But My Home Needs Major Repairs ….

You always planned to fix the roof but delayed it because of expensive contractor prices. Now the roof is leaking and you need to replace the entire roof but you still do not have the funds.

Create a list of the necessary home repairs. Prioritize the list based on the urgency of the repair.

    Figure out how much money you have to spend.
    Get written estimates from home improvement contractors for the work. Obtaining a quote in writing prevents a contractor from changing the price later. Make sure potential contractors have liability insurance, which is required by most states. Look in the phone book and online for local contractors (see Resources below). Ask your chamber of commerce and Realtors to recommend contractors. Call local home improvement contractor associations and request a list of members to consider for the repair projects.
    Determine your budget for the repairs based upon the contractor quotes and decide how much more funding is needed.
    Explore contractor home finance loans. Some contractors offer loans for repair projects as a convenient financing option. These loans can help you afford repair work. However, the loans are often unsecured and have high interest ratesUse your home repair warranty, if possible. Check your warranty criteria to find out if the needed repairs qualify for coverage.
    Consider home equity loans. Ask for a home equity line of credit with an interest-only payment plan to minimize monthly payments until you can afford to pay more. Shop around for a lender that offers the home equity program that meets your financial needs.Hire a handyman contractor instead of a large business for the repair work. Independent handymen often charge less than big companies. Ask local home improvement contractor associations and Realtors to recommend handymen. You can also look for local independent contractors online

    If you don’t have the equity in the home or the funds to do the work you could always consider selling the property to a tenant-buyer and get your money out of the house.

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