The Money Is Everywhere
Usually, when you need a new roof, you need it right away, even if you aren’t sure where the money for one is going to come from. Fortunately, if you can’t 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.
Before you worry about any type of financing for your new roof, you want to check with your homeowner’s 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 you’re 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 you’ll have to finance your part of the new roof costs. Check out our Insurance FAQ page.
Roofing Company Financing
Home Equity Loan
Home Equity Line of Credit
Choosing Your Finance Option
Title I Property Improvement Loan Program
If your home equity is limited and you don’t qualify for a home equity loan or line of credit, a government-backed FHA Title I fixed-rate loan could be a good option. To obtain an FHA Title I loan, “you need to own the property or have a long-term lease on it fill out a loan application that shows you are a good credit risk and execute a note agreeing to repay the loan,” according to the U.S. Department of Housing and Urban Development. Loans under $7,500 are unsecured, meaning they require only a signature, while loans over $7,500 may require your home as collateral.
Be Sure To Consult Your Homeowners Insurance Policy
Your insurance may cover your roofâs damage if it was caused by something beyond your controlâsay a storm or fire. On the other hand, your insurance probably wonât cover any problems related to a lack of maintenance or natural wear and tear. You should check your policy or call your insurance company to find any exclusions, coverage limitations, etc.
Coverage from homeowners insurance doesnât necessarily mean you wonât need financing if you donât have cash. You may have to pay a deductible before your coverage kicks in and, without cash saved, financing will be your best bet.
In the next two sections, weâll show you how you can finance your roof project.
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Can You Finance A New Roof For A Vacation Home
Yes, you can finance a new roof for any home that you own. Using a personal loan is often the first choice for many people who need a loan to fix their roofs. Your vacation home should be kept in good shape because you may rent it out to others. It should also be protected against damage so that you can continue to use your vacation home when you want to take a break away from home.
You can secure a home equity loan to replace the roof on your vacation home. However, it may be harder to qualify for a home equity loan on a vacation home compared to a primary residence. You may need to have more equity and interest rates may be higher. With less appeal and more work required, vacation homeowners may lean towards using a home improvement loan or personal loan for roof repair or replacement.
The Fast And Affordable Way To Finance Your New Roof
Every homeowner deserves to have a safe, secure roof over their home, but the high cost of replacing an old or leaky roof can leave you feeling frustrated and stressed.
Figuring out how to pay for a new roof isnt always easy, but PACE financing can help you cover the costs, with fast and affordable financing. Our roof financing solution has no upfront costs, low-fixed rates, and long repayment terms. Best of all, we frequently offer same-day approval and we never use your credit score to determine if you are eligible.
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Can My Insurance Pay For A New Roof
It depends on your policy and the circumstances surrounding why you need a new roof. If its because of a weather-related event, then homeowners insurance coverage might apply. But if youre just looking to replace it because of age or to up its resale value, homeowners insurance likely wouldnt assist with the cost.
*APR may differ based on loan amount, term, and your credit profile. Financing is independent of Owens Corning and not all applicants may qualify.
If You Have Bad Credit
A damaged roof waits for no one. If your roof project is critical but you don’t have the from the lender of your choice, you do have options. Here are a few to consider.
- A personal loan designed for borrowers with bad credit: There are some credible, professional lenders that offer bad or fair credit loans. Check out several lenders to learn which offers the lowest interest rate and most attractive repayment term.
- A loan from your local bank or credit union: Even if your credit is far from perfect, your bank has access to your accounts and knows things like how often you make deposits and if you manage your bank account well. Your financial institution may be more forgiving than a lender you have no prior relationship with.
- Asecured loan: If you’re having trouble qualifying for a regular loan, you can ask your preferred lender about getting a loan with collateral. When you use collateral to get a loan, the loan is called a “secured loan.” Collateral can be anything of value that can be sold, like a home, vehicle, or even a savings account. It’s important to remember, however, that if you miss loan payments, the lender can take your collateral as payment.
For more help, check out our guide: Best personal loans for bad credit
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Lowering The Cost Of Replacing Your Roof
There are some things you can do to lower the cost of a new roof if you find you are over budget or want to minimise the amount you are repaying on finance. These include:-
- Choose a cheaper roofing material or try and find one that is on sale or special offer – as you will see from looking at slate roof costs for example, this is a particularly expensive roofing material, so it could be worth choosing a cheaper option.
- Book your roofing works at a time when contractors are quieter so towards the end of the summer or in early spring sometimes this can help lower the price although there are risks with working during the closed season but if you get lucky with the weather then it can be worth it
- Make sure your contractors know that you are looking at other estimates if they think they have to compete for the business and it is a quiet time of year then the quote is bound to be more competitive
- Be honest and give them your budget or the figure you want to work to, youd be surprised how many companies will try and help you out and find ways to come in on or under budget
The good news is that despite the cost, a new roof will increase both the value and marketability of your home and bring a return on your investment of around 60%. A smart new roof will improve the style and aesthetics of your property and offer the complete reassurance that the house is watertight and weatherproof for many years to come, saving you unpleasant expenses such as roof leak repair costs.
How Much Will A New Roof Cost
An average figure across the UK is £5,500 but the actual cost for your home will depend on certain specific factors which include:-
- The size and complexity of the roof
- The choice of roofing materials
- If you are intending to upgrade and add features like roof lights or dormer windows
- Whether any structural work is required because there is evidence of rot or you need to reinforce the roof to support the weight of a heavier roofing material
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Home Equity Loan Or Home Equity Line Of Credit
Home equity financing allows you to borrow money against available equity your home has built over time by evaluating your loan-to-value ratio . You typically need a loan-to-value ratio of 85% or lower to qualify for home equity financing.
A major benefit of home equity financing is that interest rates tend to be low compared to other roof replacement financing options due to leveraging the home as collateral. However, the risk involved in backing your loan with such a high-value asset means you should only consider this option if you have strong credit and a steady income.
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:
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Disadvantages Of Financing A New Roof
Besides the obvious negative of having to pay interest, financing a new roof has some other cons:
- Youll need a down payment and collateral. Lenders typically expect a 1030 percent down payment and collateral to approve a property improvement loan. Depending on what the lender accepts as collateral, you may be able to use your equity in the property, your other business assets, inventory or accounts receivable.
- Youll face a lot of loan-related paperwork. In addition to a completed application, your lender will likely ask for a variety of financial records including 3 years of business tax returns, a current income statement, a collateral schedule and personal income tax returns. Additionally, theyll want your roofing contractors contact information, a breakdown of the replacement project costs and a copy of the signed contract.
To discuss your options for a commercial roof replacement, contact us today at BELDON® Roofing Company.
Is Roof Financing Right For You
If you cant pay for a new roof in cash, roof financing may be your best or only option. Roof financing with the right lender is a great choice if you need work done quickly or you want to add value to your home. Armed with all of the information you need to choose a lender and a source of financing, you have everything you need to get started with roof financing.
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The 5 Ways You Can Finance Your Roof Replacement
December 2, 2019 by Trico Exteriors
Finding out you have to replace your roof is never great news. Replacing a roof is an expensive proposition, after all. Unfortunately, roof replacement is rarely something you can put off. The longer you wait to replace your roof, the more vulnerable it will become to damage. Not only could this make your home more vulnerable to potential leaks and water damage, but it could also pose a safety hazard should it become structurally unsound.
Because of how expensive a roof replacement can be, you might not be able to pay for it out of your own pocket. The following are five of the main ways you can obtain financing for a roof replacement if you do not have enough money in the bank to cover the costs.
Why Roof Financing Can Be A Good Idea
Its easy to forget about your roof, and homeowners often put off repairing or replacing an aging roof until serious warning signs appear. Other times, Mother Nature may wreak havoc with your shingles or send a wayward tree branch that causes damage.
If youve built up a fund for roof maintenance and repair, thats great, but many times were left unprepared when roof needs come calling. Even if the damage is covered by your insurance, you may be left with a hefty deductible thats not in your budget. Or, you may decide its time to replace the entire roof with new and improved materials rather than do a repair.
Here are some reasons to consider roofing financing for your roof repair or roof replacement project.
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Home Equity Loan And Line Of Credit
You can borrow money against your home equity with home equity loans and home equity lines of credit . Equity is the amount you could sell your home for minus how much you still owe in mortgage. Home equity loan rates range from 3.75% and 11.99% and HELOC rates range from 2.87% and 21%, according to Bankrate. It’s important to remember that your home is the collateral, so if you default on your loan, your home could be sold as repayment.
To qualify, you typically need a debt-to-income ratio lower than 50%, a relatively good credit score, and at least 15-20% in home equity. Getting approved and receiving cash in hand may take a few weeks if you need to obtain an appraisal or other documentation.
Which Roofers Offer Financing
Not all roofers are alike, so when it comes to financing your roof repair, you need to know the type of roofer youre talking to.
You see, there are four types of roofing companies.
Full-service and sales companies almost always offer financing. Storm chasers are insurance experts, but they usually offer financing as well.
Small companies may or may not offer financing. It depends on whether theyve partnered with a bank or service that offers home improvement loans .
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Low Interest Rate 59% Apr Representative
Here at LD Roofing Services Ltd, we are passionate about helping our customers through offering competitive pricing structures. A new roof is a relatively expensive investment for most homeowners, and its understandable that people might not want or have the means to spend a lump sum of money upfront. If you are interested in splitting up the cost of a new roof into manageable monthly payments, then please contact us for a free consultation so we can find the best payment plan for you!
Representative Finance Plan Examples
Buy Now, Pay Later Loan
An interest bearing Buy Now Pay Later loan allows you to defer your payments for a period of time. You can defer for up to 12 months then you can either pay in full or spread the cost over 4 years.
48 monthly payments of £195.38 at an APR of 14.9%.
Monthly payments will commence 12 months from the date of supply of the goods/services and will be payable on the same day in each subsequent month. We will tell you the due date of the first repayment. If you settle the outstanding balance before the first repayment is due, then we will waive all interest charges and just charge an administration fee of £29.00.
Interest Bearing Loan
Allows you to make equal monthly repayments at a fixed rate .
24 monthly payments of £262.45 at an APR of 0%.
RAISING THE STANDARDS OF ROOFING COMPANIES
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Use Your Home Warranty If You Have One
A home warranty is kind of like an insurance policy you pay for it hoping youll never need it. The annual premium varies depending on your plan and your home state, but should cover you if a major home system breaks down. The typical cost, according to Home Advisor, can range anywhere from $219 to $1,704 per year.
If your roof damage is covered, the only additional money you should shell out is for a service fee to file a claim, usually to the tune of $50 to $100. Again, every policy is different.
Finance Your Next Roofing Project
The cost of a new roof varies widely because it depends on several factors, including:
- The size and complexity of the roof
- The roofing contractor hired to do the job, as labor rates vary among pros
- Your geographical area
These variables can make it difficult to save for a roofing project accurately, and thats where roof financing can help.
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Heloc Or Home Equity Loan
Home equity lines of credit and home equity loans are two of the best ways to get roof financing if you have bad credit and/or want to minimize your interest rate. Using your home as collateral, you can often negotiate a lower interest rate than you could with other loan types. However, you do need to have some equity built up in your home to take advantage of these options.
Home equity loans are slightly different from HELOCs because they offer a fixed amount of money in a lump sum and have fixed repayment terms.
HELOCs are more flexible, allowing you to withdraw more money over time, and lengthen the time it will take to pay the full amount back. They generally offer less-favorable terms than home equity loans because they offer you greater flexibility.
Your circumstances will dictate whether a HELOC or a home equity loan may be better for you. If you plan on using the credit for multiple home improvement projects, you may prefer a HELOC. Then again, if your priority is just to get a new roof and pay it off quickly, a home equity loan may be the less expensive option. Its best to review all your options with an impartial financial advisor, meaning one who isnt affiliated with the bank or loan company you intend to choose.