6 Financing Options for Foundation Repair Work
When you experience problems with your foundation, timely repair is essential. That is why our company is proud to offer financing options that suit your family’s needs. Cracks in concrete and bowing walls signal a serious issue, and these problems will only get worse without help from a foundation specialist. However, not every homeowner has room in their budget for this service because repair costs can significantly impact your finances. On the other hand, putting it off will only increase the price. That’s why homeowners should research financing options to facilitate immediate foundation repair.
Home Equity Loan/Line of Credit
Home equity loans and lines of credit entail taking out a second mortgage. Loans are provided in one large amount, while lines of credit can be accessed as needed (just like a credit card). This option is good for making substantial repairs to the home, as costs for home repair and maintenance are tax deductible.
Taking out a personal loan at your bank provides quick access to funds while ensuring a reasonable interest rate. Most banks offer affordable rates when clients have an established relationship. However, if you can’t secure a loan through your bank, look for a private lender. Just make sure that you’re choosy when it comes to finding the best interest rate.
Using a credit card to cover repairs ensures that work is completed quickly. However, you’ll need a card with a high limit to cover costs. You also want to be proactive about making payments beyond the minimum. Paying off a credit card quickly will minimize interest payments and keep your credit score in good standing.
You may be hesitant to use funds from an emergency saving account to cover the cost of drainage system repair, but consider that these issues constitute a true emergency. Poor drainage around the home puts pressure on the foundation by saturating the soil. In addition to water damage, drainage issues can also affect the safety and stability of your home.
Depending on your income, you may be eligible for a federal loan. For instance, the U.S. Department of Agriculture provides specific homeowners with funds to make essential repairs. With the Section 504 Home Repair Program, homeowners with yearly earnings equal to less than 50% of the median income in the area may qualify for assistance. You can also look into the Title 1 Property Improvement Loan Insurance Program from the U.S. Department of Housing and Urban Development (HUD). In this case, HUD will insure your lender against losses related to loans for home repair.
All home insurance policies list covered perils, which are events that can trigger an insurance payout. For example, your insurer may cover repair costs if foundation damage is caused by a burst pipe that led to basement flooding. The subsequent repair issues may be eligible for insurance funds. Check your policy for more information however, insurance rarely covers foundation repair.
We Can Help You Secure the Right Type of Financing
Here at Align Foundation Repair, we understand that financial roadblocks can get in the way of essential home maintenance and repair. That’s why our team works with customers to find the best financing solutions for their needs. We also provide free consultations to make the process even more affordable. Contact us today for more information.