There are many reasons why you may be preparing for a emergency home repair. The recent increase in natural disasters has probably worried every homeowner about the damage to their home. But, the chances that you will need home repairs increase dramatically as your home ages, whether you like it or not.
After 10 years of living in your home, you can start to make negative changes. Your furnace or air conditioning may fail, your roof shingles may start to weaken, or your floorboards may start to squeak and break.
Either way, emergency home repairs are predictable and unpredictable, and they can often occur when we’re in dire financial straits. If you need help financing those home repairs when you’re short on cash, check out these 8 strategies.
The best chance you have of paying for these emergency home repairs is to check with your insurance. While many insurers don’t cover wear and tear on your home, there’s always a good chance you have a good insurance claim that can help you out.
Make sure you are in touch with your insurance when considering your first steps after a home emergency. While it may seem unlikely, it’s entirely possible that your insurance could help. If so, you can really think of this situation as a dodged bullet.
The FHA 203 (k) and Limited 203 (k) programs offer homeowners assistance in refinancing their property. This refinancing may include certain loans for home repairs and real estate needs. You can defend an additional loan amount in an attempt to make your home “more livable”.
There are other government programs that provide more specific loans. For example, if you are a low income homeowner, you may qualify for the Section 504 home repair program. There are other options available to senior homeowners, who are the most common beneficiaries of these programs.
Disaster relief programs
Although most of these emergency home repairs come of age, natural disasters are becoming an increasingly common reality. With these natural disasters come the need for different types of home repairs. Fortunately, there are assistance programs for these types of repairs.
Relief organizations like FEMA or the Red Cross can often offer emergency funds for areas in which a disaster has struck. But, the money ends up being spent on major repairs, not on disaster preparedness. If disaster strikes in your area, checking with these companies can be a good thing.
Home equity line of credit
If you need to, dipping into the value of your home can be a good way to pay for emergency repairs. By using your home to support this loan, you can get more flexibility in repayment and interest rates.
Make sure you use this loan wisely and repay it well, as irresponsible payment of this credit can lead to the loss of your home. Be sure to use it for repair purposes only.
While tapping into your credit card might seem instinctive, it’s something we should all be looking to do less of. But, in the case of an emergency home repair, it might really be time to tap into that credit card. It is a good strategy to use your credit card to get a good amount of funds when you need them.
Unfortunately, the high costs of many emergency home repairs can be too high for your line of credit. You may also need to check your interest rates to avoid making this emergency home repair way overpriced.
Access to quick cash is very convenient, and that is exactly what payday loans do. With payday loans, you can get a good amount of money and use your future salary to pay it off. All you will really need to do to get the loan is to have proof of constant income.
There are even payday loans that are easier to obtain. A quick online search for “payday loans without credit checkWill give you some options to get a loan without having to prove a high credit score.
If you are in a particularly serious situation, hiring a non-profit organization to help you with your emergency home repairs may be right for you. It can be difficult to get help from a nonprofit organization, especially when it comes to home repairs such as air conditioning and heating.
But, if it becomes a problem with the structure of your house where it becomes unliveable, some non-profit organizations will help you. Organizations like Habitat for Humanity are known to use volunteers to rebuild local community houses that need help.
Borrow from your 401 (k)
While it may seem intimidating to borrow money on your 401 (k), it’s the last resort when you run out of savings. The money in your 401 (k) is flexible, but there are a few hurdles to jump over if you want to withdraw money from this fund.
There are a few tax issues when withdrawing money from your 401 (k). There is also a problem that the money you take out of your 401 (k) sometimes shows up as a loan rather than a direct payment. On top of that, withdrawing money from your 401 (k) is a bad habit to take.
But, in dire straits, your 401 (k) is a source of cash to tap into when you’re desperate for savings.
What to do when you need an emergency home repair
There are many options to consider when looking to pay for emergency home repairs, and none are necessarily better than others. Be sure to consider your situation, the amount of money you need, and your options before proceeding.
For more tips on managing your home and real estate, or for general articles on the Arizona real estate market in general, be sure to visit our real estate articles.