Welp, you just had your home looked at by a foundation repair contractor and got your estimate. The repairs are going to be expensive and you simply don’t have the money at the moment. What are you supposed to do now?? It feels like an impossible situation when you can’t pay for needed repairs.
At Anchor Foundation Repair, we understand that these kinds of repairs often leave homeowners in a state of sticker shock and worry when they can’t afford the repairs with the funds they have on hand. We’ve seen how folks end up paying for things over the years and can offer you some options and advice here for sure.
This article discusses some of the most common ways that homeowners solve the “how to pay for foundation repairs” problem. Along the way, we’ll also sprinkle in some wisdom and things to keep in mind about these kinds of repairs for your peace of mind.
Wondering How You’re Going To Pay For Your Repairs?
We’ve Got Financing Options!
Why Is Foundation Repair So Expensive?
Many folks find themselves unprepared when faced with the cost of foundation repair. It’s a feeling that many experience, and you’re not alone. Foundation repair is admittedly quite expensive.
There are a lot of reasons that foundation repair comes with high costs. Here are a few reasons:
- It’s a labor-intensive job,
- It’s a difficult job,
- It’s a major home-system repair.
It’s important to keep things in perspective about what foundation repair is trying to accomplish for you, and it’s no small feat. Essentially, they are raising your whole or part of your home up out of the ground without damaging it (often you can still live inside the house during repairs as well!).
To say it’s a labor-intensive and difficult job is kind of an understatement. Foundation repair takes skill, precision, and lots of manpower. On top of that, foundation repair is not exactly fun work, especially here in Texas – it really should cost a lot of money to get this done.
Also, this is a large-scale home repair, comparable to:
- A roof replacement,
- Whole-home plumbing system re-do,
- Full electrical system upgrade, or
- A kitchen remodel.
These other home repairs and updates will also cost a considerable sum. Fixing a sunken foundation is very similar in cost and scope. Foundation repair, as well as the other repairs listed above, potentially cost thousands. Anywhere from $10,000 to $30,000 or more are reasonable price expectations for any of them.
What If I Can’t Do the Foundation Repairs Right Away?
Most people aren’t planning for high-dollar home repairs to arrive. Even though the issue may have been going on for a while, it’s still a bit of a surprise when you finally find out how much it will cost to fix.
If you can’t do the foundation repairs right away, that’s okay. Your house is not going to fall over while you take the time you need to save up money or solve your funding problem another way. In most cases here in Central Texas with our home types, it’s perfectly safe to wait on getting foundation repairs done.
Remember that some foundation repair companies will use fear-inducing language and make you feel afraid and unsafe. It’s a scare tactic to get you to commit.
Think about it this way. Foundation problems take many years to develop – 10, 20, 30, 40, even 50 years. Foundation repairs can wait a year or two while you get your finances together. Nothing happens that quickly or drastically in our expansive clay soils.
How Can Foundation Repairs Be Financed?
Foundation repairs can be financed in a variety of ways. If you have a good credit score, you will have more choices. There are home equity lines of credit, home improvement loans, other 3rd party financing institutions, or even borrowing money from a relative i.e. the parental units.
There are also credit card options, using one or more cards to cover the costs. Just be sure that you watch your interest rates and payment terms with any of these credit or financing options. You don’t want to get stuck paying excessive interest rates or too short of a repayment term that makes things unmanageable.
With home values rising significantly across the country in recent years, it could be a good option to refinance your home. Doing a cash-out refi using the extra equity you have gained is a good way to get cash to pay for large expenses at a lower interest rate with long repayment timelines.
Mortgage interest rates are typically lower than credit cards or other financing. You also spread the expense out over a longer timeframe. A standard mortgage term is 30 years, compared to other financing which might require you to pay the money back in 2, 3, 5, 10, or maybe 15 years if you’re lucky. A cash-out refi makes the extra expense far less painful by essentially bundling it with your mortgage payment and spreading it out as long as possible.
Refinancing takes time and effort, but it can be worth it to help you comfortably pay for foundation repairs. If rates aren’t great at the moment, wait a bit and see if interest rates improve.
You could also take some time to save up the money that you need. Cut out the extras for a while. Get a few tax returns under your belt, forego the expensive gifts and trips, and it might not take as long as you think.
In a nutshell, here are the ways we have seen homeowners handle the cost of foundation repairs when they don’t have the money immediately on hand:
- HELOC or Home Equity Loan,
- Cash-out refinance,
- Using one or several credit cards,
- Bank or credit union financing,
- Other 3rd party financing, or
- Do the repairs in stages (if possible).
Can Foundation Repairs Be Broken Up Into Stages?
That last item may have gotten your attention. CAN foundation repair be done incrementally??
Some homeowners wonder if foundation repairs can be done in stages to divide the expense up into more manageable chunks. We can only speak for ourselves on this question, so this may not apply to all foundation repair companies and methods. For Anchor and our drilled bell-bottom piers, yes, in some cases it is possible to divide up the work into rounds.
The eventual grand total might be more than if you did it all at once and it might not be possible if the settlement is extensive. However, breaking the work up into stages could help some homeowners. Doing half the work now and half the work in a few more years can make the foundation repairs easier to pay for.
You would have to find out from your repair estimator if this is even possible for your particular situation based on the nature of the settlement in your home. For homes with bigger issues, you should get the repairs taken care of all at once, so it won’t work in every situation.
Wondering How You’re Going To Pay For Your Repairs?
We’ve Got Financing Options!
Don’t Wait Too Long To Get Foundation Repairs Completed
Now that you know some good financing options, take the time you need to figure out financing your foundation repairs. Even though it’s okay to wait while you work this out, don’t wait too long to get them done. Costs are always going up and rarely going down. I can pretty much guarantee that your foundation repair quote will be higher 5 years from now.
Our estimates only have a 30-day commitment window for a reason. Costs for materials, labor, and other expenses fluctuate frequently.
At Anchor Foundation Repair, we don’t fix things that don’t need fixin’, and we don’t try to sell you stuff you don’t need. We also don’t try to rush you when you’re not ready. After 40+ years in business, that’s what’s best for our Brazos Valley community and for exceptional homeowners like you. We’re here to help guide you through the foundation repair process, but you’re the one in charge.
Wondering if there are any other reasons not to wait too long to get your foundation repaired? Yes, there are more things to consider. Check out 5 Good Reasons Not to Wait on Your Foundation Work next.
