Pool & Backyard Financing — Honest Look at Rates, Terms, and Trade-offs
Cash, HELOC, secured pool loan, unsecured pool loan — what each really costs over 7 years on a $90K backyard build.
Four common paths
- Cash — zero interest, 100% control, opportunity cost of the capital.
- HELOC — typically the lowest rate (prime + 0.5–2%), variable, secured against home equity.
- Secured pool loan — fixed rate, 7–20 year terms, lien against the property.
- Unsecured pool loan — fastest to fund, higher rate (8–14% APR depending on credit), no lien.
Real numbers on a $90K build (2026 rates)
HELOC at 8.25%: ~$1,100/mo over 10 yrs. Secured pool loan at 9.5% for 15 yrs: ~$945/mo. Unsecured at 12% for 7 yrs: ~$1,580/mo. Cash: $0/mo + $90K opportunity cost (in a 5% money market = ~$4,500/yr foregone).
What lenders look at
Mid-FICO ≥ 680 for secured pool loans, ≥ 700 for best rates. DTI under 45%. Lenders want to see permitted, licensed work — ROC numbers on contracts speed approval. They reject unlicensed handyman bids.
Trade-offs nobody mentions
HELOC variable rates can move up mid-project. Unsecured loans don't touch home equity but cost 30–50% more over the life. Cash is cheapest but kills your liquidity. The right path depends on your equity, FICO, and how aggressively you're investing elsewhere.
