One of the most expensive expenditures in anyone’s life is fixing or repairing your house. This can be really hard on a lot of people who are barely getting by in day to day life. For a lot of people, going for a loan from a bank is not as easy and it is even more difficult to just get approved. So what can you do if your house is falling apart and you can’t afford to fix it?
If you’re low on cash and your home is falling apart, I would suggest making a list of all the most basic and essential things you need to get done in your house and set a maximum budget cap for the entire process. Only focus on the top 3-5 most essential repairs. Stick to your strict budget even if it’s $100. The following month fix something else.
There are also a lot of financing options like home repair loans, government grants, local home improvement financing, a HELOC or insurance claims that could help you out.
Luckily there are some basic steps you can start taking to not only begin repairing your home but to also acquire a bit more capital for doing so.
Let’s take a look how…
How To Fix A Home With Little To No Money
Before addressing all of the things which should be a priority I would like to go over the process which I followed when I had to fix my house.
It’s very basic and easy but it can make a huge difference.
Remember, if everything is a top priority then nothing is.
To start, make sure you write down all of the things which needs to be fixed in your house.
This includes everything from a faulty appliance to a broken bed to a ceiling that is collapsing. This will help you keep track of everything going on in your house.
The second step would be to arrange that list in terms of priority. For example if you have a broken light and broken plumbing, of course you should address the plumbing first.
Similarly, issues with the toilet and the essential items should be addressed first. The aesthetic part of your house can be addressed when it is a clean, safe and a comfortable living space.
And the next step would be to finalize a budget. Even if you can just allocate $100, that’s a place to start. The costs of repairing your house can start running away from you if you don’t keep track.
Once this is done, start allocating the budget according to the priority list. Deal with the top 3 to 5 things on the list at once and start ticking them off.
Another suggestion would be to do extensive research on all the repairing options out there. Some of the popular methods can be very expensive, on the other hand going for a cheaper and lesser option can work out great in the long run.
Things That Need To Be Top Priority When Your Home Is Falling Apart
While you are making a priority list, it is important to recognize how important different components of a house are.
So, for example if your living room paint is coming off and at the same time the roof of your house is falling apart, you shouldn’t focus on the paint.
Just like this there are parts of the house which need immediate attention. These includes the kitchen, the washroom, the roof and the foundations of your house.
You also need to make sure the plumbing, electricity and gas pipeline is functioning normally.
There are also some hacks which you can use while repairing your house which won’t burn a hole in your pocket.
One of these things is using a cheaper vinyl peel on flooring to cover up old and dirty flooring in your house. These modern day vinyl floors are not only cheap but they also look extremely good.
Things like these can completely change the look of your house. Repainting the house by yourself is also a great way to change the way your home looks.
How Do I Get Money To Fix Up My House
There are a lot of options which you can go for to finance your home repairs. But before I explain any of them, I would suggest you do your own deep research into all of them before deciding to for anything.
I would also suggest that you opt for any one of them only if you plan to live in your house. This is because house flipping can be especially tricky and is a high-risk endeavor, especially if you are doing it through a loan.
Option 1: The first option which you have is a simple home repair loan. Most of the banks out there offer this type of loan and it is specifically designed for financing home repairs. But there are two drawbacks to this.
First, if you have a bad credit score then the interest rates might be a bit too high or you might not even qualify for a loan. Second, if you don’t have a stable income source then repaying this loan might be a headache.
Option 2: The other option you have is something called a HELOC which stands for ‘Home Equity Line of Credit’. This option is available to you if you have a mortgage on your house and you have been paying it for some time now. W
hen you have been paying your mortgage, it means you have equity in your house and this further means that you can take a line of credit on it.
Your credit score and income will also affect the amount and the interest rate, but this is a better option when compared to a direct loan from the bank. This is because here the house is being the collateral which further reduce the interest rates. Sometimes a HELOC can even go up to 90% of a house’s value.
Option 3: Another option can be a grant. Keep in mind that this option is subject to availability in your area and the requirements for these are even more stringent when compared to a bank loan. This is also known as a Section 504 home repair program.
But one advantage is that you don’t have to pay a grant back. So, it is basically a grant is free money. But the usual requirements are as follows: you must be at least 62 years old, having a family income less than 50% of the area median income, you are unable to get a line of credit or loan from somewhere else, and that you are the owner of the house.
Option 4: The last option is local home improvement financing. This is a very good option if all you need money for are some tools and appliances. If most of the repairs are DIY then this can be a great option.
Some stores like Home Depot and Lowe’s offer financing option through which you can buy appliances, tools and anything from a store by opening a line of credit.
Most of these stores even have 0% interest rates till a certain time. You can even avail some discounts if you shop for a certain amount. This can also be a great option if you are looking to do some basic repairs before flipping your house.
Option 5: If your house got damaged in a natural disaster or through some unforeseeable circumstances, you can also check if you have an insurance claim or not.
Even if the insurance claim does not cover the entire repair expenditure, you can contact some disaster organizations which help people recover from natural disasters.
If You’re Trying To Sell Your Home..
If you have decided that you want to get rid of your house, you need to worry that much about fixing and renovating your entire home for selling it.
There are a lot of people in the market looking for a ‘fixer-upper’ house which they can renovate according to their liking.
Of course, you will have to sell it for a lower price, but it will be better than taking a loan to renovate a house only to not sell it after doing so.
At the same time, you can also make some changes which will maximize your house’s selling price. These things include simple deep cleans and making sure that all of the safety hazards like mould, termite and any gas leakages are fixed. I
would also suggest doing some DIY repairs as much as you can to further increase your house’s value.
Repairing your house can be a very stressful experience and it can really burn a hole in your pocket.
But even if you’re house is falling apart and you can’t afford to fix it, there are options like taking out a small loan, financing, or simply doing-it-yourself with a strict budget and lent tools.
Always remember to conduct a thorough research on all the options available to you, this applies to both the repairing options and the financing options you go for.
A careful and informed choice can save you a lot of money and effort.