Methods For Paying For Unexpected House Repair Costs
There are very few certainties in life. For homeowners, the shortlist includes home repairs. Another certainty involves at least one expensive house repair. Homeowners’ collectivity spent $522 billion on about 115 projects, according to a recent survey.
But there are major emergency house fixes that come with an even higher price. And these fixes are even more necessary because they can seriously affect your life. If you’re having trouble paying for unexpected but necessary home repairs, the good news is there are many options to help cover the cost.
Options To Pay For Your House Repair Costs
Home Equity Line Of Credit
When it comes to needing help paying for a big house repair, the first option you have is a Home Equity Line of Credit. Also known as HELOC, a home equity line of credit lets you use your home’s value, so it’s a great house repair payment method for those coping with unexpected major repairs. It comes with a big caveat, though. If you can’t repay what you borrowed, you risk foreclosure.
Homeowners Insurance Claim
Another form of help for home repair costs is a homeowners insurance claim. When you have a real house repair emergency, it may be beneficial to file for a homeowners insurance claim to help you pay for it. They may take a little bit longer than other methods, but it’s worth it if the repair is covered by your policy, you have time to wait, and you can cover the deductible.
By tapping into your emergency savings to cover house repairs, you can avoid some of the financial obstacles that come with it otherwise. Your emergency savings can really get you out of trouble if your home is damaged by something like a natural disaster. You don’t even have to wait for loan approval or spend time comparing financing options if you have emergency savings.
Home Improvement Loan
A form of a personal loan, a home improvement loan is designed to help cover everything from remodeling and upgrading to emergency home repairs. Such loans are usually unsecured, which eliminates the need to put your property equity up as collateral to qualify. The amount you receive depends on your credit, and the interest rates are higher than average. However, you usually have the same monthly payments during the entire loan period.
Federal loan programs like the Limited 203(k) and the FHA 203(k) lets homeowners either refinance or buy a property and then have more funds added to the loan amount to cover repairs. Another option is the Title I Property Improvement Loan program offered by the Department of Housing and Urban Development.
Insured by the FHA, this approach is good for those who need to pay for major repairs but have a small amount of home equity. Even the U.S. Department of Agriculture has a Section 504 Home Repair program that is geared to those with low incomes living in rural areas needing emergency home repairs.
Federal grants are also available for those 62 and over. Local and state governments, financial institutions, and agencies oversee community development programs that use Community Development Block Grants for emergency repair loans. Disabled or senior homeowners may qualify for other forms of community development assistance plans.
If your house repair is caused by a natural disaster, such as a hurricane, earthquake, or flood, you have the additional option of getting relief from the Federal Emergency Management Agency or the Red Cross. Such funding can come in handy if your insurance doesn’t cover your repair or you don’t have your emergency savings fund built high enough.
Another form of paying for a house repair involves cash-out refinancing. A popular payment approach is cash-out refinancing, which means your current mortgage becomes a bigger mortgage – and a new loan to cover repairs. This method gives you up to 80% of your home’s market value and gives you the difference in cash.
Consider Car Title Loans Online
Car title loans online are also expressly designed to help those experiencing a financial emergency such as home and car repairs, emergency travel, or an unexpected visit to the emergency room. Using your car title as collateral in exchange for a loan, you may qualify for car title loans online of up to $2,500 at Tennessee Title Loans, Inc. in as little as 30 minutes.
All you need to do to get started is head to our homepage and fill out the short car title loan form. One of our friendly loan representatives from the nearest Tennessee auto title loan location will give you a quick call to discuss the required items, answer your questions and walk you through the rest of the process.
Get Your House Repair Taken Care Of
As a homeowner, you know that you will likely eventually have to deal with a significant emergency home repair. These options will help get you through your expensive house repairs in a quick and simple fashion. And if you need even quicker help, a car title loan online may help. Get started by filling out the online form now.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.