Outdoor Project Ideas You Can Do with Your Home Equity Loan.

Outdoor Project Ideas You Can Do with Your Home Equity Loan

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Home equity loans are a popular financing option for homeowners looking to fund renovations since they often have lower interest rates than other financing choices like credit cards or personal loans. This is because home equity loans are secured by the value of your home, making them less risky.

Using home equity to pay for outdoor improvement projects might be a wise investment for homeowners. It can not only improve the aesthetic and functionality of your home, but it can also raise its market value. In this blog, we’ll tackle various outdoor project ideas and how to use home equity to remodel your home to increase its market value.

How To Use Home Equity To Remodel Your Property

With a home equity loan, you are eligible to borrow a set amount of money that you can pay over time with a fixed interest rate throughout the term of your loan.

As with other financial decisions, it’s essential to have a clear idea of how to use equity for outdoor home improvements. Here are tips for using home equity loans for remodels:

1. Determine if your project adds value to your home.

It might be easy to think that all outdoor home improvements add resale value, but that’s not the case. A few projects do not add financial value to your home, like building a swimming pool, luxurious fixtures, and lavish landscaping.

2. Establish a budget before applying.

It’s crucial to plan your budget before starting a project to determine how much your outdoor renovations will cost. This way, you’ll have an idea if your home equity will be enough to cover your expenses before applying with a lender.

Budgeting ahead of time not only allows you to plan your expenses but it also allows you to save money on labor costs. When you have a firm budget in mind, you can explain your expectations to your contractor team, which can speed up the process of obtaining an exact price for the project.

3. Factor in unexpected expenses.

Unexpected complications can develop during a renovation requiring more cash, no matter how carefully you prepare. For example, finding concealed water damage or electrical faults might quickly add and exceed your intended budget. You may prevent getting caught off guard by preparing for these unexpected expenses with a contingency fund.

Outdoor Project Ideas You Can Do with Your Home Equity Loan

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ADAG - Backyard with patio

Once you successfully applied for a loan, you can use your home equity to fund various outdoor home projects such as the following:

1. Build a deck.

One of the most valuable equity home improvements is decks, which have an average ROI of 75% depending on the location, type of deck, and the company that builds it. For example, most 16’x20′ decks cost an average of $13,333 with a recoup of $10,083 when selling.

Aside from their additional value, decks are perfect for families that love spending time outdoors, as it provides the best spot for grilling and sunbathing.

2. Create an outdoor kitchen.

An outdoor kitchen is one of the outdoor project ideas that benefit your family in the long run but also add value to your property. This project can be as simple as adding a grill to a kitchen island or adding more luxurious details like a beverage cooler, outdoor refrigerator, cabinets, and a pizza oven. Outdoor kitchens can add a value of around 6%.

3. Install a sprinkler system.

CHL - Home sprinkler systems watering the lawn

A lush, green lawn is desirable for many homebuyers, and a well-designed sprinkler system can keep your grass healthy and beautiful all year. Adding a sprinkler system in your lawn saves you water and also an ROI of 86% from the project. In addition, installing a sprinkler system also boosts your home’s curb appeal because it can keep your lawn and plants well-maintained.

4. Build a patio.

Patios are popular outdoor project ideas because they allow extended outdoor space where guests and families can relax. According to the Remodeling Impact Report, many homeowners consider patios one of the top projects they want to start.

Aside from their added convenience and aesthetic, patios also provide an added value of around 3% to your home.

5. Add outdoor lighting.

Outdoor home improvements like outdoor lighting increase a home’s value in various ways. It can improve a property’s safety and security by increasing visibility and deterring prospective invaders. This is especially significant for purchasers who value safety and security when purchasing a house.

In addition, outdoor lighting can create a warm and inviting atmosphere by highlighting architectural details and drawing attention to gorgeous landscaping and hardscaping. This might make a house more enticing to prospective purchasers.

6. Install a fire pit.

CHL - A stone fire pit and benches

Fire pits are becoming essential equity home improvements that can complement other outdoor project ideas like patios and outdoor kitchens. Adding fire pits or fireplaces can benefit your home, particularly during fall and winter, so your family can remain cozy outdoors.

A typical fire pit can be in-ground, custom-built, gas-burning, or stone. A stone fire pit costs around $3,000, while an in-ground wood-burning fire pit can cost between $600 to $12,000. If combined with the patio, fire pits can add 2% value to your home.

7. Build a playhouse.

If you have kids, you can add playhouses to your list of outdoor home improvements. This is because play sets like well-built swing sets or slides can increase your property value, particularly to the right buyers looking for a safe and fun outdoor space for their children to enjoy.


Outdoor renovations like landscaping and exterior enhancements increase your home’s value and curb appeal to potential buyers. However, not everyone can afford to do these renovations immediately. In this case, they can get a home equity loan to finance outdoor renovations at a lower interest rate other than other financing choices.

Obtaining a home equity loan to fund your outdoor project is a significant decision, so working with a reputable lending organization is critical. It’s best to look for lenders with a strong reputation, favorable customer reviews, and loan terms that are clear and straightforward.

Start your renovation project with an equity loan from Cedar Home Loans.

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Dealing with mortgage loans can be difficult to do on your own, which is why you should trust a team of Keystone mortgage consultants to assist you in your application. At Cedar Home Loans, we’ve helped many people renovate their homes with our affordable financing terms. Call us so we can help you in your home financing crisis.

About the Author:

Andrew McBryan

Andrew McBryan is the owner and founder of Cedar Home Loans LLC, where he brings over 27 years of experience in the mortgage industry to his role. Andrew has successfully expanded the company across Colorado, including offices in Telluride, Vail, Summit County, and Boulder. His dedication to providing innovative mortgage solutions and his commitment to staying informed on the latest industry trends make him a trusted advisor to clients and referral partners alike.

When not focused on his business, Andrew enjoys the unique sport of burro racing and relishes the time spent skiing in Colorado’s beautiful terrain. Above all, Andrew is a devoted father, finding joy and inspiration in his daughter’s growth and happiness. 

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