How to Find Funding for Fixing a House
- 1). Borrow or withdraw the repair monies from a retirement account. Some retirement accounts, such as IRAs and Roth IRAs, are "self directed" and allow for withdrawal or voluntary distribution at the account holder's discretion. Employer contribution plans such as 401(k)s and 403(b)s have IRS- and employer-imposed rules; however, an employee can generally take a loan option.
- 2). Take out a home equity loan or line of credit. Speak to your bank or credit union and see if you qualify for a home equity loan or line of credit. In the alternative, seek refinancing and withdrawal money during the refinance closing. You can use money for any of these funding options to make necessary home repairs.
- 3). Take out a home improvement loan. Speak to a residential lender such as your bank or credit union about applying for a home improvement loan. These loans are typically restrictive, meaning the funds must be demonstrably used for home repairs or the borrower can incur penalties.
- 4). Apply for a reverse mortgage. Homeowners with nearly or more than 50 percent equity in their homes and age 62 years or older may qualify for a reverse mortgage. This loan instrument uses your existing equity as a loan source and provides you a monthly check to use for home repairs and living expenses.
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