30 Jan Financing your Backyard Dream is Easy
Financing your Backyard Dream is Easy
At California Pools, we know that a pool is an investment — in your home and in your family’s lifestyle. That’s why we offer pool funding options to help make your dream pool affordable. California Pools & Landscape’s financial strength has enabled us to build exceptional relationships with financial institutions across the Valley. We have numerous unsecured and secured loan products available to you. We can help make your dream backyard a reality today!
Second mortgage pool loans offer lower monthly payments, minimal closing costs, no pre-payment penalties, fixed rates, and the interest can be tax deductible.
- Payments on a 15 year $35,000 secured loan would be as low as $318 per month!
- Currently we have 10 year secured pool loans available with rates as low as 6.9% as well as 15 year secured pool loans starting at 7.15% and 20 year secured loans at 9.25%.
- For those customers who have substantial equity in their homes these rates can be even lower.
- Our preferred lenders will loan up to 115% – 130% loan-to-value so little to no equity is required for these specific programs.
- Typically the maximum loan amount is $100,000.
These loans require:
- At least a 660 Experian FICO credit score.
- A 40-42% debt to income ratio that includes the pool payment.
- Foreclosures need to be at least 4 years old and short sales over 2 years old.
- Proof of all income will also be required.
Unsecured pool loans are basically personal loans that are not tied to the equity in your home and offer an affordable alternative to a secured second mortgage loan. For example payments on a 15 year $35,000 unsecured loan would start at $315 per month. For very well qualified buyers unsecured loans can start at 5-6% range depending on the length of the loan. Unsecured loans require higher FICO credit scores than secured loans as the approval is based solely on the applicant’s credit profile and not secured by an asset like a house.
One of the most commonly used payment methods by our clients for their outdoor living environment is to include this cost with the purchase their home. By including the project price into the home’s first mortgage it provides the simplicity of having the cost rolled into one payment. This is not only convenient but also reduces the monthly cost of owning the backyard of your dreams.
When including the pool, spa, landscape and/or ramada into you home purchase, there a few things we like to make our clients aware of.
Lenders will allow the closing of a home and our clients to move in while our work is still to be completed. This happens often as many homebuilders will not allow you to start construction on your outdoor living environment during house construction without a large financial deposit to the homebuilder. When lenders see there is work to be completed on a home site at closing, they will ask for that remaining sum of money be placed in an escrow account to be dispersed upon an inspection of the completed work.
They will also ask that a client place an additional 50% of that sum be placed in the escrow account as a show of good faith that the work will be completed in a timely manner. This is called a mortgage holdback. Clients are typically not made aware of this additional deposit until they are asked to place the money up during the signing of the closing documents for the new home. This results in clients looking for assistance with the last minute funds needed to complete the closing of the home. Many construction companies are not in a financial position to assist their clients with the holdback. Some companies will only supply the holdback funds for a large fee.
California Pools & Landscape will place any holdback up to 50% for our clients at no additional fee or hassle. Another reason to contact California Pools & Landscape to design your dream yard today!
Lenders will typically only accept one agreement for outdoor living environments to be included in their home mortgage. This often leads to clients coming out of pocket for portions of their pool, spa, landscape and/or ramada. California Pools & Landscape is properly licensed, bonded, and insured as a complete outdoor living construction company. This means we can include all of your front and backyard needs into one straight forward contractual agreement.
California Pools & Landscape charges no fees to help you finance your backyard. We offer this service to our customers so they have an affordable way to make their dream yard a reality.