Owning a home is expensive, but maintaining a home is even more costly. As homes start to age, things start to break. From a faulty HVAC unit to leaky pipes, if you own a home, prepare for something to go wrong eventually. The problem is that when something does go wrong, many homeowners don’t have the money to pay for it.
Ever wondered can you finance a roof or other expensive home repairs? The short answer is yes, absolutely! Keep reading to learn about 5 home repairs that you can get a loan for as well as loan options to consider.
- Roof Repair or Replacement
Roof repair and replacement is one of the most costly investments you’ll ever make into your home. Roof repair can cost upwards of a thousand dollars while a new roof can cost more than $20,000. If you’re dealing with a leaky roof, this is one repair that you don’t want to set aside. A damaged roof leaves your home vulnerable to weather, which can cause even worse problems.
- Plumbing Issues
Plumbing issues can happen at any time. Need to fix a leaky faucet but don’t have the money? Tired of paying high water bills because of a running toilet? No matter the plumbing problem and no matter the cost, this type of repair can be covered by a home repair loan.
Safe flooring is a must in order for a home to be livable. Broken floor boards, heavily soiled carpet, and other flooring issues can be dangerous. The good news is that a home repair loan can cover the cost of flooring repair and/or replacement.
- New Siding
Your home’s siding takes a beating each day. From high sun and UV exposure to blustery winds, over time, siding can become worn, damaged, or may fall off entirely. Siding is needed to properly insulate your home from extreme temperatures.
- Structural Repair
Older homes are more likely to suffer from structural repair, to include cracking or uneven foundation. The cost to repair a home’s structure can amount to the thousands. If you’re like most home owners, you don’t have this kind of money just lying around. Thankfully a home repair loan can be used to finance the costs.
Loan Options to Consider
From emergency home repair to expected upgrades, there are all sorts of loans that can be used to cover the cost of home repairs. Here are some options to keep in mind.
Home Equity Loan
A home equity loan allows you to borrow a fixed amount, which is then paid back in a fixed amount of time. The typical home equity loan term is 15 years. Home equity loans are ideal for both small and large home repair projects.
Home Equity Line of Credit
A home equity line of credit (HELOC) is a loan that allows you to draw out money as needed. With a HELOC, you don’t pay interest until you withdraw money and often times, these loans span upwards of 10 years. Some lenders even allow you to renew the loan. Be sure to shop around to find a reputable lender with the best loan terms.
Federal Housing Administration 203K Loan
Most homeowners think that the FHA 203K loan can only be used to purchase a home. But, the loan can also be used to refinance your home in order to pay for repair costs. The biggest downfall to an FHA loan is that you’ll have to pay mortgage insurance for the entire term of the loan. The 203K loan is best for bigger repair projects. On the same hand, the FHA also offers the Streamlined 203K loan which allows you to borrow less than $35,000.
Aside from loans meant specifically for home repairs, there is always the option to apply for a personal loan. Some lenders offer low interest rates for personal loans, which can be a money saver when all is said and done. With personal loans, shop around for the lowest interest rate possible. If you want to avoid a loan, you can also apply for a personal credit card that can be used to pay for your repair project.
When it comes to getting a loan for home repair, your best bet is always to work with a quality lender that offers an affordable interest rate.
The cost to maintain a home can be unaffordable for many home owners. Thankfully there are plenty of home repairs that can be covered with the help of a loan. Don’t let home repair woes get you down!
Categories: Real Estate