5 Tips to Pay for Home Repairs if You Don’t Have an Emergency Fund

Every homeowner has their own share of dilemma – it’s freezing and the water heater system suddenly stopped working. The roof leaks during heavy rain. Sticking doors or windows. Sloping floors. Sure, these problems can be fixed quickly by simply calling for professional help. But without a buffer or cash for unexpected home repairs like these, homeowners end up in dismay.


Smart Ways to Get Your Home Fixed Without Enough Funds


Home repair and maintenance are costly undertakings that homeowners can’t get away from easily. In fact, most financial planners recommend having an emergency home repair fund close to $5,000. Unfortunately, 61% of Americans don’t even have enough savings to cover a $1,000 emergency fund.


If you belong to this group, here are some ways to deal with unexpected home repairs without breaking your bank:


Hire Qualified Contractors


If you want to make sure that every cent you spend on home repairs goes into where it should be, you have to hire the right people for the job. Professional contractors can save you time, probably several days for each project duration. That’s because they have the skills and equipment to complete it in the most efficient way possible. Also, qualified contractors have access to materials bought in bulk that individual homeowners would usually have to purchase at a higher price. Take time to research for the best home improvement contractors in your area. Choose at least three and ask for quotes. This should help you decide which contractor can complete your project at the most affordable price.


Homeowners Insurance Claim


If you have a home insurance coverage, you can save a lot on home repairs if not totally have it paid for by your insurance provider. But first of all, you have to know your coverage, limits and deductibles to verify which repair costs you will need to pay out of your pocket. Understanding your policy will help you in organizing and filing your claim. Document all of your damage. Take plenty of photos before cleaning up or starting the repairs. If you don’t agree with the insurance company’s estimate, you may file a dispute or appeal.


Government Assistance


Unlike loans, government assistance in the form of grants, do not have to be paid back. If you are a single parent with more needs than resources, a veteran or senior living in a fixed home, or if you have considerably low income, you may qualify for a home repair grant. You can explore your options and eligibility on benefits.gov.


Disaster Relief


If a serious disaster has left you in great need of home repair or renovation, you may benefit from a disaster relief. Some government programs are available nationwide, while others are only available at the state level. The FEMA implements a Disaster Housing Program to help homeowners deal with the after-effects of disasters or natural calamities. This includes the Disaster Home Repair Assistance where people can get relief/grants for minor but necessary disaster-related repairs.


Alternative Financing


If you are not qualified for any government disaster relief programs or grants, and you don’t have the option to borrow money from friends or family, your last resort would be to acquire cash advance or personal loan from a qualified lending company. Unlike traditional bank loans, alternative financing provides more flexibility in terms of the qualifications, terms, and amount you can borrow. Take time comparing the terms and policies as some lenders tend to impose higher interest rates.



In an ideal world, every homeowner should have at least 6 months’ worth of savings as an emergency fund to cover for unexpected expenses, such as costly home repairs. But if you find yourself having no cash or buffer for a home repair project that needs to be addressed ASAP, know that there’s still hope. Firstly, you can check your home insurance policy to know what kind of repairs are covered. Second, you can apply for a disaster relief or government assistance. If you don’t qualify for any of these, your last option would be to secure alternative financing. Once you have the fund, be sure to choose the right contractor to handle your home repair project as these people can get the job done right at the most reasonable price.



Date : 3/22/2018