Residential roofing projects don’t just involve choosing colors and selecting materials, but also planning a budget. We understand how roofing costs can be overwhelming at first. However, this doesn’t have to be the case because there are various flexible roof financing options available today.
Here are some of the most popular options for roof financing.
While cash is the best way to pay for your home, this option will only work if you have the full amount saved up. What makes this a good option is that you don’t need to have good enough credit, and you won’t need to pay interest. Paying in cash is ideal if you don’t have other plans for the money, and it’s not your emergency fund.
Same as Cash Options
Those who have enough funds for their roofing project can choose same as cash options. This option lets you determine the payment term granularly. There’s usually no interest in this financing option, and you can pay the bill upfront or in installments. Moreover, this isn’t a long-term financing option and is only meant for customers who can clear their balance quickly.
Home Equity Line of Credit
Customers with equity in their houses could benefit from a home equity line of credit. It gives you access to the most flexible payment terms. A new roof can increase the appeal, overall value and energy efficiency of your home. The best way to use the equity in your home is by paying for upgrades that add value, functionality and comfort to your home.
Contractor Specific Loan
Contractors can offer loans to cover for the cost of a major roof repair or replacement. They work with banks to finance their customers. Your roofing contractor acts as a middleman between you and the financial institution. This option doesn’t require any home equity. You can also usually get funds faster than a cash-out refinance and other options based on home equity.
Make sure to check out other options, such as Property Assessed Clean Energy (PACE) or home equity lines of credit, before availing of a contractor loan package. In some cases, you can get 0% interest financing via credit cards and unsecured loans.
You must look into PACE if you have some equity in your home. Typically, this option has fixed, competitive terms and rates, allowing for maximum flexibility. Programs like this don’t look at your credit scores for creditworthiness. This means that those with little or no credit can utilize their home equity to finance their roof replacement.
You can request an assessment from your contractor for PACE financing. However, not all roofers are qualified for this task. Another benefit of PACE is that you can use it on other home improvement projects.
Many don’t think that it’s a good idea to pay your project via credit card. However, if you qualify for a credit card that offers a 0% annual percentage rate (APR) promo, you can finance your roofing cost without paying interest. To get approved, you need excellent credit, and there’s no guarantee that your credit limit will be enough to cover for your entire bill.
Cash-Out Refinance or Second Mortgage
Consider this financing option, and you could benefit from a refinance and have good home equity available to you. Reinvesting into your home through upgrades is a smart way to add value to your property and improve the structure’s functionality.
Whether you need a new roof or an emergency roof repair, Total Roof Services Corp. is here to help. We work with the leading manufacturers in the industry to provide you the best roofing products and services. Call us at (407) 495-4151, or fill out our contact form to schedule a free consultation.