Should You Finance Your Pool? A Homeowner’s Guide to Pool Loans and the Most Affordable Loan Options
Many homeowners dream of adding a pool to their backyard — more than a place for swimming, pools can contribute to a lifestyle of weekend relaxation, outdoor fun and treasured memories with loved ones.
With the increasing cost of materials and installation, people may wonder if financing is the best option for this project. This comprehensive guide demystifies the financing process by breaking down what to expect and delivering the most affordable pool loans for homeowners.
How Much Does it Cost to Build a Pool?
According to Angi, the national average cost of a pool is $41,898, with costs depending on several factors. For example, in-ground pools are more expensive and could reach $86,500. Conversely, an aboveground pool is much more affordable, ranging from $1,000 to $6,000 or more.
The total price of the pool includes the location, pool design, materials and labor. Additional fees include permitting, site preparation and excavation expenses. Specialty features — such as heating, jets and automated controls — can also incur further costs.
Pros and Cons of Financing a Pool
There are several benefits and drawbacks of financing a pool that homeowners must weigh carefully before deciding whether it is the right investment. Among the most significant upsides is the ability to enjoy this retreat immediately, rather than waiting to save up the full amount.
Additionally, it can increase property values by 5% to 8%, meaning a home worth $400,000 could see a $20,000 to $32,000 boost — this could even make the loan tax-deductible. Homeowners can also customize the design and features to their precise specifications, integrating energy-efficient components to reduce maintenance costs.
Of course, loan recipients are responsible for repayment and accrued interest, which is a long-term commitment. They must also account for ongoing expenses, including care, chemicals, cleaning and higher utility bills.
A pool also raises homeowners insurance to an average of $1,823 annually, depending on the type of pool they have and the amount of liability coverage they opt for. These costs can impact one’s ability to afford monthly loan repayments.
A home equity loan or home equity line of credit (HELOC) also risks a home as collateral. If someone is unable to repay, they could face foreclosure. Unsecured personal loans also tend to have higher interest rates.
Understanding Pool Loan Options
Pools are an expensive home improvement project, but homeowners can seek the following pool loans to offset costs:
- Personal loan: An unsecured loan available for any purpose, providing a fixed interest rate and repayment term
- Home equity loan: A lump-sum loan that uses a residence as collateral, delivering a fixed interest rate and predictable monthly payments
- HELOC: Risks a home as collateral and allows the individual to borrow and repay funds at variable interest rates
Dealer financing is another option, where homeowners can seek financial assistance from a partner through their pool contractor. This is an excellent alternative for those who do not qualify for a personal or home equity loan. However, these rates tend to be higher, so it is crucial to read the terms and conditions carefully.
4 of the Most Affordable Pool Loan Options for Homeowners
Financing a pool can be easier than ever with the right partner. Catering to a range of financial situations and repayment requirements, here are the top options for homeowners.
1. Lyon Financial
Lyon Financial is a trusted financing facilitator delivering some of the most affordable pool loans for homeowners. It offers specialized capital sourcing up to $200,000 for pool projects and outdoor living features, such as kitchens, pergolas and hardscaping. It can connect you with optimal funding solutions, having advanced over $5 billion in loans for over 800,000 customers.
Its 30-year loan term sets them apart from the competition, supplied with no equity requirements. The term is ideal for those looking for maximum flexibility and the lowest monthly payments available. Lyon Financial is also a veteran-owned and operated business and provides military discounts to those who qualify.
Key Features
- Facilitated over $5 billion in loans for over 800,000 customers
- 30-year loan terms for greater flexibility and lower monthly payments
- Veteran-owned and operated, with military discounts available
2. Upgrade
Upgrade delivers affordable loans with amounts ranging from $1,000 to $50,000 at low fixed interest rates. It does not require appraisals or property collateral, and individuals can check their rate in minutes. This provider conducts a soft inquiry into one’s credit history, which will not impact their credit score.
With an unsecured personal loan, Upgrade issues funds directly into homeowners’ accounts within days of approval. Applicants can also receive a discount on their annual percentage rate (APR) if they secure the loan.
Key Features
- Personal loan amounts from $1,000 to $50,000
- No appraisals or property collateral required
- APR discounts with a secured loan
3. HFS Financial
HFS Financial has helped over 100,000 homeowners fund pool projects, with maximum loan amounts of $300,000. Customers receive fast, direct funds, giving them complete control over how to use their loan. They also receive low fixed interest rates with 20-year terms, with no equity requirements.
As a consumer-centric firm, HFS Financial aims to make the process as straightforward as possible. Inquiring about individual rates will have no impact on homeowners’ credit scores, and those interested can receive prequalified options within minutes. Prospective recipients can use the online calculator to determine their monthly repayments based on the loan amount.
Key Features
- Maximum loans up to $300,000
- 20-year repayment terms
- No equity requirements
4. SoFi
SoFi offers personal loans and home equity loans to help homeowners fund their new pools. The personal loan, in particular, delivers same-day funding — between $5,000 and $100,000 — with no fees or collateral required. Term options range from two to seven years.
Home equity loans deliver an APR as low as 6.99% and easy repayment terms, with no origination fees required. However, homeowners must risk their home as collateral. For this financing method, recipients can access up to $350,000 of their home’s equity and repay the amount over a period of five to 30 years.
Key Features
- Personal loans between $5,000 and $100,000
- Home equity loans available up to $350,000
- No origination fees with low fixed rates
What to Expect During the Pool Financing Process
Homeowners should obtain multiple estimates from various pool contractors to fully understand the project cost. They must also check their credit score before applying to determine their current standing.
Comparing interest rates, fees, and loan terms is crucial for receiving the best deal and ensuring substantial savings. These factors vary by financial institution and could save the recipient thousands of dollars throughout the loan’s lifespan.
Submitting a formal application triggers a comprehensive credit inquiry. Most companies will ask for a government-issued identification, proof of income, bank statements and a written estimate from the contractor. Home equity loans and HELOCs may have additional requirements.
Once the loan is approved and the homeowner signs the agreement, they should receive the money within one to two days, or two to eight weeks for home equity financing and HELOCs. Recipients should set up automatic payments to ensure timely repayment of the loan.
Navigating the Financial Waters of Pool Ownership
Financing a pool project is a great way to make a dream backyard oasis into reality without depleting savings. It is crucial for homeowners to carefully review their options and make an informed decision before selecting a loan that best suits their needs. Ultimately, the right choice depends on their budget, financial situation and long-term goals.
