Unless you’re diligently saving up or buying an inexpensive kid’s wading pool, chances are you’ll need to take out some kind of financing to buy your pool. Use the pool loan calculator below to see how much you’d pay, per month and overall, which will help you compare your options.
How To Get a Pool Loan
Pool loans are typically unsecured personal loans, which require no collateral. Follow these general steps to get a pool loan:
Shop around for lenders. It’s a good idea to reach out to as many potential lenders as you can to request a rate quote, because the more you connect with, the better your chances of finding a competitive loan. Some lenders offer a prequalification process, which lets you see what terms you may be eligible for without impacting your credit score.
Choose the best offer. After you prequalify with multiple lenders, compare the potential offers. Choose the loan that covers the cost of your project while being the most cost-effective.
Submit your application. Once you choose your preferred lender, submit a formal loan application. It’s likely you’ll need to provide your past bank statements, most recent pay stub, tax returns and a copy of your driver’s license or other government-issued ID. When you submit your application, the lender will run a hard credit check, which can drop your score temporarily.
Receive funds and make monthly payments. Once you’ve been approved, your lender will disburse the money. It’s always a good idea to sign up for autopay so that you never miss any payments.
How Much Does It Cost to Build a Pool?
The cost to build a pool depends on several factors, such as where you live, materials, the size and whether it’ll be an above- or a below-ground pool.
Above-ground pools are generally cheaper to construct, typically costing between $987 and $4,754, with an average price of $2,846, according to HomeAdvisor. If you start adding features like a wooden deck to lounge on ($800 to $3,000) or a pool heater ($1,500 to $2,400, plus $100 to $600 per month in electricity charges), you can expect the cost to go up even more.
Below-ground pools are most expensive because they require more work and materials. You can expect to pay between $41,188 and $79,202 for a standard in-ground pool, with an average price of $59,032.
Pool Financing Options
Here are some of the most common pool financing options:
Personal loan: People often use this all-purpose loan to finance a pool. Personal loans are generally unsecured, so the rates may be higher than for a secured loan like a home equity loan. But on the flipside, it’s usually a more streamlined application process.
Cash-out refinance: A cash-out refinance is a mortgage refinancing option that lets you pay off your existing mortgage with a larger loan. You’ll receive the difference as a lump sum to use how you’d like, including financing a pool.
0% APR credit card: These credit cards allow you to borrow money at zero interest for up to a year or more after you open the card. If you pay off your balance before the end of the promo period, it’s essentially a free loan. However, any unpaid balances will be charged the normal interest rate.
Home equity loan: If you have a considerable amount of equity in your home, a home equity loan could be a good way to finance your pool. However, your home serves as collateral, which means you can lose your home if you default.
Home equity line of credit (HELOC): Similar to a home equity loan, you can borrow against your home’s equity with this line of credit. Instead of receiving the funds as a lump sum, you’ll have access to a credit line you can use as needed. Your home serves as collateral just like a home equity loan.
Frequently Asked Questions (FAQs)
How many years can you finance a pool for?
It depends on the type of financing you’re using. If you’re using a personal loan, most lenders have terms that range between one and seven years. However, if you’re using a cash-out refinance, you could be paying that loan for up to 30 years.
What credit score is needed for a pool loan?
Each lender sets its own minimum credit score requirement. In general, higher credit scores lead to the most favorable terms. We recommend a score of at least 670. However, there are some lenders that cater to applicants with bad credit.
Can you add a pool to your mortgage?
Not usually, but there are exceptions. Renovation mortgages, for example, are special loan programs that allow you to borrow more to pay for home improvements. However, some programs, such as the common FHA 203(k) renovation mortgage, don’t allow you to use home improvement funds for swimming pools.