Guide to Plumbing Financing Options

Austin KilhamUpdated February 24, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

Plumbing repairs such as a burst pipe, installing a new water heater, or fixes for a septic system can cost thousands of dollars. These repairs are often emergencies, so there’s no time to plan and save for them. Fortunately, plumbing financing can help you pay for the expense of plumbing repairs. Here’s a look at the different types of plumbing costs you may encounter and options for financing them.

Can You Finance Plumbing Repairs?

Yes, financing for plumbing repairs is possible. There is even plumbing financing for bad credit. While banks, credit unions, and online lenders don’t have loans specifically designated to cover plumbing costs, there are a number of financing methods you can consider, including home equity lines of credit (HELOC), home equity loans, and personal loans. In addition, some large plumbing companies may offer plumbing customer financing options directly.

Typical Costs Associated With Plumbing Repairs

Plumbing repairs can range from hundreds to thousands of dollars. Here are some of the factors that can affect what you’ll pay.

Materials

The cost of plumbing projects varies widely, depending on the materials you choose. For example, installing CPVC piping (a strong, thermoplastic material) is about $1 per foot, while copper piping can cost as much as $4 per foot. The price of plumbing fixtures will also help determine the price of plumbing repairs. For instance, a new sink is $200 to $525 including installation, depending on the style and brand. New faucets range from $150 to $350. There’s a wide range of fixture styles to choose from. These home Improvement tips can help as you’re figuring out your budget.

Labor

You can expect to pay between $45 and $200 an hour for a plumber, with an average rate of $70 to $120.The labor cost is determined by how complex the job is and how long it will take. Timing is also a critical factor. Emergency plumbing repairs and calling after hours will cost more—sometimes triple the rate. And some plumbers may charge more during busy seasons.

Permits

Large plumbing jobs may require getting a plumbing permit, which can cost as much as $300.Check with your town or city government office to find out if you need a permit for the work you plan to do, and what the fee is.

What Can You Use a Plumbing Loan for?

Most plumbing financing options don’t put restrictions on how you use the loan. Here are some common repairs you can finance and how much they typically cost.

Water heater repair: Water heaters have a lifespan of about 10 to 12 years. Repairing a water heater can cost as much as $500, while installing a new water heater ranges from $1,000 all the way up to $7,000 for top-of-the-line systems.
Sewer repairs: These repairs generally require a lot of time and digging. You can expect to spend as much as $6,000 for a major repair.
Septic system repair: The average cost of a septic system repair is $2,000.
Faucet or toilet repair: The cost to repair a faucet is $100 to $150. If you have to replace it, the installation will run about $300, plus the cost of the new faucet. Toilet repair is about $200. Installing a new one is $500, plus the cost of the new toilet.
Solar water heater: A solar water heater can cost between $3,000 and $9,000. You may be able to get tax credits and rebates that could reduce the cost by as much as 50%.

Common Methods of Plumbing Financing

Here are some plumbing financing options to consider in order to help cover the repairs you’re having done:

HELOC

A home equity line of credit (HELOC), is a type of revolving credit that allows you to borrow up to 85% of the equity you have in your home. There is a fixed amount you can use, but as you repay it, the credit limit is restored and you can use it again. Interest rates on a HELOC are usually variable, which means the rates can go up. However, you pay interest only on the amount of money you use. A HELOC uses your home as collateral, which means that if you don’t pay back the money you borrow, your lender may seize your home.

Home Equity Loan

A home equity loan also lets you use the equity in your home as collateral to borrow money. Typically, you will need to have at least 15% equity in your home to qualify for one of these loans. You’ll get a lump sum that you pay back at a fixed interest rate in monthly payments over time. Again, because your home is the collateral for the loan, if you default, the lender could foreclose on your house.

Credit Card

Credit cards may be a good option for financing plumbing repairs if you know you’ll be able to pay off the full amount at the end of your billing cycle. If you can’t, you’ll owe interest on the money you borrowed. Credit cards typically carry high interest rates. That means your plumbing repairs could end up being more expensive than you planned, depending on how long it takes you to pay off what you owe. In addition, because the interest compounds from month to month, you can fall into credit card debt if you’re only making the minimum payments each month.

Personal Loan

The basic definition of personal loan is a consumer lending product in which you borrow a fixed amount of money for any purpose and pay it back in monthly installments with interest. Personal loans are typically unsecured, which means they don’t require collateral. There are different types of personal loans, including a home remodeling loan, that you may want to look into. Generally personal loans are flexible and can be used for almost any purpose, including plumbing repairs.The interest rate on a personal loan is largely determined by your credit history and score. Generally speaking, the higher your credit score, the more likely you are to receive low interest rate offers.

Plumbing Financing for Bad Credit

If your credit isn’t strong, there are still financing options that can work for you. For instance, there are personal loans for bad credit that you may want to look into. A borrower with poor credit might be more likely to qualify for a loan if they choose a secured loan that’s backed by collateral. Or they may be able to obtain a loan with a higher interest rate. There are different options to explore.

Qualifying for Personal Plumbing Loans

Here are the typical requirements for a personal loan:

Credit score: Lenders consider borrowers with high credit scores as less likely to default on their loan. For that reason, these borrowers are often offered more favorable terms and interest rates.
Proof of income and employment: Lenders will want to know that you are employed and have enough income coming in to pay your bills on time. You may be asked to provide a letter from your employer, copies of your pay stubs, your W2, or your tax return for verification.
Debt-to-income ratio: Your debt-to-income ratio or DTI compares your gross monthly income to your monthly debt obligations. A lower DTI suggests you have fewer debts to pay and can make you more appealing to lenders.

Compare Personal Loan Rates With Lantern

Plumbing repairs are necessary but they can be costly, especially if the situation is an emergency. If you’re considering a personal loan to cover your plumbing project, it’s wise to shop around to make sure you’re getting the best interest rates and terms for your needs. Lantern by SoFi can make the process easier and faster. By filling out one simple form, you can compare personal loans interest rates and terms from multiple lenders and apply for the one that’s the right fit for you.Check your rate today with Lantern!

Frequently Asked Questions

What is plumbing financing?

What is the maximum amount that you can borrow for plumbing repairs?

What are common plumbing repairs that require financing?

Photo credit: iStock/Kunakorn Rassadornyindee

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About the Author

Austin Kilham

Austin Kilham is a writer and journalist based in Los Angeles. He focuses on personal finance, retirement, business, and health care with an eye toward helping others understand complex topics.

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