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Can You Get a Home Improvement Loan for a Pool?

can you get home improvement loan for pool

As a homeowner, you might be considering whether you should install a pool for your house.

The pool might be what your family needs for relaxation and entertainment.

It should be known that such a project requires a substantial amount of capital to cover costs like landscaping, permits, pool installation, pool equipment, and some other minor expenses.

If you don’t have enough disposable income to implement the entire process once, you can always refer to other means of securing revenue.

Pool construction isn’t exactly a viable model for resale investment; this means you might not realize as much as you spent on the pool when reselling your house.

However, if you want the pool as a medium of complementing your lifestyle and the view of your backyard, then you can consider getting a home improvement loan.

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What Is a Home Improvement Loan?

This loan is approved by a financial institution and issued to individuals for remodeling and upgrading parts of their house.

These loans can be secured, or unsecured, secured loans require the borrowers to have collateral while unsecured loans, the popular type, aren’t protected by insurance.

The only difference is that you can access higher borrowing amounts with secured loans.

The loan is to be paid back in full, along with a fixed interest rate, over multiple installments within a stipulated period.

Can You Get a Home Improvement Loan for Pool?

can you get home improvement loan for pool mortgage finance cost

Anyone is eligible to undertake this loan. However, this will be evaluated based on your financial situation.

The loan amounts you can access along with interest rates and additional terms will be provided to you.

You can always inquire about loans from multiple financial institutions. You can then choose between the offerings to select the best one for you.

As mentioned earlier, anyone is eligible, but the best loans usually come with low-interest rates and are more accessible to individuals with higher incomes.

Some other things can help with the interest rates on your loans; providing detailed information about your income can set the criteria for eligible loans.

This can help the lender determine whether you will be able to pay your monthly installments without any delay.

You should also divulge information about your employment status, your credit history and score will also be analyzed to know if you are disciplined with your credit repayment.

Things You Need to Know Before Getting a Home Improvement Loan

Analyze the Entire Project

Firstly, you need to evaluate the parameters for getting a swimming pool properly; you need to factor in the location, size, depth, shape, and other features you might want.

You need to decide on every part and outline them out on paper to ensure you don’t overlook anything.

Contact a Certified Contractor

It’s natural if you don’t know any of the expenses you will incur for the project, you can always employ a professional contractor to have a complete overview of every cost that comes with building a pool.

Based on the individual’s experience and requirements, you will be provided with a full list of everything you will be paying for.

You could reach out to your friends or anyone you know who made renovations to their home recently.

Either that or you can refer to a membership list of accredited associations; this way, you are sure to find an excellent contractor you can work with.

Check any Existing Laws or Regulations

There are different laws regarding the construction of swimming pools; they differ based on the state in which you live.

I recommend checking the U.S. Consumer Product Safety Commission for information on safety requirements and measures you can abide by.

Some of the manual standards for pool installation have been integrated into the building codes of several states.

Your contractor will be able to help you with this and getting the right permits for your construction.

Construction Period

Installing an in-ground swimming pool involves several extensive processes.

The total period an installation takes depends on the kind of swimming pool you intend to have.

You can have your pool ready within 2 to 12 weeks based on your preferences and other factors.

Weather conditions, site preparation, and the size of your workforce heavily weigh in on how long a new swimming pool will take to install.

It would be best if you ask your contractor about the exact time frame for the project, so you can know what to expect.

Safety Measures

The safety of your family should be your main priority through the installation; any potential risk or harm can be averted by taking precautionary measures.

Always ensure your contractor informs the workers daily about storing any dangerous objects at a safe distance from the main building.

You should also instruct any children in the house to maintain their distance from the construction site. You could even build a temporary fence to shield them away from ever reaching the pool area whenever you aren’t around.

Ways to Get Financial Support for Your Pool Installation

If you can’t think of a way to pay for your pool, you don’t need to fret; there are several other means you can use to get funds for the project. This includes:

In-House Refinancing

can i get home improvement loans for pool cost size options

Some construction companies hold partnerships with financial institutions to offer home-owners loans that can be used for home renovation or improvement.

This is an ideal option because the construction companies tend to associate with a network of lenders, lenders that can offer loans worth the exact amount you need for your pool.

Again, you should evaluate loan offers from multiple pool companies to select the right fit.

Home Equity Loan

This loan option is only accessible for individuals with an excellent first mortgage.

The equity of your house is used as a base value to determine your credit limit.

In simple terms, you are borrowing based on the appraised value of your home against any outstanding mortgage debts.

Other factors, such as your debt, income, and credit history, also influence your credit limit.

You get paid a lump sum up to 80% to 90% of your equity loan; the capital being offered might not be enough to cover the pool installation.

The interest rates of a HEL is much better than any of the financial loans you will find, the interest that comes with this loan is also tax-deductible.

There are some disadvantages to the HEL; you could be putting your house at risk by putting it down as collateral.

Your house can get foreclosed if you don’t pay back as you should, any wrong move could damage your credit.

Mortgage Refinancing

You can use a new loan to settle an existing loan.

It’s recommended that you pick a loan that offers more suitable payment options, like better rates or loan terms.

This loan is best for individuals who want to make a large purchase but have limited cash.

The amount left after paying off the old loan with the new one is provided to you in cash.

However, you will be required to pay for refinancing costs when you need a new mortgage loan.

Any interests paid for refinancing can be tagged as tax-deductible for any home improvement, which includes a pool installation.

Loaning From Your 401(k)

You can take a loan against a 401(k) retirement fund, if you have one, and use it to install your swimming pool. You won’t require a credit check with this kind of loan, and the interest rates are better than that of most credit card companies.

This type of loan is available only if the company that gave you the 401(k) account accepts such terms.

You can ascertain this information by checking the document you were given when you received the retirement fund.

It should be noted that your retirement fund might take some years of payment to return to its initial growth rate.

It’s also stipulated that you would have to pay back the full amount within 60 days if you lose the job that grants you the retirement fund. Another thing about this option is that you will be required to pay tax on it twice.

Home Equity Line Of Credit (HELOC)

This loan is almost identical to a Home Equity loan, but rather than being paid a lump sum once, you are given access to a certain amount of money you can borrow from in little amounts.

As soon as you are approved, you are given a credit card or checkbook you can use to withdraw the money when you want.

The interest is tax-deductible, and you get to take as much time as you want to pay the loan. The only requirement is that you don’t miss your minimum monthly payments.


Installing your pool might take some time and resources, but if you think it’s what best for your family, then you can use any of the loan options above to get your project funded.

As long as you have a solid repayment plan for your loan, you should be able to pay everything back quickly.

Again, carefully evaluate multiple loan options before settling on anyone.

Assess your income and weigh with your options to get the ideal package for you.