Complete Guide to Financing a Shed

Posted by in Loans | Updated on May 30, 2023
At a Glance: Sheds can be financed in multiple ways. You can go for a personal loan, which is a common way to pay for sheds. However, you could also consider manufacturer financing, home equity loans, or saving money.

Outdoor sheds are a great way to provide your property with extra storage space. If it’s warm outside and you’re in the mood to build something, it can help you get a place where you can keep all your tools, for example.

Despite how useful they can be, they are pretty expensive. Not everyone has the means to pay for all the materials. If you don’t have the funds right now but need a shed, you can look into shed finance. There are multiple ways to fund the construction of the shed, you just need to know where to look.

In this post, we will explore your options for shed financing so you can go for the best one.

How Much Does a Shed Cost?

Sheds vary in price based on different aspects. The materials, size, and finishing all influence the final cost. You have to consider every part of the shed building process to estimate the price, going from the leveling and preparation of the foundation or ground to the tools, materials, and shed used. You should also think about the costs of having someone else build the new structure.

Usually, you can expect to pay around $2,700 for a shed. At the same time, prices can be lower or higher, ranging between $1,500 and $4,000.

Financing a Shed with a Personal Loan

Personal loans are some of the most popular ways to finance almost every purchase or project. They can be used for almost anything you want, which is why they are so loved. That being said, you can also use a personal loan as shed finance.

Whether you get approved for one or not will depend on your financial behavior and credit score. Many lenders require a score of 720 or higher. However, there are lenders that approve applications even if you have a score of 660, depending on the case. You just need to spend your time looking for one of these lenders.

Personal loans are great because they are unsecured. So, you don’t have to put your car or house into play as collateral. But because of this factor, the rates on the loan might be higher.

Because there are so many options in terms of lenders, you must compare them and their features. See what the requirements are for each, how high the rates are, what the loan terms are, and how much you can borrow from each. This will help you narrow down the list until you end up with the best personal loan provider.

Best Personal Loans for a Shed

If you’re searching for good personal loans to finance your shed, here are some great picks:


Do you have a lower credit score? If that’s the case, you can always rely on Upgrade. Their requirement for credit scores is 580, so you don’t have to worry if you didn’t improve yours yet.

With Upgrade, you can borrow between $1,000 and $50,000 and pay the money back for the next few years. Repayment terms go from 24 to 84 months. There is a $10 late fee and a $1.85% – 8% origination fee.


Upstart is also a good option for people with lower credit scores. All you need is a minimum of 580 to get approved.

Loan amounts go from $1,000 to $50,000, with repayment terms being 36 or 60 months. The money will be deposited as soon as one business day.

A soft credit pull will be done to check your rates, and you might have to pay an origination fee of up to 8% or a late fee that is $15 or 5% of your payment.


LightStream is great mainly because it offers high loan amounts for those in need. You can borrow between $5,000 and $100,000, based on how much you need. This lender has loans for home improvements, making it more than suitable for your shed.

The credit score requirement is a minimum of 660. The money will be deposited the same day, and you don’t have to worry about origination fees or late fees. Repayment terms go between 24 and 144 months.

Besides, rates are very low, and you get a 0.50% discount on your rate if you sign up for autopay.

Alternative Options for Financing a Shed

Not everyone is a fan of personal loans, and if that’s the case for you too, you are probably looking for alternatives for financing your new shed. Here are some options:


The easiest way to pay for a shed is by saving money instead of getting yourself into debt. This allows you to pay for the shed and walk away from this matter without having to make monthly payments to a lender for the next few years. Even if it takes a while to gather the necessary sum, it’s better than debt.

Home Equity Loans

Many individuals who want a shed but don’t have the budget for it go for home equity loans. These rely on the equity one has built into their home. You can borrow 80-85% of your home equity. After you get the money, you can start paying it off in monthly installments.

Even if you start making payments instantly, your interest rate and monthly payment will stay the same.

Manufacturer Financing

Another thing you can do is get a line of credit from the manufacturer directly. This way, it’s easy to get a loan that meets the price requirements. What’s even better is that sometimes, you can get an interest rate of 0% if you can repay the whole loan in a few months.

But before getting this type of financing, you should compare all your options.

What to Consider When Financing a Shed

Before financing a shed, make sure you consider all the costs involved. It’s important to have enough money for the shed rather than realize that you need more cash later.

You must think about all the materials you need, all the finishes, and the size you want the shed to be. This way, you’ll be prepared for what’s to come.

Also, ensure that you can handle the monthly payments if you’re considering a loan. Otherwise, the next few years will be a burden.

How to Estimate the Cost of Your New Shed

You can estimate the costs of your shed by calculating the prices of the materials and the finishes you pick, as well as the desired size of the shed. Sometimes, if people cannot build the shed themselves, they will pay someone else to do it. All these factors will contribute to the final cost.

Read More

Final Thoughts

There are many ways to finance a shed. It’s up to you whether you start saving money or get a loan. If you are going with the latter, always compare lenders to find the best rates.