Commercial Roofing Financing Tips
Kathleen Maxwell
Buying a new commercial roof or repairing an existing one can bring daunting expenses for any company. However, facility managers in need of a new roof or costly repairs cant always wait around for money to appear in the budget. Maxwell Roofing & Sheet Metal, Inc. understands how challenging it can be to pay for a commercial roof, so we developed a few tips for preparing your companys budget for different types of roofing needs.
Before we get into the best ways to pay for a new commercial roof or roof repair, its important to note that the best way to avoid costly repairs is through regular roof maintenance. Also, for tips on how to plan for routine repairs, check out our blog on how to budget with your commercial roof in mind.
If its too late to save your roof, or if youre constructing a new building, there are many low-cost financing options to help pay for a new commercial roof or fund an unexpected repair. Heres how financing can help support the big expense.
Plan To Finance Your New Roof
Knowing you need a new roof is one thing and coming up with the cash is another. According to HomeAdvisor, the average homeowner spends about $8,585 on a roof replacement.
Most roofing companies request a cash payment soon after your roof replacement. For some homeowners, this is not possible. Thats why Virginia Roofing Corporation will offer to finance your roof replacement. Financing is helpful for folks living under a roof with issues and people who thought they could never afford to replace their roof. Click the button to contact us and get started with roof financing.
How Much Does It Cost To Finance A Roof
How much it costs to finance a roof can depend on your loan amount, interest rate, and term. If you finance $7,700 at 5.24% for 6 years you should pay about $1,098 in interest. Your payment would be about $122. If you pay more than the minimum payment each month you can save a lot in interest. Increasing your payment by 20% can save you about $209 in interest for this loan example.
Financing a roof usually does increase the cost of a new roof. In most cases, you will incur interest and other fees when you finance a roof. The actual cost of a loan can be calculated once you know the interest rate, fees, and loan amount.
Recommended Reading: Which Camry Has Panoramic Roof
Save Time With Quick Approval
Thanks to our modern technology, applying for roof financing can be an easy process. You are able to apply online or make a quick phone call, completely doing away with all the hassle of paperwork. When the application is complete and submitted, you should be notified about your approval within minutes.
Roofing Companies That Finance
Roofing professionals may offer financing to help you afford your project.
Some companies, such as CCR Roofing, use financing solutions like Hearth that let consumers compare several options to find great rates.
Other contractors may just give their customer one or two financing options. If youre going to use your contractor to find roof financing, make sure the company uses a financing partner that lets you compare across several options so you can find the best rates.
Read Also: What Color Metal Roof Fades The Least
Roof Financing Terms Explained
We encourage all homeowners to review all the details before starting their roofing project. So lets review some basic words often used by lenders:
- The principal represents the total amount of money borrowed at the start of the loan.
- Interest is the cost of your loan in addition to the principal amount.
- The term refers to the amount of time you have to pay off the loan. Its usually expressed in months or years.
- determines how much the lending company is charging you for the loan of the money. It may or may not include fees, and it doesnt include the compounding effect of interest most interest compounds monthly. APR is a useful tool for comparing loan products.
Common Ways To Finance A New Roof
If your existing roof requires significant repairs or a total replacement, you may not be able to pay for the complete work out of pocket. On average, the cost of a roof replacement is about $8,000 and it is possible to spend a lot more. Fortunately, there are several ways to secure a feasible payment plan to finance your new roof. One of the leading residential and commercial roofing contractors details some of the most popular roof financing options to consider.
Recommended Reading: How Much To Replace Roof And Gutters
Also Check: How Much For Slate Roof
Gather Quotes From Different Roofing Companies
When you are looking to finance your roof replacement, you should consider getting at least three different quotes from your local roofers with solid credentials. If you notice a huge gap between all of the different quotes you got, find out the reasons behind these differences.
It is important to do some research because some roofers may use a different material than another, and while it may be more expensive, it would offer a higher quality roof that can sustain its lifespan.
A high-quality warranty can be cause for a price increase as well. On the bright side, youll have peace of mind knowing the company stands by its work and will be available to fix it if something goes wrong.
Always be thorough when reviewing the quotes to determine the exact amount you must finance to complete your roof replacement, no matter how great the company may appear to be.
Financing Options For Financing A Roof Replacement With Bad Credit
Oftentimes, people think they are out of luck with financing options with bad credit. That is simply not true. Actually, if you have bad credit then proof of repayment on your roof financing can be a way to turn your credit around.
If you are wondering how to finance roof replacement with bad credit, there are financing options that you can consider:
You May Like: Does Homeowners Insurance Cover Roof Damage From Storm
The Money Is Everywhere
Usually, when you need a new roof, you need it right away, even if you arent sure where the money for one is going to come from. Fortunately, if you cant afford to wait for a new roof, there are plenty of roof financing options that can help you get the roof you need right away.
Insurance Coverage
Before you worry about any type of financing for your new roof, you want to check with your homeowners insurance company first to determine if at least a portion of the costs will be covered. In most cases, if your roof was damaged by a covered peril , you will only be required to pay your deductible, and the insurance company will cover the rest according to your policy. Once you find out if your insurance company is going to cover some of the costs, then you can start to worry about how youre going to pay for your portion. Typically, you will have a deductible to pay, which can range from $250.00 to $10,000, or even more, depending on how you set your policy up. Obviously, the lower your deductible, the less likely it will be that youll have to finance your part of the new roof costs. Check out our Insurance FAQ page.
Roofing Company Financing
Home Equity Line of Credit
Government Loans
Choosing Your Finance Option
Review Of Capitol Improvements Roofing
“I recently had my roof, gutters and siding replaced. Ryan and Juan were respectable and knowledgeable men. They paid close attention to detail and were very patient. Seth scheduled the delivery of material. It was on time and they took special care to not damage my lawn and flower beds. If you are looking for a company that is knowledgeable, patient, kind, experienced and provides excellent and high quality of work, look no further, Capitol Improvements is it.” -Ninotchica A.
Also Check: What Do I Need For Metal Roofing
Youre Our First Priorityevery Time
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
Look At Whats Included In Each Proposal
Once you have quotes in hand from contractors youre comfortable with, compare the proposals carefully.
Each should include a lump-sum proposal that covers all expected costs. Most pros will also include a unit cost per square foot to cover unexpected damage. If, while preparing to replace your shingles, the contractor finds a rotted sheet of plywood that needs replacement, the unit price gives you an idea what the additional cost of that would be.
The following costs are typically itemized in a proposal:
- All labor and materials
- Any building permits required by your county, city or town
- Cleanup and disposal of all debris and waste
Read Also: How To Tell If Your Roof Has Hail Damage
Think Quality Of Work Not Just Costs:
Just like everything else in the world, the right balance is very important. While costs might be important, remember that a bad installation can come back and haunt you. There needs to be a good balance between the quality of work and products and the costs incurred by the homeowner. Sure bad credit roof financing is harder to get. But that doesnt mean you should compromise on quality.
Read Also: Skylight In Metal Roof
Finance Your Roof Today
Oftentimes, when you need a new roof, you need it now. If your roof is leaking, you may be able to put off a new roof replacement by completing a temporary roof repair. But if you need a new roof, youll want to get it taken care of as soon as possible. A new roof, however, can be a big investment. Thats why weve partnered with GreenSky to offer roof financing for your new roof. GreenSky is a lending company that offers home improvement loans for projects including roofing
Also Check: How Much Are Shingles For Roof
Government Loans And Rebates For Roof Financing
Federal Housing Administration Title I loans can be used for home improvements that will make your home more livable and useful. This includes roof financing. Property owners with good credit and limited home equity qualify for this loan. Banks and other qualified lenders make these loans from their own funds, and FHA insures the lender against a possible loss. This includes new roofs, as well as improvements to luxury items such as swimming pools or outdoor fire places. Check out the program’s website for more information about roof financing.
If you are financing a new roof that is energy efficient, be sure to check out the Database of State Incentives for Renewable Energy . This website details state, local, utility, and federal incentives for making energy efficient improvements to your home and can help you in the roof financing process.
You can also search the Department of Energy for tax credits and rebates available now to go towards roof financing.
How Can I Finance My Roof Replacement
Being a homeowner or a property owner is complicated and expensive. When you find out you need a total roof replacement, it may be financially impossible to plan around existing financial obligations like childcare expenses, bills, car payments, and home upgrades.
There are so many responsibilities that a homeowner bears, and receiving the news that you need a new roof can be overwhelming. You might be asking, how on earth can I pay for this?
Working in the greater Milwaukee area, weve seen it all, and weve worked with clients in the same exact situation. We have financed hundreds of houses just like yours because those who work in the roofing industry dont expect you to shell out thousands of dollars right on the spot for a total roof replacement.
That is why we have compiled all of the ways to finance a new roof. With this information, youll have an easier time making the financial decisions surrounding your investment in your home. And hopefully, at the end of the article, you will have a solution to those brain-frying financial problems.
Recommended Reading: Where To Buy Tesla Solar Roof
How Much Does A Metal Roof Cost On Average
The average metal roof can cost anywhere between $9,545 and $43,819. Prices vary depending on the size of the home and the material used. For example, here are some breakdowns of how the type of metal roofing used can affect the overall price.
- Aluminum Roofs : $3.25 $5.75 per square foot.
- Copper Roofs: $14 $22 per square foot.
- Corrugated Metal Roofs: $1.80 $2.50 per square foot.
- Standing Seam Metal Roof: $4 $12 per square foot.
- Steel Metal Roofs: $3.35 $4.50 per square foot.
- Tin Roofs: $3.25 $14.65 per square foot.
- Zinc Metal Roof: $5.65 $11 per square foot.
Essential Things To Know About Financing A New Roof
For your roofing replacement project to be a success, it is important to invest in the right materials and a reliable contractor. This also means having enough money to be able to purchase the roof system that you need and hire the roofer that can best do the job.
Fortunately, there are several ways that you can finance your roofing project. From cash savings to equity loans, youll surely find something that suits your needs. Continue reading to learn more about the various roof financing options that you can choose from.
You May Like: How Much To Do A Roof
An Fha 203k Fha Title I Loan Or Fannie Mae Homestyle Loan
At first glance, government-backed renovation mortgages like the FHA 203k Loan or the Fannie Mae HomeStyle Loan may seem an ideal way to finance a new roof.
Both of these options let you borrow based on your homes future value, like a RenoFi Loan does, and can be used to combine the purchase of a property and renovation costs into a single loan.
But both of these options add unnecessary complexities to the financing process that can often result in delays. Youll also be forced to refinance your existing mortgage onto a higher rate which will inevitably increase your monthly payments.
Both FHA 203k and Fannie Mae HomeStyle Loans are options, but most homeowners will likely be better off considering a RenoFi Loan.
That is, unless youve got a poor credit history.
203k and HomeStyle Loans have a lower credit score requirement than other types of financing, and might be the only available option that lets you borrow against your homes future value if this applies to you.
An FHA Title 1 Loan, on the other hand, will give you the option to borrow a small amount of capital upfront, with no security beyond a signature or a higher amount when secured against a property. This is great if you only need a small amount of funding, but this will only be useful for small projects, and you will likely need to look elsewhere if you need a higher level of finance.
A Traditional Home Equity Loan
When you need a new roof pay monthly, many options exist, including a home equity loan. A home equity loan for a new roof allows you to use the existing equity in your home to pay for improvements. To get started with this process, youll reach out to a lender, such as your bank or credit union. Next, the lender will take a look at your homes value and your personal financial situation before offering you a lump-sum amount of money thats backed by your home. Then, youll make payments on this home equity loan, just as you do your mortgage.
Additionally, a home equity line of credit works in the same way, except that instead of offering you a lump-sum, your lender will extend to you a line of credit that you can use as needed.
Also Check: How Much Does A Roof Rake Cost
Why Is It Worth Getting A New Roof
Replacing your roof can be a significant and expensive undertaking. However, it is important to consider both the short and long term benefits when assessing options for either repairing your roof or upgrading to a new roof entirely. While quick fixes, such as patching leaks, may be enough to get you through the next storm, these short term repairs often wont last and may end up costing you more in repairs down the road.
Home Run Financing can often help homeowners get enough home improvement financing for a high quality roofing upgrade that will serve them well for decades to come. In addition to providing safety and coverage from heat and storms, there are several other benefits to consider when upgrading to a new roof.
Do Roofing Companies Provide Financing
Yes, there are plenty of roofing companies that provide financing for roof replacements and roof repairs. There are four main types of roofing companies, and these four different types of roofing companies may provide different options for financing. Here is a look at these four different types of roofing operate their business and what kind of financing they may provide.
Storm chasers: When a big storm with high winds and potential hail hits your area, you may begin to notice roofing company trucks targeting entire neighborhoods by passing out flyers, making sales calls, and going door-to-door. There is nothing entirely wrong with these types of companies, however, they provide a service that is limited in scope. First, they most likely do not provide financing options, and instead, they wish to seek customers who are willing to file a claim on their homeowners insurance to pay for the costs associated with the repairs or roof replacement. Second, they may not be from your local community and they most likely offer very limited customer service.
Small business roofing companies: Small business roofing companies are more likely to be for your local area, have a small number of roofing crews, have some of the lowest prices, and may or not offer to finance. If they do offer to finance, it may be from a local financial institution or credit union that they work with directly to send financing referrals.
Read Also: How Do You Clean A Tile Roof
