Hi everyone! I'm a new homeowner and my partner and I recently bought a house that's over 100 years old, which needs a lot of repairs. We're in a bit of a bind since we don't have the funds to cover the repairs upfront. Since we've only made a few mortgage payments, I'm not sure if we can find equity-based loans like cash-out refinancing because we'll need tens of thousands for the repairs. Our financial situation isn't great, so we want to keep monthly payments as low as possible. The repairs aren't just cosmetic; they are essential for the house's functionality, like plumbing issues. We're looking for lenders who offer longer loan terms, accept joint applicants, have no prepayment penalties, and ideally have decent interest rates. Any advice or recommendations on lenders or financing options would be greatly appreciated!
3 Answers
With your budget constraints, looking into a personal loan could be a smart move. Another option is to hire a handyman with great reviews to tackle the essential repairs without breaking the bank. If you're willing to DIY, you might find some fixes that can save you money!
I understand your urgency! I’d suggest avoiding risky subprime loans since interest rates could soar to 13% or even 20%. It’s usually better to explore your options thoroughly before jumping in. Were these issues not obvious during the home buying process? A home inspection should have caught those, but estate sales can sometimes come with hidden surprises!
You might also want to check out local grants or assistance programs that help homeowners with repairs, especially if they're necessary for safety and habitability. Sometimes communities have resources for older homes that can help you financially.
Yeah, we didn’t realize all the issues until after the purchase. The inspection missed some big problems because of the unusual circumstances around the estate sale. It’s definitely a rush now since we really can’t live here without addressing these issues.