Funding a Major Home Repair

Why is it that major home repairs come at the least opportune times? And have you noticed that they usually take place on the weekends, when getting them fixed is doubly expensive and cuts into prime family time? What makes repair projects far worse, however, is when you don’t have the money to pay for them.

When faced with a major home repair expenditure, the first question to ask is, “should we make a major repair investment in this home?” Is the home the right size for your family and if so, how much longer will that be true? Is the nest about to be emptied, or about to grow? Is the location still convenient? Are you anticipating a job change that may mean a much longer commute, or a relocation?

If the home is not a good fit for one of these reasons, it may be the right time to sell. Or, if the home has not been well maintained and now is beginning to need a lot of expensive repairs that are straining the budget, maybe it’s time to consider selling and finding a more affordable living situation. If so, selling to a home investor might be your best alternative. Home investors buy houses, in any condition, for cash, without the hassles of the traditional real estate sales process. Selling to a home investment company simplifies the home selling process, especially when you need to sell your house fast.

If you decide to invest in repairs, here are some financing options for unbudgeted big-ticket home repairs:


The Federal Housing Administration 203k refinance loans allow homeowners to consolidate their existing mortgage with the cost of a home renovation project. And if the refinance loan will add value to your home while also fixing a necessary repair, your chances of securing the loan will be enhanced considerably.

Get a Loan

While the thought of borrowing money might not sound like a feasible option, it might be one of the best given your circumstances. If you’ve already been turned down by a bank and/or have bad credit, there are many nonprofit organizations that are designed to provide loans to middle-class or low-income homeowners. In fact, they’re designed to fund expensive emergencies, like structural damage or HVAC repairs. If you’re looking for a new refrigerator or addition, however, you’ll have to drum up the funds elsewhere.

Are you Grant Eligible?

While the thought of getting free money sounds too good to be true, you might be surprised to learn that there are grants that fund repairs and improvements for certain individuals. For instance, the U.S. Department of Agriculture has a low-income housing repair program. It provides grants and loans to qualifying individuals for home repairs, improvements and modernization efforts. The department also offers grants for some homeowners over the age of 62 with disabilities. These are offered to help make homes safer and healthier.

Home Equity Line of Credit

A Home equity line of credit allows you to borrow money against the value of your home. Sure, you’ll have to pay it back with interest, but you can do so to fit your timeline. However, you’ll have a minimum monthly payment to make, and not covering it could mean losing your home.

Home Equity Loan

Home equity loans allow you to borrow money against the value of your home and pay a fixed amount back over a period of time. Depending on which lender you choose, you’ll be able to make payments in timeframes from 5 to 30 years.

Credit Card

Paying for a repair with a credit card can be expensive if you don’t have the income to pay it off quickly. Interest charges can pile up quickly and there are late fees as well if you forget to make a payment. If you just need a short-term loan, a credit card may be a good option

Pay Cash

If the major repair isn’t urgent in nature, it might be best to save up the cash and pay for the repair in full. Not owing money is one of life’s most satisfying feelings.

If the needed home repair is unaffordable and a loan is not an option, contact the real estate professionals at They’ll be happy to discuss other options you may not have considered. To set up an appointment, call (972) 643-8320 today.