Overview

When handled properly, the building and financing of your swimming pool becomes an important part of your overall financial picture. For most people, their home is their single biggest investment. Adding a pool is likely to increase the value of that investment, and the proper financing can provide you with tax benefits as well.

How Pools Are Financed

When you bought your home, you probably financed that purchase with a long-term mortgage. Your new pool can be financed the same way. Because lenders understand that a pool is a home improvement that is likely to increase the value of your property, they are also willing to finance pool construction with a long-term mortgage.
 
Because you can finance your pool over a longer period of time than, say, a car, your monthly payments are lower, which means you can afford a bigger pool, or more options.
 

Tax Advantages

Because the pool loan is secured by your property, the interest on the loan will most likely be tax-deductible. You should consult your tax advisor.

What to Look for in a Pool Lender

It’s very important to find a lender who is familiar with swimming pools. Financing a swimming pool requires some specialized knowledge of the pool-building process. You should look for a lender that:

: : Is ready to move quickly. When you want to start your pool project, you don’t want to wait two or three weeks for your financing. Find a lender that can get you a quick approval, and who knows how to expedite that paperwork.

: : Doesn’t require an appraisal. A full property appraisal can take time, and can add hundreds of dollars in costs to your loan. Find a lender that will determine your home’s value by its purchase price, or from a recent tax assessment.

: : Doesn’t require equity or a down payment. Some lenders want you to have built up the equity in your home, or to put down a substantial down payment. Lenders who specialize in financing swimming pools, however, understand that the pool increases the value of your home, and therefore will not require equity or a down payment.

: : Offers flexibility. Each pool project is unique, and every homeowner’s situation is unique. Some people want a short loan term, others need a longer term with lower payments. Some people just want to pay for the pool,  others may want to use the loan to pay off some other bills as well and increase their cash flow. Make certain your lender can tailor your loan to fit YOUR particular needs.