Swimming pool loans are a subcategory of home improvement loans. To distinguish them from secured loans like home equity loans, these are categorized as unsecured personal loans. Swimming pool loans are available from businesses that specialize in financing pools and other backyard renovation or home improvement projects, despite the fact that there are other swimming pool financing options, such as bank financing, credit union financing, and second mortgages.
There are some distinct drawbacks to bank loans, mortgages, credit union financing, and home equity lines of credit. These loans usually take weeks, sometimes months, to pay out. You must have enough equity in your home to borrow against it in order to proceed with the process, which involves a home appraisal. Large amounts of paperwork are required for these loans, and in the end, your home and lot serve as collateral for the loan.
Furthermore, banks and other mortgage lenders typically disburse funds in stages, or “stage funding.” This means that loan payments are only made as your pool builder completes particular project phases. Additional inspections may be necessary to ensure the stages have been successfully completed, which could further delay the repayment of your entire loan and, consequently, the completion of your pool project.
There are swimming pool loans available without collateral (your home), stage funding, or home appraisals. Since these businesses specialize in financing for swimming pools and other backyard renovation or home improvement projects, these loans are typically processed and disbursed more quickly.
How Do Swimming Pool Loans Work in 2022?
Typically, a loan for a swimming pool is considered a personal loan. These are unsecured loans, meaning there is no collateral required. Real property, typically your home and property, is used as collateral by the borrower as a guarantee to safeguard the business providing the financing. If you take out an unsecured personal loan, such as one for a swimming pool, you are not putting your house at risk.
Where Can I Finance a Swimming Pool in 2022?
Pool loans are typically only available from banks if you have a high income and excellent credit. Typically, credit unions will accept slightly lower credit scores but charge higher rates. Online lenders have a number of advantages, including greater flexibility when it comes to factors like income, credit score, home value, length of home ownership, and other elements that can be problematic for bank loans.
How Much Does it Cost to Finance a Swimming Pool in 2022?
Pool loans are available with loan terms up to 20 years and at rates that are among the lowest in the industry. If you want to make other home improvements or renovate your backyard at the same time, you can include those in your pool loan.
Many homeowners are realizing the value of improving their current homes and backyards rather than attempting to buy a new home as the housing market becomes more and more competitive. Some markets have a shortage of houses, and when they do appear they are very expensive. Loans for swimming pools and home improvements are less expensive and risky options for people who decide to make their current home better rather than trying to move.
How Long Can You Finance a Swimming Pool in 2022?
Most pool lenders cap terms at 10 to 15 years, but HFS Financial offers pool loans with terms as long as 20 years. Because you have more time to pay off the loan, your monthly payments will be considerably less.
How Much Does an Inground Swimming Pool Cost?
Inground pool average prices vary widely from state to state and city to city. Additionally, the price of inground swimming pools has been impacted by the problems with the global supply chain over the past few years. It’s difficult to estimate how much your pool will cost before receiving an estimate from your pool builder. The cost is determined by the location, backyard, and pool design. A modest inground pool could cost less than $60,000 to build in 2022, but a luxurious pool could cost well over $100,000.
It’s comforting to know that an inground pool actually uses less water annually than if the same area were landscaped if you live in a drought-prone area. Compared to those who maintain lawns, pool owners don’t significantly increase their water consumption.
How Do I Apply for a Swimming Pool Loan in 2022?
Applying for a pool loan is simple and fast online. Find a lender who can pre-approve you with only a minor impact on your credit report. This guarantees that simply applying for a loan won’t harm your credit. Also, try to avoid companies offering stage funding. By doing this, you can manage your money and ensure that you have enough money on hand to start the project and pay your pool builder when it’s finished.
Some builders collaborate with HFS Financial, so you can apply for financing directly from the website of your pool builder. To start the loan process and get pre-approved, fill out this straightforward form. You can submit an application directly on the HFS website if your pool builder has not partnered with them.
The initial form takes just a few minutes to complete. If there are any additional inquiries or paperwork needed to process your loan, your customer service representative will contact you. In many cases, swimming pool loans can be funded in as little as 24 hours. Additional requests from your pool loan underwriter are typically quickly and effectively handled online or over the phone.
Where is a Swimming Pool Loan Cost Calculator I Can Use?
Several factors determine your swimming pool loan payments and interest rates, including:
Here, you can quickly and easily find the pool loan rate.
What’s the Process for Getting a Swimming Pool in 2022?
HFS Financial hopes that your new swimming pool will make you and your family ecstatic. We simplify the lending process so that the remaining steps in the pool purchase process go as smoothly as possible. You Dream It, We Finance It.
FAQ
What is a good interest rate for a pool loan?
Interest rates for pool loans are influenced by a number of variables, such as credit history, loan size, and income. Average pool loan interest rates typically range from 5 to 10%, but they can be as low as 3. 5% and as high as 20% .
What credit score do you need for HFS financing?
HFS Financial considers all credit scores. Typically, a score of 600 or higher is sufficient to receive a loan offer from HFS. One of the benefits of applying through HFS is that they can conditionally approve you and provide you with your rate, term, and monthly payment options without having ANY impact on your credit.
What is the monthly payment on a pool loan?
Your pool loan’s monthly payments will change depending on a number of variables, such as the loan term, interest rate, and amount financed. For comparison, a $30,000 loan spread over 84 months might cost between $400 and $500 per month.
What is a good credit score for a pool loan?
To obtain a personal loan to pay for a pool, you typically need to have a credit score of at least 600. Some lenders may also have income requirements, which will vary. A score of 680 or higher is frequently required for HELOCs and home equity loans.