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.

If you are considering building a pool (regardless of whether it is an inground pool or an above ground pool), you may want to see what your options are.

Obviously, if you have the cash available, you could simply pay for the construction of the pool at one time. But the real question is, is it wise for you to do that?

A very simple way is to find out what the current swimming pool financing rates are and whether you could get a better return on your money somewhere else. As an example, if you can get a swimming pool loan for 7% and you can expect to make 9% in the stock market, it may make sense to finance the swimming pool.

Now if you don’t have the cash available, you have two options. You can 1) use your credit card (resulting in a bad kind of unsecured pool loans) or 2) you can secure swimming pool financing via a lender.

In our opinion, going with the first option is simply out of the question. With credit card rates often floating around the 18%+ range, it makes absolutely no financial sense to use this option.

On the other hand, if loans for swimming pools are hovering in the 8% interest rate range, it makes a lot of sense to use this option (especially when you compare it to an interest rate of 18 %+)

We hope that this section has shown you that there are numerous options available for building your new pool. While you may have the cash available, it may not be in your best interests to spend it. If you do not have the cash available, we hope that you will shy away from using a credit card and will instead contact a lender who specializes in loans for pools.