How Do People Pay For Major Home Repairs?

The biggest repairs you can make to your home are also the most costly. These projects are often necessary, though, so you need to know what’s available in terms of financing. 

Below we’ll talk about some ways to pay for major home repairs from cash loans and credit cards to renting equipment or even selling your house. 

We’ll also discuss how each option works and which may be best for your situation. So let’s get started!

How Do I Pay For Home Repairs And Also Pay Off Debt?

Sure, here is a single column takeaway table based on the title:

There are many ways to pay for major home repairs and improvements, including personal loans, home equity loans, and government programs.
It’s important to consider your budget and financial situation when choosing a financing option.
DIY projects can save you money, but some repairs are best left to the professionals.
There are many resources available for homeowners who need help paying for repairs, including government programs and non-profits.
Always get multiple quotes and do your research before choosing a contractor or financing option.

Pay In Cash

You can pay for major home repairs in cash. Cash is king when it comes to paying for major home repairs, especially if you can afford to pay the full amount up front. 

Paying in cash will save you money on interest payments and fees, and it also eliminates the hassle of waiting for a loan approval or dealing with bank paperwork.

If you’re not able to pay in cash (or as much cash as possible), then consider making a small down payment with a credit card. 

This will help ensure that your repair work continues without interruption while giving you time to gather funds before the job is complete. 

But do whatever it takes not to use a credit card unless necessary—you’ll end up paying more than if had paid outright or used another method of payment like an existing line of credit

If you’re wondering how to pay for major home repairs, take a look at this helpful guide on how people pay for major home repairs. You’ll learn about options like personal loans, home equity loans, and government assistance programs.

Home Equity Loan or Line of Credit

A home equity loan or line of credit can be a good choice for paying for major repairs. These loans let you borrow money against the value of your home, and usually have lower interest rates than other types of loans. 

You’ll need to check with your bank or credit union to see how much money you can borrow, but it shouldn’t exceed 80% of the value of the house, minus any mortgages outstanding.

Home equity loans and lines of credit may take several weeks or months to get approved because they require an appraisal on your house before they give out any money. If you are considering this option, make sure that a repair is actually necessary first—there’s no sense in borrowing $20,000 if what needs fixing costs only $2,000!

Here is a table based on the semantic of the point “Home Equity Loan or Line of Credit”:

Benefits of Home Equity Loans and Lines of Credit

Lower interest ratesHome equity loans and lines of credit typically offer lower interest rates than other types of loans, such as personal loans or credit cards.
Fixed or variable ratesHome equity loans can have either a fixed or variable interest rate, depending on the terms of the loan. This can help you manage your budget and plan for future expenses.
Available for major expensesBecause you’re borrowing against the value of your home, home equity loans and lines of credit tend to have higher limits than other types of loans. This makes them a good choice for paying for major repairs or home improvements.
Potential tax benefitsDepending on your circumstances, you may be able to deduct the interest you pay on a home equity loan or line of credit from your taxes. Be sure to consult with a tax advisor for guidance.
FlexibilityHome equity lines of credit offer more flexibility than traditional loans, allowing you to borrow as much or as little as you need, up to your approved limit. This can be helpful if you’re not sure exactly how much you’ll need to borrow.

Personal Loan

A personal loan is a type of financing that gets you the money you need to pay for major home repairs. Find out more about personal loans, including what they are, whether it’s a good idea to use them and how much you can borrow with one.

Personal loans are offered by banks, credit unions and other financial institutions. They’re typically unsecured meaning no property or collateral is required as collateral on the loan and come with fixed interest rates over varying periods (1-15 years).

While they sound like they could be an ideal solution to your financial dilemma, there are several factors you should consider before borrowing through this method:

Interested in making some home improvements but don’t have the cash on hand? It might be worth considering taking out a loan. Check out this article on taking out a loan for home improvements to learn about what options are available and the pros and cons of each.

Credit Card

Credit cards can be a convenient way to pay for home repair. They’re easy to use and provide a guarantee that the transaction will go through, which is great if you need a quick fix. 

However, credit cards aren’t always the best option—you need to make sure that your finances are in order before taking out debt on them.

If you’re considering using your credit card for home repairs, think about whether it’s realistic or not. 

If you’re barely scraping by each month and don’t have enough money left over after paying rent, food costs and other expenses, then using a credit card is probably not going to help much with any major repairs that may come up later on down the road (like if an appliance breaks). 

It might seem like common sense but most people don’t realize how much money they actually spend until they start tracking their purchases carefully!

Homeowners Insurance Claim

Homeowners insurance claims can be a great way to pay for major home repairs, but you’ll want to check with your insurance company before doing so. 

If you don’t have enough coverage or if the damage is outside of the policy’s limits, then you’ll either have to pay for repairs out of pocket or do without them until your next renewal.

In addition, if there’s no deductible on your policy—which means you are responsible for paying for all of a claim up front and then getting reimbursed—then it might not make sense financially to submit a claim. It would be better in this case if the damage was small enough that it wouldn’t cost more than what you’d get back from filing an insurance claim (or not filing one).

Planning a home renovation can be an exciting process, but figuring out how to pay for it can be a challenge. This article on how to pay for a new home renovation provides a variety of options to think about, from savings and home equity loans to personal loans and credit cards.

Leasing the Equipment You Need to Make the Repairs

Somewhat surprisingly, leasing can be a good option if you don’t have the cash to make the repairs. “It’s much easier for a homeowner to get financing on equipment than it is for them to get financing on a house,” says Mike Sayles of LeaseQ.

A lease can be as little as $10,000 and last up to 36 months, which is long enough that it may qualify you for tax deductions on your home-repair expenses. 

And once your project is done and you no longer need the machine in your driveway? Well, that’s when things start getting interesting: You can return it or trade it in and then lease another one!

Here is a table based on the semantic of the point “Leasing the Equipment You Need to Make the Repairs”:

Benefits of Leasing Equipment for Home Repairs

Lower upfront costsLeasing equipment can be a good option if you don’t have the cash on hand to purchase it outright. Rather than paying a large sum upfront, you’ll make smaller monthly payments.
Flexible financing optionsEquipment leasing companies may offer a range of financing options to fit your budget and needs. This can include flexible repayment terms, as well as deferred or seasonal payments.
Up-to-date technologyLeasing equipment allows you to have access to the latest technology and equipment without the upfront cost. This can be particularly helpful for specialized repairs that require specialized equipment.
No maintenance costsDepending on the terms of the lease contract, maintenance and repairs may be included in the monthly payments. This can help you avoid unexpected costs and keep your equipment in good working order.
Tax benefitsLease payments may be considered a business expense and could potentially be tax-deductible. Again, it’s important to consult with a tax advisor to determine your eligibility and potential savings.

Government Programs

Government programs are another option for homeowners looking to afford major home repairs. There are many state and federal programs that offer grants or loans to help low-income families pay for some of their home repair needs. 

These programs can be used for everything from replacing electrical wiring or the foundation of your house, to making sure you have a safe place to cook after a kitchen fire. If you qualify, these funds will be granted with no strings attached; meaning it’s up to you how much money you want / need in order for your project to go forward!

Another government program worth mentioning is insurance policies that cover costs related to accidents such as floods, fires or even earthquakes if they happen near where you live (this type of coverage can get expensive). 

Wondering how most people pay for home improvements? This article on how most people pay for home improvements explains some of the most popular options, including financing and saving up, and includes some helpful tips on how to make the most of your budget.


Generally, home repair loans are going to be more expensive than car loans. This is because the bank will want to make sure that you are able to pay back the loan before they give it to you. 

It’s probably best if you don’t take out a loan unless there’s no other option and even then, it’s important not to try too hard or push yourself too much just so that you can afford your dream home renovation project.

You should also make sure that any money borrowed will be affordable after paying off all of your other debts and bills. You don’t want any extra costs while making payments on this new house repair loan!

Personal Savings

There is nothing wrong with using your savings to pay for home repairs. After all, if you are using money that you have worked hard for and saved up, then it is yours to use as you see fit. This may be the perfect solution if you want to fix up your home but aren’t ready to buy a new one yet.

You can also use your savings as a down payment on a new place! If the repairs are minor and inexpensive enough, this might be a great way to avoid paying interest on loans while still making some upgrades around the house.

If fixing up an existing property sounds too risky or expensive for you, then start looking into refinancing options instead! 

This will provide financial relief by lowering monthly payments while reducing interest rates over time  and it could even help pay off debt faster than before!

Financing home improvements can be challenging, but there are options out there. Check out this article on how to get money for home improvements to learn about some creative financing options, as well as some great tips for making the most of your budget.

Rental Income

If you have a home that isn’t occupied full time, consider renting out a room to help cover costs. Even if you’re living in the property as well, there’s no need to let your entire space go unused.

If you want to give up your entire house for an extended period of time and don’t want to deal with renters (for example, because the tenant won’t pay their rent), consider using a property management company instead.

If all else fails and there is no other way for you or your family members to make ends meet, consider renting out one of these things:

  • Your driveway for parking cars on busy days like weekends when people visit downtown areas;
  • Your yard as part of an urban farming business; or
  • A garage that could be converted into living quarters (if it’s big enough).

Tapping Into Your Retirement Funds

If you’re in a situation where you need to pay for home repairs, tapping into your retirement funds is usually the last resort. 

Even though there are no penalties when you make withdrawals from 401(k) or IRA accounts before reaching retirement age, it’s still not recommended.

However, if you have no other option and absolutely must take out money from these accounts, be sure to consult with a financial advisor first. They can help determine whether this type of withdrawal makes sense for your financial situation (and possibly find another way to cover the cost).

Consider Selling Your Home Instead of Making Repairs and Moving Somewhere Else

Consider selling your home instead of making repairs and moving somewhere else. If you’re not going to live in the house much longer, it may be time to sell it. 

You can use the money from the sale to buy a new home that better suits your needs. In addition, if you own your house outright or have equity in it, you can take out a loan against this equity (called home equity) and use this money for major repairs.


So there you have it, the different ways people pay for major home repairs. It’s important to consider these options and how they fit into your specific situation before making any big decisions. 

We hope this article has helped clear up some confusion on the subject!

Further Reading

Here are some additional articles that might be helpful if you’re looking for more information about paying for home repairs and improvements:

How to Pay for Major Home Repairs: This article from Citywide Sundecks covers some common ways to pay for major home repairs, such as refinancing your mortgage or taking out a personal loan.

How to Pay for Home Improvements: Bankrate’s article on paying for home improvements offers a comprehensive guide to financing options like home equity loans, credit cards, and government programs.

How to Pay for Pricey Home Repairs: OneMain Financial’s article provides a helpful overview of financing options for costly home repairs, including personal loans, home equity loans, and credit cards.


What are some common ways to finance home repairs and improvements?

Some common ways to finance home repairs and improvements include taking out a personal loan, using a credit card, tapping into your home equity with a home equity loan or home equity line of credit (HELOC), or applying for a government program.

What factors should I consider when choosing a financing option?

When choosing a financing option for home repairs or improvements, consider factors like the interest rate, the repayment term, any processing fees or closing costs, and the impact on your credit score. You should also consider whether you can afford the monthly payments and whether the potential benefits justify the costs.

Are there any government programs that can help me pay for home repairs?

Yes, there are several government programs that provide assistance for home repairs and improvements, particularly for lower-income homeowners. Some programs are offered by the federal government, while others are available through state or local agencies.

How much should I budget for home repairs and improvements?

The amount you should budget for home repairs and improvements will depend on factors like the age and condition of your home, the scope of the project, and the materials and labor involved. It’s a good idea to get quotes from multiple contractors and suppliers to get an idea of the total cost.

How can I save money when paying for home repairs?

Some ways to save money when paying for home repairs include taking advantage of government programs, DIYing as much of the work as possible, and shopping around for the best financing terms and interest rates. You can also try negotiating with contractors to get a better price.