Originally published 6/2/23; updated 2/12/24

Why Should You Finance Home Repairs?

There are times when financing your home repairs makes sense!

• Maybe you just bought a house, and you don’t have the funds right now.  Many times, foundation repairs are part of the negotiations – you may be waiting on the check to be cut by the title company.
• The stock market often fluctuates, making investors nervous about depleting their cash reserves.
• You may have the funds in your savings account, but you’re not sure that you want to use them.  (I always hesitate to let my emergency fund drop below a certain threshold- it feels too much like tempting fate.)
• You’re on a limited budget. Or a limited income. Or you’ve just hit a rough spot and your emergency fund is tapped out.  (Murphy’s Law: what can go wrong, will go wrong!)

Whatever your personal circumstances or reasons for using it, financing can be a great resource.  Acculevel provides multiple financing options by partnering with reputable financing institutions.  Your project advisor will walk you through the application process, and help you determine the best way to keep your repairs within your family budget.

What Do You Need to Know About Payments and Interest?

The options can be confusing and overwhelming to a new homeowner, especially when you are already frustrated with unexpected repair costs.  We’ll review the most common options available, and break them down for you!

What Does “No Interest and No Payment” Actually Mean?

Financing plans like these are usually limited to a promotional period.  This is often a limit of months; the most popular campaigns use 90 days, 6 months or 12 months.  During that time frame, you don’t have to make payments.  Interest will also be waived, if you pay off the total of the loan before the time period expires.  However, if the amount isn’t paid in full before the time elapses, you will owe all of the interest accrued.

This is a great fit for customers who don’t have the necessary funds for their repairs immediately available, but will receive them within a few weeks or months. For example, it’s frequently how homeowners who are moving to a new home that requires repairs solve a temporary financial bind.  They use the financing to make repairs on the new house, then pay off the loan when their old home is sold.

What Is a “Deferred Interest With Payments” Loan, and How Does It Work?

This is similar to the first option, but you will have to make a minimum monthly payment. It is critical that you understand that only paying the minimum payment won’t automatically pay off the purchase balance within the time period required.  For these promotions, you need to divide the total cost by the time frame (meaning, if you have a 6 month promotion, divide your total by 6 payments). You could, of course, also make the minimum payment for 5 months, then pay the full balance.  The primary concern is if there is still a balance remaining at the end of the term, you will then be charged the deferred interest accrued over the course of the promotional period.

This is a great choice for people whose budget is temporarily limited, but have funds that will become available once an investment matures, they receive a tax check, or similar expected windfall.

Fixed Monthly Payment Plans Are The Simplest Option

These plans don’t include a promotional period, but instead offer customers a fixed monthly payment over a longer loan term, typically 84 or 96 months – or longer.

These are the best option for anyone who won’t have the full loan amount within a promotional timeframe and require a budget-friendly option with a more competitive interest rate.  The interest rates available vary based on terms and creditworthiness of the applicant.

Frequently Asked Questions

Whenever you’re evaluating financing options, you want to make sure you’re not missing any of the fine print.  Make sure that you read the terms and that you review the contract provided by the financial institution.  Your project advisor will help explain how things work, but you should never sign a financial document without verifying the terms yourself.

What Does it Cost to Apply for Financing?

Some institutions will charge application fees, activation fees, or closing costs.  Acculevel does not work with a financing partner that requires any of these.

What if I Pay Off My Loan Earlier than Planned?

It’s unusual for a financial group to charge you a “prepayment penalty,” but these do exist.  Acculevel does not work with an institution that charges these fees.

How Long Does the Application Process Take?

Under most circumstances, your Acculevel project advisor can complete your application and have an answer during your in-home assessment.

If You Have Additional Questions

In addition to helping you apply for financing, your project advisor is an excellent resource for answering all your questions related to your home repairs. Your PA is familiar with your home and the issues that you need addressed and can help you confidently navigate the entire repair process.

If you don’t have a project advisor yet, you need to schedule a free home inspection appointment with us!  Give us a call and our friendly office staff will help find answers to your questions and make an appointment with one of our local project advisors.

Your PA will evaluate your foundation concerns and recommend the best course of action for you. Because we specialize in whole-home solutions, our goal is to address both the symptoms you’re experiencing and the root cause of the problem. We want to completely resolve the issue that threatens your home’s integrity and stability to keep your home strong and healthy for years to come!

Want more information about your home and its issues?  Use our free diagnostic tool!