How to Pay for Foundation Repair With No Home Equity

Foundation damage can sneak up on you, usually appearing as cracks in flooring and walls, or doors and windows that will no longer close properly. It’s important to take care of foundation problems as quickly as possible to avoid further damage, but if you don’t have equity in your home, a loan can be hard to get. The good news is that there are plenty of alternative options, and once complete, you’ll be able to show that you had the work done properly, protecting your foundation repair resale value.

Over time, a house can settle, which may eventually lead to problems with the foundation, even in the best-designed homes. If you can't afford foundation repair, there are loans and grants that can help, but first you’ll need to know how much you can expect to spend. Foundation repair isn’t cheap, and the exact cost will depend on the type of foundation you have, the specific damage and what needs to be done to stabilize the foundation to prevent future problems.

When it comes to foundation repair, resale value can take a hit, but if you can demonstrate that you fixed the problem and made sure it’s stable, you should be able to keep that loss to a minimum. On average, you can expect to pay around a few thousand dollars for foundation repair, but severe problems can top the $10,000 mark.

When you don’t have enough equity in your home for a loan, grants can be a great way to get foundation repair financing. The U.S. Department of Housing and Urban Development has loans specific to helping homeowners improve their property. You’ll need to be low to moderate income to qualify for these loans, which are provided under its Title 1 Property Improvement Loan Insurance program.

Lower income homeowners living in certain areas may also qualify for a Single Family Housing Repair loan or grant from the U.S. Department of Agriculture. In order to qualify, your family income will have to be less than 50 percent of the median income for the area in which your home is located. If you can obtain one of these grants, you’ll benefit not only from a loan or grant, but you’ll be able to keep your foundation repair resale value intact when you sell your home.

If you can't afford foundation repair and home equity loans aren’t an option, there are still other loans you can pursue. One is a personal loan, also called a signature loan, which you may be able to get through your bank. If you qualify for a zero- or low-interest credit card, that could be another option.

Many homeowners choose to secure foundation repair financing by using one of their other high-dollar assets, such as a car. It’s important to be careful when handing over your valuable assets as collateral, though, since failure to pay on the loan could result in you losing that item.

Those who can't afford foundation repair payments in full can usually find a foundation repair company that accepts payments over a fixed timeframe. This will be set up as a loan from a partner financial institution, similar to the type of loan you get from a car dealership. This type of loan will allow you to get the repairs made without putting any money down initially.

There are several different types of short-term loans local foundation repair companies may offer you. You may hear the words same as cash wrapped up in a loan type, which allows you to pay off the loan in installments over multiple months or years with no interest or required minimum monthly payments. This is the best option, as long as you can pay it off within the designated time period, but you’ll also find loans that add interest on to your payments.