How Financing Works When You Need To Replace Your Roof

How Financing Works When You Need To Replace Your Roof

Roof replacement is a significant investment. Many homeowners can not afford to pay for a roof replacement out of pocket. The good news is that there are multiple roof financing options available to homeowners. Financing a new roof through installment payments allows many people to get the roofing system they need when they can’t put off a roof replacement any longer. 

How to Finance Your Roof Replacement Project

If you can afford it, paying in cash is actually the best option for new roof financing. By saving enough cash and paying for your new roof out-of-pocket, you’ll avoid interest payments on home equity loans and other credit options. Unfortunately, paying out of pocket for such a large investment may not be an option at this time.

So, if you can’t put off your roof replacement any longer and you don’t have enough money saved up, here are some financing options to explore.

  • Personal Loan: Personal loans provide homeowners with a fixed sum that they can repay over a set term. One benefit of a personal loan is that there’s no collateral, and you can usually lock in the loan at a lower rate than credit cards, particularly if you have a good credit score. However, personal loans often have higher rates than those of home equity loans.
  • Home Equity Line of Credit (HELOC): With Home equity financing, you can borrow money against available equity accumulated in your home. You typically need a loan-to-value ratio of at least 85% to qualify for home equity financing. 
  • Cash-Out Refinance: Cash-out refinancing allows you to take some cash out from your home equity by replacing the existing mortgage with a fresh home loan for more amount than you owe. You can then use the surplus to finance the roof replacement project. This option offers lower interest rates compared to HELOCs. 
  • Credit Card: You can pay for a roof replacement project with credit cards if you have strong credit. In fact, you can secure a card at 0% APR and save a significant amount of money over the financing term. However, the repayment timeline is typically shorter compared to home equity loans, company financing, and personal loans. 

Roof Financing Through a Roofing Company

Reputable roofing companies also offer flexible and affordable financing options you can explore. Your roofer typically works with the bank to help you manage the cost of your roofing project based on the roof replacement expense and your budget. Each roofing contractor chooses banks and financial institutions they’re willing to work with and the specific roof financing options they will offer customers.

The benefits of roofing company financing usually outweigh direct-lender financing due to volume lending. Roofers who provide financing can offer clients special promotions that beat mainstream banks and other lenders. Besides, you can expect convenient financing that options that fit your budget. Professional roofers understand that roof replacement projects can be stressful for homeowners, and they work hard to keep their roof financing options as simple and affordable as possible.

How and When to Pay for a Roof Replacement

Lots of homeowners get scared when a roofing contractor asks for money before executing any work. If this ever happens to you, you should be concerned. If the roofer asks you to pay for the entire roofing project in cash upfront, it is best to be wary and explore other options.

However, it’s common practice for a roofer to ask for a deposit. But make sure you do your research on the roofing contractor first. Typically a deposit should not exceed a third of the total cost of the roof replacement project. Regardless of the deposit amount, be sure to pay everything with a credit card or check, NOT cash. Also, discuss the payment process before signing on anything.

Why It’s Important to Work with a Roofer Who Offers Financing

A certified roofing company works with each homeowner to determine a financing option that fits their budget. Roofing company financing options depend on the scope of work, the down payment amount, as well as the homeowner’s credit score.

Overall, working with a roofing company that offers financing can provide you with:

  • Competitive rates
  • No hidden costs
  • Payments that fit your budget
  • Easy-to-understand paperwork
  • Unsecured loans up to $75,000, depending on the contractor

Due to the volume lending, many larger roofing companies may be able to help push you application through the financing companies and offer special rates and packages to customers. However, smaller roofing companies may not offer any kind of financing, and those that do may not offer competitive rates since they lack volume.

How to Start the Process of Getting Roofing Company Financing

Reputable roofing companies respect your privacy. They typically use a web-based contract solution with end-to-end encryption to ensure each homeowner fills out a credit application privately and securely. Once you fill out your application, the contracts are sent through a secure server to ensure no contractual information goes through the general email system. 

Even the sales representatives may not be able to access your credit application with your personal information. Credit representatives will then engage every decision-maker involved in the roof replacement project and explain your options to ensure you’re comfortable with your roof financing. Once your application is approved, the roofer will commence the work. Depending on the lending bank, you may be required to pay a down payment and settle the balance in flexible installments over a predetermined period.If you’re planning to replace your roof in Arlington, WA, but are short on funds, there is good news. S&S Roofing has got you covered. We offer reliable financing options tailored to your unique needs and budget. You can trust our team to deliver the most efficient and remarkable roofing services available in the roofing industry. Contact us today for a free, no-obligation estimate for your next roofing replacement project.

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