How to Finance a Hot Tub

Posted by in Loans | Updated on September 20, 2022
At a Glance: You can finance a new hot tub using dealer financing, home equity lines of credit, home equity loans, or personal loans. You will pay off your debt in monthly installments for a specific period until you repay the entire loan.

Let’s be honest – what’s better than relaxing in a hot tub at the end of a busy and stressful week? Hot tubs can be a great experience – they will not only let you unwind, but they also have some great health benefits, such as improving blood circulation and decreasing swelling.

If you don’t have a hot tub yet, you may be tempted to get one. Unfortunately, they are not the cheapest investment. If you want one, you need to put a high sum of money down. But what can you do if your budget is quite tight?

The good news is that there are some hot tub financing options, which we’ll present below. 

Hot Tub Financing Options

Considering how pricey hot tubs can be, you should know what type of financing is available for them and how much you can borrow. Let’s take a look at some of the financing options you can use for hot tubs:

Dealer Financing

Many times, hot tub dealers have partnerships with lending programs or lenders. They know that not everyone can afford a hot tub right away, and did this as a way to allow more individuals to get the tub they want so much.

Through these partnerships, lenders can give people direct financing for hot tubs. It’s the same as auto dealerships that offer direct financing for cars.

Using dealer financing for hot tubs is convenient for several reasons. First of all, it makes the whole buying process easier. Secondly, it doesn’t take ages to obtain these funds – you apply for them and get a response immediately.

Personal Loans

Personal loans represent a very popular type of financing, as they can be used for different things. These loans are taken from a lender, after which you have to pay them off every month in installments. Usually, it takes a few years to repay a loan completely, depending on the amount and the loan term.

What’s great is that it’s very easy to apply for these loans, as they are offered by banks, credit unions, and online lenders. Depending on your credit history and score, personal loans will have fixed rates.

Generally, it takes a few days to be approved for a personal loan. As long as you meet all the requirements of the lender, there are no reasons to be denied.

Personal loans may not involve your home in any way, but they usually have higher rates. If you think you can afford to pay the monthly installments and the interest, there shouldn’t be any problem in seeking this financing form. Being a responsible borrower will allow you to finish paying off your debt on time, and it will also help you build a credit score. 

Home Equity Loan

A home equity loan can also be used to pay for your dream hot tub. With this type of financing, your home equity will serve as the collateral for the loan, considering the loan is a secured one.

Home equity loans are similar to your typical loan. After taking one out, you will pay it back every month in installments. This will be done until you repay everything that you owe.

A home equity loan will be very similar to a mortgage – it will pretty much act like your second mortgage. You can get it through banks, credit unions, and other types of lenders, including your mortgage lender. It can also be used for home improvements, making it suitable for a hot tub.

With these loans, you might enjoy a lower interest rate compared to different other loans or credit cards. You also have the option to take out extended terms and larger amounts of money if the equity covers this. At the same time, just like with a mortgage, you might deal with closing costs.

Home Equity Line of Credit (HELOC)

Lastly, there are home equity lines of credit, which are some of the favorite financing options that people use for their hot tubs.

A home equity line of credit or HELOC works very similarly to a credit card. It will be a revolving line of credit with a certain maximum amount. As such, you can use from or up to that amount. Similar to a home equity loan, this financing form will require your home’s equity as collateral.

For HELOCs, the interest rate is not calculated every month, but rather every day, which is due to the fluctuating daily balance of the loan. They are great if you want to buy anything related to home improvements, but also for any other home improvement projects – making them ideal for hot tub purchases.

HELOCs have two important time frames: the draw period and the repayment period. The former is the time when you can withdraw funds, whereas the latter is the time when you have to pay back the draws you took. Being aware of these periods will allow you to organize your payments and how much interest you have to pay.

You can obtain this loan from a home mortgage lender.

How Much Does a Hot Tub Cost?

Hot tubs are very expensive. They might cost between $5,000 and $20,000, depending on the size, quality, and other aspects.

Models that are made using high-quality materials and are provided by the best manufacturers on the market will be pricier. Of course, the same applies to those with complex jet technology and engineering.

If you don’t want a hot tub that costs more than $10,000, you can also look for entry-level spas, which are less than $6,000. The materials may not be as good when you go for cheaper tubs, though, and they may not even be manufactured properly.

Hot Tub Installation Costs

Not only do you have to pay for the hot tub itself, but also its installation. How much you will pay depends on the location of the tub, its size, and how complex the technology is. Generally, you can expect to pay around $85-$1,000 or even more.

Can You Finance a Hot Tub?

You can finance a hot tub when you do not have enough money to pay for it yourself or if you’re uncomfortable paying such a high amount from your checking account. Various lenders are willing to offer you personal loans or home equity loans so you can get your hot tub. You can even get dealership financing and HELOCs.

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Final Thoughts

There are hot tub financing options out there – you just need to know where to look. People who wish to finance their new hot tub can seek personal loans or dealer financing, as well as HELOCs or home equity loans. It all depends on your options based on your home equity and credit history.

Before borrowing the money, make sure you have an idea about how much the hot tub is going to cost, and an estimate of the installation rates. This will ensure you borrow enough for this home project.

Need a Loan? Get One in 3 Simple Steps

If you are considering applying for a personal loan, just follow these 3 simple steps.


Apply online for the loan amount you need. Submit the required documentation and provide your best possible application. Stronger applications get better loan offers.


If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon you’ll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.


The loan then gets disbursed into your U.S. bank account within a reasonable number of days (some lenders will be as quick as 2-3 business days). Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.


About Stilt

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