7 Best Ways to Finance a Pool

Table of Contents

The 7 Best Ways to Finance a Pool and How It Can Be Done

Adding a swimming pool to your property is an excellent way to enhance your backyard experience and increase your home value. Much like anything else, however, a swimming pool is a financial investment greater than other smaller backyard projects.

Not everyone can afford the cost, as a new inground swimming pool is an excellent and considerable financial investment.

For this reason, plenty of options are available for financing a swimming pool, but which one is right for you?

We’ll discuss the various pool financing options to help you decide how to pay for your new luxury.

Here are some tips and the best ways to finance a pool.

Home Equity Loan or Line of Credit 

Home equity loans and lines of credit are popular options for financing significant home improvements. These allow homeowners to leverage the equity they’ve built in their homes. The amount borrowed can be withdrawn all at once or accessed as needed through a revolving credit line.

Home equity financing typically offers lower interest rates compared to other alternatives. Using your home as collateral, you can withdraw funds for the pool project and make monthly repayments over an extended repayment term. Tapping home equity is often one of the most affordable ways for homeowners to fund significant expenses like a backyard pool.

Cash-Out Refinance

If you’ve built up significant home equity, a cash-out refinance is one way to tap into it to finance your pool. With this option, you would refinance your existing mortgage for a higher loan amount than you currently owe. The funds received from the new mortgage above your previous loan balance can then be taken as cash.

This cash-out amount generated by refinancing with a higher principal could provide money to install your new swimming pool. It allows you to leverage your home equity without taking on a separate loan. Just keep in mind closing costs and higher monthly mortgage payments associated with a cash-out refi.

Credit Cards 

Putting swimming pool installation on a credit card can allow you to earn rewards or take advantage of short-term 0% financing. You could charge part or all of the pool costs to either a general rewards card or one with a 0% introductory APR promotion. Just pay off the entire balance before the 0% intro period ends. Otherwise, you’ll incur costly interest with most cards today, typically over 20% monthly.

While this route lets you earn points or cash back on such a large purchase, you must diligently pay the balance off quickly to finance a pool. Strategically utilizing a credit card could open up reward opportunities, but it also carries high-interest risks if you cannot pay off the balance within the intro timeframe.

Pool Loan

Some lenders offer loans explicitly designed for financing swimming pool construction and installation. These pool loans typically have repayment terms longer than a traditional personal loan, usually 10-15 years. The benefit of the longer term is that it lowers the monthly payment amount, making pool financing more affordable. 

However, borrowing over an extended period means you’ll pay more total interest charges over the loan’s lifetime. It’s a trade-off between lower monthly payments and more interest paid in the long run.

Personal Loan

Personal loans allow you to finance a pool without putting up your home as collateral like you would with a home equity loan. Banks and online lending companies offer these unsecured personal loans that can be used for any purpose, pool installation included. Because your home is not at risk, interest rates are typically higher than a home equity loan.

However, personal loans provide an accessible way to spread out pool costs over time through fixed monthly repayment schedules. And you won’t need home equity or stellar credit to qualify. For homeowners who don’t want to tap their home equity or don’t have enough, a personal loan can provide an alternative route for financing a pool project.

401(k) or IRA Loans

Taking out a loan from your retirement account, like a 401(k) or IRA, to finance a swimming pool lets you tap into those funds without paying early withdrawal penalties. However, although you avoid the penalties, this route still has downsides.

By borrowing from retirement savings, you lose out on potential investment growth while that money is gone from your account. You also have to repay the loan with interest over time, reducing the amount you saved for retirement. While it makes the pool money accessible penalty-free, it can diminish the growth of your long-term nest egg.


The most cost-effective financing method is paying with cash since it avoids finance charges and interest costs altogether. Saving to pay the total amount in money eliminates loans and credit costs. However, funding a pool purchase entirely through savings means you’ll likely need to spend time setting aside money until it reaches the total cost.

Choosing to save and pay cash requires discipline, patience, and delaying the project until the total saved amount is available. While avoiding finance charges has financial benefits, it also means putting off the enjoyment of having the pool until the savings goal is met.

Finance a Pool: Finding the Right Pool Financing For Your Needs

When financing a new swimming pool, there is no one-size-fits-all approach. The best financing option depends on your financial situation, credit history, and desired project timeline.

While paying cash upfront is often the cheapest overall, alternatives like home equity loans, personal loans and others may be better suited for many. 

Ultimately, the best option depends on your financial situation, credit profile, and how quickly you want to build the pool. It would be best if you spoke with your pool builder as they can lead you in the best direction regarding the various financing methods to find the right fit.

Ready To Start Your Pool Project? Contact Venture Pool Company Today!

If you’re a Houston and the surrounding areas homeowner ready to construct a new pool or renovate an existing one, contact the Venture Pool Company.

At Venture Pool Company, we bring the highest quality, artistry and craftsmanship to all our new pool construction, pool renovations and other pool services, from customized pool cleaning and maintenance to pool equipment repairs and upgrades. In addition, if you need to finance a pool, we are here to guide you in the best way.