In short
A pool loan is any financing used to build a pool, most often a home equity loan, a HELOC or an unsecured personal loan. Home equity options usually need about 20% equity and use your home as collateral, while unsecured loans need no equity but cost more and run shorter terms. Approval is borrower specific.
Reviewed by Scottie Campbell, NMLS #1610726 · Last updated October 18, 2026
How do you finance a pool?
Most homeowners finance a pool with a home equity loan, a HELOC or an unsecured pool loan. A home equity loan gives you one lump sum with a fixed payment and terms up to 30 years, which suits a fixed-price contract. A HELOC lets you draw as you build and pay interest only on what you use, which suits a phased project. Both usually need about 20% equity and put your home up as collateral. An unsecured pool loan needs no equity and funds faster, but costs more and has shorter terms, typically 2 to 7 years. Approval is borrower specific.
Key takeaways
A pool is one of the bigger projects a homeowner takes on, and how you pay for it matters as much as the tile and the decking. Quite frankly, most people take whatever financing the builder offers and never see the alternatives. I'm Scottie Campbell, Mortgage Advisor and founder of Waymaker Mortgage Company, and I'll walk you through the three main ways to fund a pool so you can choose with confidence.
Three Ways to Pay for a Pool
When someone calls me about a pool, the first thing I ask isn't the price. It's how the project is structured. A fixed-price contract and a phased build call for different tools, and the wrong tool can cost you real money over the years you own the home. Approval for any of these is borrower specific, so think of this page as the map, not the verdict.
| Home equity loan | HELOC | Unsecured pool loan | |
|---|---|---|---|
| How you receive funds | One lump sum | Draw as you build | One lump sum |
| Best fit | Fixed-price pool contract | Phased project | Little or no equity |
| Payment | Fixed | Interest only on what you use | Varies by lender |
| Equity needed | Usually about 20% | Usually about 20% | None |
| Collateral | Your home | Your home | None |
| Term | Up to 30 years | Varies by lender | Typically 2 to 7 years |
Home Equity Loan: Made for a Fixed-Price Contract
If your builder hands you one number for the whole job, a home equity loan lines up well. You receive one lump sum, you make a fixed payment, and terms can run up to 30 years. What that means for you is a predictable monthly budget from day one. The trade-off is that your home is the collateral, so this is a decision to make with eyes open.
HELOC: Made for a Phased Project
Plenty of pools get built in stages: excavation and shell this spring, decking and lighting later, an outdoor kitchen when the budget allows. A home equity line of credit fits that rhythm. You draw as you build and pay interest only on what you've used, instead of paying on the full amount before the crew has even broken ground. Like a home equity loan, it's secured by your home.
Unsecured Pool Loan: Speed Without Touching Your Home
An unsecured pool loan needs no equity and usually funds faster. That can make sense if you bought recently and haven't built much equity, or if you simply don't want your house tied to the project. Quite frankly, the convenience comes at a price: higher overall cost and shorter terms, typically 2 to 7 years, which means a bigger monthly commitment.
What "About 20% Equity" Means
Lenders generally want you to keep roughly 20% of your home's value as equity after the new loan is added. Take your current mortgage balance, add the pool financing, and compare that total with what the home is worth today. If there's room, a home equity loan or HELOC is on the table. If there isn't, the unsecured route or a smaller first phase may be the better fit.
On the credit side, home equity loans and HELOCs I arrange start at a 600 minimum credit score, 680 when your debt-to-income ratio is above 45%, and 720 for lines over $500,000. Below that today? Can't do it now doesn't mean can't do it ever. I'll build you a Mortgage Action Plan with the specific steps to get there.
Budget for the Whole Pool, Not Just the Build
The contract price is only part of the story. A pool brings ongoing upkeep (chemicals, cleaning, equipment repairs, the electric bill for the pump) and usually a change to your homeowners insurance. I run a Total Cost Analysis so you see the full picture over the time you plan to own the home, not just the first payment. If you're in Georgetown, TX, you already know how many months a year that pool will earn its keep.
Questions I Help You Answer
- Is my contract fixed-price or phased, and which loan matches it?
- How much equity do I actually have to work with?
- Does it make more sense to protect my home and pay more, or use equity and stretch the term?
- What will the pool cost me each year after it's finished?
When rates come up, here's my honest answer: Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
Let's Look at Your Project
My job is to educate and empower you. Your job is to decide. Send me your builder's proposal and a rough idea of your home's value, and I'll lay the options side by side. You're talking to the owner of Waymaker Mortgage Company, and I'm licensed in Texas, Florida, Pennsylvania and Ohio. Feel free to text me. Here to serve.
Information on this page is general and educational. It is not a commitment to lend or an offer of credit. Programs, guidelines and eligibility change and depend on your full scenario. Waymaker Mortgage Company, NMLS 2440476. Equal Housing Lender.
Quick facts
- Approval
- Borrower specific
- Minimum credit score
- 600 on home equity loans and HELOCs (680 above 45% DTI; 720 for lines over $500,000)
- Equity needed
- About 20% for home equity options; none for unsecured
- Home equity loan term
- Up to 30 years, fixed payment
- Unsecured pool loan term
- Typically 2 to 7 years
- Collateral
- Your home (home equity options) or none (unsecured)
Is this loan right for you?
Who it's for
- Homeowners with a fixed-price pool contract who want one lump sum and a fixed payment
- Homeowners building in phases who want to draw funds as each stage is finished
- Owners with about 20% equity who want terms that can stretch up to 30 years
- Recent buyers with little equity who prefer an unsecured loan that funds faster
Who it may not fit
- Homeowners who aren't comfortable putting the home up as collateral and can't carry a shorter unsecured term
- Anyone who hasn't budgeted for upkeep and insurance after the build
Pros and cons
Pros
- Several structures to match how your pool is priced and built
- Home equity loans offer a fixed payment and terms up to 30 years
- A HELOC charges interest only on what you've drawn
- Unsecured options need no equity and usually fund faster
Trade-offs to weigh
- Home equity loans and HELOCs put your home up as collateral
- Unsecured pool loans cost more and typically run only 2 to 7 years
- A pool adds ongoing upkeep and insurance costs
Frequently asked questions
Should I use a home equity loan or a HELOC for my pool?
It mostly comes down to how your project is priced. A fixed-price contract pairs well with a home equity loan, since you get one lump sum and a fixed payment. A phased build pairs well with a HELOC, since you draw as each stage is finished and pay interest only on what you've used.
How much equity do I need to finance a pool?
Home equity loans and HELOCs usually need about 20% equity remaining after the new loan. Add your current mortgage balance to the pool amount and compare it with your home's value. If you're short, an unsecured pool loan needs no equity at all.
What credit score do I need for pool financing?
Approval is borrower specific. For home equity loans and HELOCs I arrange, the minimum is 600, rising to 680 above a 45% debt-to-income ratio and 720 for lines over $500,000. Unsecured lenders set their own standards, and I'll tell you where you stand.
Is an unsecured pool loan a bad idea?
Not at all, it's just a different trade-off. You don't put your home up as collateral and funding is usually faster. In exchange, it costs more overall and terms are shorter, typically 2 to 7 years, so the monthly payment is larger. For some homeowners, that's the right call.
Can you give me a rate for a pool loan?
Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
What costs should I plan for after the pool is built?
Plan for ongoing upkeep like chemicals, cleaning, equipment repairs and the electricity to run the pump, plus a likely change to your homeowners insurance. I include those in a Total Cost Analysis so the pool fits your budget for the long haul.
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Last updated October 18, 2026 · Reviewed by Scottie Campbell, NMLS #1610726. This page is educational and not a commitment to lend; program details change — ask for current figures.