Hitch Logo

How to Finance Foundation Repairs

blog-post

Apr 16, 2023

Share

email
link
twitter
facebook
linkedin

As a homeowner, major repairs can be expensive, and they may not be able to cover the entire cost out of pocket. Foundation repair is no exception and can often require extensive and costly repairs that some homeowners may not have the funds readily available for. Fortunately, there are financing options available to help you cover the costs of repairing your foundation.

One option is to take out a home equity loan or line of credit (HELOC). This type of loan allows homeowners to utilize their existing home equity as collateral in order to borrow money for foundation repairs. The interest rates are typically much lower than those found on traditional consumer loans, making them a more affordable solution for financing foundation repairs.

Another option is to apply for a personal loan from a bank or online lender. While interest rates may be higher than with home equity loans, this can still be an attractive option if you need access to funds quickly and don’t want to wait for the bank to approve a HELOC application. Additionally, personal loans often come with more flexible repayment terms, allowing you to customize them according to your budget.

Foundation repair financing does not have to be intimidating or overwhelming! Evaluating all the different options available will help you make an informed decision that fits within your overall financial goals.

Explore Different Financing Options for Foundation Repairs

When it comes to financing foundation repairs, there are a variety of options available, ranging from traditional personal loans to more specialized home improvement financing. It is important to research each option carefully and compare the pros and cons before making a decision. To gain access to funds quickly, homeowners should also consider working with a professional who can help them secure the best rates for foundation repair financing.

Understand the Pros and Cons of Each Option

Understanding the pros and cons of each option when it comes to financing foundation repair can help homeowners decide which route is best for their situation. Traditional personal loans have a fixed interest rate and are typically easier to obtain, but may come with high fees or other unexpected costs. Meanwhile, specialized home improvement financing may provide more flexibility in terms of repayment plans and interest rates but often require more paperwork and diligent research. Additionally, some home improvement stores may offer financing options that come with extended warranties or other incentives. No matter which option you choose, it’s important to read the fine print carefully so that you know exactly what kind of deal you’re getting.

Know When It's Time to Get Professional Help With Your Foundation Repair Financing

Knowing when to seek the help of a professional when it comes to financing foundation repair is an important step. While researching different options can be beneficial, professionals are often better equipped to answer questions and provide helpful advice when deciding on the best financing option for your situation. Additionally, many experts in this field have relationships with lenders that may offer lower interest rates or exclusive deals which are not available through other channels. Ultimately, seeking professional help can save you time and money in the long run.

Is it possible to secure financing for foundation repairs?

Applying for financing to cover foundation repair expenses is made easy with Hitch. Protect your home and its overall value by hiring professionals to fix any issues, and pay for the repairs with a personal loan from one of the many lenders that Hitch works with. All you have to do is fill out an application online and receive multiple offers within seconds – without affecting your credit score! Once you've reviewed all the available offers, pick the one that suits your needs best and proceed with the lender.

It's recommended that you get an estimate from a professional foundation repair company prior to applying for financing, so you'll know how extensive the repairs will be and how much money you should borrow.

What are some solutions if you can't afford to fix your foundation?

If you are facing an expensive foundation repair but unsure if you can afford it, there are several options available. Refinancing your home or taking out a personal loan from Hitch might be viable options. Ignoring the problem will only worsen the situation and could cause long-term consequences such as decreased home value and more costly repairs down the line. Taking out a loan from Hitch is an easy solution as it requires no collateral or money down, allowing you to start repairing your foundation right away.

Are foundation repair costs tax deductible?

In most cases, foundation repairs are considered home repairs rather than a home improvement with significant value. The IRS views these repairs as tax-deductible. Tax deductions may also be available if the residence is used for business purposes or is a rental property. Additionally, when selling a principal residence, any profit gained from the sale as a result of home repairs, such as fixing a cracked foundation, is excluded up to $250,000 for individuals and $500,000 for married couples. Consultation with a professional CPA is advised for more complex tax questions regarding foundations repairs.

Is it worthwhile to invest in foundation repairs?

Ignoring necessary foundation repairs can have serious consequences. From buildings falling to the ground to putting residents and neighbors at risk, these repairs are almost always worth it. Do not let financial constraints be a barrier for dealing with essential foundation repairs – there are plenty of financing options available.

Is it possible to obtain a mortgage on a house with foundation issues?

It is essential to be aware that most mortgage lenders are unlikely to grant a loan to someone purchasing a house with a cracked foundation. If they do agree, they may require a significant down payment or demand the repairs be made prior to giving the mortgage.

Is it possible to refinance a house with foundation problems?

It may be difficult to obtain a home loan to buy a new house with a cracked foundation, but if done correctly, you might be able to refinance your current home by proving to the lender that you intended on using the refinancing money to repair the foundation. To convince the lender, have all documents and evidence ready when applying for the loan. Additionally, have an engineer inspect your property along with quotes from local contractors for repairs. An appraisal and finished refinance application could help improve your chances of getting approved.

Securing a personal loan may have higher interest rates compared to refinancing, but it usually has an easier and faster approval process if you need funds quickly. As a homeowner, decide whether you prefer a secured loan or unsecured loan since secured loans like home equity loans require your house as collateral.

If you don't want to use your savings fund for foundation repairs, look into foundation repair financing with terms that make sense for your situation. Hitch offers dozens of top-rated lenders who can provide loan amounts up to $100,000 and terms up to twelve years in cash which gives you more negotiating power when dealing with contractors.

Related Articles:

Borrow from yourself, not the bank!

See your equity and HELOC rate in seconds

Equal Housing Lender
Hitch, Inc. 23833672158 NW Toussaint Drive. Bend, Oregon 97703

1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.5. The content provided is presented for information purposes only. This is not a The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.