Being a homeowner can be tough, especially when you’re facing a huge repair bill for your home. Instead of ignoring the problem, it’s important to have a plan and be ready to pay for something your biggest investment needs. When your budget is tight, there are a few ways to get money for needed repairs. Here are some reasonable tips to help you make room in your family’s budget.

Set Aside Funds

The best plan to cover the cost of a major upgrade or repair for your home is to set aside funds ahead of time. Most finance experts recommend homeowners put aside about one percent of their home’s purchase price each year for repairs or maintenance. Most homeowners won’t need to use this reserve of cash each year for major repairs, so over time, your savings could grow. Eventually, you’ll need to put your saved money to use to help maintain your home.

Take Out a Home Equity Loan

If your savings can’t cut it for a major replacement or systems upgrade in your home, you may need to find another way to cover the cost. In this situation, a home equity loan may make the most sense. This type of loan works best for property owners who have earned equity in their home since purchasing it. If your equity has been growing since you bought your home, you could cash out the difference and use it for repairs.

Buy a Home Warranty

Buying a home warranty is another way you can help save your money over time and avoid a large repair bill. Home warranties are usually offered by third party vendors and help you have some extra insurance against overwhelming replacement costs for your home’s major systems. Some home sellers offer included home warranties to help attract buyers, so it may be a wise choice to purchase a home that includes this valuable feature.

Get Funds From Your Retirement

If you didn’t buy a home warranty or you weren’t able to save money for a home repair fund, you’ll need another way to get cash fast. Sometimes getting an outside loan may not be possible as well if your credit is poor. One option in this situation is to borrow from yourself by getting a loan from one of your retirement accounts. If you’re more than a few years from retirement, it may make the most sense to borrow from your 401(k) fund.

Consider Contractor Financing

Another way to help pay for a large repair or replacement bill for your home is with your contractor’s financing program. Some home improvement companies offer in-house financing to help homeowners spread the cost of their services out over time. Talk to your hvac contractor or home improvement company to find out more information about terms and amounts.

Use a Credit Card

There’s also the option of putting your repair costs on a credit card. If your limit is high enough and you have a low interest rate, this may be a viable option in some cases. Make sure you pay off your credit card bill quickly so the cost of your repair doesn’t double with the added interest charges from your bank.

Refinance Your Home

The last way to cover a large number of home repairs is by refinancing your mortgage. If you can get a more competitive rate for your existing home loan, this may be a smarter option to help you save money on your house payment for years down the road. Your home’s equity could help you get some additional cash in your hand after you leave the signing and give you enough to take care of repairs.

Paying for big repair bills for your home can be daunting, but there are some options if you’re short on cash. Be aware of these methods for paying for home repairs and to be ready for anything.