What’s the Best Way To Finance a New Roof?

It’s no secret that roof replacement is one of the biggest financial challenges a homeowner can face and that many Americans are ill-prepared to handle. This can be especially problematic in cases where the roof has suffered damage and needs to be replaced as soon as possible.

However, they can benefit from various financing options that not only cover the cost of hiring reliable roofing installers but can also alleviate the financial stresses associated with this type of project. With Nu Look Home Design, these financing options can help homeowners in Cherry Hill, NJ, and other Mid-Atlantic areas.

How Much Does a Roof Replacement Cost?

The size and complexity of your roof, the contractor you choose to work with, and the roofing material you choose will all have an impact on the final cost of your new roof.

Before considering financing for your roof replacement, you should evaluate the cost and obtain quotes from at least three roofers. Look into the differences in quotes, roofing material guides, and general recommended practices. After you have an estimate, evaluate each financing option to determine if it will cover the entire cost of the roof replacement.

Ways to Pay for a New Roof

There are a variety of financing options available for roof replacement. The best choice for you will depend on your financial situation as well as your needs.

Insurance

Homeowners are only protected from losses caused by theft, fire, natural disasters, and other damages if they have insurance. If your roof was damaged beyond regular wear and tear, your insurance may cover some or most of the cost of a new roof. To determine if your policy covers roof replacement, contact a reputable roofing company with insurance experts.

Personal Loans

Personal loans can be obtained based on your credit score and history, allowing you to receive a lump sum upfront from a lender. However, you should carefully evaluate the terms to check for competitive interest rates and manageable monthly payments.

Home Equity Loans

Home equity is the difference between what you still owe on your mortgage and the current market value of your property. If you have a loan-to-value ratio of 85% or lower, you may be able to apply for a home equity or HELOC (Home Equity Line of Credit) loan. These loans are the preferred option for many homeowners because of their low interest rates. However, the homeowner needs to have a regular income, a solid credit score, and available equity in their primary residence to qualify.

Contractor Financing

Reputable roofing firms offer flexible financing options to help homeowners with insufficient credit scores or little home equity obtain the necessary funds to replace their roofs.

FHA Loans

In the United States, the Federal Housing Administration (FHA) offers a roof replacement financing option through its Title 1 loan. This loan does not require equity in the home, as long as the loan is under $7,500. It offers fixed rates without minimum credit scores or income requirements

To qualify, you must own the home or have a long-term lease, have occupied the home for 90 days or more, use the loan for roof replacement or repairs, and have a debt-to-income ratio of at least 45%. The terms and interest rates of Title 1 loans vary based on the provider, allowing you to choose the best option.

Other Government Options

The FHA 203K program is a suitable loan option for those with little home equity and who are not eligible for an FHA Title 1 loan. With a maximum loan amount of $35,000, it can be used for roofing or home repairs.

Americans can apply for tax rebates that apply to their new roofs through the Department of Energy’s tax credit search. This is encouraged, as it can reduce financing and interest costs and make loan repayment more manageable for you.

Cash-Out Refinance

A cash-out refinance involves taking out a larger mortgage loan on your home. However, unlike a second home mortgage, this allows you to pocket the difference between the current market value and the remaining mortgage debt as a lump sum. You can then use this to fund your new roof. It’s essentially adding the cost of the new roof to your mortgage payments. Just remember that it will come with a new interest rate.

How to Pick the Best Financing Option for You

The best choice for your home depends on factors such as available funds, your desire for how much money you’d like to save, your annual income, credit rating, and potential roof damage from a major storm. It’s essential to weigh these factors carefully to make an informed decision:

• If you can afford the entire project’s cost out of your bank account, cash is the simplest and most affordable option.
• If you have enough equity in your house, you can secure a home equity loan from a reputable lender.
• Consider financing directly from the roofing company that provided the best quote if the above options don’t work for you.

What About Bad Credit?

Your roof doesn’t have time to wait if it needs to be replaced. Here are a few options to consider if you have bad credit:

Personal Loans for Borrowers with Bad Credit: Credible, professional lenders offer loans for bad or fair credit. Compare rates and repayment terms.

Local Bank or Credit Union Loans: Banks can offer loans based on account management and deposit frequency. They may be more forgiving than new lenders.

Secured Loans: Loans with collateral, such as a home, vehicle, or savings account, can be obtained if regular loans aren’t feasible. However, collateral can be taken as payment if loan payments are missed.

Benefits of Financing Your New Roof

Financing a roof replacement offers unique benefits such as breaking up the lump sum into manageable monthly payments, negotiating upfront payment terms, and delaying payments, making it a convenient option for immediate repairs.

Where in Cherry Hill, NJ & other cities in the Mid-Atlantic can I find expert roofing installers?

Secured Loans: Loans with collateral, such as a home, vehicle, or savings account, can be obtained if regular loans aren’t feasible. However, collateral can be taken as payment if loan payments are missed.

Benefits of Financing Your New Roof

Financing a roof replacement offers unique benefits such as breaking up the lump sum into manageable monthly payments, negotiating upfront payment terms, and delaying payments, making it a convenient option for immediate repairs.

Where in Cherry Hill, NJ & other cities in the Mid-Atlantic can I find expert roofing installers?

For 19 years and counting, Nu Look Home Design has been providing the people of Cherry Hill and other communities in New Jersey, Maryland, and Virginia with professional roofing, solar, gutter, window, door, and siding replacement and installation services.

We offer multiple options for financing roof replacements, including long-term monthly payments and short-term cash programs (12-18 months). We’ll happily go out of our way to devise custom solutions and see how low we can get these monthly payments.

We operate throughout the Mid-Atlantic, so you can count on our help regardless of whether your property is located near the old Cherry Hill Arena or in one of the nearby cities. Contact us today and take the first step toward a quality roof replacement.