cheap, so a garage can easily reach prices upwards of $10,000 for a single-car garage and even more for a two-car garage. Garage financing can help protect you from unexpected expenses during the construction process. Furthermore, the ability to repay the loan over time can help you better plan and budget for the project. Personal loans can be used for many purposes – therefore, they are some of people’s favorite types of loans. When you are getting a personal loan, you can usually gain access to the funds very quickly. Not only that, but they are unsecured, so you will not be forced to use your house or car as collateral. Loans for bad credit are also available.

Alternative Financing Options for Building a Garage

However, you should consider some other financing options that can help you cover the costs. Here are some of the most common ones:

  • Home Equity Line of Credit (HELOC). This type of financing is suitable for those who have built up enough home equity and have an excellent credit score. You can borrow money from the equity you have in your home. However, if your credit score is low or you plan to sell your home soon, a HELOC is not the right way.
  • Home Equity Loan. It is similar to a HELOC and requires you to have home equity. With this loan, you can borrow up to 85% of your home equity. You will be supposed to make fixed monthly payments. Consider this option if you have built up enough equity and want fixed payments.
  • Cash-Out Mortgage Refinancing. It implies replacing your existing mortgage with a larger one to gain funding. It can be beneficial if you can secure a lower interest rate.
  • Credit Cards You can use a credit card to lower the overall costs of building a garage, but only if you can afford to pay the credit card statement in full every month, and if the card limit covers the cost of construction.

Pros and Cons of Different Types of Garages

A garage for a private house is a must, as a car needs a safe and secure place. An attached garage is connected to your home. If a workshop is located in the attached garage, this will undoubtedly add more comfort. All-weather access from the residential area to the car and household inventory is an indisputable advantage of having such type of garage. You can even make a basement for storing supplies there. A detached garage has such advantages as the possibility of saving money by choosing inexpensive roofing materials and a lightweight foundation. No soundproofing is required for detached garages. In addition, the dirt or unpleasant odors from the detached garage will not enter the house. The drawbacks include taking up much space and costs of communications extension. The necessity to clear the entrance of the garage is a waste of time in winter, especially after each snowfall. Therefore, financing a detached garage might be more expensive.

Having a detached or attached garage can also increase your home value and make your daily routine easier. Whether you use your garage as a parking space or storage area, it can offer much more potential. You can even transform it into a workspace to run a side business or turn it into a personal gym, rental property, recording studio, and much more.

How Much Is a New Garage

Adding a garage, especially a detached one to your property can be a significant investment. On average, the cost can range from $25,000 to $100,000. It varies depending on the size and materials selected. Surf home improvement websites to determine the cost per square foot and other expenses, such as roofing, framing, foundation, siding, heating, electricity, etc. If you plan on hiring a contractor, clearly determine and discuss your goals and expected outcome. When choosing a contractor, perform a background check for a valid license, ask for references, or read reviews from the clients.

Here are some of the different types of garages and an approximate estimate of their costs:

  • Carports. A carport is a freestanding or attached structure that provides shade for your car or other items. It is less expensive to build than a garage, as there is no door or walls. The cost of a carport can reach up to $9,000, but it may only take $1,000.
  • Attached Garage. The average cost for building an attached garage is around $25,000, but it also varies depending on the materials selected.
  • Detached Garages. A detached garage provides additional space for storing chemicals, vehicles, or other items, as it provides distance from home to prevent toxic fumes. The cost of a detached garage typically starts at $45,000.

The cost of building a new garage can differ greatly depending on the features you want. Consider getting quotes from contractors to compare prices and make the best choice.

How to Get a Loan to Build a Garage

To get a personal loan for your garage on Compacom, follow these steps:

  1. Go to the Personal Loans section.
  2. Fill out a loan application form with your personal information, including your name, address, and financial details.
  3. Wait for instant approval decision from the most suitable lender.
  4. Read the loan terms and conditions carefully, especially the repayment period and interest rate.
  5. If you agree to the terms and conditions, sign the loan agreement.
  6. Wait for the loan to be approved and for the funds to be deposited into your account.

Before signing any agreements, make sure you have a reliable income to repay the loan.