How Swimming Pool Financing Works & How to get the Lowest Rates + Longest Terms for the Lowest Payment Possible with Lyon Financial

Dreaming of that perfect backyard oasis but worried about the financial commitment? You're not alone. With swimming pools representing one of the largest investments homeowners make after purchasing their home, understanding financing options can make the difference between diving into your dream or staying on the sidelines. In this comprehensive guide, we'll break down everything you need to know about pool financing, from understanding loan types to securing the best rates and longest terms possible.

Understanding Pool Financing: Secured vs. Unsecured Loans

When it comes to financing your swimming pool, not all loans are created equal. There are two primary types of pool financing options, each with distinct advantages and considerations.

There are secure loans and then there's unsecure loans. The secure loan, of course, you're using the equity of the home. It's most likely going to be tied to the home in some way. So there's a priceless, there is a closing cost and there's also a lengthy time. It's just essentially like a mortgage loan.

— Carla Barara, Pool Chasers Podcast

Secured loans use your home's equity as collateral. While these loans often offer lower interest rates, they come with several drawbacks:

• Lengthy approval process similar to mortgage loans
• Closing costs that can add thousands to your project
• Your home serves as collateral, putting it at risk if you default
• More complex application process

Unsecured loans don't require collateral and are primarily based on your creditworthiness and debt-to-income ratio. These loans offer several advantages:

• Faster approval process (often within a week)
• No home equity required
• Streamlined application process
• More flexible terms and payment options

The Real Cost of Pool Installation in 2024

Before diving into financing options, it's crucial to understand what you're actually financing. Pool costs have increased significantly, and having realistic expectations is essential for proper budgeting.

What we're seeing though as a starting range is anywhere between 75 and 80 thousand dollars without those extras.

— Jessica Wood, Pool Chasers Podcast

This baseline cost of $75,000-$80,000 represents a basic pool installation without additional features. However, most homeowners don't stop at just a basic pool. Popular add-ons that can significantly increase your project cost include:

• Heating systems
• Saltwater systems
• Water features and lighting
• Decking and hardscaping
• Outdoor kitchens and pavilions
• Pool automation systems

The good news is that modern pool financing can accommodate projects ranging from small $5,000 upgrades to comprehensive $200,000 backyard transformations, giving you flexibility to create your ideal outdoor space.

Maximizing Affordability: The Power of Extended Terms

In today's economic climate, monthly payment affordability often matters more than the interest rate itself. This is where Lyon Financial's unique approach to pool financing shines.

We're the only ones right now in the industry that have those longer terms of 30 years. We have terms from 15, 20, 25 and again all the way to 30 year terms. It just really helps make that payment affordable for that customer.

— Carla Barara, Pool Chasers Podcast

Extended loan terms can dramatically reduce your monthly payment, making a premium pool project accessible on a moderate budget. Here's how different terms might affect a $100,000 pool loan:

• 15-year term: Higher monthly payment but less total interest
• 20-year term: Balanced approach between payment and total cost
• 25-year term: Lower monthly payment with moderate total interest
• 30-year term: Lowest possible monthly payment for maximum affordability

The key insight from the Lyon Financial experts is clear: focus on the payment that fits your budget rather than obsessing over interest rates. A slightly higher rate with a longer term often results in better cash flow and financial flexibility.

The Application and Approval Process Simplified

One of the most intimidating aspects of pool financing is the unknown application process. However, modern pool financing companies have streamlined this process significantly.

Step 1: Initial Application
You can apply online at the lender's website or speak with a live representative who can answer questions and guide you through the process. Many potential borrowers call first to understand payment scenarios before formally applying.

Step 2: Manual Review Process
Unlike automated lending systems, specialized pool lenders often manually review each application to ensure the best possible outcome for the borrower.

We have a 98% approval ratio of who we look at that we think is going to fit our guidelines. We submit to the lender. And again, 98% of it gets approved if we feel like it's going to fit that specific lender.

— Carla Barara, Pool Chasers Podcast

Step 3: Documentation and Final Approval
Once pre-approved, you'll need to provide income documentation and your pool contract. The lender reviews these materials for final approval.

Step 4: Construction Authorization
After signing loan documents, both you and your contractor receive notification that construction can begin, and the funding process starts.

The entire process, from application to construction authorization, can be completed within a week for unsecured loans—much faster than traditional home equity options.

Hidden Fees and What to Watch For

One of the most important aspects of choosing a pool financing company is understanding the fee structure. Many borrowers focus solely on interest rates while ignoring fees that can add thousands to their project cost.

The only fee that Lion has, you know, we have a thousand dollar project management fee which is something that, you know, we will actually stay with the customer from start to finish all the way through the project which is something we're very passionate about.

— Jessica Wood, Pool Chasers Podcast

When evaluating pool financing options, ask these critical questions:

• What fees are charged? Some lenders charge 3-6% of the loan amount in fees
• What services are included? Project management throughout construction adds significant value
• Are there hidden costs? Ensure all fees are disclosed upfront
• Can fees be financed? Rolling fees into the loan can help with cash flow

For example, on a $100,000 loan, a 3% fee would cost $3,000 compared to a $1,000 flat fee—a significant difference that affects your overall project cost.

Strategic Tips for Securing the Best Financing

To maximize your chances of approval and secure the best possible terms, consider these expert recommendations:

Prepare Your Finances

• Review your credit report and address any issues before applying
• Gather income documentation in advance
• Calculate your debt-to-income ratio to understand your borrowing capacity
• Set a realistic budget that includes contingencies

Understand Your Options

• Compare secured vs. unsecured loan benefits for your situation
• Consider longer terms for lower payments if cash flow is a priority
• Ask about special programs (such as veteran discounts)
• Understand what can be included in your project financing

Work with Specialists

• Choose lenders who specialize in pool financing rather than general home improvement loans
• Look for companies that offer project management services
• Ensure your lender has experience with your type of pool project

Making Your Pool Dreams Affordable

The key to successful pool financing lies in understanding that this investment is about more than just the immediate cost—it's about creating lasting value and enjoyment for your family. With proper financing, you can transform your backyard into an entertainment hub and personal retreat without devastating your monthly budget.

Modern pool financing has evolved to accommodate various financial situations and project scopes. Whether you're considering a modest fiberglass installation or a comprehensive outdoor living transformation, specialized lenders offer solutions that traditional banks simply cannot match.

The most important takeaway is to approach pool financing as a strategic decision rather than an emotional one. By understanding your options, comparing total costs (including fees), and focusing on payment affordability, you can make an informed choice that brings your backyard oasis within reach.

Remember, the right financing partner will guide you through the entire process, from initial application through project completion. This support can prove invaluable when navigating the complexities of pool construction and ensuring your investment delivers the outdoor lifestyle you've always dreamed of achieving.

Episode Chapters

• 00:00 Introduction and Guest Introductions
• 03:45 What is Pool Financing and How Does it Work
• 07:30 Initial Steps for Pool Financing
• 12:15 Typical Pool Costs and Budgeting
• 16:45 Loan Terms and Payment Options
• 22:30 Application and Approval Process
• 28:15 Fees and Hidden Costs