Owning a property is not what everyone can afford.
So, if you are amongst the ones who have a home they can call home (legally as well), congrats!
Although experts suggest keeping some money aside for home repairs or maintenance, it is not always possible to have funds ready for those emergencies.
Reasons can vary.
- You might have renovated your home recently.
- You had to use the money for your medical condition.
- You started something on your own and had to invest your savings there.
While as per the one percent rule, it is expected to spend around 1 to 4% of your home’s value every year on maintenance, you might not be ready for anything that exceeds this limit. So, how to arrange funds for these unprecedented home repairs? Find out below.
See if You Qualify For a Homeowners Insurance Claim
Of course, when buying a home, you must have extended its protection by getting an insurance policy.
Right? But did it cover home repair emergencies? If yes, you are lucky. For instance, it might have replacement costs covered in case a storm damaged the roof. However, it will need some approvals from an inspector. It might take days to get your money.
And if this condition was not included in your homeowners’ insurance, you’ll have to choose other options. What can it be?
Check For Home Improvement/ Repairs Loan
A home improvement or a home repair loan is generally given to the owners who need financing for their home renovations or emergency repairs. You can easily remodel your kitchen, bathroom tiles, damaged roof, or building a garage. In fact, it’s a kind of personal loan that doesn’t require any collateral. So, your home property won’t be at risk if you fail to make one or two payments.
While you might think opting for home equity loans or HELOCs might be an ideal option because of lower interest rates, they will use your home as collateral. Plus, the number of loans will depend on the size of the equity. However, that’s not the case with home repair loans.
They are quite beneficial for those who have a bad credit history. All you have to do is meet the lender’s criteria, and that is:
- Have a regular source of a monthly income of at least $1000.
- Have an active account.
- Be at least 18 years old.
- Must be a legal resident of the US with a valid social security number.
- Must have a driving license or any other government-issued ID.
- Have an email account and a valid phone number.
If you qualify these requirements, you’ll easily get the money you need for emergency home repairs.
Buying a home is one of the most important decisions one makes during a lifetime. But it’s an asset that requires regular maintenance.
If you miss out on that, no matter how good a location you reside, the value would considerably decrease. But if you are short on funds, don’t worry. You will have a plethora of options available to take care of your needs.