Are you considering investing in a custom pool to get more value from your outdoor lifestyle? Fortunately, there are multiple options for securing a pool loan in St. Petersburg, Florida.
In this blog, we will look at important considerations for luxury pool financing, including options in the St. Petersburg area. This will include key steps you can expect when you finance your pool and tips for a stress-free financing experience.
Understanding the Cost of a Custom Pool Before Financing
With custom pool costs in Florida ranging anywhere from $50,000 to more than $100,000 (especially for high-end, luxury pools), your new inground pool could be one of your most expensive home renovation projects or additions to your new home. But according to Business Insider, a new pool can increase your home’s value from 5% to 8%. This potential return on your investment means custom pool financing is worth pursuing.
Before you explore your financing options, it is important to get transparent pricing from a reputable pool builder, including a detailed quote. Typically, luxury pool costs are based on several factors, including your pool type and custom design features. Key pool cost factors may include:
- Custom pool design and complexity: Custom pool layouts can increase costs that vary by design, from freeform styles to geometric pools to pools with infinity edges.
- Pool types: For health-conscious pool buyers, lap pools can range from around $40,000 to $75,000. More “natural” style pools, such as lagoon-style designs, can range from around $50,000 to $150,000.
- Extra water features: Add-ons like spas, LED lighting, waterfalls, automation, and custom decking can enhance your pool experience, as well as the price.
- Custom pool materials: Gunite/concrete pools tend to be the most expensive because they are more durable than fiberglass or vinyl. Custom materials like glass tile and tile mosaics also add to pool costs, but can create a more luxurious look and feel.
- Site prep and permitting: Your pool’s cost will also depend on your home and yard’s geographical layout, such as sloped yards and rocky soil, which can add excavation and labor expenses. Pool permitting requirements in St. Petersburg and local building codes can also influence your budget and timeline.
Pool Financing Options Available in St. Petersburg
After getting a detailed quote from your pool builder, it is time to assess your custom pool financing options. According to Business Insider, you typically need a credit score of 650 to 680 to qualify for a pool loan. Some common types of pool financing include personal loans, home equity loans, home equity lines of credit (HELOC), and pool financing through pool builders.
Here is a quick breakdown of the pros and cons of these different types of pool financing from industry experts, including Business Insider, Nerd Wallet, and The Mortgage Reports.
Home Equity Loans
- Key features: This is a fixed-rate loan secured by your home, where you borrow a lump sum based on your home’s value.
- Pros: You have more time (10 to 30 years) to pay back the loan, and you can secure a lower interest rate if you have plenty of home equity.
- Cons: If you do not have much home equity, you will likely have higher closing costs, and there is a risk of foreclosure.
HELOCs
- Key features: HELOCs are also based on your home’s value, but they work more like a credit card. This is called a revolving credit line, allowing you to borrow as needed.
- Pros: This type of financing provides more flexible borrowing, such as interest-only payment options.
- Cons: If your draw rate is longer than your pool installation, you could face additional fees for closing the line of credit early. Rates are variable, with fluctuating payments.
Unsecured Personal Loans
- Key features: This is a personal loan based on your credit standing, rather than using your home as equity. They are often acquired through a bank, credit union, or online lender.
- Pros: You can usually get a personal loan approved very quickly, and there is no foreclosure risk.
- Cons: They generally have higher interest rates and may require shorter payment periods with larger payments. And they do not always cover high-end pools that cost over $100,000.
Pool-Specific Lenders
- Key features: Reputable pool-specific lenders such as Lightstream, Lyon Financial, and Viking Capital specialize in pool loans and work with custom pool builders to streamline the financing process.
- Pros: These can work as full-service lenders, where they handle many of the details around financing and may offer faster approvals and competitive interest rates.
- Cons: These lenders normally require good credit, and their terms and interest rates can vary, so you should review all terms, interest rates, and associated fees before agreeing to them.
Four Steps for Luxury Pool Financing in Florida
No matter what type of loan you choose to finance your Florida custom pool, it is important that you review the terms and conditions carefully, including interest rates and any associated lending fees.
Here are four key steps normally involved in custom pool financing.
- Review and assess your financial situation: This includes checking your credit score. As we noted earlier, most lenders prefer a rate of at least 650 to 680 or more in order to offer more favorable rates. You also need to realistically look at how much you can afford for each monthly payment.
- Get a detailed estimate of your pool’s cost: It is important to work with a reputable, custom pool builder who will offer transparent pricing, from your pool materials to custom water features and add-ons. This provides a more accurate pool quote, so you will know how much money to borrow.
- Compare your pool financing options: From local banks and credit unions to pool-specific providers, you want to explore all your financing options. See what rates you qualify for and check for special benefits, such as no fees or reduced overall loan cost, based on your credit rating and home equity.
- Evaluate your terms and conditions: Make sure to review available interest rates, repayment periods, fees, and any prepayment penalties. Some lenders will help you pre-qualify online to see prospective rates and monthly payments.
- Apply for your custom pool loan: Now it is time to submit your loan application, which you can often do online. A loan approval normally takes 24 to 72 hours, depending on the lender. Be prepared to provide proof of income, credit information, and a copy of your custom pool quote or estimate from your pool builder.
Special Considerations for St. Petersburg Homeowners
Before you begin financing your custom pool, you should know that St. Petersburg and the surrounding areas have their own guidelines when it comes to codes and permits for building and installing an inground pool. These include specific regulations around the pool’s construction that could impact costs and the size of your pool loan. This is especially important for custom pools that may require region-based features, such as beach access with a gradual descending slope.
Fortunately, at Winway Pools, we are well-versed in all the local codes and permits around custom pool construction in the St. Petersburg area. We are a licensed and insured pool builder with more than two decades of experience in handling all the code and permitting logistics in order to protect your pool investment.
Winway Pools Can Help You With a Smooth Pool Financing Experience in St. Petersburg, Florida
A reputable, custom pool builder can make your pool financing experience a stress-free one. At Winway Pools, we work with leading financial institutions to help you get financing for your luxury pool in the St. Petersburg area. We also want to help you get the best value from your custom pool investment, which is why we are committed to transparent pricing, from your pool materials to custom water features and add-ons.
After all, you are not just hiring someone to dig a hole and fill it with water. A custom luxury pool is a significant investment that will transform your backyard into a beautiful oasis for you and your family. Contact Winway Pools today to schedule a consultation for a free quote to build a custom pool to fit your taste and lifestyle. We’re also ready to put you in touch with a full-service pool lender who can make your financing experience a smooth one.
