Hot Tub Financing: Best Personal Loans to Consider in 2024

If you have back pain, are an athlete, or are recovering from an injury, a hot tub can be therapeutic. It’s also a great place to unwind and relax. Once you decide that you want to buy a hot tub, you need to figure out how to pay for it. That’s where hot tub loans come in. The costs of financing a hot tub vary based on the type of loan and your overall credit profile. You want to find the right lender with the best loan products and our team of financial experts did the homework for you. They reviewed and ranked more than 30 online lenders to help you get funded.

Hot tubs can be expensive and they vary in price based on their design, size, and quality. However, you should expect to spend anywhere from $2,000 to $32,000 on one. Given their price, you will want to save money on your financing costs. That’s why it’s so important to consider a number of factors to ensure that you get the most competitive rate and the terms that best fit your needs.

Our team of financial experts ranked lenders based on our ratings methodology for personal loans and found the best loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Best Personal Loans for Hot Tub Financing: Full Overview

The following companies offer the best online personal loans. These loans aren’t necessarily specific to hot tubs but can definitely be used to purchase a hot tub.

How to Choose the Best Hot Tub Financing?

• Loan Features: Know the type of loan you’re getting and if you will receive a lump sum or have access to a revolving line of credit. Both of which can be used for financing a hot tub. Be familiar with minimum and maximum loan amounts, the length of the loan, called the term, and loan use limitations.
• Interest rates and fees - Considers different types of fees such as origination fees, prepayment penalties, application fees, and late fees. Know what the minimum and maximum interest rates are as well. Typically, the higher your credit score, the lower your rate will be.
• Application process - Can you apply for the loan online? Is the application long and invasive or short and simple? Find out if the company requires a soft-pull or a hard-pull on your credit. How long will it take for the loan to fund and how will you receive the money? What else does the company offer you that its competitors don't?
• Qualification process - Lenders have criteria that you need to meet in order to qualify for a hot tub loan. There’s usually an income requirement and a minimum credit score that needs to be met. Find out if you need to be a member, especially if the lender is a credit union. Additionally, see if joint applicants or co-signers are allowed.
• Customer support - Consider accessibility to a live CSR rep, the degree of multi-channel support, and the availability of supplemental information and tools. Make sure that the type of support and the available hours work for your lifestyle. Companies that offer webinars, blogs, help centers, and FAQs are helpful too.
• Online user reviews - Reviews on independent review sites like Trustpilot can show you a lot about the company, its support team, and its loan products. Read both negative and positive reviews and see if there are any overarching themes that the lender is doing well or poorly.
• Perks and Bonuses - Consider specified service offerings like payment flexibility, advertising transparency, and advanced technology. What does the company do for you as a customer? How does this compare to what other companies offer you?

Main Features of the Best Personal Loans for Hot Tub Financing 

Hot Tub Financing With Dealer Loans

Dealer financing is a specialty type of loan program offered by a dealer for the specific product that they are selling. For instance, hot tub dealers sometimes offer in-house dealer financing where they will finance the hot tub themselves or outsource the deal to a lender that they work with. They may have a list of banks and lenders that they can use to finance the deal depending on the borrower’s qualifications.

This saves you time because you won’t have to search for lenders on your own. They also don’t require your house as collateral as HELOCs and home equity loans do. However, there may not be as much loan transparency as with other lenders and you may be required to leave a down payment. There may also be other requirements such as not being able to finance a hot tub under a certain amount. And, dealer financing won’t cover any additional expenses you incur preparing for the hot tub installation, things like prepping the area, building a deck, or adding extra outlets.

Some options for dealer financing include:

• Master Spas
• HotSpring
• Jacuzzi

Hot Tub Loans From The Manufacturer

Manufacturer financing and dealer financing are often used interchangeably because a good number of dealers are also manufacturers including the well-known company Jacuzzi. However, to be specific, the manufacturer is the company that actually makes and produces the hot tub.

Some of these manufacturers offer their own financing and often have specials on hot tubs such as no money down or no payments for a certain time frame. This is similar to what you would see in a furniture store. Keep in mind that you do need to qualify for the financing and any applicable specials, and a good credit score is usually needed, as well as proof of income.

A few options for manufacturer financing include:

• Jacuzzi: a dealer and manufacturer
• Cal Spas
• Masco Corporation

Hot Tub Financing With Home Equity Loans and HELOC

A home equity loan is also called a second mortgage. It uses the equity in your home as collateral. It’s set up like a mortgage loan and typically has a fixed interest rate and monthly payments. You receive the funds as a lump sum payment. In order to qualify, you may need to have owned the property for a certain period of time, and you will need to have enough equity in the property to get a loan against it.

A HELOC (Home equity line of credit). It is set up more like a credit card than a mortgage loan. It also uses the equity in your home as collateral, but instead of receiving a lump sum, you will have access to a line of credit. You can then withdraw funds during the draw period and you only pay back what you actually use.

Other Hot Tub Financing Options

Other types of hot tub finance options include:

• Cash: Using money saved
• Investments: Cashing out to purchase hot tub
• Borrowing: From friends or family
• Paying for the hot tub with your credit card
• Seller financing: Rare but may work

Can You Get Hot Tub Financing With Bad Credit?

Hot tub financing with bad credit does exist. Hot tub financing no credit check may also be an option with some companies. Some lenders offer online personal loans to those with little or no credit. These loans are generally on the smaller side with higher rates. A dealer or manufacturer may also allow in-house financing or work with a lender that specializes in bad or no credit borrowers.

Keep in mind, you may have to make a downpayment, and you will end up paying more for the hot tub than someone who has good or excellent credit. Make sure to consider all of the costs of buying the hot tub, including delivery and financing costs, as well as maintenance and repairs and ongoing ownership costs.

Conclusion

Now that you know the answer to can you finance a hot tub, you’re ready to choose the type of hot tub financing that works best for you. Consider dealer financing, manufacturer financing, and online personal loans. Compare lenders and their loan products to make sure you’re getting the best deal. You will want to review interest rates, terms, loan features, and the borrower requirements.