Finance Your Arizona Dream Pool

Arizona Homestyle Pool Mortgage Loan

When my wall calendar flips to May I know 100 + degree temps are just around the corner in Arizona.  With the Arizona housing market as hot as the summer weather that is headed our way, new Phoenix area homeowners will be looking for a way to get out of the sweltering heat.  I have great news!  We now offer a unique and innovative home loan program that allows home-buyers to finance a pool into their new home.  It is called a “HOMESTYLE” mortgage.

What is a HomeStyle Home Loan

Homestyle is a Conventional mortgage with a few additional bells and whistles (very cool bells and whistles).  The basic difference between a Conventional loan and a Homestyle mortgage is that a home-buyer using a Homestyle mortgage is allowed to finance the cost of various improvements, repairs and renovations into their mortgage (including a new pool).

How Does the HomeStyle Home Loan Work?

Essentially (and this is a simplified explanation), the costs associated with the improvements to the home are added to the contract purchase price of the home.   This total represents the true cost of the home and the improvements to the buyer.  The buyer is then required to put down at least 5% of that combined total as a down payment (for a primary residence purchase other occupancy types have different down payment requirements).  Then, the funds that were financed in for improvements to the home are held back by the buyer’s mortgage lender after the buyer closes on the home and becomes the official owner of the property.  As the approved contractor completes the scheduled improvements to the property post closing, the buyer’s Arizona mortgage lender disperses funds to that contractor to pay for the work being completed.  There are more details surrounding how and when funds are dispersed however the purpose of this article is to help you gain a general understanding of this concept rather than make you a Homepath lending expert!  One item worth repeating is that all the improvements that are being completed through the Homestyle mortgage are done AFTER the buyer closes on the purchase of the property.  At that point, the seller is long gone/paid off and out of the picture.  The buyer owns the home before a single shove full of dirt is dug up.

Example of HomeStyle Loan:

Lets look at an example.  Bob and Sally Swimmer are purchasing a new Arizona primary residence with no pool for $275,000.  Due to to Bob’s aversion to long hot summers, and due to Sally’s aversion to Bob’s sweaty summertime t-shirts they decide to add a pool to their new desert dream home.  Here is how this would  all made possible with our Homestyle mortgage:

Purchase details:

1. Home Cost – $275,000
2. Pool Cost – 25,000

Homestyle Mortgage Details:

1. Down payment: 5%
2. $300,000 (total cost) x’s 5% (down payment) = $15,000
3. LOAN AMOUNT/AMOUNT BORROWED- $285,000 (buyer has standard mortgage options such as 30 year fixed, 15 year fixed…)

It is essentially that simple.  The Swimmers would borrower a grand total mortgage equal to $285,000.  Their Arizona mortgage lender would hold back $25,000 (plus a required buffer equal to 10% of improvement costs to cover overruns by the contractor) to cover the cost of the pool after closing.  As the pool builder/contractor progresses with the pool build, the Swimmer’s Phoenix area mortgage lender would distribute funds to the pool builder based on a pre-defined schedule.  Again, there are more finite details that go with this program however that is exactly what my team and I are here for.  We will handle the rest and make this process as simple as possible for you.

This is a great tool that hot Arizona homebuyer’s can use to beat the heat and build their dream pool as a part of their new home purchase.  Call or email me today to find out how this program can help you, your family, friends and/or co-workers build the best mortgage plan for their family.   You can also apply online right now- Apply now.

By Jeremy House



  1. Melissa Gomez says:

    So with this type of loan, we would have to find contractors that are fine with being paid after the work has been completed and I’m assuming looked over?

    • Hi Melissa. How are you? The contractors are paid as they go. They request draws for funds needed for materials etc through the process. The way they get paid is the same if not better than if you hired them on your own as we give them advance draws. A final draw is distributed after the work is completed and reviewed.

  2. Do you (and or Fannie Mae) still offer the HomeStyle loan program?


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