Does your house need expensive repairs that you don’t have the cash for?
If so, we’ve put together a list of resources and options that may help!
1) Cash-Out Refinancing
If you are a homeowner who has equity in their home, this is an option to consider. With refinancing, you are paying off your original loan and creating a new loan. There are pros and cons to this of course. The pros are that if you have great credit, you may end up with a better interest rate (and possibly go from a variable to fixed rate), but on the flip side if you do not have good credit, you may end up with a worse interest rate and end up back at square one with a new mortgage. Keep in mind that you will likely have to pay closing costs and other fees when refinancing.
2) Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit, or HELOC, could also be an option if you are a homeowner with equity. A HELOC does not change your original mortgage but creates a line of revolving credit (more like a credit card) based on the equity – typically up to 80% – of the value of your property’s equity. Like a Cash Out Refinance, a HELOC also has closing and other fees associated with it.
3) Government Programs
If the needed repairs are to make your home livable, like plumbing, roofing, windows, doors, etc. (see HUD website for more info) or for instance you need to repair or remove a swimming pool as opposed to putting one in, then an FHA Limited 203K Loan may be the way to go. Listed below are some of the improvements that can be made using this type of financing:
- structural alterations and reconstruction
- modernization and improvements to the home’s function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing; installing a well and/or septic system
- adding or replacing roofing, gutters, and downspouts
- adding or replacing floors and/or floor treatments
- major landscape work and site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements
Of course with any government program, there are going to be more stringent rules and requirements for the loan. Applications must be submitted through an FHA approved lender.
4) Local Government Programs and Community Outreach
Check with your local government to see if they sponsor or are aware of any programs that provide loans to homeowners for repairs. If you are local to Seaside Property Solutions and live in St. Petersburg, Florida, there are a couple options that may be able to help you:
Home Repair Loans • If you live within the municipal boundaries of St Petersburg, Florida, you may be eligible for a 0% interest home repair loan. These loans offer affordable monthly payments and loan forgiveness after 15 years of on-time payments. Read more at stpete.org for house value and income guidelines.
Barrier Free Grants and Loans • If your home needs improvements to make it more accessible for physical, visual, or hearing impairments, you may be eligible for one of the City’s $3,000 grants (no repayment necessary) or a $15,000 forgivable loan.
The N-Team: People Helping People • Another community program available to St. Pete residents is the N-Team. The N-Team is an organization that assists the elderly, disabled, and those who cannot afford home repairs by doing those repairs free of charge. To find out more about The N-Team, click here.
In addition to local programs, it is also a good idea to reach out to local church and non-profit organizations who may be able to refer you to programs in your area.
5) Sell Your Home
If you’ve reviewed all of the options and decided that you’re ready to move on, selling your home is always an option. Once you make the choice to sell, you just have to decide how you want to go about it. The most common way people think of to sell their home is to contact an agent, list and show the home, then wait for an offer, and then a closing with commissions and fees.
If you want to sell your home quickly on your schedule, and avoid the hassle of a traditional sale, you can sell to a cash buyer like Seaside Property Solutions. We can purchase your home quickly (in as few as 7 days) or in a flexible time frame you dictate, in cash, without closing costs or commissions and also without any need for repairs.
Click here to learn more about how we can buy your property for cash!
Want to see how much we could offer you? Complete the form below and we will reach out ASAP!