Home Addition Financing Options

Your Guide to Financing a Sunroom or Home Addition

The interior of a white-framed sunroom with ceiling fan, upholstered furniture, coffee table and various lamps.

Making your dream sunroom a reality can be made easier by financing your addition without straining your finances. Here's why financing is worth considering:

Spreads Out Costs: Rather than paying a lump sum upfront, financing allows you to break the cost into manageable monthly payments while you enjoy your new space now.
Includes Competitive Rates: Many financial institutions offer home improvement loans with competitive interest rates.
Maintains Savings: Instead of tapping into your emergency funds or savings, financing keeps your long-term financial safety intact

Financing ensures that your project stays within reach, even if your budget is tight. With the right approach, your sunroom can feel like a practical investment rather than an unattainable luxury.

Closeup of a blank check with a pen laying on top and a blurry calculator in the background.

Planning and Budgeting for Your Sunroom Addition

If you are planning on building a sunroom, you should decide on its primary use and the location of the space first:

Will it be a casual living space, a dining room, or a greenhouse?
Will it be a focal point of your main living space and used to entertain?

A few factors should be considered before adding a sunroom to your home. Firstly, determine the purpose of the room. Do you want to use it all year round or just for three seasons? Secondly, decide whether you want windows or a screen room. This will help you decide on the appropriate size of the sunroom addition you should add.

Once you pick the type of sunroom addition you'd like to add, you can start to design features like skylights, ceiling fans, and electrical fixtures. When designing the space, browse photo galleries for inspiration, and contact your local contractor to help make your vision a reality. OR When designing the space, browse photo galleries for inspiration, and contact your local contractor to help bring your vision to life.

Types of Home Improvement Loans for a Sunroom Addition

Understanding different types of home improvement loans is essential when considering a project such as a sunroom addition. Here are a few of the most popular types of home improvement loans that can help bring your ideas to life:

A Home Equity Loan or Line of Credit (HELOC)
Personal Loan
Refinancing Your Mortgage
Simple Home Improvement Loan
Credit Cards
GreenSky
Saving Gradually

Couple sitting at kitchen counter with laptop and phone reviewing their budget.

5 Steps to Take When Financing Your Home Addition

To ensure a smooth financing process, follow these five straightforward steps:

Step 1: Decide on a Budget
Step 2: Decide on Addition Type
Step 3: Find a Contractor
Step 4: Find Financing and Know What You're Signing
Step 5: Make Your Payments

Step 1: Decide on a Budget:

If you plan on adding something to your home, you should first decide how much money you want to spend or what you'd like your monthly payment to be. This will help you choose what type of addition you can afford. Do you have enough savings to cover the cost? If not, consider financing the project.

Step 2: Decide on Addition Type

When considering a home addition, consider what type of space you need. For example, a four-season sunroom might be an excellent fit to provide you with more living space. You can use a sunroom as a breakfast room, a place to entertain , a yoga retreat, or a place to enjoy natural light without going outside. These rooms can be used all year and add value to your home.

Adding a bedroom or a bathroom to your home also gives you more space, which can increase your home's value. This might be a good option if your family is growing or you want more guest space. Adding a traditional room will typically be more expensive and time-consuming than adding a sunroom.

If you like the natural light a sunroom provides but need more traditional living space, you can have the best of both worlds with a traditionally-framed sunroom. Some contractors, such as the experts at your local Patio Enclosures, can build these rooms with drywall, insulation, and wood frames while including as many windows as you choose. This is a great option if you want a sunroom that can serve as a bedroom, living room, or family room.

Step 3: Find a Contractor:

Once you have an idea of your budget and target monthly payment, you can start looking for the right contractor in your area. Before contacting them, looking up online reviews is a good idea. You can also ask for references you can contact. Some things to ask people who have worked with the contractor in the past include the following:

Was the project completed on time? If not, why?
Did the project go over budget? If so, why?
Was the project completed to your satisfaction?

Sunroom design consultant showing a couple a design for their enclosure.

Step 4: Find Financing and Know What You're Signing:

If you have a large project in mind, financing can help you manage it by offering you a monthly payment plan that fits your budget. Find out what financing options are available through your contractor.

Patio Enclosures, for example, partners with GreenSky® Trade Credit to offer various financing options. This allows you to find a plan that best fits your budget.

Before signing anything, always read the fine print and understand the project's total cost, which your contractor can provide. Below are a few questions you can ask the lender:

Do you have a fixed or variable interest rate?
What are the fees and penalties for early repayment?
Are there any hidden fees?
What is the total project cost?

Step 5: Make Your Payments:

Make sure you can pay on time and in full for a purchase that you finance. In addition to affecting your credit score, you may also receive a late fee for any missed payments. The lender will likely call you about the missed payment. If you keep missing payments, you may get more calls and face additional late fees. In severe cases, this could lead to legal action.

For this reason, you want to be sure you can afford the monthly payments. If the estimated payment is outside your monthly budget, wait until you have saved and set aside the correct amount. If you need space, consider other more affordable options, such as a smaller project, a different finish, or different building materials.

A closeup of a phone showing GreenSky financing approval on the left and a white gable-roofed sunroom on the right..

How to Finance Your Sunroom Home Addition with Patio Enclosures

Finance Your Sunroom Addition with Green Sky

GreenSky offers a hassle-free, quick, and efficient way to finance your sunroom addition.

Easy Application: The process is paperless and straightforward; you can complete the application online or online.
High Approval Rates: Instant decisions and credit limits up to $100,000.
Flexible Plans: Excellent financing options are available.

This approach streamlines the financial steps, letting you focus on design and construction.

Get the Process Started today with an In-Home Estimate

The first step toward transforming your home is easier than you think. Patio Enclosures offers free in-home design consultations that cover everything from design choices to personalized pricing estimates. Their experts are ready to help you find the perfect style for your dream sunroom.

Schedule Your Free Estimate Now

Not sure about the design? Use the Sunroom Visualizer for inspiration or browse their extensive photo gallery to see real transformations.

Your dream sunroom is closer than you think — start the process today!

Learn More About Sunrooms