Their insights, along with our extensive research, will provide you with some of the best resources available to finance your repairs and, in some cases, even suggest free or lower-cost solutions to get your to-do list done.<\/p>\n
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\n <\/div>\n \n Selling a Home That Needs Repairs?<\/h3>\n
A top real estate agent can help you identify home repair options \u2014 what to fix, what not to fix \u2014 and will likely have contractor connections and knowledge of local assistance programs. In addition, their experience can help identify issues that may need to be addressed prior to an appraisal or home inspection.<\/p>\n \n
1. Apply for a home equity line of credit (HELOC)<\/h2>\n
Applying for a home equity line of credit (HELOC)<\/a> can be one way to get the money you need for larger repairs.<\/p>\n \u201cWe\u2019ve definitely seen where sellers had burst water heaters and gone in and fully remodeled the house, and spent $50,000 in repairs, but have gotten over $100,000 in equity from upgrades and new finishes,\u201d Tapley says.<\/p>\n Usually, a HELOC has a variable rate that functions as a second mortgage. Your home\u2019s equity serves as collateral for the line of credit. Lenders determine if you qualify based on your home\u2019s equity<\/a>, your income, and your credit score<\/a>, which ideally should be above 620. Typically, you will need at least 15% of equity, a reliable income, and a solid payment history for all your debts, including your mortgage, although requirements will vary by lender and other aspects of your application (like how much you\u2019re borrowing and your existing debt obligations).<\/p>\n Many HELOCs offer a maximum amount that can be used, paid down, and then used again up to that limit, similar to a credit card. The amount of time you can access your funds is usually 10 years, with an additional 20 years to pay off the balance. The application process typically involves the verification of income, credit, and a home appraisal<\/a>, which is completed before the credit line is approved. There may be more documentation needed based on your situation as the application progresses.<\/p>\n2. Use a cash-out refinance to unlock money for repairs<\/h2>\n