Backyard with in-ground pool and landscaping.

Swimming Pool Financing Options

Victoria Araj6-Minute Read
UPDATED: July 26, 2023


Having your own backyard swimming pool for those hot summer days may seem like the ultimate luxury, but installing one can be an expensive ordeal. Not everyone can pay for a brand-new pool upfront, so some turn to pool loans to help finance their purchase.

Let’s take a closer look at how pool financing can work, available financing options and factors to consider before making this commitment.

Can You Finance A Pool?

The short answer is yes, you can finance a swimming pool installation through numerous financing options. Because everyone’s financial situation is different, your options will largely depend upon factors like your credit score and general financial standing.

How To Finance A Pool

Pool loans are essentially unsecured personal loans and can be borrowed through traditional banks, credit unions or online lenders. An unsecured loan is one that doesn’t require any collateral to borrow the loan, and so your credit will play the biggest role in your approval.

To apply for a personal loan, you’ll first want to get prequalified by one or more lenders and see what interest rates, loan terms and loan amounts you’re eligible for. Shop around different lenders until you find a deal you like, then submit a full application. This last stage will involve a hard inquiry that can affect your credit score.

Once approved, you should receive your funds in 1 – 7 business days. Borrowers approved through Rocket Loans℠ may qualify for same-day financing and receive their funds the same day they apply.*

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Options For Pool Loans

As you begin your search into pool financing, you'll want to take all options into consideration.

Let's take a look at each of these options in greater detail.

Home Improvement Personal Loans

A home improvement personal loan is a common source of pool financing. As a lump sum of money, homeowners can use this type of loan for any home improvement project. This allows them to begin construction on their pool immediately, rather than having to save up over a long period of time. This loan is then repaid in fixed, monthly payments.

Home Equity Loans

A home equity loan is a second mortgage that a homeowner can take out against the equity that they have built in their home. Because interest rates may be lower with this loan, it's a popular option for home improvement projects. You'll need to work with a lender to determine how much equity you have in your home and to assess if you qualify for this loan.

The most important thing to know about using a home equity loan for a pool is that your home is used as collateral for the bank and can be foreclosed if you default on your payments.

Home Equity Line Of Credit

A home equity line of credit (HELOC) works similarly to a home equity loan – the main difference is that the borrower receives a line of credit rather than a loan, similar to a credit card. Once the lender has given the homeowner this line of credit, borrowers are able to draw from it over a set period of time. After this time is up, the homeowner must begin repaying the borrowed credit, plus interest.

As with a home equity loan, your home is used as collateral to secure a HELOC.

Cash-Out Refinance

A cash-out refinance is another popular option to use for financing a pool. This option works by refinancing a homeowner's existing mortgage into a higher amount. If you opt for a cash-out refi, the difference between your new mortgage and your existing mortgage is then given to you in a lump sum of cash. This cash can then be used to pay for a pool, and is paid off with your monthly mortgage payments.

Before committing, you should make sure that this option is right for you, as it's important to have confidence that you can make these higher monthly mortgage payments.

Pool Company Financing

While many companies don't offer their own direct financing, you may be able to work out a payment plan with them. It's possible that these companies could also have a bank that they work directly with that can help you finance. The company will forward your information to the lender that they work with to arrange the details.

It's important to note that this method is often more expensive than other options.

0% APR Credit Card

Credit cards are known for having higher interest rates than other financing options, but some companies offer 0% APR introductory periods when you sign up for a new card. During this period of 12 – 18 months, you can repay your loan with interest-free payments, potentially saving you money in the long run. If you can’t repay the loan within that time, though, you can incur interest charges as high as 19%.

FAQs About Pool Financing

How much does a swimming pool cost?

The average cost of installing an in-ground pool ranges between $20,000 – $60,000, while an above-ground pool runs between $1,000 – $5,000. However, an above-ground pool can cause serious damage to your lawn, costing you more in the long run and potentially even lowering your home value.

What credit score is needed for a pool loan?

The minimum required credit score for a personal loan is 650, so it stands to reason that you’ll want yours to be that or higher when applying for pool loans. Since pool loans are unsecured, the higher your credit score, the better your interest rate should be.

Does a pool increase the value of a home?

Although a pool is a costly investment to make, its return value is not that great in comparison to other home improvement projects. The National Association of REALTORS® found that, on average, homeowners only see about a 43% return on investment (ROI) with the addition of a pool.

Should You Finance A Pool?

There are a number of factors to think about when considering if you should finance a pool or not. Although the thought of taking a relaxing dip in the pool on a hot summer's day might be tempting, it's best to have confidence that taking on this big of a home improvement project is a good idea.

Ask yourself the following questions before committing to a pool financing option.

Do You Qualify For A Pool Loan?

Once you've chosen the loan option that you're interested in using to finance your pool, you'll need to make sure that you qualify for the rates and terms you want. As mentioned above, you generally need to be in good financial standing with a strong credit score.

While you may still be eligible for a loan even with a lower credit score, you're likely to incur higher interest rates. Over time, this can end up costing you even more.

Is Now The Right Time?

Consider whether or not now is the right time to take out a pool loan. If you are already in financial debt or if your credit score needs to be improved, now may not be the right time to take on any extra debt. You should also remember that paying for the installation of a pool is just the beginning.

Over the course of your ownership, there may be maintenance costs and other servicing fees. You may want to consider saving your money until you are able to make a sizable down payment on your loan. This will help lower your interest rates and make the reality of owning a pool more feasible.

If you can make these payments now or have already saved up your money, now could be the right time to consider pool financing. Work with a lender to see how much you may be able to qualify for and what option is right for you.

Final Thoughts

Swimming pools can provide you and your family with years of summer fun, but they can also be a large financial investment. With the right pool financing option, though, owning a pool doesn't have to be out of reach.

If a personal loan sounds like the right option for you, get prequalified today with Rocket Loans and see what rates you can qualify for.

*Same day funding is available for clients completing the loan process and signing the Promissory Note by 1:00 p.m. ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same day funding, but results may vary, and your bank may have rules that limit our ability to credit your account. We are not responsible for delays that may occur due to an incorrect routing number, an incorrect account number or errors of your financial institution.

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Victoria Araj

Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.