How to Finance A Roofing Project
Virus or no virus, if your roof needs replacing or repairing, it can be dangerous to postpone. Repairing or replacing the roof of your home is not something we can always afford to put on hold. During this current pandemic, millions of families’ funds are tight, or money may not even exist at all. The average American savings account balance ranges around $16,400, yet the other 29% of households save less than $1,000. Because of the pandemic, many people have had to use their savings just to keep their families afloat. Thankfully there are ways that you can afford a quality roof even if you can’t pay upfront.
1. Insurance Claim
If you have homeowners insurance, you may be able to use your policy to cover the cost of your new roof. Contact your insurance agent to discuss your current policy to see if they are willing to pay for any roof damages. If your roof degraded because of improper maintenance, then they probably won’t cover the replacement. But if your roof was damaged in a storm or fire, then the cost of your roof repair may be covered.
2. Contractor Financing
Choosing a contractor that offers to finance is a great way to start a necessary roofing project. Financing usually only takes a few minutes and can be done virtually, therefore, abiding the social distancing mandate. Our Roof Advance specialists offer a full roof replacement for as low as $79 per month or 18-month interest-free. With our finance options, you can afford any of our commercial roofing services, multi-family roofing, and residential roofing services in your time of need.
3. Home Equity Loan
Another way to finance your roofing project is by applying for a home equity loan. Equity is the amount you could sell your home for minus how much you still owe on a mortgage. When applying for a home equity line of credit, banks consider the amount of equity that you have in your home. Once the line of credit is established, you can control how much you are borrowing. To qualify, you typically need a debt-to-income ratio lower than 50%. The biggest risk with taking this method is that you may default on the loan.
4. Title 1 Property Improvement Loan
If you don’t qualify for a home equity loan, an FHA Title I loan may be the next best thing. To obtain an FHA loan, you need to own the property or have a long term lease. Insured by the government, these fixed-rate loans are designed to fund home improvement projects that improve your home’s livability. To qualify for an FHA loan, your debt-to-income ratio must not exceed 45%. Taking this route also presents the same risk as the home equity loan and may default, resulting in losing your home.
5. Personal Loan
Personal loan interest rates are typically higher than other financing options. You don’t have to offer any collateral with this option, therefore, you don’t have to worry about putting your home at risk. Because these loans are unsecured, lenders generally charge higher interest rates.
6. Credit Card
With the average APRs around 17% considering using a credit card should be your last resort. If you must replace your roof by using a credit card, try opening an account with a card that offers a promotional rate of 0%. By dividing your total cost into monthly payments, you can avoid any additional interest and finance the project yourself. The risk of not paying your bill within the first 12-21 months can result in skyrocketing interest payments and fees.
Finance With Roof Advance
At Roof Advance, we understand that it may be a tough time for homeowners to afford to maintain their homes. When you have roofing problems, you should not wait until the last minute to address them. Using these resources can help you get the help you need to keep your family safe. Take the next step and schedule an appointment to find out more about our finance options!