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 conventional 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.

  • 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
  • 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