How To Get Discounted or Free Home Repairs

Being a homeowner has some pretty big financial benefits, but it can also get incredibly pricey. Furnaces break, roofs leak, windows get smashed, and kitchen appliances go on the fritz, and all of it can happen without much warning. If you’re struggling to pay for the fixes though, help may be available. Federal home improvement loan programs and local and national non-profit agencies offer discounted or free home repairs to those who qualify, as well as low rate fixed interest loans that can help fill in the gaps. And all of it can make a big difference for homeowners who are facing major repair bills without a way to pay them.

Among U.S. adults, 12% would be unable to pay their bills if faced with an unexpected $400 expense, according to the Federal Reserve’s most recent Report on the Economic Well-Being of U.S. Households. Deciding between making necessary repairs or paying the mortgage though shouldn’t be a choice that any homeowner has to make. Keep reading to learn about the programs in place to provide discounted or free home repairs to American homeowners, and see if you might qualify for assistance if it’s needed.

Average Price of Common Home Repairs

The cost of home repairs varies widely, but it’s helpful to know what you might be able to expect. Here are the average prices of common home repairs, as outlined by HomeAdvisor:

    • Furnace repair: $267 ($4,376 to replace)
    • Boiler repair: $350 ($4,000 to replace)
    • Water heater repair: $480 ($1,117 to replace)
    • Roof repair: $653 ($6,626 to replace)
    • Window glass replacement: $248
    • Garage door repair: $210 ($600 to $1,500 to replace)

    Some of the factors that may affect the price for these repairs include the age and condition of the home, the age and condition of the item being repaired, and the professional hired to do the job. As with any costly job, get quotes from two or three providers to ensure that you get the best deal possible.

    Home Repair Assistance Programs

    The first step to getting discounted or free home repairs is knowing what programs are available to you. These include both grants and loans, with grants generally reserved for seniors, the disabled, and those under a certain income threshold.

    This is not an exhaustive list, since many communities offer local programs. If you’re in need of discounted or free home repairs, be sure to do your research to see what’s available locally in addition to seeking out assistance through one or more of the programs below. With that in mind, here are some of the home repair assistance programs that may be good to start with.

    HUD Title 1 Property Improvement Loans

    The basics: Title 1 Property Improvement Loans, backed by the U.S. Department of Housing and Urban Development (HUD), incentivize private lenders to offer home improvement loans for both small and large repairs. These fixed-rate loans can be used to finance any sort of home alteration, repair, or improvement, with a maximum of $25,000 for single family homes and up to $60,000 for multifamily homes.

    Keep in mind that the HUD is not lending the money themselves or offering free home repairs. Instead, they’re insuring private lenders by offering protection in the event the borrower cannot repay. This encourages private lenders to offer private loans for repairs and improvements, with any bank, mortgage company, saving and loan assistance organization, or credit union able to offer a Title 1 loan.

    Who qualifies: To qualify for a Title 1 Property Improvement Loan, the applicant must show proof that they can repay the loan through regular monthly payments. Other requirements are that the home be occupied for at least 90 days prior to seeking the loan. Title 1 loans are also available to finance repairs and improvements for existing and new non-residential structures.

    203(k) Rehabilitation Mortgage Insurance Program

    The basics: This program (which can be used in conjunction with Title 1 Property Home Improvement Loans) allow homeowners to borrow up to $35,000 through their mortgage for home repairs or improvements on a single family property. This program is also available for homebuyers looking to make improvements to newly purchased properties prior to move in.

    Note that all applications for the 203(k) Rehabilitation Mortgage Insurance Program must be submitted through an FHA approved lender.

    Who qualifies: To qualify for a 203(k) Rehabilitation Mortgage Insurance loan, the cost of the repair or improvement must be at least $5,000 and the property being improved must meet certain energy efficiency and structural standards. These loans can only be used on residential structures.

    Section 504 Home Repair Program

    The basics: The 504 Home Repair Program provides loans to low-income homeowners to repair, modernize, or otherwise improve their homes. Grants are available as well, though only to elderly applicants in need of free home repairs to remove a health or safety hazard.

    504 loans have a low fixed interest rate of 1% and a repayment period of 20 years. The maximum loan amount is $20,000 and the maximum grant amount is $7,500, with the ability to combine both for a total of $27,500 in assistance.

    Who qualifies: To qualify for a 504 Home Repair loan, applicants must own and occupy the property and be unable to obtain credit elsewhere. In addition, household income must be below 50% of the area median income. To qualify for a grant, applicants must be aged 62 or older and be unable to repay a repair loan.

    VA Rehab and Renovation Loans

    The basics: The U.S. Department of Veterans Affairs offer a special loan option for veterans in need of funds to renovate or repair their homes. These function similarly to the 203(k) loan program, and loans are capped out at the property’s estimated value once the repair or improvement is in place. Like all VA loans, VA Rehab and Renovation Loans do not require a down payment or mortgage insurance. These loans differ from standard VA loans however in that they are specifically designated for home repairs and renovations and cannot be used for home purchases.

    Who qualifies: To qualify, borrowers must meet basic VA loan requirements and must be using their home as a primary residence. In addition, funds must be intended for home repairs and improvements that will improve the home’s livability, use, and/or safety, and not just its appearance.

    Home Modification Loans

    The basics: Seniors and the disabled may be able to secure low-cost or free home repairs for the purpose of modifying homes for safe use and independent living. These loans are not offered through the federal government, but are instead backed by state and local agencies. Head to the National Directory of Home Modification and Repair Resources to search home modification loans by state and local area.

    Who qualifies: These types of repair loans and grants are only available to the elderly and those with disabilities, with specific qualifications varying depending on agency. Important to note is that any intended repair must be specifically geared toward improving the safety and livability of the space, so certain repairs may not apply.

    Community Programs

    Depending on where you live you may qualify for discounted or free home repairs through local community programs. To see what’s available in your area, contact your local or county government housing department, as well as your state’s HUD department. In addition to offering cash loans and grants for home repairs and renovations, you may also be able to find specific incentives for making energy efficient improvements to your home (such as installing solar panels) or discover potential tax credits for the changes that you make.

    Charities

    For assistance obtaining free home repairs, consider reaching out to a national or local charity. Some charities offering home repair assistance include:

      • Habitat for Humanity’s Home Preservation Program
      • Rebuilding Together
      • Volunteers of America
      • Area Agencies on Aging (for the elderly)
      • Operation Homefront (for veterans)

      Local religious organizations may be available to offer charitable assistance for home repairs as well.

      Get the Home Repairs You Need

      There are always options available when you need to finance home repairs but don’t have the cash in the bank. In addition to the organizations and loan assistance programs above, consider cash-out refinancing, taking out a home equity line of credit (HELOC), credit cards, and personal loans. You can also seek out assistance through crowd-funding platforms like GoFundMe.

      To save on home repair costs and potentially avoid pricey repairs and replacements, be sure to maintain appliances and systems throughout your home as needed. Everything from regularly replacing your furnace filters to seeking out and sealing any leaking pipes can make a big difference in your overall repair expenses, and could be the difference between spending a couple hundred dollars over the course of your mortgage or spending thousands of dollars at once for a major repair.