The roof is designed to protect your home from a myriad of elements. But over time, it can get damaged, either due to wear and tear or a natural disaster, requiring repair or replacement. Unfortunately, the cost of a full replacement is an expense most homeowners are ill-prepared to pay for out of pocket. The good news is that there are multiple roof financing options available to help you cover the cost of roof replacement, including home equity loans, personal loans, and roofing company financing.
So, if you find yourself in need of a new roof, here are some viable financing options to explore:
Paying with Insurance
Your homeowner’s insurance policy protects you from financial losses when your home is damaged by covered perils such as fire, theft, and certain natural disasters such as lightning, windstorm, hailstorm, etc. If you suspect that a covered peril damaged your roof, contact your insurer immediately to begin your claim process. However, beware that insurance won’t cover your roof replacement if it was in a deplorable state before the damage or if you did not keep up to date with maintenance. It’s always best to consult your roofing contractor before beginning the claim process.
Home Equity Loan or HELOC
Typically, home equity financing allows you to borrow against the available equity built up in your home over time – the difference between your home’s market value and the balance you owe on your mortgage. Generally, if your loan-to-value ratio is 85 percent or lower, a HELOC could be a valuable option.
Personal Loans
If you have a great credit score and can qualify for a personal loan at a competitive rate, you can consider this option to finance your new roof. With a roof loan, an online lender or traditional credit union or bank offers you a lump sum upfront to finance your new roof. The amount offered and the interest rate charged will depend largely on your credit score and history.
Credit Cards
If you have a strong credit score, you may qualify for a 0 percent APR credit card. It can come either as a balance transfer offer or a new cardmember. Since credit cards may offer a higher spending limit than personal loans with no interest, they could help you save a significant amount of money over the financing term. However, credit cards with 0 percent interest often have a much shorter timeframe for repayment.
HUD Home Improvement Loan
You may have an option to pay for your new roof with an FHA Title I home improvement loan. It’s offered through certain lenders and insured by the Department of Housing and Urban Development. The loan amount varies depending on your specific need and credit history. But the good news is that the loans offer fixed interest rates and longer repayment terms.
Roofing Company Financing
Finally, you may want to consider roofing financing options offered by a trusted local roofing company. Reputable roofing professionals understand that the cost to repair or replace a roof is often too high to settle all at once. As a result, they provide financing options that allow you to pay over time. Your roofing company will likely charge some interest, but it’s often much lower than a traditional bank or credit union loan. Moreover, roofing company financing can be a viable option if you have little home equity or not so impressive credit score.
Working With a Trusted Local Roofer that Offers Financing
Overall, paying for a full roof replacement may seem overwhelming at first. However, there are multiple options to help make roof replacement far more affordable. StormForce of Jacksonville is dedicated to helping homeowners find affordable finance solutions for roof replacement projects. We partner with reliable financing institutions to offer credit lines up to $45,000, unsecured, and no fees. We may be able to help even if you’ve had credit issues in the past – collections, bankruptcy, or poor FICO scores. With long-term, low monthly repayment options for up to 120 months and fixed interest, financing a new roof has never been this easy. Contact us today to schedule your consultation!