Swimming Pool Loans: Financing Your Pool With a Personal Loan

Where to get a swimming pool loan

Loan rates, terms and features vary by lender, so it’s best to compare multiple options. Online lenders allow you to pre-qualify to see rates and terms with no impact to your credit score, and funding can be faster. But you may get a lower rate from your bank.

Use the annual percentage rate, which includes the interest rate plus fees, to compare costs between loans.

Online lenders

LightStream provides loans for outdoor home improvement projects up to $100,000, including swimming pools. Its APRs start around 5% for well-qualified borrowers on loans between $10,000 to $24,999.

SoFi offers home improvement loans up to $100,000, repaid over two to seven years. The lender charges no fees and is an option for borrowers with good to excellent credit (690 or higher).

LendingClub has loan amounts up to $40,000 and shorter repayment terms than LightStream and SoFi. This lender is a good option for those with good and fair credit. LendingClub deducts an origination fee from your loan amount.

» MORE: Best personal loans for home improvement

Banks

Wells Fargo offers personal loans for home improvements up to $100,000. Existing customers may qualify for a small rate discount. New customers must visit a Wells Fargo branch to apply.

USAA is a financial services company offering members of military families personal loans up to $50,000 for nearly any purpose, including swimming pools. Borrowers must have excellent credit (above 719) to qualify for its lowest rates and repayment terms of more than five years.

Credit unions

Credit unions are nonprofit lenders that may provide low rates and flexible loan terms, especially for borrowers with bad or fair credit. Membership requirements typically involve living in a certain region, having family working in a certain industry or contributing to a particular cause.

Navy Federal Credit Union offers personal loans up to $50,000 that can be used to finance home improvements, including swimming pools, with repayment terms over 60 months.

Financing your pool: Personal loan vs. home equity loan

Home equity loans and unsecured personal loans are two common ways to finance a new swimming pool. Personal loans are an option if you lack home equity or if you don’t want to risk your home.

Pros of personal loans

• Fewer upfront fees: One fee that some lenders charge is an origination fee for processing the loan.

• Faster time to funding: There’s less paperwork and no appraisal requirements, and you may get your money the same day if you’re quick to provide the required documents

• Less risk: You won’t lose your home if you don’t repay a personal loan. (Though there are consequences if you default.)

» MORE: Compare unsecured loans

Pros of home equity loans

• Lower rates: Rates are generally lower than personal loans.

• Tax benefits: Interest on home equity loans may be tax deductible if the money is used to "buy, build or substantially improve the taxpayer's home," according to the IRS. Consult with a tax professional about whether your pool qualifies.

» MORE: Compare home improvement financing options

Swimming pool loans: Things to consider

Approval based on credit: Build your credit score before applying for a loan. You’ll need good to excellent credit to qualify for low rates and favorable loan terms.

Additional costs: Homeowners spend an average of $750 per month to maintain a pool during the summertime, according to Fixr. Other potential swimming pool costs include higher homeowners insurance and safety accessories, like a fence to protect children.