So you've decided to get a pool, great choice. But before you start picking out features and finishes, there's one conversation you need to have first: how are you going to pay for it?
Financing a pool is one of the most important steps in the buying process, and one that many homeowners don't think about until they're already deep into the design conversation.
We get it, it's not the fun part. But getting your pool financing sorted upfront makes everything else go smoother. Throughout our time in the pool industry, we've seen just about every approach to financing a pool out there. Here's what you need to know.
How Most Homeowners Finance a Pool
When it comes to financing a pool, buyers typically use one of the following methods:
- Home equity line of credit (HELOC)
- Second mortgage
- Unsecured personal loan
- Cash (out of pocket)
- Credit card
The two most common routes we see homeowners take when financing a pool are the home equity line of credit and second mortgages. We'll break both down in detail, but here's our number one piece of advice before we do:
Talk to your bank before you talk to a pool company.
Getting pre-approved first means you'll know exactly what you can afford, avoid delays when you're ready to build, and walk into every installer conversation with a clear budget in hand. It sets the foundation for financing a pool successfully and eliminates surprises along the way.
What Are Second Mortgages and Home Equity Lines of Credit?
If you've built up equity in your home, you may be able to borrow against it to finance your pool. These are the two most common ways to do that:
- A second mortgage gives you a lump sum upfront at a fixed interest rate. You know exactly what you're borrowing and what your payments will be from day one, straightforward and predictable.
- A home equity line of credit (HELOC) works more like a credit card. You're approved for a maximum amount and can draw from it as needed, usually at a variable rate.
For most pool projects, a second mortgage tends to be the simpler choice since pool installations typically come with a defined scope and price upfront.
Because both loans are secured by your home, lenders can offer significantly better terms than you'd find with other pool financing options, lower interest rates, higher borrowing limits, and longer repayment terms of 15 to 30 years.
One important step before assuming this route is available to you: find out how much equity you actually have. The rise in home values since 2020 has worked in many homeowners' favor, but it's still critical to get an accurate, up-to-date picture of your home's value versus what you still owe before walking into any pool financing conversation.
Your ability to qualify will also depend on your area's real estate trends, your loan-to-value ratio, and your overall financial picture, which is exactly why we recommend starting this conversation with your bank before you ever sit down with a pool installer.
Tax tip: Interest on a second mortgage or HELOC may be tax deductible if the loan is used to build or substantially improve your home, a pool addition can qualify. Always confirm with a tax professional for your specific situation.
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Can I Finance a Pool Without Home Equity?
Short answer? Yes, absolutely. Long answer? Keep reading.
If a HELOC or second mortgage isn't in the cards, an unsecured personal loan is the next most common route for financing a pool, and it's more accessible than you might think. Unlike a home equity loan, an unsecured pool loan doesn't require an appraisal or any equity in your home, which makes it a faster and more flexible option for many homeowners.
The trade-off is cost. Here's what to expect when using an unsecured pool loan:
- Higher interest rates — because the loan isn't tied to your home, lenders charge more to offset their risk. Rates vary based on your credit score, but unsecured pool loans typically run higher than home equity options
- Lower borrowing limits — depending on how much you qualify for, you may need some additional cash on hand to cover the full cost of your pool project
- Faster approval — without a home appraisal required, unsecured pool loan approvals move much quicker than home equity loans
It's also worth knowing that the unsecured loan market has become more competitive in recent years. Some national lenders now offer personal loans up to $100,000 with rates starting around 7.5% for well-qualified borrowers, significantly better than what was available just a few years ago.
Where to Look for a Pool Loan
Not sure where to start your pool loan search? Here's how we recommend approaching it:
- Start with your local credit union — they often offer the most competitive pool loan rates for existing members
- Then check your local bank — especially one you already have a relationship with
- Then explore national pool lenders — companies like HFS Financial, Lyon Financial, and Viking Capital specialize in pool financing and offer competitive pool loan terms
Here's a quick look at your main pool financing options side by side:
| Loan Type | Best For | Interest Rate | Borrowing Limit |
| HELOC/Second Mortgage |
Homeowners with strong equity |
Lower | Higher |
|
Unsecured Pool Loan |
Homeowners with limited equity | Higher | Moderate |
| National Pool Lenders | Fast approvals, pool-specific terms | Varies | Up to $100k+ |
| Credit Union/Local Bank | Existing relationships, lower rates | Competitive | Varies |
The Bottom Line on Financing a Pool
Financing a pool comes down to two key questions: how much equity do you have in your home, and what does your credit look like? Your answers will point you toward the right pool loan, and from there, it's a matter of shopping around for the best terms.
The pool financing landscape has more options today than ever before, but the fundamentals haven't changed. Start the conversation with your bank early, get pre-approved before you talk to installers, and don't be afraid to compare multiple lenders before committing to a pool loan.
You're not alone in figuring this out, and the right pool financing option is out there waiting for you.
Frequently Asked Questions
How do most people finance a pool?
The two most common ways are a home equity line of credit (HELOC) or second mortgage, and an unsecured personal loan. A HELOC borrows against your home's equity for lower rates and higher limits. An unsecured loan doesn't require equity but comes with higher rates — typically 8–12% or more depending on your credit score.
What is the difference between a HELOC and a second mortgage?
A second mortgage gives you a lump sum at a fixed rate, predictable and straightforward. A HELOC works like a credit card, letting you draw funds as needed at a variable rate. For most pool financing situations, a second mortgage is the simpler choice since pool project costs are typically defined upfront.
Are second mortgages and HELOCs tax deductible?
In many cases, yes — but only if the loan is used to build or substantially improve your home, which a pool addition can qualify for. Unsecured pool loans are generally not tax deductible. Always confirm with a tax professional for your specific situation.
How long does the pool financing approval process take?
Unsecured pool loan pre-approvals can often happen within hours. Financing a pool through a second mortgage or HELOC typically takes 2 to 4 weeks due to the home appraisal process. Factor this into your timeline so your financing is locked in before your build begins.
From the Author
Financing a pool is one of the most common concerns I hear from homeowners who are serious about moving forward with a purchase, and it's one of the topics I've spent a lot of time helping families navigate over the years.
My name is Marcus Sheridan, and I'm a co-founder of River Pools Virginia. For more than two decades, I've worked directly with homeowners at every stage of the pool buying process. Along the way, I've had countless discussions about budgeting, loan options, and how to approach financing a pool in a way that makes sense for each family's situation.
My goal with this article is simple: give you a clear, honest picture of your pool financing options so you can walk into that conversation with your bank feeling informed and confident. The more you understand upfront, the smoother the entire process becomes.
From the Manufacturer
At River Pools, we know that financing is one of the biggest questions homeowners face when planning an inground pool project. Understanding your options early can make the entire process feel much more manageable.
We regularly work with homeowners who are balancing budget, long-term goals, and the excitement of creating a backyard space their family can enjoy for years to come.
If you’re considering a fiberglass pool and want to better understand how the investment may fit into your budget, the next step is connecting with a trusted independent installer in your area. They can help you explore pool designs, discuss project costs, and walk you through what to expect during the planning process.
Ready to start the conversation?
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