If you’re thinking about investing in a swimming pool to cool off during the summer, raise your property value, or entertain guests, then we have some great news for you. Aside from being a fun way to relax and get exercise, swimming pools may have financial benefits to you as a homeowner.

Benefits of investing in a pool

Adding a pool to your house can:

Increase the property value by 5 to 8 percent
Create more demand for your home vs. other homes nearby if you decide to sell (This is typically a selling point in areas with warmer temperatures or where there is a high demand for pools)
Provide you with more networking opportunities in your community

Now that you know how you may benefit from adding a pool let’s talk about financing it.

Ways to pay for your pool

A swimming pool can cost anywhere from $14,000 to $80,000, on average. The range depends on multiple factors like the size of the pool, if it is above the ground or inground, and potential additions like a waterfall, diving board, or jacuzzi. If you don’t have the full amount available to pay upfront, you can fund your pool by taking a pool loan from a lender.

In many cases, a pool loan is simply a personal loan taken to pay for home improvements¹. At BHG Financial, we provide personal loans from $20,000 to $200,000² to cover your biggest home improvement projects. And with extended repayment terms^2,3, you get monthly payments that are affordable and easy to manage.

The other type of loan you may consider if you have considerable equity in your home is a cash-out refinance. This option gives you the ability to take out cash to improve your home. You can add a pool as well as pay for accessories like a new deck, patio furniture, and more. Just keep in mind, you’ll be restarting your mortgage and owe more overall.

Tax deductions for home improvements

One thing to note about home improvement loans is that the interest paid may be tax-deductible if the loan is secured by your home and is being used for substantial repairs.

A tax deduction may also be possible if you install a pool for medical purposes and meet certain requirements, though these are unique circumstances. For example, in August of 1983, Herbert Cherry went to court and was able to write off pool expenses for a tax deduction because of his health situation, the inability to find a nearby pool at a time that worked for him, and because his pool was used for medical purposes.

Regarding any possible tax deductions, talk to your accountant for more information.

You can also review helpful resources like this page on the IRS website, which provides tax information for homeowners.

Personal loans are a great way to finance your backyard paradise. And, as illustrated above, they could result in various advantages. If you’re looking at your options, contact our team today or use our Payment Estimator to see how affordable your outdoor oasis could be.

Personal loans not currently available in Illinois or Maryland.

¹ Consumer loans funded by one or more participating lenders. Equal Housing Lenders.

² Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile. Finance amount may vary depending on the applicant's state of residence.

³ Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,229.

For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.