If you’ve been worried about having to do major repairs to your home and feel like you have to just keep putting them off, you’re not alone. There may be options for you. And I’m not just talking about capital repairs; I’m talking about repairs bad enough to pose a living risk. According to a 2013 study from the National Center for Healthy Housing, 35 million metro homes (40%) in the US contain one or more health or safety hazard. These include:
- Outside water leaks (11%)
- Openings in homes, causing mice infestations (10%)
- Interior water leaks (9%)
- Roof, foundation, or damaged interior walls (5%)
Sadly, those who suffer the problems above without the funds to repair them can do nothing but live with them. But there may be more options available than you might think.
The first thing I would advise is to apply for a loan. Don’t be a doubter. Even if your credit is far from perfect or you’ve already been turned down for a loan by your financial institution, there are nonprofits out there designed to help low-income and middle-class homeowners.
These loans generally target critical infrastructural problems in your home. Many of these loans can help repair your roof or heating systems. NeighborWorks is one such organization. While NeighborWorks itself doesn’t handle loans, its network of housing organizations do, like Homewise Inc. of Santa Fe, NM and 233 other independent nonprofits serving 4,500 communities throughout the US. On their website, simply click on “Find a NeighborWorks Organization,” which will allow you to type in your state or ZIP Code and search for nonprofits that may have loans available.
Similarly, it never hurts to find your local community development financial institution and seek its advice about financial assistance. Even though not everyone will qualify, for non-capital repairs, it could well be the way to go.
For those unfortunate enough to be living at or below the federal poverty level (generally, a family of four making $23,050 or less), there is another organization worth looking into. Rebuilding Together specializes in repairing the homes of low-income people. Let me offer a piece of helpful advice. When searching for their local chapters, it may be better to skip their website and Google a term like “Rebuilding Together” along with your city.
Finally, you may be able to refinance with a loan like the Federal Housing Administration 203(k). This loan allows you to consolidate your existing mortgage with the cost of a home renovation project. As long as the repairs are considered necessary, you may have a good chance at qualifying. Ask your local mortgage lender for details.
And if you’re looking to buy your next home in metro Albuquerque, contact me today so I can help you find it!
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