Many homeowners have been in this same boat: you have improvements or repairs you want or need to make, but you don’t have the funding. Maybe you’re wanting to remodel your kitchen or bathroom. Perhaps your need is more dire, such as needing to bring your electrical wiring up to code. Whatever you intend to do, many repairs and improvements have the potential to increase the value of your home. Whatever you are needing to do, there are options out there that can help you make these changes in your home. Below are some options for such funding.

FHA 203(k) Loan

This is a loan offered by the US Department of Housing and Urban Development. Through this provision, you can borrow up to $35,000, combine it into your mortgage, and use that money for improvements and repairs. Through offering this loan, HUD wanted to enable homeowners to make needed repairs without having to take out multiple loans or open multiple lines of credit. Taking out this kind of loan is subject to multiple eligibility requirements. For more information on section 203(k), you can visit HUD’s official page on it.


As long as it works out for you and interest rates are low, this can be a good way to get the funding you need. Once you have built up equity in your home, you can draw cash from it through refinancing. Just be aware that if the property values in your neighborhood go down, you could end up owing more than your home is worth. (Spoiler alert: that’s not a good thing!)

Home Equity Line Of Credit

A Home Equity Line Of Credit (HELOC) allows you to borrow money against your home equity on an as-needed basis. In this case, your home becomes the collateral for this line of credit. This is different from a Home Equity Loan (HEL) as 1) the interest rate is variable, and 2) you take the money only as you need it–similar to how a credit card is used. As with refinancing, you can end up owing more than the home is worth if surrounding property values fall.

Credit Cards

While credit cards are not typically the first choice for funding major home improvements or repairs, you can benefit from special offers such as 0% APR for limited periods, airline miles, or other perks. Before you go with this option–in part or in whole–weigh the pros and cons and see if using credit cards for home improvement is right for you.

Know When To Quit

Sometimes it’s very difficult to repair or improve your home while keeping your finances sound. Maybe none of these options are right for you. Or perhaps any damage done is too extensive for you to be able to handle. In cases like these, it may be in your best interest to look for a cash home buyer that is able to take your mess off your hands for some quick cash before you get in over your head. If you find yourself in this position, we would love to discuss whether or not we can help you. Contact us today and let’s see if we can help each other!

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