How to Pay for Foundation Repair With No Home Equity

Read through your home insurance policy documents to see if you're covered.

Read through your home insurance policy documents to see if you're covered.

You won't be able to apply for a loan secured on your home to raise funds for your foundation repairs if you don't have any equity in it. No bank would entertain your proposal. As such, you're going to have to find some other way to pay for the work that needs doing, and you'll need to be snappy about it; problems with your foundations can cause damage to the structure of your home.


If you've had any work carried out on your foundations before, there'll be a good chance the company you used will have given you a warranty. Check through the paperwork you were given by any foundation repair company you've hired. Contact your real estate agent or seller if you've just bought your house. Some foundation repair companies offer transferable guarantees. You should have received information about this with your closing papers when you bought your house if the previous owners had any work carried out, but it will be worth getting in touch to make sure this wasn't overlooked.

Home Insurance

Check your home insurance policy documents. Although water seepage is rarely covered by home insurance policies, you may be able to make a claim if the damage to your foundations was caused by burst pipes or any other issue that emanated from within your home. Contact your insurance provider if you're unsure as to whether you're covered or not.


Contact your local Housing and Urban Development or Department of Agriculture office to find out if you're eligible for any grants or low-cost loans to help you sort out your foundations. You'll typically only be eligible for support if you claim certain benefits or are on a very low income.

Unsecured Loan

If you have no savings to pay for your foundation repairs, you're going to have to apply for an unsecured loan or load the cost onto your credit card. The former will probably be the best option as you'll pay less interest. Check your credit file for errors before you make an application to give yourself a better chance of qualifying for the most competitive loans on the market. Make sure you use a foundation repair firm that offers a comprehensive guarantee when you have any work done.

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About the Author

Michael Roennevig has been a journalist since 2003. He has written on politics, the arts, travel and society for publications such as "The Big Issue" and "Which?" Roennevig holds a Bachelor of Arts in journalism from the Surrey Institute and a postgraduate diploma from the National Council for the Training of Journalists at City College, Brighton.

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