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Everything You Need to Know About Hot Tub Financing

Everything You Need to Know About Hot Tub Financing
Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated June 30, 2022
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Consumers with good credit or bad credit may have several options for buying and installing a hot tub. Elite spas can cost more than $20,000, while inflatable hot tubs may cost several hundred dollars.Consumers may have several options for financing a hot tub purchase and installation, including personal loans, retail financing, home equity lines of credit, and home equity loans. Below we highlight these four hot tub financing options.

Costs Associated With Financing a Hot Tub

The costs associated with financing a hot tub may include the purchase, delivery, and installation of the spa. As mentioned above, inflatable hot tubs can cost several hundred dollars, whereas elite spas can cost more than $20,000.Hiring labor to install your hot tub can cost hundreds of dollars or thousands of dollars depending on the make and model. Hot tubs can promote recreation and physical therapy, but they can also carry steep price tags. Some of the options for hot tub financing may include daily simple interest charges.

Is It Hard to Get Financing for a Hot Tub With Bad Credit?

It can be hard — but not impossible — to get financing for a hot tub with bad credit. Getting hot tub financing with bad credit may require the presence of a creditworthy cosigner. A cosigner is an individual who shares the financial responsibility of repaying the loan alongside the primary borrower, which reduces risk to the lender.

Different Hot Tub Financing Options

Here are different hot tub financing options you may consider:

Personal Loan

A personal loan may provide you with hot tub financing. The way a personal loan works is you receive a lump sum of money known as the loan principal. You must repay the principal over a set term and any interest charges and fees that may apply.There are various personal loan types you may consider when looking for hot tub financing. A repayment term on a personal loan can range from 12 months to seven years. Some lenders may charge origination fees and daily simple interest on the loan.

Retail Financing

Retailers may offer in-store financing to help you pay for the cost of buying, delivering, and installing a hot tub. Some retailers may allow you to make interest-free monthly payments over a six-month period.


A home equity line of credit, also known as a HELOC, is a revolving line of credit that can help you finance the purchase and installation of a hot tub. With a HELOC, homeowners can borrow against the available equity in their homes during a draw period that may run for several years. Home equity is the value of your home minus any outstanding mortgage loan obligations you may owe.Homeowners with good credit scores and low debt-to-income ratios have the best chance of getting approved for a HELOC. In addition to hot tub financing, the home equity line of credit may also serve as a pool loan for financing the cost of installing a swimming pool. Failing to repay a HELOC can result in home foreclosure.

Home Equity Loan

Home equity loans can provide homeowners with a lump sum of money to use for financing hot tub purchases. The cost of buying, delivering, and installing a hot tub can exceed $20,000. Home equity loans allow homeowners to borrow against the equity of their homes as collateral.Some lenders may allow you to borrow up to 80% of the equity in your home or more. Failing to repay a home equity loan can result in home foreclosure. 

Comparing Hot Tub Financing Options

The below table compares several hot tub financing options:
Personal loanRetail financingHELOCHome equity loan
Can range from $1,000 to $100,000Can provide financing for large purchasesCan provide a revolving credit limit ranging from $100,000 to $1 millionCan range from $5,000 to $1.5 million
Repayment term can range from 12 months to seven yearsMay provide a six-month interest-free promotional period on large purchasesMay feature a 10-year draw period for borrowing funds followed by a repayment period up to 20 yearsRepayment term can range from five to 20 years
Interest rates can range from 5.74% to 35.99%Interest rates can range from 17.99% to 26.99%Interest rates can range from 4.95% to 10.10%Interest rates can range from 5.856% to 9.625%
Funding can be secured with collateral or unsecured without pledging collateralFinancing may be unsecured without collateralThe line of credit is secured by your home as collateralThe loan is secured by your home as collateral

Things to Consider When Financing a Hot Tub

Here are some things to consider when financing a hot tub:

Risk of Default

Borrowing money to finance the purchase, delivery, and installation of a hot tub can have serious consequences if you fail to make required repayments. Failing to pay and defaulting on a personal loan can have a major impact on your credit score. Lenders may also seize your collateral if you default on a secured or collateralized loan product.Whether you’re getting a $5,000 personal loan or some other amount, lenders generally expect borrowers to repay the principal in full over the life of the loan. Borrowers are also expected to pay any finance charges that may apply.

Approval Not Guaranteed

There’s no guarantee that a creditor will approve your request for hot tub financing. Lenders may take several days before making a decision on whether to approve or deny your credit application. Lenders may give you several ways to check your personal loan application status, including going online or contacting the lender by telephone.

Interest Charges Can Be High

Interest charges on hot tub financing in some cases can be relatively high. The average personal loan interest rates on 24-month personal loans stood at 9.41% as of the first quarter of 2022, according to Federal Reserve data. Borrowers with excellent credit may qualify for personal loans with interest rates below 6%. Borrowers with bad credit, meanwhile, may get personal loans with interest rates as high as 35.99%.

High Loan Amounts Not Guaranteed

Banks, credit unions, and private lenders may offer large personal loan products up to $100,000. Some borrowers, however, may not qualify for large amounts of principal. There’s no guarantee that you’ll qualify for a large amount of financing. Lenders in some cases may present you with a counter offer of a lower loan amount than what you’ve requested. Your credit score and debt-to-income ratio may impact the maximum personal loan amount you can get from a lender.

Financing May Serve Other Needs

Some consumer loans may give you wide discretion on how you may use the funds for personal, family, or household purposes. Borrowers may have great versatility on how to spend the loan money.Among the different ways to use personal loans is spending the money on expenses related to financing a hot tub. You can also use the loan money for other purposes, including debt consolidation.

Exploring Personal Loan Rates

Unless you have ample savings, it may be difficult for you to buy a hot tub without borrowing money. A spa can cost thousands of dollars as a luxury amenity.If you need financing and a solution for comparing personal loans, Lantern by SoFi can help. Just provide basic information about yourself and the loan you need, and Lantern can guide you in the process to apply for a personal loan with the lender of your choice.Find and compare personal loan options with Lantern.

Frequently Asked Questions

Can you finance a hot tub with bad credit?
Can you use a personal loan to finance a hot tub?
What is the cost associated with financing a hot tub?
Photo credit: iStock/zysman

About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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