Just because your home is ready for a new roof, it does not mean your bank account is ready for the expense. As a result, there are multiple new roof financing options available to homeowners.
According to HomeAdvisor, the average cost to replace a roof is around $10,000. Roofing materials, where you live, and the square footage of your home all factor into how much you’ll have to pay. In many cases, homeowners need to finance their new roof, because paying cash is not an option. This is especially true in situations where the need for a new roof comes as a total surprise. If you find yourself in this situation, here are four new roof financing options.
1. Home Equity Loan
If you have some equity built up in your home, a home equity loan is a great financing option for your new roof. Home equity is how much of your home you own. For example, let’s say your home is worth $350,000, but you only owe $270,000 on your mortgage. In this case, you have $80,000 worth of equity in your home. Thus, you can take out a home equity loan using the equity you own as collateral. Because you offer the lender collateral, these loans often have cheaper lower interest rates and great terms.
2. FHA Title I Loan
What if you don’t have enough equity in your home to take out a home equity loan? In this scenario, homeowners can explore the Federal Housing Administration’s Title I loan. Under this government program, you may be eligible to take out a loan for major home repairs. A new roof, of course, falls into this category. You may be eligible to borrow up to $25,000, with amounts over $7,500 requiring collateral. These types of loans can also be used to replace your home’s siding.
3. Company Payment Plan
Many roofing companies, including Landmark Roofing, can assist homeowners with financing their new roof. Typically, this is done by financing companies that specialize in home improvement loans. These loans typically do not require any type of collateral, but homeowners will need to meet certain credit score minimums. One great reason to use this option to finance your new roof in Annapolis is special payment terms. Special payment terms an include no money down, low monthly payments, or no interest for the first 12 months.
4. Homeowner’s Insurance
This isn’t so much a financing option as it is a way to use your homeowner’s insurance to help pay for a new roof. This scenario normally applies if your roof has been damaged because of severe storms or weather. Homeowners using their insurance policy will need to include their insurance agent in the roof replacement process. Also, they will have to pay their deductible, should the claim be accepted. It is important to note, that home insurance policies do not cover roof replacements for normal wear and tear.
The New Roof Financing Option For You
While there are many ways to finance your new roof, it is important to choose the option that is best for you. The Landmark Roofing team can’t make that decision for you, but we are here to help present all your roof financing options. When your ready to begin the roof replacement process, please call us at 443-775-3274 for a free no obligation roof inspection and quote.