OBTAINING SWIMMING POOL FINANCING

Investing in a new fiberglass pool can mark the beginning of a lifetime of family fun, friendly get-togethers, birthday bashes and barbecues. When considering your dream pool, think about your budget and explore the different avenues you can take to finance your pool purchase. Here is a guide to help you understand and obtain the best swimming pool financing.

1. THINK LONG TERM
When you purchased your home, you likely financed your purchase with a long term mortgage. Your new fiberglass pool can be financed the same way. Most lenders classify a new pool as a permanent improvement to your property that is very likely to increase the property value. In fact, many lenders will “add back” half the cost of your pool project to the appraised value of the home. In most cases, they are willing to finance your pool for up to 15 years. Because you can finance your pool over a longer period than a car, your monthly payments are much, much lower. This means you might be able to get a bigger pool or add more options than you have currently considered.

2. TAX ADVANTAGES
Home improvement loans are secured by your property. In most cases the interest will be tax deductible. Who among us can’t use a few more deductions? It is always best to consult with your accountant or tax advisor if you wish to confirm the deductions.

3. FINDING THE RIGHT LENDER
Many lending sources are available to finance a swimming pool. These lenders are very familiar with pools, work on providing quick approvals and offer programs that work best to fulfill your family’s particular needs. Many of these lenders do not require appraisals. Most of them will determine your property value by the purchase price or by a recent tax assessment. If an appraisal is required, typically the lender will pay for it.

Home improvement loans typically require you to have 10-20% equity in the property. On occasion a down payment from you will off-set any equity shortcomings. This type of lending does not require pre-payment penalties. Some lenders will “add back” up to 50% of the cost of the pool to increase your equity. There are lenders that will provide unsecured loans as well. Of course, without the security of your property, the loan is strictly credit-driven. You must have very good credit and expect to pay a little higher interest rate than on a secured loan. Most unsecured lenders do not charge a pre-payment penalty.

While every pool buyer’s situation is unique, every pool installation is also unique. Some folks want short term loans; others want longer term loans with lower monthly payments. Some pool buyers want to finance only the pool, while others want to also include fencing and landscaping. A good swimming pool contractor should be able to help you find a lender to suit your needs.

20 Responses to “OBTAINING SWIMMING POOL FINANCING”

  1. Theresa Boeling says:

    Do you have a financing program available with 20 year terms?
    If so, can you provide any info on it?

    Thank you!!

    • wayne says:

      We have 10, 15, 20, and now 30 year home improvement loans available on approved credit. We have 7, 10, and 15 year unsecured loan sources.

  2. Robynn Brecht. says:

    Please tell me approx. what my payments will be for a $30K pool on a 15 yr. note.

    Your reputation is sterling and that is the kind of pool man we want to deal with.

  3. Bret Cummings says:

    Please tell us more about the unsecured loans. In particular rates to expect and closing cost if any.

    Our thanks, Bret

    • wayne says:

      Unsecured loans are based primarily on how good your credit is. 700 FICO score is typically the minimum but the better your score, the lower the rate. I have seen rates from 5 1/2% to 14%. Every loan applicant has his/her own particulars or qualification.

  4. Bruce Harris says:

    What % of pool buyers need financing?

  5. Murphy T. says:

    How can I find out if I can qualify for a pool loan?
    Can you tell me?

    • wayne says:

      I cannot be sure but am always happy to discuss parameters and direct you on the right road to approval.

  6. Arrian says:

    We really want a pool badly. Our fear is that we will not be approved since our credit is 678.
    Can you help us?

  7. Reilly says:

    We financed our pool for 15 years and pay only $348. a month. Oh yea, that includes our spa too!!

  8. James Blackburn says:

    Do you have multiple sources for lending?
    Do any of them do lending in Mississippi?
    We truly want a pool and your pools appear to be the best.

    • wayne says:

      We have close to 15 different lenders and many of them do loans in Mississippi. Thanks for complementing our product. We believe they are the best too!

  9. Kenny Boo says:

    We borrowed the money to build our pool. In less than 2 yrs. we paid off the 15 yr. loan. Since there was no pre-payment penalty, we used their money to swim quicker than saving up all the cash and waiting. Main reason is we wanted the kids to grow up with the pool as long as possible.
    We only had to pay a few hundred $$$ in interest. It was dang near like paying cash from the get go.

  10. Sarah V. says:

    You took out a lot of confusion I had on pool financing. We want a pool and live in Edna, TX.
    Any chance of having a rep visit us?
    979-*******. Please call us during the evening. Thank you!

    Sarah V.