How to Finance a Swimming Pool: Find the Best Options for You

A pool loan is financing used to pay for a swimming pool project. The term often refers to an unsecured personal loan, but it can also describe other financing methods, including home-equity-backed options.

The key distinction is whether the loan is secured or unsecured:

• Unsecured (most personal loans): No lien is placed on your home. Approval is usually based on factors such as credit score, income, and overall financial profile. These loans typically fund faster.
• Secured (home equity loan, HELOC, or cash-out refinance): Your home serves as collateral. Secured options may offer lower rates, but they also carry foreclosure risk if you miss payments.

One of the most popular pool financing options is an unsecured personal loan. You receive a lump sum upfront and repay it through fixed monthly payments over a set term, making it easier to budget for your project from day one.

Depending on your project and loan amount, a pool loan can cover everything from a new in-ground installation to resurfacing, equipment upgrades, safety fencing, or the surrounding decking and landscaping.

Whether you’re renovating an existing pool or turning your backyard into a tropical oasis, you’ve got multiple financing options.

Here's how the five main financing paths compare and when each may be the right fit.

Unsecured personal loans

A personal loan delivers a lump sum at a fixed rate over a fixed repayment term, with no home equity or appraisal required.

Personal loans broadly range from 7% to 36% APR depending on your credit profile, loan amount, and repayment term. Term lengths typically span two to 10 years.

Personal loans are a popular choice for pool projects because funding can be faster than home-equity-based financing, usually within a few days. This is beneficial, as contractors often want a deposit within days of signing.

Pros:

• Loan not tied to your home
• Fast funding compared with many secured options
• Predictable fixed monthly payment
• No appraisal requirement

Cons:

• Potentially higher APR than secured options, especially for borrowers with fair credit
• Loan limits vary based on credit profile and lender guidelines. However, loans through BHG Financial go up to $250,000.¹

Best for:

• Applicants with strong credit
• Homeowners with little or no available equity
• Projects that need fast funding
• Borrowers who do not want to use their home as collateral

Home equity loan

A home equity loan lets you borrow a lump sum against your home's value at a fixed interest rate. Because your home serves as collateral, rates are often lower than unsecured options.

Qualifying typically requires 15% to 20% or more equity, and closing costs run 2% to 5% of the loan amount.

Home equity loans are a common route for pool projects that add to property value, though the tradeoff is risk. If you stop repaying the loan, the lender may be able to take possession of your home.

Home equity financing also tends to move more slowly than a personal loan because lenders may require an appraisal, title review, and closing process. Funding can take several weeks rather than a few days.

Pros:

• Lower fixed rates than many unsecured options
• Predictable monthly payments
• Interest may be deductible if the loan is used to substantially improve your home (per IRS Publication 936; consult a tax professional for rules on deductibility)

Cons:

• Foreclosure risk if you miss payments
• Borrowing amount restricted to available home equity
• Closing costs add to total cost
• Funding may take several weeks

Best for:

• Homeowners with substantial equity
• Borrowers with a stable project budget
• People who plan to stay in the home long term
• Those comfortable using their home as collateral

HELOC

A home equity loan lets you borrow a lump sum against your home's value at a fixed interest rate. Because your home serves as collateral, rates are often lower than unsecured options.

Qualifying typically requires 15% to 20% or more equity, and closing costs run 2% to 5% of the loan amount.

Home equity loans are a common route for pool projects that add to property value, though the tradeoff is risk. If you stop repaying the loan, the lender may be able to take possession of your home.

Home equity financing also tends to move more slowly than a personal loan because lenders may require an appraisal, title review, and closing process. Funding can take several weeks rather than a few days.

Pros:

• Draw only what you need
• Pay interest only on what you use
• Flexible for phased construction

Cons:

• Variable rate risk
• Backed by your home
• Appraisal and title work required
• Payment changes may make budgeting harder

Best for:

• Phased projects with uncertain final costs
• Borrowers comfortable with rate variability
• Homeowners with enough equity to support the line of credit

Cash-out refinance

A cash-out refinance replaces your existing mortgage with a larger one and gives the difference in cash at mortgage-grade rates. In general, refinancing only makes sense if you are able to replace your existing mortgage rate with a lower one.

Because it's based on your home's total value, it can unlock more funds than a home equity loan—enough to cover a pool alongside other major renovations you're planning at the same time.

Closing costs typically run 2% to 5% of the loan amount, and refinancing resets your mortgage term.

Pros:

• Single monthly mortgage payment
• May offer a lower rate than some unsecured options

Cons:

• Closing costs
• Restarts your mortgage clock
• Ties the pool project to your mortgage debt

Best for:

• Homeowners whose current mortgage rate is higher than today's market rate
• Borrowers with enough equity to support a refinance

Contractor or dealer financing

Many pool builders partner with lenders to offer financing directly through their sales process. This financing option can be convenient since paperwork is minimal and the contractor and lender coordinate funding.

The tradeoff is that these arrangements often carry higher interest rates than independent alternatives, because the referral cost gets built into the pricing.

Before accepting contractor financing, compare the offer against at least one independent quote. Look at the APR, fees, repayment term, monthly payment, and total repayment cost. If the dealer rate is 2% or more above your best independent offer, the difference in total interest on a $50,000, 10-year loan could add up to thousands of dollars.

Pros:

• Minimal borrower paperwork
• Coordinated funding with the contractor

Cons:

• Often higher APRs
• Terms may be tied to a specific contractor or project

Best for:

• When the rate is competitive with outside quotes (within about 0.5% of your best independent offer)

Most in-ground pool installations run between $44,499 and $87,349, with the average around $65,909, according to Angi's 2026 guide. But that range can shift significantly based on the material you choose, where you live, and custom features.

Material is the biggest cost driver:

• Vinyl: $40,000–$75,000
• Fiberglass: $55,000–$100,000
• Concrete: $65,000–$120,000
• Gunite: $65,000–$120,000

Location matters too. Installations in higher-cost states like California and New Jersey can push $140,000, while more affordable markets like West Virginia typically max out around $54,000.

Your total project cost may also include:

• Excavation and site preparation: $500–$3,020
• Plumbing: $500–$5,000+
• Decking and patio: $3,000–$12,000
• Fencing and child-safety features: $1,500–$10,000
• Landscaping and hardscaping: $700–$3,300
• Permits and inspections: $450–$1,800

Custom add-ons can push your total cost higher. For example, a waterfall runs $4,000 to $20,000, a slide $1,500 to $20,000, and pool lighting starts around $200 per light.

The right pool loan for you depends on three variables: your credit score, home equity, and risk tolerance. Here's how to match your situation to the right financing path.

You have 20% or more home equity and plan to stay put

If you've built meaningful equity and aren’t planning to move anytime soon, consider a home equity loan. Fixed rates on secured products are typically lower than on unsecured alternatives, and interest may be tax-deductible if the funds are used for home improvements.

This option works best when you have a clear project budget and are comfortable using your home as collateral. If your income changes or the project runs over budget, the lien remains.

Funding for a home equity loan may take weeks. If your contractor needs a deposit quickly, build that timing into your plan.

You have strong credit but little equity, or don’t want to risk your home

An unsecured personal loan keeps your house out of the equation. There is no appraisal, lien, or collateral requirement. For borrowers with strong credit, rates are competitive, and funding can happen within days instead of weeks.

This is a strong fit if you're early in homeownership and haven't built up equity yet, or if you'd simply rather not tie a backyard project to your primary asset. More importantly, the monthly payment is fixed and the term is set, so there are no surprises during repayment.

Your project is phased or the final cost is unclear

When you're not sure what the total bill will look like—maybe you're adding the pool now and a deck later, or your contractor has flagged potential site complications—a HELOC gives you funding flexibility. You can borrow as expenses arise rather than taking one full lump sum upfront.

The catch: HELOCs typically carry variable rates, so your payment can climb as market conditions shift. To stay on budget, set a clear borrowing ceiling before you start and have a plan for what happens if rates rise before you pay it down.

Building a pool is a major investment, but that doesn't mean you have to put your home at risk to pay for it.

For high earners who want a large, unsecured loan with fixed payments and fast, concierge-level service, BHG Financial provides a financing solution that keeps your home equity untouched.

BHG offers unsecured personal loans and home improvement loans up to $250,000¹ with fixed rates and terms up to 10 years^1,2—which are among the largest and longest-term¹ unsecured options for qualifying borrowers.

Because the loans are unsecured, no appraisal, lien, or collateral is required.

Prequalification takes minutes and uses a soft credit pull, so checking your rate won't affect your credit score.³ Approval decisions come in as little as 24 hours⁴, and funds can arrive in as few as five days.⁴

A new pool should bring more enjoyment to your home—not more financial stress. BHG’s concierge lending approach ensures you'll work with a dedicated, U.S.-based loan specialist to tailor financing options to your needs.

Ready to see what’s possible? Prequalify and explore personalized options in seconds.⁴

What is the best loan to get for a pool?

There is no single best loan for a pool, and the right option depends on your credit score, home equity, and timeline. 

That said, borrowers with excellent credit and no home equity generally find unsecured personal loans the most practical choice since there is no appraisal or lien, and funding can happen in days.

How does a swimming pool loan work?

Most pool loans are unsecured personal loans. You apply, receive an approval decision, and, if approved, receive a lump sum deposited into your account within a few business days.

Then, you repay the loan in fixed monthly installments at a fixed interest rate until the balance is paid off.;

How hard is it to qualify for a pool loan?

For an unsecured personal loan, qualification is primarily credit-driven. Lenders look at your FICO score, income, debt-to-income ratio, and employment stability. BHG Financial requires a minimum credit score of 640 for personal loans.

How long do pool loans typically take to pay off?

Repayment terms vary widely by product and lender. Equity-based financing can extend up to 30 years. Personal loans through BHG Financial range from two to 10 years.^1,2