Investing in a new roof isn’t a cheap affair. The average projected cost for new roofing is around $7,000. These costs will vary based on different factors and unless you have enough money in the bank to pay off the entire roofing cost, financing will be a viable option to go for.
So here are 3 tips to financing a new roof:
Get The Roofing Cost Estimates
Before you can get financing for a new roof, it is important that you find out how much it will cost you to complete the entire project. It is therefore advisable that you get in touch with around 3 contractors and have them provide you with estimates of the new roof you plan to have. These estimates should cover the cost of materials to be used as well as labor.
Prepare A Budget
A budget will come in handy in that it will give you a clear breakdown of how much money you need to source from a financier and how much you can be able to pay for upfront. Make a budget from the estimates provided to you by the contractors before choosing a financing option.
Analyze Your Financing Options
There are several financing options available to choose from. The first is an insurance cover. If you have homeowners insurance, you may take advantage of your policy to cater for the costs of the new roof.
Contact your insurance provider and find out if they will be willing to cover any of the cost involved. If your roof was damaged as a result of natural calamities such as earthquakes or hurricanes or other causes such as a fire, your insurance provider may be able to cover replacement or repair costs.
The second option is the FHA Title 1 loan. The Federal Housing Administration (FHA) is in charge of the Title 1 loan program and will insure the loan for you, thereby reducing the lender’s risk. You have the provision to borrow up to $25,000 on this program and repay the loan over a period of 20 years.
A Home Equity Loan is another financing option. Home equity is the current value of your home less the amount you owe as mortgage. If you’ve built equity on your home, a home equity loan will be more economical for you. You can get this loan from a bank and your home equity will act as collateral for the loan.
Another financing option is taking up a personal loan. You can approach a credit union, a bank, or any other financing institution and take out a loan from them. Personal loans are short, typically two to five years and have different interest rates based on your credit score. The higher your credit score is, the lower and more favorable interest rates you get.
You can also get financing from a roofing company that offers payment plans. You can spread your payments over a defined number of months as per your agreement with the roofer. You’ll have to discuss with the company about the interest rates.
Conclusion
You can talk to a Roof finance expert to guide you more and simplify the financing process for you.