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How To Finance A Roof

Look At Whats Included In Each Proposal

Roof Financing Options

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

Can You Pay For A Roof With A Credit Card

Yes, credit cards are one way that some homeowners choose to pay for a new roof. Credit cards provide a quick and easy option to pay the roofing company or general contractor, however, you may end up paying much more money for your roof in the long run. Credit cards can often have much higher interest rates than other types of financing, and with no pre-determined pay-off date, you could stretch out monthly payments to a point that you end up unnecessarily paying hundreds or even thousands of dollars more than you should.

Roof Financing & Payment Plans With Capitol Improvements

Bowie roofing and siding company, Capitol Improvements, knows that roof financing is often easier said than done. Thats why we work with Enerbank to help you simplify the process of applying for and receiving financing. If you live in Washington D.C., Maryland, or Virginia, we can make roof financing easy with payments from $99/month and a 15-minute phone application process.

We work with Enerbank USA, a trusted and proven lender that provides home improvement loans. This allows us to provide our customers with flexible payment plans and an easy lending process.

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The Insurance Company Paying For Your New Roof

The third way of paying for a new roof isnt going to be for everyone. But if a strong hail storm or another extreme weather event comes through your area, youll be able to pay for your new roof through your insurance company.

If you have a Replacement Cost Value, theyll actually pay to replace your roof if it has storm damage. After your claim is approved, the insurance company sends you a check for the actual cash value of your roof.

Then after your roof is installed, your insurance company will send the rest of the money for the recoverable depreciation . Be aware you will have to show proof that all the work has been completed before theyll pay out the rest of the money.

After getting your second check, youll give it to your roofing contractor to cover the rest of the cost of your roof . The insurance claim process is slow, and it could be a couple of months before you even get your new roof installed.

However, you should only have to pay your deductible when getting a roof replacement through your insurance company. Keep in mind that filing a claim doesnt guarantee approval, and it might affect your insurance premiums.

New Roof Financing Options: Lets Finance Your New Roof

How Do You Finance A New Roof?

When you call most roofing companies, theyre more than willing to come out and give you a pricing quote. What most arent willing or even capable of doing is helping you with new roof financing options. Watkins Construction understands that even with affordable roofing options, many people simply dont have that much money sitting in the bank.

Theres no reason you should exhaust your bank account or have trouble trying to finance a new roof. Our specialists can discuss several financing options in our service areas, and well help you through the entire process.

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Home Equity Lines Of Credit For Roofing

Like a credit card, you can borrow from a home equity line of credit as needed up to a predefined limit. However, unlike a credit card, your bank uses your home equity as collateral for your loan. In return for offering you lower rates than youâd find elsewhere, your bank can seize your home if you default on the loan.

Like home equity loans, using a secured line of credit to repair or replace your roof is tax deductible. Home equity lines of credit could be a great option if you already have one open with your bank, and if youâre confident you could make payments.

Enjoy Low Monthly Payments

When you finance a new roof through an independent roofing contractor in the Owens Corning Roofing Contractor Network, you can benefit from low monthly payments. This lets you pay for your roof in installment amounts you can afford and prevents you from having to pay for a multi-thousand-dollar roof project in one lump sum.

Depending on your payment terms and credit history, you may also be able to benefit from low-interest rates during the life of the loan.

For example, an unsecured home improvement loan of $10,000 for 120 months results in a low monthly payment of $132 with a 9.99% APR*.

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Factors That Affect Roof Replacement Cost

When it comes to installing a new roof, several factors can affect the overall price. Lets take a closer look at each of these factors and see how they can impact your roof replacement cost.

  • Size of your roof: The size of your home and in particular the size of your roof will have a big influence on the overall cost of your roof replacement. Roofing materials are sold in squares of 100 feet, meaning the bigger your roof, the more you can expect to pay for your roof installation.

  • Pitch: Roof pitch refers to the steepness of your roof. In most cases, the steeper the pitch the more your roof replacement will cost. For example, a low-slope roof replacement can cost between $4.50 to $7 per sq. ft. while a steep-slope roof can cost anywhere from $5 to $12.

  • Shingles: The cost of the shingles you put on your roof has perhaps the most significant impact on your overall roof replacement cost. The more features and benefits your roofing material has, the higher the cost. For, example, materials with additional benefits, such as energy efficiency, algae protection, hail protection, or rainwater management, also have higher costs.

  • Shape: The shape and type of roof can not only affect how your home looks, but also makes things more or less difficult for a roofer to install the material. Common roof shapes such as gable and hip roofs are the easiest to install while shapes such as A-frame and mansard are more complex.

Will My Home Insurance Pay For A New Roof

You have options with your roof

If your roof has been damaged by extreme weather or fire, your home insurance should pay for a new roof. If it is just a case of age or general wear and tear, roof replacement cannot be covered by home insurance. If you arent sure what your home insurance covers, read through your policy to ensure you arent leaving money on the table.

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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.

Home Equity Line Of Credit

A home equity line of credit also uses home equity as collateral but rather than providing a lump-sum loan, it establishes a revolving credit account you can use much like a credit card. As with a home equity loan, a HELOC allows you to access a maximum of 85% of the homes value minus the remaining balance on your mortgage.

For a length of time called the draw period, which typically lasts 10 years, a HELOC allows you to write checks or use a debit card to make payments against the accounts spending limit, then pay down the balance as quickly or as slowly as you choose, as long as you meet a monthly minimum payment. After the draw period ends, you must pay off the outstanding balance in a lump sum or in a series of fixed monthly payments.

HELOCs often come with variable interest rates and may feature low promotional rates for the first 12 months, after which borrowers can see significant annual increases. That, and the variable-balance nature of all rotating accounts, can make it tricky to predict how much a HELOC will cost you over the life of the account.

If you use a HELOC for roof financing , you may be able to take your interest payments as a deduction on your federal income taxes. As with a HEL, talk to a financial professional to find out if you may be eligible.

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After Youve Secured Financing For Your New Roof

Now that youve decided how to finance your roof replacement or repairs, here are some common dos and donts. Dont spend your new loan or credit on anything other than the roof replacement because you may risk breaking the terms of your loan or make the loan harder to pay off. Do try to pay off your loan as quickly as you can. Its wise to pay more than the minimum payment, whenever possible, bearing in mind that any extra money that can be allocated to debt repayment should generally first be used to pay down your highest interest rate debt.

Roof Financing Option #: Non

Financing Your Roof â Maycol Delgado

Property Assessed Clean Energy is a way for qualified homeowners in subscribed communities to finance a variety of home improvements, including new roof financing. With PACE financing, homeowners can leverage their propertys equity to make improvements with zero initial costs.

PACE funding may not exceed 15% of the propertys value, while the total loan-to-value ratio of the PACE assessment and any outstanding balances on loans related to the property must not exceed 97%. To ensure a quality job, all products installed in a PACE-financed project must meet government efficiency or performance standards. Some benefits of the PACE program include:

Advantages of PACE Financing

  • Easy to qualifyPACE eligibility is a lot easier than home equity loans, which are common options for homeowners. PACE loan assessments are based on property equity instead of credit score, employment history, monthly income, and debt, which makes it easier for homeowners to qualify.
  • No down payment is necessaryPACE financing does not require an initial investment or upfront cost to start making home improvements. This means you can begin your project quickly without spending a large sum at once or having to move money around. The loan is repaid over 10 to 30 years through the annual property tax bill.
  • Disadvantages of PACE Financing

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    Can You Get Roof Replacement Financing

    If you just need to replace a part or parts of your roof you can still finance the repair. Since this is a smaller job than replacing an entire roof your loan amount should be less. A personal loan can be easy to secure with long repayment terms, making it ideal for roof replacement financing. It may be better to use a personal loan rather than financing with the contractor because its a smaller job. You may have more negotiating power using outside financing. In most cases, home equity loans are better for larger loan amounts.

    A Personal Loan / Home Improvement Loan

    Homeowners who are unable to borrow using equity often turn to a personal loan to finance a new roof. Loans advertised as home improvement loans are also often considered for this reason.

    What many arent aware is that these are commonly just high-interest personal loans marketed at homeowners looking to borrow to pay for home improvement projects. What appear to be specialist roof loans usually fall into this category, too.

    Homeowners often turn to personal loans because you wont need to put your home up as collateral, and you should get approved quickly if you are eligible, but they come with their downsides for most projects.

    Interest rates tend to be high, typically between 8% and 15%. And higher interest rates means higher monthly payments. Repayment periods are also usually shorter than other roof financing options.

    That said, if youre only looking to borrow a small amount of money for a roof repair or smaller roof replacement, this might be your best option, especially when you consider that a RenoFi Loan starts at $20k.

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    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 .

    Hud Home Improvement And Repair Loan

    Financing Your Roof Project – United Home Experts

    Finally, you may have the option to pay for roofing repairs with an FHA Title I home and property improvement loan. This type of financing is made available through certain lenders, insured by the Department of Housing and Urban Development.

    Loan amounts vary depending on the need and the credit history of the homeowner. Loans offer fixed interest rates and long repayment terms, and they may be used on properties, including manufactured homes, that have been occupied for at least 90 days.

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    Know What To Look For In A Lender Or Creditor

    When youre looking at options for financing a new roof installation near Washington, DC, its important to know what to look for in a creditor or lender. Note that these tips may be different if you’re looking for a commercial roofing contractor.

    The following checklist will help you in the process of comparing creditors and lenders to finance your roof:

    • Low Interest Rates

    Determine the interest rate on the loan or credit card for someone with your credit score. The lower, the better. Also check whether the interest rate is fixed or variablefixed is generally preferable, as variable can mean it increases at any time.

    Determine how long the approval process will take and how long after that you can expect to receive the loan.

    Are there any origination fees, and if so, how much will they cost? Many loans come without origination fees.

    • Long Term and Monthly Payments

    How long is the loan repayment term, and how much are the monthly minimum payments? Remember: a longer-term means lower minimum monthly payments, but more interest paid overall.

    • Lower Minimum or Higher Maximum

    Determine the minimum and maximum amount you can borrow with the lender or creditor.

    If you need a large lump sum for one major projectlike Bowie roof installationa loan with a higher maximum is preferable.

    If youre planning to pay partially in cash and only need to borrow a relatively small amount, youll have to make sure the amount you want to borrow is at or above the lenders minimum.

    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.

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    Roof Financing At Home Improvement Stores

    Some home improvement stores, including Home Depot and Lowes, offer loans to both Canadians and Americans for their home improvement projects. These loans are typically branded credit cards, which only work at the store issuing them. They typically have fixed terms, which means you must pay them off within a certain time frame. They also usually have minimum purchase requirements, which means that they may not be an option for you if youre only doing roof repairs of less than $2,000.

    Be aware that home improvement store credit cards dont cover the labor costs of your professional roofer. These cards are more often used by homeowners who are doing the roofing project themselves. There are many reasons to avoid doing DIY roof repair or replacement. You should only use these cards if you have a professional roofer who is willing to work with you so that you can buy the materials for your roof using the card.

    Also, as with other loan types, you should ensure your roof financing from Home Depot or Lowes has the most favorable terms for you. Be sure to compare interest rates, prepayment penalties and other terms with the other roof financing options available to you.


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