How to Finance Your Tiny Pool Without Losing Sleep
Picture this: the sound of splashing water on a hot Austin afternoon, kids laughing, a cold drink in hand, and your own backyard oasis just steps away. That’s the dream, right?
We get it… building a pool is a big investment. For many homeowners, the excitement of designing a perfect backyard is quickly followed by the question: How am I going to pay for this?
The good news? Financing a pool doesn’t have to be overwhelming. In this post, we’ll demystify pool financing in Austin and beyond, so you know your options and can move forward with confidence.
Step 1: Know Your Budget
Before you start looking at loan options, it’s important to understand the true cost of a pool.
It’s more than just construction. Beyond the build itself, you may need to account for landscaping, fencing, and ongoing maintenance.
Get multiple quotes. Aim for 2-3 detailed bids from pool builders. This not only gives you a realistic idea of costs but also helps you compare apples to apples. Many builders want to present a low bid to get you to sign a contract, then combe back to you for more money later. Ask questions about what is included and what isn’t!
Why this matters. Having a clear budget helps you choose the right financing option and ensures you’re borrowing the right amount. You’ll need enough to cover the project, but not so much that you overextend yourself.
Step 2: Understand Your Financing Options
When it comes to how to finance a swimming pool, most loans fall into two categories: secured (backed by your home) and unsecured (not tied to collateral). Here are the most common options:
Home Equity Loan
What it is: A lump-sum loan based on the equity in your home.
Pros: Lower interest rates (since it’s secured), predictable fixed payments.
Cons: Your home is collateral—if you default, foreclosure is a risk.
Home Equity Line of Credit (HELOC)
What it is: A revolving line of credit, like a credit card backed by your home’s equity.
Pros: Flexible—you borrow only what you need, when you need it.
Cons: Variable interest rates can rise over time, and your home is still collateral.
Personal Loan
What it is: An unsecured loan from a bank, local credit union, or online lender.
Pros: Faster funding, and your home isn’t at risk.
Cons: Higher interest rates than secured loans, with potentially lower borrowing limits.
Cash-Out Refinance
What it is: Replacing your existing mortgage with a new, larger one, using the difference as cash for your pool.
Pros: One consolidated monthly payment, possibly lower interest rates.
Cons: You restart the mortgage clock and may face significant closing costs.
Check Your Rate
Several of our clients have successfully used HFS Financial — a leading provider of personal (home improvement) loans that we have partnered with. You can see what rate you qualify for (soft credit inquiry - does not affect your credit score). Learn more by clicking here.
Bringing It All Together
Financing your pool project comes down to preparation. Start with a clear, realistic budget, then explore your financing options to find the best fit for your situation. Whether you tap into home equity, take out a personal loan, or refinance, the goal is the same: making your dream pool a reality without unnecessary stress.
At Texas Tiny Pools, we know the numbers can feel daunting, but we’ve seen time and again how the right financing plan transforms a backyard into a personal paradise.
Ready to dive in? Contact us today to start your project!
