How to Finance a Pool

Posted by in Loans | Updated on October 14, 2022
At a Glance: A pool is a costly investment, but you can finance it in different ways. You can use a home equity loan or a line of credit, contractor refinancing, personal loans, and cash-out mortgage refinancing.

Having a pool in your backyard can be a blessing during the hot summer months. All you need is to put on your swimsuit and jump into your pool, and you’ll instantly feel better. As happy as it might be, the reality is harsh: it costs a fortune. An inground pool can exceed $28,000 in price, depending on the size, material, and shape.

What do you do when you want a pool yet cannot pay out of your own wallet? How to finance a pool? There are different ways to fund this project, and we’ll present you with a few.

5 Ways to Finance a Pool

If you’re not ready to risk your savings for a pool, you need to look at external sources. Some of these options are secured, while others are unsecured. Before attempting to apply for any of them, you must make sure that you qualify for them or that they are suitable for you and that you can pay off your debt on time over the next few years.

Here are the five financing options you have for your pool:

Home Equity Line of Credit

Home equity lines of credit are some of the best ways to borrow money when you build enough equity in your house.

HELOCs allow you to borrow money up to 85% of your house’s value without the amount you still owe on the mortgage. It’s a flexible type of loan, which means that you aren’t just allowed to borrow once, but rather borrow as expenses change.

These loans have a “draw period” during which you can only pay interest. After this period is over, you will start paying off the amount borrowed.

If you think new costs will arise during the installation of your pool, open lines of credit like this one can be a great way to borrow as you need. However, you must keep in mind that the repayment term is usually very long, and your house is also used as collateral.

Home Equity Loan

Home equity loans work like a mortgage. They let you take out a large sum of money which you then pay off every single month in installments.

They are not like your typical loan, though. You don’t simply borrow. You need to have equity in your home to qualify for these loans.

Home equity loans let you borrow up to 85% of the value of your house, without what you still owe on the mortgage. The great thing about these loans is that they have fixed monthly payments.

Repayment terms can go up to 15 years.

Cash-Out Mortgage Refinancing

Cash-out refinancing is another great alternative when you want to fund a pool installation.

This method involves taking out a new mortgage that is higher than the one you currently have. With the money you receive, you will pay off your existing mortgage, then use the rest of the cash to pay for the pool.

Although it can be extremely useful, it’s an option you should only consider if you can get a better rate than the one you have with the old mortgage.

Contractor Financing

A very easy way to finance your pool is by taking out contractor financing. There are many pool installation companies, as well as contractors that have financing available for individuals who cannot pay for a pool themselves.

They provide financing through third-party lenders. You can easily borrow the amount when you talk to the contractor face to face and set a budget. Ideally, you should look into different options and go for the most convenient one.

Contractor financing allows you to take out up to $200,000 for the pool installation, and you can get the money very quickly too. At the same time, repayment terms are very long, and the maximum rates are high as well.

Personal Loans

Personal loans are used by many individuals, mainly because they are very flexible.

They can be used for many purposes, such as paying for urgent expenses. Most of the time, these loans are unsecured. Therefore, people love them because they do not have to use their car or house as collateral.

Generally, you can borrow between $1,000 and $100,000, which is enough when you want to pay for a pool. Of course, it all depends on the lender you choose, as well as your income, credit history, credit score, and other factors.

Once you get the loan, you will pay it off every month in installments. It takes several years to repay your loan.

Personal loans are a great option when you need to get the money quickly and you have not built enough equity in your house to consider a home equity loan or line of credit.

How to Finance a Swimming Pool

If you think a swimming pool is a good addition to your home, you should find the best way to finance the installation. Here are some things to consider:

  • Comparing Rates – There are different financing options out there. Whether you’re going for contractor financing, personal loans, or a different method, you should compare the rates of multiple lenders. It will help you get the best rates and it’s going to be easier to pay off the debt.
  • Find Out How Much the Pool Costs – Before you start looking for lenders, you need a price estimate for the pool and the installation. Ask contractors about it and find out how much money you need.
  • Plan for the Repayments – Think about whether you’ll be able to pay off your debt regularly. Calculate considering your income and possible loan repayments to see if you can handle it, and plan accordingly.
  • Apply for the Loan – Lastly, you must send an application to the lender you chose. It’s best not to apply for multiple lenders, as applications involve a credit pull that can decrease your score.

Other Considerations When Financing a Pool

Before installing a pool, you need to know that there are other costs to take into account aside from the installation price. For instance, you need to clean and maintain your pool.

Cleaning can cost around $75-$100 per hour if you want a pool cleaning service to do it. Besides, if you want the pool water level to be maintained, you will have to pay around $80 – $150 monthly.

Pool Financing FAQ

Here are some frequently asked questions about pool financing:

How much does it cost to build a pool?

Pool costs are influenced by the materials used, as well as the shape and size of the swimming pool. Usually, it costs over $28,000. Prices can reach $50,000 in total.

What is the best way to finance a pool?

The best way to finance a pool might be cash-out refinance. This is because not only do you get money for the pool, but you also pay off the old mortgage and gain better rates. HELOCs are also great options.

What credit score is needed for pool financing?

Generally, you must have a high credit score to be accepted for pool financing. The minimum score should be 600, so you shouldn’t go lower than that.

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Final Thoughts

If you were wondering how to finance a pool, now you know what your alternatives are. Make sure to calculate the costs and compare rates before you settle for a lender.

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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