By Ted Levin
Owning a home is a valuable asset, as it is a wise investment. Instead of “throwing away” money on rent, as the money you spend on rent you will never see again, purchasing a home, even with a mortgage, is a smarter financial decision.
However, when a significant repair arises in a place you are renting, your landlord takes care of the issue. Consequently, when owning a home, all of the maintenance and repairs rests solely on your shoulders and your bank account. Home repairs can be extremely expensive, depending upon the significance of the repair. For instance, purchasing a new oven is relatively inexpensive in comparison to having to fix a leaky roof—and the interior damage it created. For many, an expensive home repair is not in the budget. But, some repairs require immediate attention regardless of whether or not it is the budget, thus here are a few options to affording an expensive home repair on a tight budget:
If your home desperately needs a repair, consider looking into apply for home repair loans. While many think of loans only in terms of large numbers, such as a home mortgage loan or business loan, there are companies that are willing and able to offer home owners a loan for large, expensive repairs. While you might be able to afford a repair for a leaky faucet or cracked door, in the event your home is plagued with termites, or if the HVAC system dies, you may need to look into acquiring a loan to pay for the repairs.
If you have good credit, it can be a smart idea to fund your home repair through a credit card, as it gives you time to come up with the money. While many people do not relish the idea of being in debt, as credit cards do accrue heavy interest, for those with a steady job and paycheck, funding the repair with credit and paying it off is not a bad idea. Additionally, for those with large rewards credit cards, funding a large number with credit can lead to an abundance of travel points, hotel rewards, or cash back.
Depending upon your current mortgage, you may be eligible to refinance your home. If you can refinance, you may save enough money, or get enough cash back, that you can pay for the repair. This can be a smart tool to helping you have a more stable financial foundation, as refinancing often reduces the interest on your mortgage, or your mortgage payments themselves.
Do the Repairs Yourself
While this is not an ideal solution for those who are unfamiliar with certain home repairs, especially for home repairs that, for safety purposes, require a licensed contractor to do the work, if the home repair is something you are safely able to complete, instead of hiring someone for the job, do it yourself. However, this solution should only be used if you are confident that you can do the repair safely.
Grants for home repairs are few and far between, but if you are able to find one and are eligible for it, a grant offers you free money to take care of the repair. Depending upon where you live, the nature of the repair, and other factors, you might find you are eligible for a grant.
Friends and Family
While asking for money from friends and family can get dicey, as money can create relationship problems, asking friends and family to help you fund your home repair can help you complete the repair as soon as possible.
Generally, borrowing money from friends and family gets tricky when there is no contract or agreement made. Just as you would a bank loan, create a payment plan with whomever you borrow from, as it can help keep things from getting awkward. Moreover, it will help remind you that you need to pay them back, while they can rest assured that they will get their money back without having to ask you for it.
When it comes to home expenses, there are a myriad of ways you can find financial assistance to complete the repairs.