How To Add A Pool To Your Purchase Loan…

It’s possible to include the build out of a pool into a conventional purchase mortgage.

…it’s done on a purchase with an escrow hold back for the pool.

Here are some basic guidelines for the pool escrow hold back…

1) It would have to be a conforming loan – so at least 5% down payment on a purchase.

2) Your contractor will have 90 days to complete the pool after your purchase. Note – your house builder would have to become the general contractor for the pool construction. In other words it would be included in your builder contract.

3) There can be up to 3 draws (checks) for the contractor – with the last one coming after the final inspection.

4) The value of the pool is used in the loan to value calculation.

5) The amount of the escrow hold back will be equal to 150% of the amount quoted by the contractor.

6) Primary residence only.

7) Maximum amount of escrow is $20,000 or 10% of property value for LTV’s of 90% to 95%.

8) Maximum amount of escrow is $20,000 or 15% of property value for LTV’s less than 90%.

Keep this in mind the next time you are house hunting – if you have your heart set on a pool.

That’s it for today!