Pool financing

Jumping into a refreshingly cool swimming pool on a hot summer day is a dream come true for many families. But installing a pool is a big investment, and it could cost upwards of $60,000 or more. Since the average person doesn’t usually have that kind of cash lying around, consider pool financing options, such as personal loans, home equity loans or dealer financing.

How much does a pool cost?

The average cost to install an inground pool is around $64,000, according to an in-depth study by Angi⁽¹⁾. However, there is a wide array of pool options that you could pay as little as $20,000 or as much as $130,000, depending on how big or elaborate you want to go. An above-ground pool costs around $10 to $15 per square foot, and you can expect to pay an average of about $3,400. Inground pools will set you back around $50 to $125 per square foot.

Factors that affect the overall cost of a pool include its dimensions, design, materials used, labor and excavation costs, and where you live. If you plan to install a pool, you’ll also want to consider other expenses associated with owning a pool. These might include a fence to surround it, water treatment products, lighting, increased energy costs and maybe a hike in your insurance premiums.

Pool financing options

How to finance your pool installation depends on the type of pool you want, the project’s cost, your credit score and your ability to repay the loan, among other factors. Consider these pool financing choices and the pros and cons of each option.

Personal loans

Getting a personal loan is one way to finance your pool installation, and some personal loan lenders have lending limits as high as $100,000. Other lenders top out at $50,000, which may not be enough depending on the type of pool you want, so you may have to look around to find the right lender. Expect an interest rate somewhere between 6% and 36%, but what rate you’ll actually pay depends on your credit history and other factors.

Personal loans typically have terms from two to seven years, but that can vary by lender. For an especially large loan, you may want to consider a longer loan term so your monthly payments are more manageable.

You’ll also want to consider origination fees, which may cost up to 10% of your loan amount — and take a big bite out of your pool funds. However, some personal loans don’t charge origination fees, which may save you money on an already expensive project.

HELOC or home equity loan

If you’re putting in a pool, chances are you own the house and might be able to take advantage of the equity you’ve built up over the years. Most lenders require you to have at least 20% equity in the home to qualify, but you could secure a more competitive rate than you would with a personal loan and have longer to repay it. Plus, you may qualify for a larger loan amount depending on how much equity you have.

The most common way to leverage your home’s equity is to take out a home equity loan or a home equity line of credit (HELOC). A home equity loan provides you with a lump sum at a fixed interest rate that you’ll repay in equal monthly installments. This option might be good if you know exactly how much you need to borrow.

By contrast, a HELOC is a revolving line of credit where you can draw on the funds over time, as needed, up to your credit limit. You usually only need to make interest payments during the draw period, saving you money upfront. But rates are variable, so monthly payments can fluctuate. A HELOC might make sense if you plan to take your time excavating the area and installing a pool and perhaps want to combine it with other projects, such as landscaping or putting a fence around the pool area.

Another way to pull equity from your house is to do a cash-out refinance — aka, cash-out refi. A cash-out refi is when you swap out your existing mortgage for a new, larger home loan and receive the difference — your equity — in a lump sum. This option might be good if you can refinance at a lower rate or want to avoid having an extra monthly loan payment.

Dealer financing

Obtaining financing through a pool manufacturer or dealer might be a good option if you’re looking for a one-stop shop. Pool companies often offer financing packages with competitive rates and flexible repayment terms. You may even be able to lock in a promotional offer. Plus, this type of funding is typically fast if you’re ready to break ground.

A pool dealer will likely use a third-party bank to fund the loan but will handle the application for you. The process is much like buying a car and using dealer financing. Just be sure to read the terms and conditions carefully, watch out for hidden fees and compare it to a few other financing options to find the best deal.

Credit cards

Putting a major purchase like a pool on a credit card may not seem like a great idea, but it could be doable. Many card issuers offer credit cards with 0% financing, so you could enjoy an interest-free loan for around 12 to 18 months.

That may not be enough time to pay off a pool installation — and the interest rates that kick in are typically high — but if you’re expecting a sizable tax refund or year-end bonus, a credit card might make sense. Or, if you’re still carrying a balance at the end of the introductory rate, you might be able to roll it over to a balance transfer card for even more interest-free financing.

How to get a pool loan

The type of pool financing you decide to get depends largely on the loan amount you’re seeking, your credit score and how long you’ll need to repay it. Here are a few things to consider when sorting through pool loan options.

• Determine your budget. Decide how much you want to borrow — and can reasonably afford to pay each month — and then research what kinds of pools fit into your budget.
• Check your credit scores. Knowing your credit score before applying for pool loans can help you get a handle on your best financing options. If your credit score isn’t great, you may want to work on raising your credit score before applying for a pool loan.
• Compare multiple lenders. Research all your options to find the best pool financing deal. Be sure to explore online personal loans, financing through your pool dealer, home equity options or loans from your primary bank or credit union.
• Get prequalified. Where possible, it’s smart to get prequalified on a few pool loans. Prequalifying only requires a soft credit check, so it won’t hurt your credit score, and it gives you an idea of what rates and loan terms you may ultimately qualify for.
• Be aware of fees. Ask about any fees associated with your pool loan. For example, some lenders charge origination fees, which can significantly add to the loan’s cost.
• Ask about discounts. See if you can save money in other ways. Some lenders may offer an interest rate discount if you enroll in auto-pay, for instance. Or, you might find out when pool dealerships offer sales or low-interest promotional financing.
• Down payment. Some pool loans could require a down payment of 10% or more, so make sure you have the cash on hand or seek other pool financing options.
• Consider loan terms. Shorter loan terms save you money on interest charges, but if you want more manageable monthly payments, consider a longer loan term.

Pool loan repayment calculator

How much you’ll pay varies by what type of loan you go after and your eligibility criteria. However you can play around with our pool calculator to see what monthly payments and total interest may look like by entering the loan amount, rate and term you expect on your pool loan.

Above-ground pool vs. inground pool

Whether you want an inground or above-ground pool largely depends on personal preference, but you’ll also need to consider how much you can realistically afford. Above-ground pools are much less expensive and faster and easier to install, but they may not be as aesthetically pleasing and less likely to add value to the home.

However, as nice as it may be to have an inground pool with all the bells and whistles, you don’t want to risk getting into a debt you can’t afford. Plus, if you use home equity financing to pay for your pool installation, keep in mind that you’re putting your house at risk if you can’t repay the loan.

Bottom line

Installing a pool in your yard is an expensive project, but it could bring years of fun to your family and friends. Just make sure to carefully assess your budget and avoid biting off more than you can chew. Using your home’s equity to finance the project could be one of your least expensive pool loan options, but also consider personal loans, dealer financing or even credit cards.

Frequently asked questions

What is the interest rate on a pool loan?

Interest rates on pool loans vary based on the lender, the loan type, loan amount, your credit score and other factors. Typically, it will be somewhere between 6% and 36%.

What credit score do you need to finance a pool?

You’ll likely need a credit score of at least 670 to qualify for a pool loan because, especially with larger loan amounts, lenders want to verify you handle debt responsibly. A score of 720 or higher can help you qualify for the best rates.

Is financing a pool a good idea?

A pool installation is an expensive project, and you may need to finance up to $50,000 or more. If you think you might struggle with the monthly payments, consider a longer loan term or put off the pool project for a couple of years until you can save up enough money to pay for it outright or borrow less.