Home repairs are inevitable, and they often come with hefty price tags. When an unexpected repair arises, figuring out how to cover the costs can be overwhelming. Fortunately, there are several ways to finance these repairs, whether you’re dealing with a natural disaster, a sudden system failure, or other home emergencies.

In this article, we will discuss the financing options available that can help you manage unexpected repair costs, including title loans, home equity lines of credit, and government assistance programs.

Let’s explore the best ways to get the funds you need for home repair assistance.

What Are Your Options For Paying House Repair Costs?

1. Home Equity Line of Credit (HELOC)

When it comes to needing help paying for a big house repair, the first option you have is a Home Equity Line of Credit. Also known as HELOC, a home equity line of credit lets you use your home’s value to finance unexpected house repair costs, making it a great fast cash option for those coping with major repairs. It comes with a big caveat, though. If you can’t repay what you borrowed, you risk foreclosure.

2. Homeowners' Insurance Claims For Repairs

Another form of help for unexpected repair costs is a home insurance claim. When you have a real house repair emergency, it may be beneficial to file for a homeowners' insurance claim to help you pay for it. They may take a little bit longer than other methods, but it’s worth it if the repair is covered by your policy, you have time to wait, and you can cover the deductible. Most homeowners can claim repairs for damage caused by storms or fires if covered by their policy.

3. Use Emergency Savings For Urgent Repairs

By tapping into your emergency savings to cover house repairs, you can avoid some of the financial obstacles that come with it otherwise. Your emergency savings can get you out of trouble if your home is damaged by something like a natural disaster. You don’t even have to wait for loan approval or spend time comparing financing options if you have emergency savings. Learn more about how to start a budget for emergency expenses.

4. Apply For A Home Improvement Loan 

A form of a personal loan, a home improvement loan is designed to help cover everything from remodeling and upgrading to emergency home repairs. Such loans are usually unsecured, which eliminates the need to put your property equity up as collateral to qualify. The amount you receive depends on your credit, and the interest rates are higher than average. However, you usually have the same monthly payments during the entire loan period.

5. Leveraging Government Assistance For Covering Repair Expenses

Federal loan programs like the Limited 203(k) and the FHA 203(k) let homeowners either refinance or buy a property and then have more funds added to the loan amount to cover repairs. Another option is the Title I Property Improvement Loan program offered by the Department of Housing and Urban Development.

Insured by the FHA, this approach is good for those who need to pay for major repairs but have a small amount of home equity. Even the U.S. Department of Agriculture has a Section 504 Home Repair program that provides grants for very low-income homeowners in rural areas needing emergency home repairs.

Federal grants are also available for those 62 and over. Local and state governments, financial institutions, and agencies oversee community development programs that use Community Development Block Grants for emergency repair loans. Disabled or senior homeowners may qualify for other forms of community development assistance plans.

6. Find Out If You Qualify For Disaster Relief Assistance

If you're covering repair expenses that stem from a natural disaster (hurricane, flood, earthquake), you may be able to get help from:

• FEMA (Federal Emergency Management Agency)
• The Red Cross
• Local disaster relief organizations

These programs can provide financial aid if your homeowners' insurance doesn’t cover your repairs.

7. Use Cash-Out Refinancing For Your Home Repair Assistance

Another form of paying for house repairs involves cash-out refinancing. A popular payment approach is cash-out refinancing, which means your current mortgage becomes a bigger mortgage, and a new loan to cover repairs. This method to finance unexpected house repair costs gives you up to 80% of your home’s market value and gives you the difference in cash.

8. Considering A Title Loan To Help Cover Unexpected Repair Costs

If you need fast cash for emergency home repairs, a title loan is one of the quickest funding solutions. While there are other house repair financing options like credit cards and personal loans, you may not have the good credit or credit history to qualify for the fast cash that you need. That is when a title loan can help! Because you are using collateral to secure the loan, the lender does not have as much risk as with an unsecured loan when it comes to approval. 

The interest rates are indeed higher with a loan that doesn’t rely on credit, and if you default on the car title loan, the lender can take your vehicle, which is why this type of loan should only be used for emergencies and if you can afford to make repayment. Remember, to only borrow the loan amount you need, not the amount you qualify for, if it is more.

What Is A Title Loan?

A title loan lets you use your car title as collateral to secure a loan—without giving up your vehicle. At Tennessee Title Loans, Inc., you could get up to $2,500 in as little as 30 minutes.

How To Qualify For A Title Loan

To get a car title loan, you only need:

• Your lien-free car title
• A valid state-issued ID
• Your vehicle for inspection

What Are The Benefits Of Car Title Loans?

• Quick approval – Get cash the same day
• No credit check required
• Keep your car while repaying the loan

Need urgent home repairs? Apply for a title loan online today.

How Does The Title Loan Process Work?

1. Fill out the online title loan form on our website to use our services.
2. A loan representative will contact you to review the required items.
3. Bring your vehicle and lien-free title to the nearest location for a quick inspection.
4. Get approved for up to $2,500 in as little as 30 minutes!

Once approved and agree to the loan terms the lenders have set forth, you can get the fast cash you need for your house repairs and renovation, either the same day or by the next business day!

Get Help Paying For Unexpected Home Repair Expenses Today!

If you need immediate cash for housing repair, consider emergency savings or a car title loan. For larger, planned repairs, government programs or HELOC may be better suited. 

Need fast cash for unexpected home repair expenses? Start your car title loan application now. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.