ACFA-Cashflow Guide: What You Should Know About Pool Financing

A pool added to your backyard will increase the value of your home and increase your enjoyment of your house. But, don’t jump into the pool without much thought and with a bit of money.

Along with their initial cost, swimming pools also require regular maintenance and upkeep. The typical cost for an above-ground pool is approximately $11,000 for an above-ground pool, while an in-ground pool could cost from $45,000 to $85,000 or more.

The cost of swimming pools varies based on the location of the yard and location, as well as the service plans offered by your dealer. Certain packages include walls for retaining dirt removal and electrical hook-ups, however not all swimming pool installations come with these amenities. That means that the cost of your swimming pool project may be more than the price your dealer initially estimated.

If saving thousands of dollars to build an outdoor pool at your house isn’t possible, financing cost for the pool is an alternative. A loan for swimming pools lets you pay for the construction of your pool over the course of time.

What is a pool loan? And how do they work?

Since building a pool can be expensive It is a good idea to investigate pool loans. When you’ve determined the amount of money you’ll need to purchase your swimming pool, look around with a couple of lenders to locate the personal loan that works best for you.

If you’re accepted for your loan you’ll generally get all loan money in one lump sum and pay this loan after a set number of years, paying interest. The amount of your income, as well as your FICO credit score, will play a major role in determining the rate of interest and the number of your monthly payments for any loan you get.

What are the reasons I should be looking for a loan to a pool?

Based on the National Association of Realtors, adding a swimming pool to your property could boost the value of your property to 7 percent. Even if you’re not planning to immediately increase the value of your home it is possible that you will look forward to relaxing in your pool during the summer heat.

Other kinds of credit are also available to finance the installation of a pool However, these options are usually more expensive than a loan for a pool.

In this case, the revolving line credit as one that is a credit card may theoretically be utilized to purchase the cost of a swimming pool. However, the median credit charge for a credit card is 14.61 percent. In comparison, the median personal loan rate, according to Bankrate’s statistics as of September 2021 was 10.46 percent. Swimming pool installations have an already expensive cost, which could cause this home improvement project to be difficult for homeowners to afford and their families, a pool loan may be a better option to fund the cost of swimming pool construction.

4 ways you can finance your brand new swimming pool

Because of the large initial cost of the construction of a swimming pool that is new, many owners decide to borrow money for the project and then pay it back over time. Here are the best methods to finance the construction of your new pool, even if you do not have the money to purchase the pool upfront.

Home equity loan

The house equity loan allows you to take out a loan against the equity of your home and then use it as collateral, thereby aiding you in obtaining the best interest rate. Home equity loans function like personal loans. They have a fixed interest rate and a set repayment timeframe and a fixed monthly installment that will not change.

Utilizing the home you own as collateral brings additional risks. As an example, your home could be a target for foreclosure when you cease to make the home equity loan payments but this isn’t the situation for personal loans. The typical limit for borrowing is as much as 85 percent of the property’s value, minus the mortgage, which means this is only a solution for those who have lots of equity that is not being utilized in their property.

  • Takeaway: The use of a home equity loan to finance swimming pool projects has low-interest rates, however, it could put your home at risk in the event that you are unable to pay back your loan in full.
  • Who is this loan best for: This kind of loan for swimming pools is ideal for those who have substantial equity in their homes and want regular monthly payments.


A Home equity line of credit (HELOC) can be like an equity loan for homes. IN a HELOC, however, you can obtain a line credit which you can draw against as required usually with an interest rate that is variable. Because the rate you pay can fluctuate between a low and a high because of changes in the market, as well as the sum you can borrow cannot be fixed and your monthly payment may alter over the course that the loan.

Similar to the home equity loan, the use of the HELOC to finance the pool has a few drawbacks. The HELOC makes use of your house as collateral, meaning that you could be in danger of losing your home if you fail to pay your monthly payments. Additionally, you’re bound by the identical equity limit so the HELOC is not a viable choice for those with a large amount of equity in their home.

  • The takeaway HELOCs give you greater flexibility in financing the costs of swimming pools in particular if the dealer does not offer an all-inclusive plan.
  • Who is this the ideal for An HELOC is ideal for homeowners with substantial equity and who wish to have greater flexibility in their monthly installments.

Personal loan

The most sought-after option in pools of loans is the tried and true personal loan. The term “personal loan” refers to a personal loan that lets you borrow an amount in one lump sum, at the same interest rate, but with a predetermined repayment period. It means that you’ll have to pay an annual monthly installment which will not alter. A further benefit is knowing exactly when you’ll be debt-free.

Personal loans are secured which means you don’t need to pledge your home as collateral in order to be approved. If you have excellent or exceptional credit (or a FICO score that is greater than 740You may be eligible for a pool loan that has an interest rate fixed that is as lower as 5 percent. Personal loans are often offered with no fees or minimal charges, which makes them an extremely affordable alternative to other loans for swimming pools.

  • Takeaway Personal loans can be used for financing swimming pools, at an agreed loan amount, and it’s a loan option that won’t place your home in danger should you fall behind.
  • Who would this be ideal for It is a personal loan is a great alternative for people who has good credit but not a large amount of equity within their house.

A loan for a swimming pool is available through the dealer

Another way to finance your pool might be a loan with the dealer you choose in purchasing the pool. If you decide to use dealer financing, be sure to go over the terms you’re signing, and be ready to pay more. If you’re in a position to get a personal loan or financing using the equity of your home or equity, this could be your only way to finance the pool you have.

  • Takeaway Financing swimming pool expenses directly through the dealer could be beneficial however it is more expensive.
  • Who should this be used for A swimming pool loan is the most suitable alternative for those who aren’t qualified for an equity loan for homes, HELOC, or personal loan.

Other aspects to consider when financing an outdoor pool

There are some final points to remember prior to submitting an application for any type of pool financing:

  • Monthly installment Consider talking to some pool professionals to obtain a rough estimate of the cost you’ll pay before you play with an online calculator for loans in the pool to determine what your monthly payments could be. If you plan to repay your loan in a short time, you’ll need to pay more every month. If you’re looking to spread out your payments over a long period of time it may be possible to pay a lesser monthly amount.
  • Repayment terms If you’re planning to sell your home within a couple of years, you’ll probably prefer avoiding a lengthy time frame for a loan. It is also important to be aware that a house that has a pool could be worth more but it might be more appealing to a small number of buyers because it’s not everybody’s dream to have a pool in their backyard.
  • Maintaining costs If you’re planning not to relocate for a long time it is important to consider the long-term cost of operating and maintaining the pool. It is costly to maintain. Apart from the massive initial cost of construction, it is necessary to include lighting, equipment for pool cleaning, as well as heating cover for your pool, and other items for regular maintenance to your budget.