There are some issues and emergencies that just spring on you — suddenly, without a warning. A plumbing problem in your home is one of them. It leaves you with little time to prepare — mentally as well as financially. When such a problem is more costly than you can afford, then plumbing financing is the only way out. Unless you have a good amount of savings in cash! 

Substantial plumbing repairs often are pricey. Financing plumbing work will cover the cost of your home repairs such as a burst pipe or a broken water heater, or the installation of any expensive plumbing fixture. If you’re thinking of adding a new bathroom, your plumbing costs will be even more costly. You could be shelling out thousands of dollars.

Financing for plumbing repairs and work

Can you finance plumbing work and plumbing repairs?

The fact is, a homeowner will face a major plumbing project sooner or later. After all, most plumbing fixtures come with a certain expected lifespan. For instance, a hot water heater or a dishwasher will last you a decade while an HVAC system can last almost two decades.

Even though plumbing repairs or plumbing works may not be one of the most expensive home improvement projects, as in the case of a complete roof replacement or a kitchen remodeling, it does come at a high price.

‍So, unless you’re simply changing a kitchen faucet or something equally inexpensive, there’s a good chance that you may not have enough cash readily available to cover the plumbing work.

Read more: House Plumbing Basics: Handy Tips To Get It Right

You also need to keep in mind that not every plumbing project is repair work. You may be planning to install a new Jacuzzi tub or replace your existing electric water heater with an energy-efficient solar water heater. Such plumbing jobs can cost thousands of dollars and will require financing.

Therefore, it’s a smart idea to have a plan for how to manage to finance for plumbing repairs as well as financing for plumbing work. You can either opt for a reliable loan lender, banks, financial institutions, or plumbing finance companies. 

How much financing is needed for plumbing repairs or work?

There is no limit or a set budget when it comes to financing plumbing work. It depends on what you’re getting. A new installation will definitely be a lot costlier than a clogged drain, right?

The average plumbing work cost, in case you’re planning a major kitchen repiping or bath remodel, will be even higher. You can expect to pay between $50 and $150 per hour to a licensed plumber — depending on where you live, the cost of materials and supplies, the scope of the plumbing project, etc.

Let’s give you a better idea of the average cost you can expect by listing some of the most common plumbing projects and repair works:

  • Water heater repair – $525
  • Septic tank cleaning – $385
  • Tankless water heater installation – $1,750
  • Solar water heater installation – $3,960
  • Sewer main repair work – $2,500
  • Toilet repair – $225
  • Clogged drain repair – $210

Read more: HVAC financing for good & bad credit

Can you make payments on water heaters? Can you finance a water heater?

Yes, you can. While paying cash for a new water heater might be the cheapest option, financing can help you buy a top-of-the-line heater that otherwise wouldn’t fit into your remodeling budget. 

For instance, the average cost of a storage-tank water heater is around $1,000 to $1,300 and can even go higher depending on the water heater model or brand. In such cases, using a personal loan may be your best financing option.

What are the best financing options for plumbing?

If you require plumbing financing, the best financial arrangement is through a home equity loan, a home equity line of credit or a personal loan. Each type of loan is subject to credit approval and can conveniently cover your plumbing works or repairs.

Plumbing financing with a home equity loan

If you’re anticipating an expensive plumbing project, you may opt for a home equity loan. This type of loan uses the equity in your home as collateral. The loan amount you can borrow depends on your home equity — the value you own in your home. 

However, do keep in mind that you’re putting your home on the line to secure the loan. If you’re unable to pay off your home equity loan, your loan lender may be able to foreclose on the home.

Plumbing financing with home equity line of credit (HELOC)

A home equity line of credit (HELOC) is similar to using a credit card. You get a fixed spending limit. But if you repay what you’ve spent, you can again get that amount to spend on your ongoing projects. This loan too is secured by your home.

Keep in mind that HELOCs come with higher interest rates and stringent eligibility criteria.

Plumbing financing with a personal loan

If you don’t have sufficient equity in your home or don’t want to risk losing your property, an unsecured personal loan is a good loan choice. Especially, if you’re planning a low-cost plumbing project.

A personal loan is also a lot easier to qualify for if you want to get plumbing financing with bad credit. Whether you have good credit or bad credit, a personal loan offers more flexibility. However, you should be prepared to pay a much higher interest rate than when you’re using a secured loan.

A personal loan is easy to get online and you can receive your funding quickly — sometimes as soon as the same business day that you’re approved on. That way, financing a plumbing emergency is best dealt with a personal loan. 

When is it essential to hire a plumber?

A lot of us consider ourselves to be handy around tools, and may even think we know enough to handle minor leaks around the house. But how do you know when the situation is beyond your realm of expertise and needs the attention of a professional plumber? Here are some telltale signs.

Waterline bursts

When your water line leaks and starts flooding your home, you know it’s time to call the big guns. While this does not happen very often, you need to know how to handle the situation if and when it does.

See if you can locate an intermediary water supply valve near the leak and turn off the supply to only that pipe. If you aren’t able to do that, locate the main water shut-off valve to your home and cut off the supply to your entire home. Immediately find the closest plumber to your area and call them over.

Drainage leaks

It is fairly simple to handle leaks from traps underneath your kitchen and bathroom sinks. However, if the leak is located in your drainage lines that are located in your walls, the smart thing to do is to immediately call in professional plumbing services to avoid extensive damages to your drywall, paint, floor, or subfloor.

Sewer line leaks

Sewer line leaks manifest themselves in multiple ways: water backing up in unexpected places, murky pools of smelly water in your yard, gurgling noises every time you use the sink or flush. Locating the exact reason and location of the leak requires professional plumbing snakes and other equipment that most homeowners do not have. And replacing sewer lines may require digging up your front yard, among other things. Once again, a job best left to professionals.

Read more: How to get rid of sewage smell in bathroom

Natural gas leak

Normally, when we smell natural gas in the house, we assume someone left the stove turned on but didn’t light it. However, if you cannot locate the source of the leak, the first thing you ought to do is open all your windows and then call a plumber. If the smell is near the gas meter, then contact the gas company immediately.

Homeowners insurance and plumbing repairs

While homeowners insurance will pay for some plumbing repair costs, it is important for you to know what repairs are covered and what isn’t. 

  1. If you have a slab leak, your home owner’s insurance will cover it.
  2. Pipe bursts will also be covered as long as you can prove the pipe was not corroded and the burst was a sudden event. Corroded pipes are on you.
  3. In the case of a sewage line leakage, your insurance company will pay for it if the causes are natural. However, if the cause for the damage is the fault of your town or city’s municipality, they will have to bear the cost of the repairs. If the cause is the sewer tank, the cost of repairs is on you.

How do you qualify for plumbing financing?

Plumbing repairs can get expensive and finding ways to pay for these repairs is something a lot of homeowners struggle with. Here are some of your options:

  1. You could pay using your credit card. This is the fastest way to pay, and may even earn you reward points. Paying your credit card bills on time will also improve your credit rating. However, credit cards charge an extremely high rate of interest.
  2. You could apply for a personal loan to pay for the repairs. This is one of the easiest ways to pay for expensive plumbing repairs. Personal loans do not require any collateral, and there are multiple lenders who will lend you money even if you do not have a perfect credit score. On the downside, interest rates are higher on personal loans when compared to home equity loans.
  3. You could apply for a home equity loan designed to help homeowners pay for such unexpected expenses. However, think twice before applying for a home equity loan. If you cannot make your payments on time, you could lose your home even if your mortgage payments are up to date.
  4. A lot of plumbing companies work with banks or other financial institutions to offer customers financing options. These loans may be secured or unsecured loans. They have fairly easy and fast application processes. This makes them seem convenient. That being said, it is always prudent to get quotes from multiple vendors before choosing a loan that works for you.

Pros and cons of plumbing financing

As a homeowner, you should be prepared for the worst. Your house plumbing system can suddenly stop working, your plumbing appliances can break, water pipes can burst. And, the list goes on. Plumbing financing can help you better deal with such problems — on schedule and on a budget! 

And, if you choose the best loan options, the comfortable payment programs can make your home plumbing project easier and manageable. You can pay for it over a decided loan term through favorable interest rates. Of course, they’ll be based on your credit score and credit report. 

The only downside is that you will need to pay back the loan funds through scheduled monthly payments. That may make you a bit stressed out. Plus, with home equity loans, there’s an added risk of property foreclosure. Keep in mind that any repayment default will adversely affect your credit score and credit rating. 

Therefore it’s important to get loans for plumbing that are affordable and manageable. And, that’s why Kukun offers financing through home renovation loan options to make your plumbing repair work less stressful. So, go ahead and relax. There’ll be no emergency that you can’t deal with!  

Read more: Bathroom remodel & renovation financing options

Plumbing Financing For Good & Bad Credit was last modified: April 15th, 2021 by Ramona Sinha