How to Finance a Pool: Loan Options and Monthly Costs

Can you finance a pool?

Yes. There are five common ways to finance a pool: a home equity loan, a home equity line of credit (HELOC), a cash-out refinance, an unsecured personal loan, or financing arranged by the pool company. The first three use your home as collateral, so the house is at risk if you can’t pay. Unsecured loans leave your home out of it, although they often cost more. The CFPB’s HELOC booklet says an unsecured personal line of credit carries a higher interest rate than a loan that uses your home as collateral.

The right choice comes down to the monthly payment you can carry, the rate and fees you’re offered, and how much equity you have. Equity is your home’s value minus what you owe on it. If you have plenty, a secured loan often costs less. If you have little, an unsecured loan or a smaller project may fit better.

What a pool costs and what your payment buys

HomeAdvisor, a home-services publisher, puts in-ground pools at $44,300 to $86,500 and above-ground pools at $1,000 to $6,000 in its pool cost guide, updated June 19, 2026. Those are ranges, and HomeAdvisor says costs vary by location, climate, labor rates and permit requirements. Your price will also vary with size, design, site work and the contractor you hire, so get written bids before you settle on a loan amount.

In-ground pool costs by material

Material is one of the main cost drivers, along with size and excavation. HomeAdvisor lists these average costs by in-ground material:

Extras add to the total. For example, the same guide puts a fence or enclosure at $1,500 to $10,000 and a pool heater at $1,800 to $4,000. Ongoing costs also come on top of any loan payment. HomeAdvisor estimates maintenance at $960 to $1,800 a year for chemicals, filters, utilities and seasonal opening and closing. Over 10 years, that range adds up to $9,600 to $18,000, before any price increases.

How much pool a monthly payment buys

Your rate matters as much as the price when you finance a pool. Say your budget has room for a $500 monthly payment and you want to repay over 15 years. The table shows the loan amount that payment supports at three example rates, along with the payment on a $50,000 pool. These rates are examples, not current rates or offers. The figures cover principal and interest only, with no fees, taxes or insurance.

At 12%, the same $500 a month buys about $10,700 less pool than at 8%. That gap is why you should compare each offer’s APR (annual percentage rate, a yearly measure of the cost of credit) and its fees alongside the builder’s bids. On a loan with a fixed term, the APR includes certain fees. However, a HELOC’s APR reflects the interest rate alone, so ask about its fees separately.

Pool financing options compared

Rates and fees vary by lender and by your credit, so compare written offers before you choose.

The first three rows follow the comparison table in the CFPB’s HELOC booklet.

Using home equity to finance a pool

Home equity financing often costs less than unsecured credit because your house backs the debt. However, the CFPB warns that if you can’t repay a home equity loan, the lender could foreclose on your home. For a home equity loan, HELOC or cash-out refinance on your principal residence, you generally have until midnight of the third business day after closing to cancel, or later if you receive the required notice and disclosures late (Regulation Z, 12 CFR 1026.23 and 1026.15).

Finance a pool with a home equity loan

A home equity loan pays you a lump sum, usually at a fixed rate, and you repay it in equal monthly payments. The trade-off is timing, because you borrow the whole amount at closing and pay interest on all of it while the builder works. Home equity loans may also have upfront fees, so the CFPB advises comparing more than the monthly payment. Our home equity loan guide covers requirements and rates.

• Pros: fixed rate and payment; one lump sum for a fixed-price contract; often a lower rate than unsecured credit.
• Cons: your home is collateral; interest starts on the full amount at once; upfront fees are possible; qualification varies by lender.

Use a HELOC to pay for a pool in stages

A HELOC is a line of credit backed by your home. During the draw period, you borrow as you need money, so you can pay the builder at each milestone and owe interest only on what you have drawn. Rates are typically variable, so your payment can change even if you don’t borrow more. When the draw period ends, the CFPB booklet says your lender may set a schedule to repay the full amount, “often over ten or 15 years,” or you may owe the whole balance at once as a balloon payment. Read how a home equity line of credit works before you sign.

• Pros: borrow in stages; pay interest only on what you draw; reuse the line during the draw period.
• Cons: variable rate; the payment can rise when repayment begins; your home is collateral.

Finance a pool with a cash-out refinance

A cash-out refinance replaces your current mortgage with a bigger one, and you take the difference in cash for the pool. However, the CFPB notes that closing costs are generally higher, payoff can take longer and the new rate may be higher than your current one. That last point matters because the new rate applies to your whole balance, including the debt you already had.

Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.11% on November 12, 2026, up from 6.24% a year earlier. The CFPB says second mortgages, which include home equity loans, often carry higher rates than first mortgages. Unsecured pool loans aren’t backed by your home, so they can cost more than a first mortgage, too. Even so, a cash-out refinance makes the most sense when the new rate is no higher than the one you’d give up. Our cash-out refinance guide explains the limits and costs.

• Pros: one payment; a first-mortgage rate on the pool money, though cash-out loans can carry extra pricing adjustments; a chance to change your term.
• Cons: resets your whole mortgage; higher closing costs; your home is collateral.

Unsecured pool loans and pool-company financing

An unsecured pool loan is a personal loan. The lender takes no lien on your house, so your home isn’t collateral if you fall behind, although missed payments still hurt your credit.

For a sense of cost, the Federal Reserve’s G.19 consumer credit release of November 6, 2026, put the average rate on 24-month personal loans at commercial banks at 11.90% for the third quarter of 2026 (a preliminary figure). That is an average of each bank’s most common rate, not an offer. A pool loan may also run longer than 24 months, and your rate will depend on your credit, the lender and the term. The best rates usually go to borrowers with strong credit. Similarly, the CFPB lists solid credit as a requirement for an unsecured personal line of credit.

A shorter term means a higher monthly payment on the same amount, so check the term of every offer.

Some pool builders and dealers arrange financing through a lender. Treat that offer like any other loan and ask these questions:

• What is the APR, and which fees does it include?
• How long is the term, and what is the monthly payment?
• Does the loan put a lien on your home?
• For a “no interest” promotion, does interest build up during the promotion, and what happens if you don’t pay the balance in full by the end?

Avoid putting a pool on credit cards. The same G.19 release put the average rate on credit card accounts assessed interest at 22.36% for the third quarter of 2026, about 1.9 times the personal loan average.

How to finance a pool with little or no equity

Lenders generally let you borrow only a percentage of your home’s value, minus what you owe. As a result, a recent buyer may not qualify for home equity financing. You still have options:

• An unsecured personal loan, sized to a payment you can handle.
• Pool-company financing, after you read the APR and any promotional terms.
• A smaller pool or a fiberglass shell, both on HomeAdvisor’s list of ways to cut cost.
• An above-ground pool, at $1,000 to $6,000 according to HomeAdvisor.
• Phasing the project: build the pool now and add extras, such as a heater or decking, later.
• Saving first, which avoids interest, or putting cash toward the project to shrink the loan.

Our guide to home renovation options with little equity covers these routes for any home project.

Can a mortgage cover a new pool?

Sometimes. A renovation mortgage finances the purchase or refinance of a home plus improvements, and the rules on pools differ by program:

• FHA 203(k): New swimming pools are an ineligible improvement under both the Standard and Limited 203(k), which HUD lists among “recreational or luxury improvements.” You can, however, use a 203(k) to repair or remove an existing in-ground pool. See HUD Handbook 4000.1, sections II.A.8.a.vi(B) and vii(B).
• Freddie Mac CHOICERenovation: Freddie Mac’s Guide, Section 4607.6, lists adding or renovating swimming pools among eligible renovations on a property with an existing home. Each lender decides whether to offer the product.
• Other conventional renovation loans: ask the lender whether its renovation mortgage can include a pool.

House hunters can also compare building a pool versus buying a house with one. For pool remodels and other projects, our home improvement loans guide covers renovation financing in general.

Should you finance a pool?

A pool is a want, and financing turns it into a debt you will carry for years. Before you finance a pool, add the loan payment to the $960 to $1,800 a year HomeAdvisor estimates for upkeep. Then allow for your homeowners insurance premium, which may also rise when you add a pool.

Resale value is uncertain, too. HomeAdvisor says an above-ground pool does not add the same value to a home as an in-ground model, and any gain varies by market. So count on the pool’s value to your household, and treat any resale gain as a bonus.

Savings matter as well. In the Federal Reserve’s report on household finances in 2025, released May 13, 2026, 63% of adults said they would cover a $400 emergency expense with cash or its equivalent. Keep an emergency cushion after you pay any deposit and closing costs.

Taxes may lower the cost for some owners. Under IRS Publication 936 (2025), interest on a home equity loan or HELOC is deductible only to the extent you used the money to buy, build or substantially improve the home that secures the loan. A pool may count as a substantial improvement, so confirm with a tax professional before you count on the deduction, which also requires you to itemize.

Pool financing FAQ

What is the best way to finance a pool?

It depends on your equity, your credit and the price of the project. A secured loan often carries a lower rate, while an unsecured loan keeps your home out of the deal. Compare the APR, fees and collateral of each offer along with the monthly payment.

Can you finance a pool with no equity?

Yes. An unsecured personal loan or pool-company financing doesn’t require home equity, although rates are often higher than on secured loans. A smaller or above-ground pool, or saving for part of the cost, can also keep the payment manageable.

Can you add a pool to your mortgage?

Possibly. FHA 203(k) loans exclude new pools, while Freddie Mac’s CHOICERenovation program lists pools as an eligible renovation. Current owners can also use a cash-out refinance, which puts the pool cost into a new mortgage at the new loan’s rate.

Are pool loans a good idea?

An unsecured pool loan is a personal loan used to build a pool. It keeps your home out of the deal and avoids a new lien, yet it can cost more than home equity financing. That trade can suit a modest project you can repay quickly.

Is it hard to get financing for a pool?

That varies by lender and depends on your credit, income, debts and equity. Before you apply, check your credit reports, pay down balances and dispute any errors. No lender can promise approval or a rate in advance, so get quotes from more than one.

Is interest on pool financing tax deductible?

Sometimes. IRS Publication 936 (2025) allows a deduction for home equity interest only when the money buys, builds or substantially improves the home that secures the loan. Interest on an unsecured pool loan doesn’t qualify, because the debt must be secured by the home.

Next step: price the pool, then the payment

Start with two or three written bids. Then work backward from a monthly payment that fits next to your upkeep costs, and compare offers for the route that matches your equity. Before you build, also read how a pool can affect your mortgage application and insurance.