A new roof is an expensive project for your home. Many homeowners know that their home needs a new roof, but they also know that they don’t have access to the money to make it happen. Replacing the roof feels like something they can’t afford to do, so they don’t do it. This is a really poor decision. Putting off a roof replacement means that there may be more expensive damage down the line. There are ways that all homeowners can pay for a new roof.
Shop Around for Your New Roof
First, before you worry about financing, look into exactly how much your new roof will cost, and work to save as much as you can. Shop around and get several estimates for your new roof. Each roofing contractor will give you their best price if they know you are comparing companies. Make sure you ask questions about the materials each company offers and see if you can time your roof replacement project to save money. If you wait until later in the fall when things are slower, rather than the summer peak season, you may be able to get a deal. It is important to note that you need to be smart when you shop around. If a price is exceptionally low, that isn’t always a good thing and should be considered a red flag.
Check with Your Insurance Company
You may be able to use your homeowner’s insurance to help pay for your new roof. If there is any storm damage, insurance will likely be able to cover that damage. However, your insurance company will not cover replacement for a roof that is simply old, or worse, neglected. Calling your agent to discuss your policy and get an inspection is worth a shot.
Research a Property Home Improvement Loan
The FHA runs a Title I program, where homeowners can borrow up to $25,000 and have 20 years to pay it off. Loans over $7,500 do need to be secured by your property. Title I loans are offered by banks and credit unions, so talking to several lenders may get you the best interest rates.
Take Out a Home Equity Loan
If you have equity built up in your home, a home equity loan is a way that many homeowners are able to pay for their home repairs and improvements. You work with a bank and use the equity you’ve built up as collateral. Your home equity amount is the current value minus the amount your owe on the mortgage. So if your home is worth $200,000 and you still owe $150,000, your equity is $50,000. You can usually borrow around 80% of that, so you would be able to get a home equity loan that will most likely cover the cost of a new roof.
Finance with Your Roofing Company
Many roofing companies offer payment plans to help make new roofs more affordable. If the company you are considering offers financing, they may work with you to spread out your payments over several months, or even years. Each company, including Armorvue Home Exteriors, has their own plan, with specific requirements and interest rates, so make sure that you are comparing apples to apples when you are looking at how much your payments will be.
Not having the cash handy can be a reason that many homeowners put off their roof replacement, but it doesn’t have to be. Your roofing company can help you find the right solution to keep your home in good condition without creating financial distress. If your roof is showing its age, contact Armorvue Home Exteriors today. We’d love to answer your questions about how to finance a new roof.