Deacon & Hoover Real Estate Advisors LLC
Alex Deacon, Deacon & Hoover Real Estate Advisors LLCPhone: (412) 613-4435
Email: [email protected]

Home repair loans & other financing options for funding your project

by Alex Deacon 11/04/2022

Several Handheld Tools on White Printer Paper

Home repair projects can be costly and unexpected, making home repair loans a preferred option for covering the cost. If you need some extra funding to cover home improvements or major repairs, you have several options available.

Here is a quick guide to the most common ways to pay for a home repair or home improvement project:

HELOC (Home equity line of credit)

Home equity is a popular option for paying home repair costs. A home equity line of credit, or HELOC, works similarly to a credit card with an approved borrowing limit. Typically, a HELOC has a borrowing period followed by a separate repayment period.

HELOC interest rates have the potential to fluctuate throughout the life of the loan. However, you only have to pay interest on the amount borrowed. Since you’re borrowing against your home’s equity, you’re also using your home as collateral, meaning you run the risk of losing it if you’re unable to make payments.

Personal home improvement loan

Another option for paying your home repair costs is a personal loan. Personal loans are unsecured, so you don’t need to be concerned with collateral. If your repairs are time-sensitive, you can often get an unsecured loan much more quickly than a HELOC or home equity loan. Sometimes you can receive financing as early as the next business day.

Typically, personal loans offer adjustable or fixed interest rates, although personal loans generally have higher interest rates than mortgage loans. However, you can generally expect decent rates as long as you have a good credit history.

Are there alternatives to home repair loans?

If you need financing for a home repair, there are options beyond home equity loans and personal loans. Some other ways to pay include:

  • Credit cards with 0% introductory interest rates.
  • Personal line of credit.
  • Cash-out refinancing.

There are many factors to consider when choosing the right type of financing for your home projects. While home repair loans have their advantages, it’s important to consider all the options available to you. 


About the Author
Author

Alex Deacon

Why work with The Alex Deacon Team?

More than six decades of combined team experience
Combined sales over 1,100 in 20 years
The average agent works by themselves or is inexperienced
The average agent is in and out of the business in less than 5 years
The average agent according to national statistics sells less than 8 homes a year
Our team concept allows us to do a large volume of business, keeps our finger on the pulse of the market by doing such volume, giving our clients outstanding service because everyone on the team has a certain skill set and experience level and we all work together to give you the best of each of our individual skills.
Unique programs like our Guaranteed home sale or commission free program just as one example.
We can cover a large area being a team verses one agent.
Huge personal data base of past, present and potential clients that we will expose your home.