5 Pool financing options for your new pool construction or renovation

swimming pool by RCS Pool and Spa

Written by Reaves Newsom


December 10, 2012

In recent years, as we all know, financing for ANYTHING is tough. Lately, though the grip has loosened and borrowing has become more and more prevalent. I doubt we will ever see what we experienced in the late 90’s and early 2000’s. From a builder’s perspective, we have seen an increase in unsecured pool financing but that comes with a certain price in the form of a higher interest rate relative to the low secured rates we are seeing right now. Most of our customers have secured their own financing or are coming off some of their investments after waiting a few years for things to level off.  Here are your options for financing your inground swimming pool project.

  1. Unsecured – This type of financing is like a credit card which is why there is a higher interest rate. The risk is higher to the lender since there is no collateral.  I’ve seen opportunities up to $100k loans and terms up to 20 years.  Qualifications are relatively simple and these loans are quick to close.  Some have pre-payment penalties and others do not.
  2. Secured – This type is like a home equity loan/line of credit (HELOC), second mortgage, or cash out refinance of your first mortgage.  The funds are secured with the home’s value and require a relatively lengthy (20-30 days) to close. These loans are usually the most advantageous interest rates of any of the loans available.
  3. Borrow against investments – While available, these loans are generally not advised since you cannot earn a return on what you borrowed.  You can borrow against a 401k but the investment will only give you a return on what is not borrowed.
  4. Cash out investments – If you’ve invested your money there is great value in using some of it to invest in your backyard. You’ve done well and now it’s time to experience that compounded ROI and GET WET!!
  5. Bonus/Award – Lastly you can use the lump sum bonuses/awards as either all or part of the pool costs.

Remember you can finance part of your pool project and pay the rest with what you have.  While you can see there are many different ways to pay for installing or renovating a pool the most important thing to remember is to establish a budget and realize that you will spend more in the end.  There is landscaping, fencing, furniture, toys, etc. that all need to come along with the pool.  Good luck with your search for the right builder and I hope we’ve helped you understand a little more about how to pay for it.  For additional sources, you can go to our finance resource page.

If you want to get started with us contact us.

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