Short answer: Most homeowners finance a pool with an unsecured pool loan, a home equity loan or HELOC, or a cash-out refinance. Pool loans are fastest and don't require home equity; equity-based options can have lower rates but use your home as collateral.
The main ways to pay for a pool
1. Unsecured pool loan
A fixed-rate loan made specifically for pools and backyard projects. No appraisal or home equity required, and approval is usually quick. Rates are typically higher than equity-based loans, but your home isn't the collateral. We work with Lyon Financial, which offers this type of loan with terms up to 30 years on approved credit.
2. Home equity loan or HELOC
Borrowing against the equity in your home through your bank or credit union. A home equity loan gives you a lump sum at a fixed rate; a HELOC works like a credit line, often at a variable rate. Rates can be lower, but the process takes longer and your home secures the debt. Texas has its own rules for home equity lending, so talk with your lender about how they apply to you.
3. Cash-out refinance
Replacing your mortgage with a larger one and taking the difference in cash. This usually only makes sense if the new mortgage rate is close to or better than your current one.
4. Cash, or a mix
Many clients pay part in cash and finance the rest, which lowers the monthly payment without draining savings.
A worked payment example
Lyon Financial's own example shows a $100,000 loan at 8.49% over 30 years at about $768 a month. Here's the math so you can check it:
- Monthly rate: 8.49% ÷ 12 = 0.7075%
- Payments: 30 years × 12 = 360
- Payment = $100,000 × 0.007075 ÷ (1 − 1.007075−360) ≈ $768 per month
This is an illustration only, not a quote. Your rate and terms depend on your credit and the lender's current offers.
Tips before you apply
- Apply early. Knowing your approved amount and payment lets us design to a budget that fits.
- Finance the whole project. Ask whether the loan can cover the patio cover, kitchen and landscaping along with the pool.
- Compare total cost, not just the payment. A longer term lowers the payment but increases total interest.
Frequently asked questions
Can you finance a pool with no home equity?
Yes. Unsecured pool loans, like those from Lyon Financial, don't require home equity or an appraisal.
What credit score do you need for a pool loan?
It varies by lender and changes over time. Check current requirements directly with the lender before you apply.
Can I finance outdoor living along with the pool?
Often, yes. Ask the lender whether the loan can cover the full backyard project.
Written by Jesus Arias, founder of Ridge Outdoor Living, a custom pool and outdoor living builder in Dallas–Fort Worth. Figures are typical ranges from our projects and are a guide, not a quote.