For most people, their home is their biggest investment. And when that investment needs repair, sometimes only a home repair loan can provide the money you need to maintain the maintenance of your home. Fortunately, there are a number of options available to finance the home repairs that your home needs.
Private Credit Establishments
If your roof is leaking or shingles need to be replaced, you can not stop doing emergency repairs just because you think you can not afford it. You need money to repair your roof, and you need it now. But if you live from paycheck to paycheck, it may not be as simple as it looks.
Banks and private credit institutions offer home equity lines of credit. This type of repair loan is based on the equity that you own on your home. Banks as well as credit unions offer this type of loan at very reasonable interest rates. The amount you can borrow will depend on the lending institution. Some private lenders allow up to 70% of the equity in your home for the loan amount.
The home repair loan requirements vary from one lending institution to another. The interest rate will depend on your credit score. Some lenders even approve loans for borrowers with fewer stellar credit points. However, you should expect higher interest rates if your credit is not good.
Home Repair Loans
The federal government also provides home repair loans to eligible borrowers. These low interest rate loans are available for low income people whose homes need repairs and maintenance. The repair funding offered by the government has strict guidelines specifying the types of repairs that the loan can be used for.
The Department of Housing and Urban Development or HUD as well as the US Department of Agriculture offers loans administered by local housing authorities. These loans come with a low interest rate. Potential buyers can even apply for a HUD Rehabilitation and Repair Mortgage that will allow them to combine the costs of buying and repairing or renovating into a single mortgage.
203 (k) Rehabilitation Loan – To qualify for this loan, the home must be at least one year old. Home repairs must total at least $ 5,000. Repairs under this type of loan include floor and roof repairs, weatherization, minor renovations, repainting and making your home more energy efficient.
Home Repair Loan and Grants – The Rural Home Repair and Rehabilitation Loan and Grants Program provides low interest loans to residents of very low income rural areas. The loan can be used to upgrade or repair their home to meet safety standards. The Home Repair and Loan Program also provides grants to people aged 62 and over for home repairs and renovations.