Financing options

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 average or better credit can usually qualify for personal loans. In some cases, even borrowers with below average credit may qualify. 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.

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.

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.

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.

If you have ever lived in a home without a garage, you probably understand just how valuable a garage is. Garages provide a safe keeping spot for vehicles, storage items, tools, and more. They can also serve as a workspace that may help you generate additional income. If you are hesitating to finance a garage because financing can increase project costs you have more options available to you then you may think. A garage can be a fantastic investment that can increase home value. Homes that are lacking a garage may take a long time to sell. In some cases, it may be a deal breaker. When you think about building a garage, think of it as an investment rather than an expense – even if you do not plan to sell right away.

Whether other homes in the area have garages or not, adding a garage to your home can increase home value. If other homes in your area do not have a garage you should put extra thought into the design and execution of your garage addition. You want to make sure that your home fits in. In most cases an attached garage is cheaper to add compared to a detached garage. Attached garages are usually more desirable and convenient so the fact that they are usually cheaper may be icing on the cake. However, your property may not allow for an attached garage. Although you may spend more on a detached garage, it should still increase home value if executed and built well.

According to Fixr, on average homeowners report spending about $35,000 on a 24×24-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.

In most cases, an attached garage is cheaper to build than a detached garage. According to HomeAdvisor, on average, attached garages cost about 10% to 15% less than detached garages. Attached garages can provide a direct entrance to the home making them more desirable. So if an attached garage is cheaper and more desirable, why would you consider a detached garage? Perhaps the design on your home or property does not allow for an attached garage. If you are going to use the garage as a workspace, you may prefer a detached garage to keep the house more quiet. Detached garages usually have more construction costs since they are standalone buildings. However, detached garages may provide more flexibility and are usually easier to expand down the road. In addition to detached or attached, there are a variety of other choices that can affect the cost of building a garage. You can use garage financing for building detached and attached garages.

The cost of building a detached 2 car garage can vary depending on location, size, materials, features, and fishing touches. According to Fixr the average homeowner invests about $52,830 building a 2 car detached garage. Fixr reports a minimum cost of $22,200 and a maximum cost of $110,000. In addition to basic building costs such as walls, doors, foundation, etc. you should consider expenses such as electricity, plumbing, and architecture for a detached garage. Since you will be building a standalone building you may need a new power source. You may also need plumbing for wash stations, bathrooms, and so on. Adding electricity or plumbing may be easier for an attached garage. Architecture costs should be accounted for whether you are building an attached or detached garage. If you want to add windows or fancy garage doors, expect costs to go up. Earlier we mentioned the importance of making sure that your garage addition “fits in.” If you build a detached garage you should focus on matching the architecture to your home.

An attached, 24×24-foot garage should cost about $35,000 depending on materials, location, features, and other factors. A 24×24-foot garage can provide good value for homeowners. It’s a decent size garage that requires slightly more investment than a 1 car garage but not quite as much investment as a 3 car garage. If you are going to invest in a garage we recommend building at least a 2 car garage or 24×24-foot garage. If a 24×24-foot garage pushes your budget, you may want to consider a slightly smaller garage that can still fit 2 cars. In addition, if you are going to finance a garage you should determine how much of a monthly payment you can afford. While $35,000 may sound like a lot of money, it may be more manageable in terms of a monthly payment. For example, if you use a $35,000 personal loan with a 7 year term at 6.99% you could have a monthly payment as low as $495.

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.

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+

Yes, garage doors and installation can be financed.

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.