Home repair costs range from simple to complex.
Home maintenance and repair are just another part of homeownership, albeit a downside for most homeowners. Home repairs can range from a few dollars to a few thousand, depending on what repairs must be performed. Does this Spark an idea?
Types
Homebuyers considering a Fannie Mae or Department of Housing and Urban Development foreclosure home can qualify for a Home Path or 203(k) loan, which accounts for home repair and renovation alongside the home purchase. This allows a new homebuyer the financial help and resources to close on a home and have costly repair work complete before closing.
Function
Homeowners who have lived in a property for several years or who have obtained at least 20 percent equity of the property value can take out a home equity loan or line of credit. Borrowing against the equity can liquidate enough capital to complete home repairs and upgrades. The loan or line of credit will be an additional payment separate from the mortgage payment, using the home as collateral.
Considerations
Home service plans are sometimes overlooked when it comes to home repairs. Homeowners purchase a service plan for an annual fee and when something breaks, the owner simply calls the service plan provider and pays a small deductible for repairs; this keeps costly repairs more manageable.
Tags: line credit, loan line, loan line credit, range from, service plan