Hot tubs are great for stress and pain relief, an improved sense of wellness, and a convenient way to kick back and relax, whether alone or in the company of friends and family. But benefits aside, these luxurious warm-water retreats aren’t cheap.
A hot tub can run anywhere from $2,000 to $32,000, according to Consumer Affairs, with mid-tier hot tubs typically ranging between $4,000 and $8,000. And that doesn’t include the costs of ground preparations, electrical wiring, or installation.
Fortunately, though you may not find a specific “hot tub loan,” there are several ways to secure financing. In this guide, we’ll provide some of the most popular ways to finance your new hot tub as well as some lenders you may want to consider.
In this guide:
How to finance a hot tub
There are several ways to access the funds you need to install your hot water oasis. These include dealer financing, home equity loans or lines of credit, and personal loans.
Many hot tub dealers offer qualified customers financing packages, which allows them to fund the purchase of the hot tub as well as any dealer-provided accessories.
Aside from offering an easy and convenient way to finance your hot tub, special financing offers for prime borrowers may make dealer financing more affordable when compared to other financing options—but not always.
Those who don’t have good or excellent credit to qualify for a dealer offer may be stuck with higher rates whether they use dealer financing or another method.
In addition, hot tub financing through the dealer typically does not cover additional costs, such as those you may incur while preparing your home for hot tub installation.
Leveraging home equity
If you’re purchasing a hot tub, you likely own your home. And if you have equity in your home—typically at least 15% to 20%—you may be able to leverage it by taking out a home equity loan or home equity line of credit (HELOC).
Both financing options are secured by your home and usually carry low interest rates, even for borrowers with average credit.
Both home equity loans and HELOCs require you to use your home as collateral, so only use these options if you’re confident you can manage your monthly payments.
Home equity loans
Home equity loans are traditional loans that are secured by your home. As such, they often have lower rates than unsecured loans and are also accessible to borrowers with fair or poor credit. These loans typically have fixed rates and require monthly payments.
If you’re considering a home equity loan, our list of the best home equity loans is a good place to start your search.
A home equity line of credit gives you access to an approved pool of funds for a specific period—e.g., five to 10 years. You can draw on the funds as needed, and you’ll only need to make payments, plus interest, on the amount you borrow, similar to a credit card.
A HELOC may be a good option if your hot tub installation will take place over a few months, or if you’re worried about additional preparation or installation costs. For instance, if you’re also installing a deck or concrete pad, a HELOC will give you time and potentially the financial bandwidth to do so.
If you’re interested in taking out a HELOC, you can review our list of the best HELOCs to get started.
Personal loans are another hot tub financing option. Typically unsecured, borrowers can use them for a broad range of purposes, including as a home improvement loan. A personal loan can also give you the freedom to make any additional purchases or cover costs associated with your hot tub.
Although personal loan rates may be higher than for home equity loans, your home won’t be at risk if you can’t pay back your loan.
Read through our list of the best personal loans to compare your options, or check out the lenders below.
>> Read more: Swimming Pool Loans: Is Financing a Good Idea?
LendEDU’s 3 best hot tub loans
Here are a few of our top-rated personal loan lenders for borrowers of any credit score.
Hot tub financing with good credit: LightStream
LightStream offers a Home Improvement/Pool/Solar Loan, which the lender markets specifically for hot tub financing.
Borrowers with good credit can get rates as low as 4.99%, and the company also works to beat any qualifying rates from other lenders and offers a $100 Loan Experience Guarantee.
- LendEDU rating: 5.00 / 5.00
- Loan amounts: lightstream-perl-43-amountlow to lightstream-perl-43-amounthigh
- Loan terms: lightstream-perl-43-termlengthrange_m
- APRs: lightstream-perl-43-alllow to lightstream-perl-43-allhigh
- Full review: LightStream Personal Loan Review
Hot tub financing with fair or average credit: Marcus
Marcus offers home improvement loans, the funds from which you can use for hot tub or spa financing. Borrowers with fair credit can take advantage of competitive rates and avoid several fees, including sign-up fees, appraisal fees, closing fees, and even late fees.
- LendEDU rating: 5.00 / 5.00
- Loan amounts: marcus-perl-56-amountlow to marcus-perl-56-amounthigh
- Loan terms: marcus-perl-56-termlengthrange_m
- APRs: marcus-perl-56-alllow to marcus-perl-56-allhigh
- Full review: Marcus Personal Loan Review
Hot tub financing with bad credit: OneMain Financial
OneMain Financial offers personal loans you can use to fund a variety of purchases, including a hot tub.
The lender offers both secured and unsecured loans and prides itself in making decisions that consider more than the borrower’s credit score. However, borrowers need to visit a OneMain Financial branch to complete the loan process.
- LendEDU rating: 5.00 / 5.00
- Loan amounts: onemainfinancial-perl-51-amountlow to onemainfinancial-perl-51-amounthigh
- Loan terms: onemainfinancial-perl-51-termlengthrange_m
- APRs: onemainfinancial-perl-51-alllow to onemainfinancial-perl-51-allhigh
- Full review: OneMain Financial Personal Loan Review
How we rate hot tub loans
Personal loans are the most convenient and readily available form of spa financing. To form our ratings, we analyzed nine different data points related to personal loan lending. You can read more about our methodology here.
Bottom line: Which method of hot tub financing is right for you?
A hot tub can be a welcome addition to your home life, but it can also be a fairly large expense. If you don’ have enough cash on hand to finance your purchase, or if you simply don’t want to part with that much cash upfront, hot tub financing can help.
Each option comes with a unique set of pros and cons, so it’s important to weigh your options by reviewing your total costs (including preparation and installation), understanding how your credit will impact your options, and comparing lenders.
Author: Jennifer Lobb
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