Most Backyard Remodels Aren't Paid in Cash
A meaningful backyard remodel — a pool, a full hardscape package, or a combined project — often lands in the tens or low hundreds of thousands of dollars. It's common for homeowners to finance some or all of that rather than pay entirely out of pocket, and understanding the general categories of financing available helps you plan before you're mid-project.
Home Equity Options
Homeowners with equity in their property often look at a home equity line of credit (HELOC) or a home equity loan. These borrow against the value already built up in your home and can offer lower rates than unsecured options, since the loan is secured by the property. Terms, rates, and qualification vary by lender and your individual financial picture — a mortgage broker or your bank can walk you through what you'd qualify for.
Renovation-Specific Loans
Some lenders offer loans specifically structured around home renovation projects, including options that factor in the after-improvement value of the home rather than just its current value. These can be useful for large projects where the improvement itself adds meaningful value, though they typically involve more documentation than a standard personal loan.
Contractor-Arranged Third-Party Financing
Many contractors, including Moda, can connect homeowners with third-party lenders who specialize in home improvement financing. This isn't the contractor lending money directly — it's a referral to an outside lender who underwrites and services the loan independently. It can simplify the process since the application often happens alongside your project proposal, but you should still compare terms against your own bank or credit union before committing.
Questions to Ask Before Choosing a Financing Path
- What is the actual APR, including any fees, not just the advertised rate?
- Is the rate fixed or variable over the life of the loan?
- Are there prepayment penalties if you pay the loan off early?
- How is the loan secured — against the home, or unsecured?
- What happens to payment terms if the project scope or cost changes mid-build?
💡 Pro Tip
Get a firm, exact-quantity project estimate before applying for financing — lenders want a real number, and it also keeps you from over- or under-borrowing relative to what the project actually costs.
Talk to a Financial Professional First
None of the above is financial advice — it's simply an overview of the categories homeowners commonly explore. Your bank, a mortgage broker, or a financial advisor can tell you which option fits your specific equity position, credit, and monthly budget. Once you know your financing range, our free estimate tool helps you see what that budget can realistically build.
Frequently Asked Questions
How do people typically finance a backyard remodel in Los Angeles?
Common categories include home equity lines of credit or loans, renovation-specific loans that factor in after-improvement value, and third-party lenders that some contractors can refer homeowners to.
Does Moda Outdoor Living offer financing directly?
Moda can connect homeowners with third-party lenders who specialize in home improvement financing; the loan itself is underwritten and serviced independently by that lender, not by Moda.
Should I get pre-approved for financing before getting a project estimate?
It's often more useful to get an exact-quantity project estimate first, so you know the real cost range before you talk to a lender about how much to borrow.
What's the difference between a HELOC and a renovation loan?
A HELOC borrows against your home's current equity, while some renovation loans can factor in the home's value after the improvement is complete — the right fit depends on your equity position and the lender's specific terms.
Is financing a pool or backyard remodel a good idea?
That depends entirely on your personal finances, so it's worth discussing with a financial advisor or lender — this article is meant only to outline the general categories of options available, not to recommend one.
