Many homeowners prefer to wait until their credit score improves before seeking a home improvement loan. They know that they can get better terms and interest rates if they look better on paper.
That said, there’s never a dull moment in home ownership. If a major component wears out, the house could be rendered unsafe, uninhabitable, or unsellable. The repair bite might be more than your savings can absorb. Regardless of your credit score, financing repairs may just be the best option.
Here are some critical projects that might have a homeowner shopping for home improvement loans with bad credit.
Full Home Rewiring
Old or bad wiring can cause frequent blowouts, breaker trips, or in extreme cases electrical fires. If your home is over thirty years old and has its original wiring, be wary.
The previous owner might have attempted DIY projects that compromise the system. Either way, this is an expensive fix, weighing in at a minimum of $4,000.
Older plumbing may be made out of cast iron, which breaks easily and breaks down over time. Broken pipes beneath or running through your foundation will take extra effort to reach and repair. Your home could lose water pressure or completely lose water, making it impossible to shower or flush toilets.
If a sewer line backs up, your home could become a disaster area. All the while, leaking pipes may be costing you a fortune in wasted water. Repairs are definitely needed, fast, but could run in excess of $2,000.
New HVAC Unit
Heating, ventilation, and air conditioner systems typically get replaced every 14-16 years. If yours is that old or older, it may be living on borrowed time. Eventually, it will need to be replaced, not only because it breaks down but because an old and inefficient system will bleed money onto electric bills. Expect to spend $2,500 or more replacing an HVAC system.
Complete Roof Replacement
Catastrophic damage to your roof is often covered by insurance. However, if the roof just wears out, insurance isn’t there for you. A bad roof is a safety hazard and a risk of even costlier damage to the property should it fail.
Signs that a roof is near the end include curled or cracked shingles, streaks of algae or moss growth, or missing granules. Roofs only last about twenty years.
If you see roofing trucks at neighbors’ houses, your roof’s number might be up too. Most houses in a subdivision are about the same age. Roof replacements start upwards of $5,000.
Fixing a broken slab foundation can be one of the most expensive fixes a homeowner faces. It may be necessary for the home to remain habitable, however. Cracked or crumbling foundations can cause water to pool and seep, speeding up the degradation and creating unhealthy mold growth.
Too much damage and the structure of the home is threatened. It can be harder to sell a home with foundation damage because it won’t qualify for VA or HUD loans. Brace yourself — the repair price tag can exceed $10,000.