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.

First, you should look for a lender who specializes in swimming pool loans. This is very important. As a good analogy, you wouldn’t go to a residential mortgage lender if you were looking for a commercial property loan, would you? In the same way, you should go to a lender who offers pool loans versus a lender who only focuses on automobile loans.

Second, when looking for a lending company that specializes in swimming pool financing, you should look for a company that will allow you to use your latest local tax assessment as the basis for determining your home’s worth. If you are not able to do this and the lending company requires an appraisal, this could delay your inground swimming pool financing. This is because the appraisal process can takes upwards of a month to complete.

Third, after your identify a few lenders who specialize in swimming pool finance and who will allow you to use a recent tax assessment, you should call them up and check out the terms that they are offering.

As everyone’s situation is different, there really is no one size solution for everyone. You will want to select a loan that is best for your financial situation.

As you have seen above, these three steps can make it a breeze to obtain swimming pool financing. As long as you keep these important points in mind, you will be able to find the best swimming pools financing.