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Can You Take a Loan to Build a Swimming Pool?

Written by Allison Martin

Allison Martin is a personal finance enthusiast and a passionate entrepreneur. With over a decade of experience, Allison has made a name for herself as a syndicated financial writer. Her articles are published in leading publications, like, Bankrate, The Wall Street Journal, MSN Money, and Investopedia. When she’s not busy creating content, Allison travels nationwide, sharing her knowledge and expertise in financial literacy and entrepreneurship through interactive workshops and programs. She also works as a Certified Financial Education Instructor (CFEI) dedicated to helping people from all walks of life achieve financial freedom and success.

Updated January 23, 2024​

2 min. read​

You’ve dreamed of adding a swimming pool to your backyard for some time. Unfortunately, you don’t have the funds to make it happen, and it’ll take several years to save up enough money to cover the costs.

A pool loan could be an option to make your dreams of building an oasis in your backyard a reality. Plus, you may boost your property value by making this addition. You should understand first how they work and what to consider before applying for financing. 

What is a Pool Loan?

A pool loan is a type of unsecured personal loan product designed to cover the costs of installing a swimming pool. It’s generally available through traditional banks, credit unions and online lenders. Despite its title, the funds can be however you see fit since it’s a personal loan.

How Does a Pool Loan Work?

Loan proceeds for pool loans are disbursed in a lump sum and payable in equal monthly installments over a set period. The interest rate is fixed, and your cost of borrowing will depend on your creditworthiness. Lenders are also your income to determine a loan amount you can comfortably afford to repay. 

Things You Should Consider Before Getting a Pool Loan

Consider the steps you will need to take to get a home improvement loan or how you will secure the funding to pay for the swimming pool. To help you decide, see here some things to consider before taking out a loan:

1. Loan Amount

Some lenders offer more generous loan amounts than others. It’s important to only consider lenders that can finance a swimming pool for the purchase price you need. 

2. Monthly Payments

How much can you afford to pay each month toward a pool loan? Be sure to run the numbers before applying for a pool loan so you’ll know how much pool you can comfortably afford to finance.

3. Repayment Terms

An extended loan term means a lower monthly payment, but you’ll pay more in interest. But if your goal is to pay the pool off fast, opt for a shorter repayment period. 

4. Additional Loan Fees 

Does the lender charge loan origination fees? Are there late payments or early repayment penalties to be mindful of? 

5. Loan Requirements

What are the eligibility requirements for a swimming pool loan? Do you meet the qualifications for the lenders you’re considering? 

Ways to Finance the Construction of Your Pool

There are many ways you can pay for your home renovations, including a pool addition to your home. Let’s review some of the options, from home improvement loans to more traditional ways of borrowing.

1. Use your Savings

If you want to avoid debt, this is the best option to finance the construction of your pool. The downside is that you could spend several months or years coming up with the funds needed to pay for a pool since costs can range anywhere from $10,000 (above-ground pool) to $80,000 or more (above-ground pool). And if you already have a sizable amount of funds saved up, paying for a pool could wipe out your account. 

2. Apply for a Personal Loan

Personal loans are the preferred way to finance swimming pools. You’ll need good or excellent credit to qualify for the best interest rates, and the fees are minimal. Another significant benefit is that it’s unsecured, so your home won’t be at risk of foreclosure if you fall behind on the loan payments. 

3. Get a Pool Loan Through The Dealer

If you purchase your swimming pool through a dealer, they may offer in-house financing. Unfortunately, they often come with higher interest rates that could cost you a fortune over time. Still, dealer financing could work if you’re unable to qualify for other forms of funding. 

4. Tap Into Your Home Equity

Do you have a ton of equity built up in your home? A home equity loan or home equity line of credit may be ideal to finance pool construction as borrowing costs are generally lower than what you’ll find with personal loans and credit cards. Plus, you’ll have an extended period to repay what you owe.

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