Therefore, this section is going to discuss some of the facts covering swimming pool financing. We believe these facts will truly be eye opening.

First, nearly half of all newly built swimming pool owners use either inground swimming pool financing or above ground swimming pool financing.

Second, the majority of these people usually turn first to their home mortgage lender or local financial institution. Unfortunately, this decision can be costly in the long run.

Third, many pool builders will actually offer pool financing plans. It is definitely worthwhile to check out their financing plans, as they usually do a large volume of this type of financing.

Fourth, if you do choose to go with your home mortgage institution, you can take out a home improvement loan for the swimming pool’s construction. If you use this option, you will be able to take out a certain amount of your home’s equity. This amount of equity will be determined by your lender’s lending criteria.

Fifth, there is actually a class of loans that specialize in swimming pool financing (Hint, Hint, this may be your best option).

As far as deciding whether to build a pool or not, there are been studies which have shown that construction of an inground pool can actually increase a home’s value somewhere between eight to fifteen percent. So you not only get an increase in property value, but you can also enjoy your new investment.

Now that you are familiar with some swimming pool financing facts, we
hope you will be able to make a wise decision in determining where to seek financing. As always, if you have any questions, feel free to let us know.

Luckily, there is a solution:  swimming pool loans.  These are loans a consumer takes out to build a new pool in their backyard.  This seems straightforward enough.  However… if you have been doing any research on lending alternatives, you will notice that there are not many lending institutions talking about loans for swimming pools.  This is because traditional lending institutions tend to categorize pool loans as home improvement loans.  Therefore, if you decide to ask a traditional lender to fund the building of your pool, you will have to ask for a home improvement loan (and as a consequence, meet the bank’s standards for home improvement loans) versus a pool loan.

Luckily, since inground swimming pools tend to dramatically increase the value of a home, it usually isn’t too difficult to get a loan for a pool.  Usually, you will need to meet a certain loan to value formula (which means you usually (each bank is different) need to have around 20 percent equity) in your home before the bank or credit union will lend you any money.

Even if you know that you do not have at least 20 percent of equity in your home, we highly recommend you contact a lender about a swimming pool loan.  As with most things in life, there are always exceptions; if you contact the right lender, they may have lower requirements for the amount of equity you need to have in your home.

If you have any other questions about swimming pool financing, please feel free to continue reading this website or ask a question below in the comments section.

Unsecured swimming pool financing is just as it sounds:  it is a pool loan that is lent without any form of collateral.

Since most home lenders look favorably on swimming pool additions, they will often lend money for a new pool without a lot of equity.  Of course, for the bank to do this (and assume a higher level of risk), there are usually a few more conditions levied on the borrower.  We will discuss the two most common requirements a bank will usually require.

The first requirement is the person seeking the loan must have a higher credit score.  As each lending institution has different requirements, a person seeking an unsecured pool loan would be advised to contact a few different lenders to find one that will approve their credit score.

The next requirement is that the person taking out the unsecured pool loan will pay a higher interest rate than when compared with someone who has equity in their home.  Again, each bank will be different in the amount of interest they require, so it is wise to shop around.  With that said, a person seeking a loan should not be surprised if they are asked to pay between 7 and 10 percent more on their interest rate than someone who has equity in their home.

While these two requirements may sound quite difficult, the reality is that building a new swimming pool will significantly increase the value of your home, while at the same time making it easier to sell.  Therefore, even if you must pay a little more in interest now, oftentimes, you will recapture the investment cost when you sell your home.

As you can see, there is a wide range of flexibility when it comes to unsecured swimming pool loans, so we recommend you check out a few vendors before committing to one.