Buying a house is the American dream – and a big financial investment. Unfortunately, home repair costs often keep homeowners from protecting that investment.
You may have a home improvement budget, but quickly discover that it isn’t enough to cover major repairs. Replacing an air conditioner, for instance, could cost several thousand dollars for even the most inexpensive unit/handler. While it’s an expense that only comes around every 12-15 years, it still needs to be paid for.
The answer is to finance home repairs. This is a very viable way of protecting your investment.
According to a Harvard University study, home improvements are likely to increase rapidly in 2017. This is largely due to wear and tear catching up 
Where does your house fall in that age range?
Perhaps you’re like many homeowners opting to fix up their homes, to increase home equity, while also creating visual curb appeal. Don’t let the lack of a home improvement budget or home repair costs daunt you. Loans for home improvement are a popular option for homeowners short on funds.
Finance Options
Study your finance options to discover which is the least expensive, and therefore advantageous to pursue. Options include credit cards, home equity lines of credit, Federal home improvement loans and bank home repair loans.
Credit Cards
Before placing any repairs on the card, calculate the interest you’ll be charged and weigh the end cost. If you have a low interest credit card, even one that has 0% interest for 6 months to a year, and you can pay off the debt within that time frame, then charging the repairs makes sense, rather than waiting to have the cash on hand.
Home Equity Line of Credit
You can use your home as collateral to finance home repairs. A home equity line of credit is a revolving source of funds, allowing homeowners to borrow and pay back as many times as necessary within a draw period.
In some cases, interest on a home equity loan is tax deductible, and is often lower than most unsecured financing sources. Talk with your financial institution, to find if you qualify for a home equity line of credit.
FHA Title I Improvement Loan Program
This loan program is an option for homeowners without a significant amount of equity in their homes. The Federal Housing Authority (FHA) backs this loan, which is available through banks and other qualified lenders that make the loans possible through their own funds.
The loan has a few stipulations. Luxury items are basically excluded, and the loan cannot be used for already completed work. It is available to use for contract work and do-it-yourselfers, too. For DIY projects, often only materials are covered. Speak with the lender to find what is and isn’t covered.
An important note about the FHA Title I Improvement Loan Program is that it is available to homeowners who want to make their homes more accessible for a disabled family member. So, for instance, making it wheelchair accessible with wider doors, ramps, lowering cabinets, countertops and so on.
You needn’t put off repairs. You can afford to protect your investment through financing, and Isley’s has specific recommendations for financing your home improvement projects. We also work with Wells Fargo Bank to help finance repairs. Give us a call at 480-422-5949 and ask us about it.
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SOURCES
1. http://jchs.harvard.edu/robust-remodeling-growth-anticipated-re-benchmarked-lira
