Swimming Pool Financing As Part Of A Construction Loan
If your new swimming pool is part of a new home build, you might be able to integrate a pool loan with your construction loan.
This depends on your mortgage lender and its available options. If possible, this loan structure can save you time and money compared to two separate loans.
Furthermore, mortgage interest rates tend to be less than home improvement financingso this option would likely be cheaper in the long run. If you decide to refinance your mortgage in the future to take advantage of lower rates, the pool loan would be streamlined in already.
This method also saves money along the way with costs outside of the loan and interest, including appraisals, surveying, etc. that are associated with application fees.
Plus, this type of loan can have added tax benefits. In most cases, you do not have to itemize the pool financing with new construction, unlike with a home improvement loan. The interest for the new construction mortgage is also tax-deductible.
In terms of length, mortgages also provide a longer amortization term. Whereas typical home improvement loans tend to last 7-15 years, mortgages can be 15-30 years in length.
Is A Pool A Bad Investment
Resale Value A pool can increase not only your social worth but also the value of your home. However, the increase is probably not as much as you think. According to HouseLogic, theres no real guarantee that youll make your money back. In fact, adding a swimming pool may only increase your homes value by 7%.
Is It Worth Owning A Pool
A pool is a great addition to any home but makes more sense if you live in a warmer climate and a posh neighborhood. The average cost of installing a pool is about $28,000, while maintenance can run as high as $4,000. Having a pool will only boost the value of your home by a maximum of 7% in certain circumstances.
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How We Chose The Best Pool Loans
We chose the top pool loan lenders after reviewing 15 different financing companies. We evaluated each lender on its available loan amounts, interest rates, repayment terms, funding speed, and credit requirements. To be included, companies had to allow customers to borrow at least $35,000the average cost to install an in-ground swimming pool. Companies with lower loan limits were eliminated from the list.
How Much Does A New Pool Cost
Putting in a swimming pool can be very expensive. Factors such as the type of pool, location, size, and custom features fluctuate the price of a pool. The investment can be justified by the fun times and increased home value a pool can provide. Lets take a look at different types of swimming pools and their average cost.
- Vinyl pools: $20,000s $60,000s
- Concrete pools: $30,000s $60,000s
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Can I Get A Pool Loan With Bad Credit
If you have bad credit you may qualify for a personal loan that can be used for pool financing. However, you may have trouble borrowing enough for an inground pool. Applying for loan amounts more favorable for above ground pools may increase your chance of approval. If you have bad credit you should do your research before applying for a loan. One of the worst things you can do is apply with multiple lenders as an act of desperation to get approved. Acorn Finance allows you to submit one application that does not affect your credit. After the application is submitted you can receive multiple personalized loan offers from lenders. Acorn Finance works with lenders that can assist all credit types.
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Do You Care About Good Quality
Whats most important to you about the pool installer? Is it their ability to produce a turnkey project? Is it their ability to produce and provide the lowest cost bid? Is it workmanship and craftsmanship thats most important to you? Understand that the lowest price estimate you received is probably not going to be the highest quality pool.
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Swimming Pool Financing In The Katy Tx Area
If youre west of Houston and looking for a new swimming pool, look no further.
There are countless options for customizing your new pooland customizing the financing along with it.
Contact Sahara Construction & Custom Pools today for a free consultation! Ask them about their financing options, including what lenders they trust and how long you can finance a pool.
Is Financing A Pool Right For Me
If you don’t want to pay cash for your pool, financing with a personal loan may be a good idea, but only if you can easily afford the monthly payments, even if you lose your job, get sick, or face another emergency.
Remember, a pool isn’t a necessity or an investment, and borrowing for luxury items often isn’t the best idea, since you’re paying interest for something you don’t really need. Many people borrow for things they want, from swimming pools to vacations, but make sure you think through the tradeoffs and the opportunity cost of securing loan funding before you proceed.
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How To Finance A Pool With In
In-house funding is essentially the same thing as an unsecured loan, except it is channeled through the pool company. At Olympus Pools, we offer hassle-free pool financing to help you design and build the pool of your dreams. Contact us to see if you qualify and begin your backyard transformation today.
How Much Does Financing A Swimming Pool Cost
Unfortunately, financing a pool isnt always easy or cheap and there may be a ton of different costs to consider before you begin the process. For instance, the type of pool you want can cause the price to vary greatly:
Inground Pools
To finance an inground pool made of concrete, granite or fibreglass, youll probably pay at least $15,000 $45,000 in construction, plus $1,500 $5,000 for it to be coated with vinyl. Inground pools also require a lot of maintenance.
Semi-Inground Pools
These pools are usually cheaper than fully inground pools . However, they can require more maintenance than other kinds of pools, particularly when made of wood.
Natural Pools
If you prefer a pool with no chlorine or other harmful chemicals, a natural pool will cost about $100 $150 per square foot . While maintenance can be cheap, youre essentially building a pond, so you may have to swim with and upkeep various plant life.
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How Much Does It Cost To Open Or Close A Pool
The average costs to open a pool is around $400, and for pool closing expect to spend $300. These services include taking the cover off, cleaning the water of any debris, checking for leaks, and getting the chemicals to the right balance. At the end of the season, they can also take the water level down, drain pumps and the filter system, and place the cover to protect the pool for the winter.
Best Financing Options For Swimming Pools
I always think a home equity line is your best option, said Behr, The lowest interest rate tends to be with a collateralized loan, Behr said to be wary of pool companies offering your attractive interest rates for personal unsecured loans. Its going to look attractive because theyre trying to sell you the pool, and they want to remove any barriers that you might have as a homeowner.
Its also wise to try and reduce your debt prior to taking out a large loan. In addition to the mortgage, do you have student loans, car loans, things like that, where maybe you need to prioritize other debt before you take on a new loan for the pool, explained Behr. Although there are several financing options available for swimming pools, the cost of getting your dream private pool shouldnt jeopardize your credit score and income.
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How To Finance A Pool With A Swimming Pool Loan
There is a myriad of unsecured loans available for homeowners who have not yet established enough equity in their home. These loans are often called swimming pool loans since so many people use them to finance inground pools. Pool loans are only offered to homeowners with excellent credit who are willing to pay higher loan rates than a second mortgage might offer.
What credit score do you need to finance a pool with an unsecured loan? The lender is assuming the risk the opposite of a home equity loan, in which the homeowner assumes the risk. Due to the risk that the financial institution incurs, a higher credit score is needed. Typically the minimum is set between 640 and 750.
Unsecured loans also carry higher interest. Rates vary but are usually around 14 to 18 percent. Additionally, unsecured loans have caps, and most lenders will not loan more than $30,000, which means that homeowners may need to come up with additional funds.
Pros of a swimming pool loan
- Unlike the other options, there is no threat of foreclosure because there is no collateral.
- Funds are released very quickly, often within a week.
Cons of a swimming pool loan
- Interest rates can get high.
- The amount of money you borrow may not cover the entire cost.
Personal Line Of Credit
A personal line of credit is a little like a tab at a restaurant. You can keep adding to it, up to a pre-established maximum.
Loan type:Unsecured
Advantages: You can continue to reuse your line of credit after youve paid off your pool project. You only pay interest on the amount you use and the only payment youre required to make every month is the minimum payment established by the lender, which may be interest only.
Disadvantages: As an unsecured loan, youll pay higher interest rates than a secured loan or line of credit. Youll be subject to a variable interest rate, which isnt ideal if interest rates are on the rise. It can be tempting to keep spending on your line of credit, especially since banks and credit unions make them so easy to use.
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What Do Pool Loan Lending Agencies Consider Good Credit
Basically, they want to see five or more years of credit history with a variety of account types such as major credit cards, vehicle loans, and a mortgage.
They also want to see a positive payment history with little or no late payments as well as evidence of the ability to save as demonstrated by large down payments and the accrual of liquid assets.
Finally, they want to see stable and sufficient income to insure the loan can be repaid.
How To Apply For Swimming Pool Financing
Remember, applying and qualifying for swimming pool financing isnt always easy. There could be many requirements, so make sure to follow these steps:
Step #1 Know Your Finances And Credit Limitations
A pool is a serious investment, so organizing your finances is the first thing you should do before you apply for financing. Form an estimate of your projected pool costs to confirm whether your income and savings would suffice. Think about what could happen if you suddenly lost your job or took on too much other debt.
At the same time, its a smart idea to check your credit report and credit score through both of Canadas credit bureaus . Typically, a credit score of 650 900 is considered good and, when coupled with a responsible payment history, can help you get approved for more appealing financing amounts, rates, and terms.
Step #2 Research Pools And Their Costs
The only way to get an accurate estimate of your pools potential costs is to do research and get quotes from retailers/dealers in your area. Look at all the models that might work for you and dont forget to consider any additional factors, such as:
- Installation, maintenance, and utility costs
- Special features
- Size, water type, and construction materials
- Permits required
- How much professional help youll need to build and maintain the pool
Step #2 Compare Financing Sources And Loan Offers
Step #3 Apply
A co-signer or guarantor
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When Do You Want To Pay Off Your Loan
If youre looking for just a little bit of assistance for under two years, Affirm is a great option! They allow for loans terms for 3, 6, 12, 18 or 24 months starting at 10% APR. An example of you monthly payments could be along the lines of $43.96/mo. based on a purchase price of $500.00 at 10% APR for 12 months.
Fine Print: Subject to credit check and approval. Down payment may be required. For purchases under $250, limited payment options are available. Estimated payment amount excludes taxes and shipping fees. Affirm loans are made by Cross River Bank, a New Jersey State Chartered Commercial Bank
If youre looking to pay your loan off within the first 6 months, PayPal Credit may be the right option for you! On top of not requiring a down payment, they offer 0% APR, no interest for the first 6 months. You can choose if you want to make payments or just pay off your full loan amount by the 6 month mark!
Fine Print: If you do go over the 6 months time frame for paying back your loan, PayPal Credit has a 19.99% APR that dates back to your original purchase date. No interest rate is an ideal option with PayPal Credit, but only if you are planning on paying off your loan amount quickly.
For those looking to make payments over the span of a couple years, LightStream offers lower interest rates starting from the time of purchase. The lower interest rates for extended time period offered by LightStream is a wise choice!
You can compare the main features of each lender below!
A Pool Is Expensive To Maintain
When youre figuring out the financing of your pool, dont forget that costs dont end once the pool builders leave your home.
Swimming pools require ongoing maintenance. That can mean big bills will keep coming for as long as youre enjoying your backyard haven. Some of the expenses pool owners have to bear include
- Pool-cleaning equipment or a cleaning service
- Water and water treatments
- A pool cover
- Heating the pool
All these expenses can add up. In fact, HomeAdvisor indicates that basic upkeep for a pool runs around $1,200 to $1,800 annually, depending on location. And after factoring in potential repairs as well as higher utility costs, keeping your pool in ideal condition could run as much as $5,000 per year.
Depending on where you live, local code may also require the installation of a secure fence around your pool. This could add thousands of dollars to your initial installation costs.
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What To Consider When Comparing Pool Loans
The loan APR includes the interest rate plus any fees the lender charges. Its a more comprehensive measure of the cost of the loan than just the interest rate alone, so be sure you compare the APRs when shopping for loans.
Youll have a certain number of years or months to pay off your loan. This is known as the repayment term. Also consider the loan amount if you borrow too much money, you may be stuck paying interest on money you didnt need.
Many lenders charge an origination fee that can equal 1% to 8% of the loan amount or higher, and it may be subtracted from the funds you receive or added on top of your balance. Some lenders charge a prepayment penalty for paying off your loan early. And if you fall behind on payments, you may have to pay a late fee. You could consider no-fee lenders, but remember to compare APRs to determine whether or not they are a worthwhile option.
To reduce their risk, lenders want to be sure you can repay the loan. Theyll usually check your credit score, income and other debt payment obligations, plus consider the loan amount. You can always ask the lender about the credit score needed to finance a pool and whether they offer pool loans for bad credit.
Some lenders let you prequalify for a personal loan to check your eligibility and estimated APR without affecting your credit score. This allows you to shop around for a pool loan with multiple lenders without any negative marks on your credit.
Is A Pool Expensive To Maintain
There are monthly expenses that come along with maintaining a pool properly. Making the investment for proper upkeep can help you avoid expense repairs in the long run. Some homeowners prefer to maintain their own pool which can be cost effective. However, its usually best to hire a professional. You can expect to spend about $80 to $150 per month on pool maintenance. In addition, you may see a spike in your electricity bill. Pools cost an average of about $800 to $1,200 to run annually. You may be spending money each month for a club membership to have access to a pool and other activities. Building your own pool may eliminate these types of expenses and allow you to spend extra money toward something you own.
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Can You Finance An Above
Not all properties can accommodate the installation of an in-ground pool, leaving some owners to explore options for an above-ground swimming spot. These pools are typically far more affordable than in-ground pools, but theyre not necessarily cheap. Thats why many individuals choose to apply for above-ground pool financing.
What Our Customers Are Saying
Very pleased with the quality of the pool designed and build by Sahara. We started this process in the middle of the covid shut down but Chris still came out to meet us in person and responded quickly. We have a small yard and they were able to design something thats perfect for us. We are very happy with all the features and we are glad we went with the automated feature upgrades. It really takes the guess work out of pool ownership. We only regret waiting this long to get a pool!
Pool Customer,Google Review
Sahara Construction Pools team did an outstanding job on my pool and outdoor kitchen that I couldnt be more happy with. I loved the amazing results! From design to construction everything was a smooth process. The Sahara team was very friendly and professional to work with. Chris did a fabulous job managing the project. I highly recommend Sahara Construction Pools for any pool projects.
Pool & Outdoor Kitchen Customer,Google Review
Sahara completed construction of our pool recently and we are very pleased. The pool turned out beautiful! The builders were very professional, experienced, and easy to communicate with. Even with additions to original plans, they still came in under budget. Many things could have gone horribly wrong as they dug it prior to the two hurricanes we had this summer but they seemed to have a plan for each possible pit falls. Very impressed.
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