Pool escrow loans are a type of renovation loan that allows for the addition of a swimming pool, either in a refinance or purchase transaction.  Borrowers will enjoy one loan under one low interest rate.  There are limits on the amount of cost associated with the pool, which will be determined by the equity and property value of your home.  Pool escrow loans are a great alternative to a high interest equity loan and give you flexibility without paying cash out of your pocket.  These types of loans are also popular with new construction projects where a builder typically does not include the cost of a pool in the purchase of the home.  You choose the pool contractor, we provide the financing!

Pool escrows are available for both conventional and jumbo loans. They allow a client to buy or refinance a home and include the cost of a pool and outdoor living space within their mortgage, all under one low rate. For conventional loans, the max pool budget is 50% of the as-completed appraised value, and for jumbo it is the lesser of 30% or $250,000.

  • Maximum loan size of $424,100 
  • Minimum down payment of 5% of home cost plus renovation budget 
  • Minimum credit score 660, with exceptions to 640 
  • Contingency, or emergency fund percentage of 10% is required 
  • Up to 3 contractors allowed, but a general contractor is preferred 
  • No structural repairs allowed 
  • Project cannot exceed 60 days 
  • Great for home purchase or refinance 

Example Loan Scenario
Purchase Price: $379,000
Renovation Costs: $35,000
Total Cost: $414,000
Down Payment: $20,700 (5%)
Loan Amount: $393,300
Appraised Value: $427,900
Equity Gained: $13,900