How Can I Pay For Expensive Home Repairs?

How can you pay for expensive home repairs when you don’t have much cash? It can seem impossible, especially if you don’t have an emergency fund. 

But there are actually a number of options that will help you get the funds for your project without putting your life on hold:

How Do I Pay For Home Repairs And Also Pay Off Debt?
Key Takeaways
Importance of home repair
Costly home repairs
Financing options
Saving money for repairs
Government programs
Regular maintenance
Personal loans
Home equity loans
Credit cards
Applying for home renovation shows

Credit Cards

A credit card can be a good way to pay for home repairs if you are disciplined and have a good credit score. 

A lot of people use their credit cards as a way to make purchases without having to pay cash upfront, but it can also work in reverse you can borrow money from your credit card company in order to make certain upgrades on your home. 

The key is using the money responsibly and paying back what you borrow as soon as possible so that the interest rate doesn’t eat up too much of your budget.

If this seems like something that would work well for you and your budget, then go ahead and get approved! 

Just remember that not all lenders offer equal terms; shop around until you find one with low interest rates, no annual fee (if possible!), high limits on how much they’ll lend out at once ($15,000+), and flexible repayment terms (such as deferred payments).

If you need to pay for major home repairs but don’t have the finances, you may want to consider taking out a loan. Check out our guide on how do people pay for major home repairs to explore different ways people finance costly home repairs.

Personal Loan

If you’re in need of a personal loan, it pays to do some research. There are many different lenders out there and they all have different terms and conditions. You need to look at what each lender offers so that you can find the best deal for your needs.

What is the interest rate? This is probably one of the most important factors when considering any loan. 

You want to pay as little interest as possible, but sometimes lenders will charge a higher rate because they know you have no alternative options for getting money (such as a credit card). 

The higher rates may also be used as an incentive for people who are less creditworthy (which could include homeowners in certain situations). Be sure to read all terms of your offer carefully so that there aren’t any surprises later on down the line!

Personal Loan Options

LenderInterest RateLoan AmountRepayment TermMinimum Credit ScoreRequirements
LightStreamFrom 2.49% APR with autopay$5,000 to $100,0002 to 7 years660Good credit history, proof of income, and several years of credit history
Marcus6.99% to 28.99% APR$3,500 to $40,0003 to 6 years660Good credit history and income, US citizenship or permanent residency
SoFi5.99% to 20.69% APR$5,000 to $100,0002 to 7 years680Good credit history and income, US citizenship or permanent residency
Discover6.99% to 24.99% APR$2,500 to $35,0003 to 7 years660Good credit history and income, US citizenship or permanent residency
Upgrade5.94% to 35.97% APR$1,000 to $50,0003 to 5 years620Good credit history and debt-to-income ratio

This table provides information on some popular personal loan lenders, including the interest rate, loan amount, repayment term, minimum credit score, and requirements for each lender. It is important to research different lenders and compare their rates and terms to find the best deal for your needs. Note that the interest rates and loan amounts are subject to change based on each lender’s policies and requirements.

Bank Overdraft

Avoiding overdrafts is easy, as long as you’re aware of the risks. The most important thing to know is that every time a bank processes your debit card purchase and sees that it has more money than has been deposited in your account, they charge a fee. 

These fees can quickly add up over time, so be sure to keep track of how much cash you have in your checking account at all times.

If you do end up with an overdraft and are charged multiple fees for doing so, there are steps you can take:

Contact the bank that issued your debit card immediately and ask them to waive the fee for this transaction (many banks will). 

It may require some persistence on your part; don’t let up! Be polite but persistent when asking them not only to waive one fee but also any future fees related to this transaction or similar ones appearing on future statements from other institutions such as credit card companies or utility providers (if applicable).

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Cash-Out Auto Refinance

One option is to use your car as collateral for a cash-out auto refinance. This can help you lower your interest rate and pay off some of the debt on credit cards. You could also take out money from the loan to fund home repairs.

If you’re looking for a new car, consider buying it with cash or selling your old vehicle outright before applying for an auto loan.

Home Equity Loan

Home equity loans are a great option for many people, as they allow you to borrow money against the value of your home. 

You can borrow as much as 80% of your home’s value, and the interest rate will be lower than other types of loans. Plus, if you have a high credit score and no debt on other assets like cars or boats, it might be easier to get approved for a home equity loan than any other type of loan.

If you don’t have enough equity in your house after making repairs (or if there isn’t enough room in your budget), then this type of loan probably won’t work for you. For example: If I have $10,000 left over after paying off my mortgage debt and paying rent every month and all my debts are paid off except for one car payment at $600 per month then I probably wouldn’t qualify because there isn’t much space left over from my regular income that could be used toward my monthly expenses such as food or clothing.

If this were the case with most homeowners today (and according to most statistics about Americans’ finances), then it would seem unlikely that many people would qualify for either type of mortgage-related funding source listed above due largely due their inability afford these types services without help from another party like friends/family members who may be willing help out financially during times when necessary.”

Plumbing issues can be frustrating, especially when you don’t know how to fix them. Our pro guide on how to fix plumbing provides step-by-step instructions on how to address common plumbing issues such as leaky faucets, clogged sinks, and more.

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is a loan secured by your home’s value and allows you to borrow as much money as you want. 

The amount you are approved for depends on the market value of your property, but it’s often more than what you’d get elsewhere, like a standard line of credit or other loan products. A HELOC is good if:

You need a large sum all at once say, $20,000 and don’t have other assets like stocks or bonds that could help pay for it.

You want quick access to cash without having to wait for approval from traditional lenders or deal with any red tape involved in applying for financing online.

Home Equity Line of Credit (HELOC) Options

LenderInterest RateLoan AmountRepayment TermMinimum Credit ScoreRequirements
ChaseStarting at 3.75% APRUp to $1,000,00010 years draw period and 20 years repayment680Good credit history, minimum equity in the home, and steady income
Wells FargoVariable rate starting at 3.625% APRUp to $500,00010 years draw period and 20 years repayment620Good credit history, minimum equity in the home, and steady income
Bank of AmericaVariable rate starting at 3.125% APRUp to $1,000,00010 years draw period and 20 years repayment660Good credit history, minimum equity in the home, and proof of income
US BankVariable rate starting at 3.44% APRUp to $750,00010 years draw period and 20 years repayment720Good credit history, minimum equity in the home, and ability to repay
DiscoverVariable rate starting at 3.99% APRUp to $200,00010 years draw period and 20 years repayment620Good credit history and minimum equity in the home

This table provides information on some popular lenders that offer home equity lines of credit (HELOCs), including the interest rate, loan amount, repayment term, minimum credit score, and requirements for each lender. Note that HELOCs are secured loans that use your home’s equity as collateral, meaning that you could lose your home if you’re unable to make payments. It is important to research different lenders and compare their rates and terms to find the best deal for your needs.

Cash-Out Refinance

This is a great option if you have a lot of equity in your home. You can pay off your existing mortgage and take out another, larger one at once. 

You will have to pay closing costs again, but no fees for appraisals or title searches. You also won’t need an attorney since the refinance process is so simple.

However, there are some downsides: closing costs and appraisal fees add up quickly! And depending on what’s wrong with your house, it may not be worth it to put any money into repairs at all (more on this later).

Saving money for home repairs can seem daunting, but with a little discipline, it’s possible. Check out our pro tips on how to save for home repairs to learn how to create a budget, save up for unexpected expenses, and find affordable alternatives to expensive repairs.

Insurance Claim

Once you’ve determined that your contractor’s negligence was the cause of your problems, it’s time to start the process of filing a claim with your insurance company. If you have comprehensive coverage on your home, this should be straightforward; if not, consider getting it if the price is right (you’ll get a better deal in some states than others).

There are several steps involved in filing an insurance claim:

Make sure you have all of the documentation necessary to prove that there was actually damage done by the faulty workmanship. This will probably include photos and records from previous contractors who worked on your house.

Contact your insurance company and tell them about everything that happened—and don’t forget to mention how long repairs took! 

They’ll give you an estimate for how much they think it will cost them coming out and inspecting things themselves; if this number seems unjustly high or low compared to what other companies are charging for similar work, ask why: 

Bbecause sometimes these estimates can vary wildly based on different factors like geographic location or whether or not access is easy enough for their workers (i.e., do they need scaffolding?). 

Once everyone agrees on terms, sign off on any paperwork needed so they know what services were provided before agreeing upon any payment amounts.

Pay With Tax Refunds, Bonuses, Or Commissions

There are a number of ways you can pay for repairs if you don’t have the money in hand:

Pay with tax refunds, bonuses, or commissions. Tax refunds and bonuses are one way to supplement your emergency fund.

If you receive a bonus check from work or received a large tax return this year, consider using that money to pay for repairs before something breaks at home.

Ask family members for help. You may be able to borrow some cash from family members who have extra funds available to give you as loans or gifts (for instance, grandparents). They’ll also be happy to see that their generosity helped keep their grandchild’s house livable!

Renovating your home can be an exciting but overwhelming process. Our article on how to get a home renovation show provides tips on how to apply for home renovation shows, what to expect during the filming process, and alternative ways to get inspiration for your home renovation project.

Borrow From Family Or Friends

If you are close with members of your family or friends, borrowing from them may be a great option for financing repairs for your home. Borrowing from family and friends doesn’t have to be a tough conversation, but you should approach it with care.

The pros: It’s often easier to get a loan from someone who knows and cares about you than it is from a bank or other financial institution. Plus, because they know you personally, they may be more willing to work out terms that suit both parties’ interests (such as paying interest or giving credit). 

The cons: If the relationship becomes strained because of money problems or disagreements over repayment plans, this can cause lasting damage in the form of hard feelings between everyone involved—and possibly even end up costing more than paying back what was borrowed just by itself!

The steps: Before approaching someone about borrowing money for repairs on your house (or anything else), make sure that person has enough saved up that they could afford lending it without feeling stressed out by doing so. 

If they do not have enough saved up at all times then maybe don’t ask them yet until later when things are better financially for them too…”

Take Out A Second Mortgage

If you’re looking for ways to pay for home repairs, one option is to take out a second mortgage. A second mortgage is a loan against your home that can be used for any purpose and comes with its own set of pros and cons.

To get a second mortgage, you have to have equity in your current home as well as creditworthiness. You may also need collateral such as an automobile or boat if the bank feels like it will help them secure the loan. 

Once approved, you can borrow up to 80% of the value of your home at interest rates that vary depending on many factors like whether or not they are fixed or adjustable rates etcetera so it’s best if you go ahead into this with knowledge about what needs changing/improving first before making any decisions about how much money should be borrowed from which lender!


If you’re in need of cash and can’t afford to refinance or get a home equity loan, there are other options available to help you pay for expensive home repairs. 

You can use your credit cards, personal loans, overdrafts, auto refinance and cash-out refinances to cover the costs.

Further Reading

Here are some additional resources that provide information and advice on paying for expensive home repairs:

How to Pay for Pricey Home Repairs – This article covers different options for financing costly home repairs, such as personal loans, home equity loans, and credit cards.

How to Pay for Expensive Home Repairs – This article provides tips on how to save money for unexpected home repairs, as well as financing options such as home equity loans and government assistance programs.

How to Pay for Emergency Home Repairs – This resource outlines different ways to pay for emergency home repairs, including personal loans, credit cards, and government programs.


What are some common causes of expensive home repairs?

Common causes of expensive home repairs include natural disasters like floods and hurricanes, electrical problems such as faulty wiring, and damage to the roof or foundation.

How can I prevent costly home repairs?

Regular home maintenance can go a long way in preventing costly repairs. This can include tasks such as cleaning gutters, inspecting electrical systems, and repairing minor leaks before they turn into major problems.

What are some financing options for expensive home repairs?

Financing options for expensive home repairs can include personal loans, home equity loans, credit cards, and government programs such as Section 504 home repair grants.

How do I know if I should take out a loan for home repairs?

Taking out a loan for home repairs may make sense if you don’t have the cash on hand to pay for the repairs and don’t want to delay necessary repairs. It’s important to consider the interest rates and fees associated with the loan and to make sure you can afford the monthly payments.

Are there any government programs that can help with home repairs?

Yes, there are several government programs that offer assistance with home repairs, particularly for low-income individuals and families. These programs can include grants, loans, and tax credits.