Paying for the project

Financing options for pools, suites and additions

We get asked this on almost every consult. We are builders, not lenders or financial advisors, so instead of steering you we lay out the options Tampa Bay homeowners actually use, what each one is good at, and where the tradeoffs hide.

Lenders our clients shop first

We do not receive a commission or referral fee from any lender listed here. These are simply the options Tampa Bay homeowners quote most often for Watermark projects.

Unsecured home improvement loans

Shops multiple lenders for unsecured home improvement loans, with no appraisal, no lien on your home and no prepayment penalty on most programs. Checking options does not obligate you to anything. Best for projects from $100,000 to $450,000.

APPLY AT HFS FINANCIAL

Unsecured home improvement loans

A digital branch of Truist offering unsecured home improvement loans with fast funding, no fees, and no collateral for qualified borrowers. A good option to quote alongside HFS when financing $100,000 or less.

Check LightStream

Pool and outdoor-specific loans

Pool and outdoor-specific financing with longer terms than many general personal loans. Worth quoting for pool, spa and hardscape-led projects up to $250,000.

Apply at Lyon Financial

Eight ways clients fund a Watermark project

Most homeowners quote two or three of these side by side. Compare the total cost of borrowing, the funding timeline, and whether the debt is secured by your home.

Unsecured home improvement loan

Fast funding, no equity required, no lien on the home

Approval in days rather than weeks, no appraisal, and the project is not collateralized. Rates are typically higher than equity-secured debt, and interest is generally not tax deductible. Best when you have limited equity, want to keep your first mortgage untouched, or need to start quickly.

Commonly used: HFS Financial, LightStream

HELOC (home equity line of credit)

Draw only what the project actually uses

A revolving line against your equity. You pay interest only on what you draw, which fits construction draws well. Rates are usually variable, closing can take several weeks, and the line is secured by your home. Interest used for substantial improvements may be deductible within IRS limits.

Commonly used: Your bank, Navy Federal, USAA, local credit unions

Home equity loan (second mortgage)

Fixed rate, fixed term, one lump sum

Predictable payments for a known project cost. Better suited to a fully designed and priced scope than to an open-ended wish list. Secured by your home, so underwriting and appraisal timelines apply.

Commonly used: Banks and credit unions

Cash-out refinance

Large projects when your current mortgage rate is already high

Replaces your existing mortgage with a larger one. It can consolidate everything into a single payment, but it resets your term and closing costs are significant. Rarely the right move if you hold a low legacy mortgage rate.

Commonly used: Mortgage lenders and brokers

Renovation mortgage (FHA 203(k), Fannie Mae HomeStyle)

Buying a home you intend to renovate immediately

Rolls the purchase and the renovation into one loan based on the after-improvement value. Paperwork and draw administration are heavier, and the contractor and scope must be approved by the lender. Powerful when there is not yet equity to borrow against.

Commonly used: Approved renovation lenders

Pool and outdoor-specific lenders

Pool, spa and hardscape-led projects

Lenders that underwrite backyard projects specifically and sometimes offer longer terms than a general personal loan. Worth quoting alongside an unsecured option so you can compare apples to apples.

Commonly used: Lyon Financial

Credit union and military-affiliated lenders

Active duty, veterans and eligible family members

Navy Federal Credit Union and USAA serve the military community and frequently price home equity products competitively with lower fees. Membership eligibility applies. Local Tampa Bay credit unions are also worth a quote.

Commonly used: Navy Federal, USAA, local credit unions

Cash and staged phasing

Homeowners who would rather build in defined phases

The cheapest capital is your own. When a full scope stretches the budget, we can design the whole property once and permit and build it in logical phases so nothing gets torn out and redone later.

Commonly used: —

Worth asking your CPA about

Where tax treatment sometimes helps

Interest on home-secured debt. Interest on a HELOC or home equity loan used to substantially improve the home that secures it may be deductible within IRS limits. Interest on an unsecured personal loan generally is not.
Capital improvements and cost basis. A pool, ADU, addition or major renovation is typically a capital improvement rather than a repair, which can increase your cost basis and reduce taxable gain when you eventually sell. Keep your proposal, change orders and final invoices.
Energy-efficiency incentives. Certain high-efficiency HVAC, water heating, insulation, windows and solar equipment can qualify for federal credits or utility rebates. If efficiency upgrades are in scope, ask us to itemize them so the documentation is clean.
Rental or multigenerational use. If a Generational Suite™ will be rented, the tax picture changes materially — depreciation, expense allocation and local rules all come into play.

Watermark Design Build LLC is a licensed residential builder. We are not lenders, mortgage brokers, tax preparers or financial advisors, we receive no compensation from the lenders named on this page, and nothing here is financial, lending or tax advice. Rates, terms, eligibility and tax rules change and vary by situation — confirm everything with the lender and with a licensed CPA or tax professional.

Financing questions we hear weekly

What is the best way to finance a pool, ADU or outdoor living project?

There is no single best answer — it depends on how much equity you have, how fast you need funds, and whether you want a fixed payment. Homeowners with substantial equity often use a HELOC or home equity loan for the lower rate. Homeowners who want speed, no appraisal and no lien on the home usually choose an unsecured home improvement loan. Pool-heavy projects sometimes get better terms from a pool-specific lender. Compare the total cost of borrowing, not just the monthly payment.

Do you offer in-house financing?

No. Watermark Design Build does not lend, broker loans or receive a commission for steering you to a lender. We share the options our clients use most so you can shop them yourself, and we provide the scope and proposal documentation lenders ask for.

How much financing should I apply for?

Apply based on your approved line-item proposal, not a rough guess, and leave room for the allowances and any owner-selected upgrades you are still deciding on. Because our proposals are built from a real cost catalog and selections are frozen before we mobilize, the number you finance is the number you spend.

Are home improvement loan payments or interest tax deductible?

Sometimes, and only in specific circumstances. Interest on debt secured by your home and used to substantially improve that home may be deductible within IRS limits; interest on an unsecured personal loan generally is not. Capital improvements can also add to your home's cost basis, which may reduce taxable gain when you sell, and certain energy-efficient equipment may qualify for federal credits. These are general points, not advice — confirm your situation with a CPA or tax professional.

Can military families get better renovation financing?

Often, yes. Navy Federal Credit Union and USAA both serve active duty, veterans and eligible family members, and credit-union rates and fees on home equity products are frequently more favorable than a retail bank. Membership eligibility rules apply, so check with them directly.

Get a real number to finance against

Lenders want a scope and a price, not a guess. Start with a complimentary feasibility check and we will tell you honestly what your project takes on your property.

Start my feasibility check See what we build