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Guide for Choosing the Best Pool Loan

Do You Need a Pool Loan?

If you’re planning to install a pool, it’s important to research your swimming pool financing options. To pay for a new pool, you can tap into your savings, apply for a home equity loan or home equity line of credit, or opt for an unsecured swimming pool loan. 

When deciding which is best for you, begin by weighing the pros and cons of unsecured loans.

Pros

• Potentially increase home value

• No collateral required

• Quick and easy application process

Cons

• Higher APRs than secured loans

• Shorter repayment terms

• Doesn’t cover ongoing maintenance costs

Unsecured swimming pool loans can help you achieve the backyard oasis you can imagine without risking your home or going through a lengthy application process. You can apply online quickly and, if approved, receive your money as soon as the same day. 

Can a swimming pool loan be cost-effective when it comes to your property value? It depends. According to the National Association of Realtors, prior to the COVID-19 pandemic, the impact of a pool on a house’s value was fairly nominal. A house with a pool would sell for approximately $16,137 more than a similar home without one. During the pandemic, demand for pools skyrocketed, and a house with a pool sold for $27,199 more, on average. How pools will affect home values after the pandemic is unclear, so increasing home values shouldn’t be your sole motivation for installing a swimming pool. 

While a loan can help boost your home value, make sure you consider the loan’s APR, repayment terms, fees, and total repayment cost. And, keep in mind that swimming pool loans typically only cover the installation and setup costs. Ongoing materials and maintenance, regarding water, chemicals, heating, and filtration systems, can cost thousands of dollars every year.

Compare Pool Loan Lenders

There are many lenders that offer swimming pool loans. To find the best pool loans, consider the following factors: 

• APR: You’ll find a wide range of rates for unsecured pool loans; our top providers offer APRs from 4.94% to 35.97%. The APR (which includes the interest rate and certain fees) is the single biggest factor affecting your total repayment cost, so shop around and compare offers to get the best rate. 
• Available discounts: Some lenders offer special discounts for borrowers that are existing customers or that sign up for automatic payments. Taking advantage of those offers can help you save time and money. 
• Co-applicants: If you don’t meet the lender’s requirements on your own, some lenders allow you to apply with a relative or friend to improve your odds of getting a loan. 
• Fees: Some personal loan lenders charge high origination fees, application fees, and late fees, affecting your overall cost. Look for lenders that offer low or no fees. For example, neither LightStream or Discover charge origination fees. 
• Repayment terms: Unlike home equity loans, which can have repayment terms as long as 30 years, pool loans tend to have shorter terms, so you’ll have a higher monthly payment. Our top loan providers offer unsecured swimming pool loans with repayment terms ranging from 24 to 144 months.

Applying for a Pool Loan 

If you decide that an unsecured loan is the best swimming pool financing option for you, you can use lenders’ pre-qualification tools to get quotes and choose an affordable loan. Once you’re ready to move forward with the application, you can apply online through the lender’s website. 

Lenders will ask for your personal information, including your Social Security number and employer. You’ll have to consent to a hard credit check, and may have to submit verification of your identity, such as a copy of your driver’s license.

Once approved, the lender will send you a finalized loan agreement that outlines the loan’s APR, repayment term, and total repayment cost. If you agree to the terms, sign the agreement and return it to the lender. The lender will disburse the funds, usually by depositing them directly into your bank account. Going forward, you can manage your account and make payments through the lender’s website or mobile app. 

Frequently Asked Questions

How Do Pool Loans Work?

Swimming pool loans are unsecured personal loans specifically designed to pay for the purchase and installation of an above-ground or in-ground pool. They don’t require collateral; instead, the lender reviews your application and decides whether to approve you based on your credit score, credit history, and income. 

Like other personal loans, swimming pool loans are installment loans with fixed monthly payments and a set payoff date.

Is It Difficult to Qualify for a Pool Loan?

Most lenders require borrowers to have good to excellent credit. However, there are some lenders, such as Upgrade, that lend to borrowers with fair or poor credit. And some lenders allow you to apply with a co-signer to get a better rate.

What Types of Loans Can Be Used to Get a Pool?

When it comes to financing a new pool, there are four main types of loans: 

• Home equity loan: A home equity loan, also known as a second mortgage, allows you to borrow against the equity you’ve built in your home. The loan amount is based on the difference between your home’s current value and what you owe on your existing mortgage.
• HELOC: Like home equity loans, HELOCs enable you to tap into your home’s equity to finance your swimming pool installation. But rather than getting your money in a lump sum, HELOCs are a revolving line of credit, so you can use the line of credit again and again during the draw period.
• Cash-out refinance: With a cash-out refinance loan, you replace your existing mortgage with a new one with a larger amount than you owed, getting the difference in a lump sum.
• Personal loan: Unlike the other three options, personal loans are unsecured, so you don’t have to use any property as collateral. Personal loans tend to have higher interest rates than other types of financing, but you can get the money you need quickly without risking your home. 

How Long Can Pool Loans Last?

Your pool loan’s repayment term is dependent on the type of loan you have but ranges from two to 30 years. 

• Home equity loans: If you take out a home equity loan, you can choose a loan term ranging from five to 30 years, depending on which lender you select.
• HELOCs: With a HELOC, you have a draw period followed by the repayment period. The repayment period can range from 10 to 20 years in length.
• Cash-out refinance: With cash-out refinance, you usually have 15 to 30 years to repay the loan.
• Personal loans: Personal loans tend to have shorter repayment terms since they’re unsecured. Typically, you’ll have two to 12 years to repay your loan.

Are Pools Worth the Cost?

Whether a pool loan is worth the cost is dependent on several factors, including: 

• Amount borrowed: Interest is calculated based on the amount you borrow. If you need to borrow a significant amount of money—and need several years to repay it—you may pay thousands more in interest than you initially borrowed. 
• APR: If you have good to excellent credit, the best pool loan lenders offer fairly low rates. But if your credit is less than perfect, your APR could be in the double-digits, causing you to pay quite a lot in interest charges. 
• Home value: Depending on where you live and your house, adding a pool could increase your home’s value and make it easier to sell. 

A swimming pool is a substantial investment, so carefully consider the pros and cons of adding one to your property and taking out a pool loan before making a decision.

How We Chose the Best Pool Loans

Our team evaluated 38 lenders and collected 1,520 data points before selecting our top choices. We weighed more than 20 criteria and gave a higher weight to those with a more significant impact to potential borrowers. 

The top picks were selected based on factors like membership requirements (weighted 15%), average fixed APR (weighted 15%), and average origination fees (weighted 10%). 

We also took into account the flexibility of repayment terms, helpful features like pre-qualification, and whether a co-signer or joint applications are permitted to ensure borrowers get the best possible experience. For further information about our selection criteria and process, our complete methodology is available.

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