How to Finance a Swimming Pool

First Republic Bank
February 28, 2023

  • Adding a swimming pool to your home can be a costly home improvement project, depending on the type of pool you install.
  • There are many pool financing options available to help manage installation costs.
  • As you decide how to finance your new pool, consider which option makes the most sense for your financial circumstances.

Before you dive into adding a pool to your home, you should spend time familiarizing yourself with the financial implications of this decision. Installing a swimming pool may seem expensive at first glance, but there are many ways to finance the project to make costs more manageable. The following will guide you through a few available options for financing a pool and answer some commonly asked questions about the process.

How much does it cost to install a pool?

A number of variables impact swimming pool installation costs including size, materials used and local labor fees. Depending on the type of pool, you can typically expect the following price ranges:

Other pool types, such as indoor pools, may cost you even more.

Bear in mind that these estimates don’t include maintenance costs and other related fees, such as any necessary permits.

Pool financing options

There are a number of financing options available to help manage the costs of installing a pool. Be sure to research the specifics of each before you decide how you’ll pay.

Home equity loans

A home equity loan is a closed-end credit option, and the amount you can borrow is determined by how much equity you currently own in your home as opposed to its overall value. The loan is offered in a lump sum with a payback term set over a specific period of time, and interest rates are usually fixed. In some cases, home equity loan interest is tax deductible. Additionally, loans that require collateral — such as a home equity loan — can sometimes offer lower interest rates than products that are collateral-free. Be sure to speak with a qualified tax advisor to make sure you’re choosing the right option for your needs.

Home equity lines of credit (HELOCs)

Another common way to finance a home improvement project is a home equity line of credit, or HELOC. Similar to a home equity loan, a HELOC uses the equity in your home to determine the amount you can borrow. Unlike a home equity loan, however, a HELOC is an open line of credit from which you can continue to draw throughout a specific time frame, known as a draw period.

Because HELOCs are secured with the equity in your home as collateral, they may come with lower interest rates than other financial products, depending on the lender. However, HELOCs tend to have variable interest rates, while home equity loans typically have fixed interest rates. Interest on a HELOC may also be tax deductible.

Cash-out refinancing

Cash-out refinancing also involves using your home as collateral. In this instance, a new loan replaces your current mortgage, combining your house and pool into one monthly payment. The new loan is for more than what you owe on the house, and the difference between what you owe and the new loan amount is then available to you in cash.

This refinancing method may come with lower interest rates than other mortgage-specific loans. And, depending on factors like your current credit score, you may be able to secure a lower overall interest rate than on your original mortgage, as well. The interest you pay on the amount you cash out may also be tax deductible.

A potential drawback of this financing option is that it usually comes with additional closing costs — which can add up to as much as 2% to 4% of the loan amount. Also, because a mortgage is a secured loan, you could risk foreclosure if you fail to make payments on the new loan.

Personal loans, or “pool loans”

If you’d prefer a loan that doesn’t require collateral, an unsecured personal loan, sometimes marketed as a swimming pool loan, is another option to cover the costs of your pool. For many lenders, an unsecured personal loan is considered higher risk, so terms like the borrowing amount and interest rate can depend on individual factors like your credit history. In general, the interest rates for a personal loan tend to be fixed, although this varies by lender.

In-house financing with a pool company

Some pool companies offer their own financing terms, which may be worth looking into. Keep in mind that this wouldn’t truly be considered in-house financing since pool companies coordinate with a financial institution that does the actual lending. Pool companies may, however, come up with their own terms, such as interest rates and additional fees. If you want to look into this option, be sure to check with other banks for financing options to see how they compare.

Personal lines of credit

A personal line of credit is a flexible way to access cash for a wide array of personal or household needs. You can borrow a set amount of money over the course of a given draw period. You only borrow what you need from the available balance, and you pay interest on what you borrow rather than the full available loan amount. Once you repay the amount you’ve drawn, it becomes available to you again for the remainder of the draw period. Personal lines of credit may be secured or unsecured, and interest rates can be variable or fixed. Depending on the lender, there may be additional fees to consider.

Using First Republic’s Personal Line of Credit to finance your pool and more

With First Republic’s Personal Line of Credit, borrowers have access to low, fixed rates with no loan origination or prepayment fees. Since you can use a Personal Line of Credit for an array of personal needs, it can be a good way to borrow money for minor home improvement projects and more.

A Personal Line of Credit provides access to revolving credit during a two-year draw period, followed by a repayment period for the remainder of the loan term.

Note: First Republic’s Personal Line of Credit is an unsecured line of credit for consumers, not a pool financing product or equipment loan. First Republic isn’t asserting any value to your home, or the equipment used for swimming pool installation.

Pool financing FAQ

Find answers to commonly asked pool financing questions here.

How long can you finance a pool?

The amount of time you can finance a pool depends on how you finance as well as the policies of the financial institution you work with. For example, the repayment period for a HELOC is typically around 15 years or more. Consult your specific loan terms or lender guidelines for a more definitive answer on how long it may take to pay off your pool.

What credit score do you need to finance a pool?

The credit score you need to finance a pool will vary based on how you finance and which financial institution you finance through. Generally, the better your credit score, the easier it is to secure a loan or line of credit with favorable terms. A good credit score is typically about 680 or higher. Luckily, there are a number of ways you can improve your credit score, which in turn can improve your chances of being approved for pool financing.

What’s the best way to pay for a swimming pool?

The best way to finance a swimming pool will inevitably vary depending on your financial situation. Luckily, there are a number of options for financing a pool.

When you’re ready to start researching pool finance options, be sure to speak with a financial advisor about which path forward best complements your situation. For more information to help guide your decision, check out one of the many online pool financing resources available, including our Personal Line of Credit calculator.

First Republic’s Personal Line of Credit isn’t just for financing home improvement projects (such as a pool), either. It can also be used for auto loan financing and refinancing, student loan refinancing and more.

Note: By refinancing student loans, you may permanently be giving up tax and repayment benefits, including forbearance, deferment and forgiveness. Please consider this as you make a decision to refinance student loans, and talk to a banker if you have any questions.

Currently, all payments for certain types of federal student loans are suspended potentially until June 30, 2023, per an executive order by the President. Interest will not accrue during this time period. For more information, please visit

The strategies mentioned in this article may have tax and legal consequences; therefore, you should consult your own attorneys and/or tax advisors to understand the tax and legal consequences of any strategies mentioned in this document. This information is governed by our Terms and Conditions of use.

Contact your legal, tax and financial advisors for advice on deciding whether this is the right product for you. Terms and conditions apply.

Product is not available in all markets. For a complete list of locations, visit Applicants must meet a First Republic banker to open account. This is not a commitment to lend. Loan approval is subject to a completed application with associated documentation and confirmation that income, liquidity, credit history and other application information meet the minimum requirements for this product. Applicants should discuss line of credit terms, conditions and account details with their banker.

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