Whether you’re putting in a new roof because of unexpected damage from Midwest storms or you’ve been planning for a while, you’re probably wondering how much it’s going to cost. In this article, we’ll explore which roof financing options are available so you can cover the cost without delaying your project.
Installing a new roof can be expensive, but it’s a worthwhile investment. At All Elements, Inc., we’re here to help with roof repairs and replacements that will keep your home or commercial building in peak condition for years to come. Contact us today to learn about your options and get started on your new roof.
Can You Finance a New Roof?
With roof replacements costing between $4,500 and $10,000 per 1,000 square feet, it’s very common for homeowners and business owners to seek new roof financing. Keep in mind that numerous factors can affect how much your roof costs, including:
- The size of your roof.
- The type of roofing materials you choose.
- The pitch or slope of your roof.
- Whether your home has multiple stories.
- The contractor you hire to replace your roof.
What are My Roof Financing Options?
While new roofing is expensive, you have several ways to cover the cost. The most common ways to pay for a new roof include:
- Personal loans.
- Home equity loans.
- Home equity line of credit (HELOC) financing.
- Renovation loans.
- Roofing contractor loans.
- Credit cards.
With our unpredictable Midwest weather, storm damage is unavoidable. However, remember that insurance might cover some or all of your expenses if you’re dealing with damage from hail, wind, or fallen branches. At All Elements, Inc., we can help you through the insurance claim process by providing repair estimates and communicating with your insurance adjuster.
Personal Loans
When it comes to roof replacement financing, a personal loan is one of the most common options. You can typically borrow between $1,000 and $100,000, depending on your credit history and financial situation. You receive the money as a lump sum to finance your project.
One benefit of a personal loan is that they are usually “unsecured,” meaning you don’t need to put up your home as collateral. However, personal loan interest isn’t tax-deductible, and the annual percentage rate (APR) can be high, ranging from 7% to as much as 36%. If you have a high credit score, they can be a good option for you.
Home Equity Loans
If you have equity built up in your home, you can borrow against it to get roof financing. Getting a home equity loan is also known as taking out a second mortgage. While this is similar to a personal loan in that you receive a lump sum, keep in mind that your house is used as collateral, meaning you could lose your home if you don’t make payments.
HELOC
Another way to borrow against your equity is with a home equity line of credit. Unlike home equity loans, you can take out funds as needed rather than receiving a lump sum. As a result, you don’t have a fixed interest rate.
Keep in mind that HELOC financing can take some time to obtain because your lender may require a home appraisal. This option is best if you don’t have an emergency roof repair or replacement.
Tip: If you’re dealing with roof damage and need help right away, give All Elements a call at 763-314-0234, and we can make your building watertight until we’re able to make repairs or do a replacement.
Renovation Loans
Another option when you’re not in a rush is to apply for an FHA 203(k) loan or an FHA Title I Property Improvement Loan. These government-backed loans can sometimes take 30 to 60 days to obtain, but they are both great options if you have limited equity in your home or have a lower credit score.
Roofing Contractor Loans
Some roofing companies work with lenders to provide financing for repairs and upgrades. Your roofing financing rates and repayment schedule will depend on your credit and the terms offered by the lender. This can be a convenient option as the lender ensures the roofer gets paid for their work. However, interest rates tend to be higher than other financing options.
Credit Cards
Roofing projects can be expensive, and maxing out your credit card can hurt your credit if you aren’t able to make regular payments. For that reason, a credit card is usually a better option for smaller repairs that may cost less.
If you have an excellent credit score and need to finance a roof project quickly, it may be worth applying for a credit card that offers a 0% introductory APR. Some credit cards give you 12-18 months before you need to start paying interest, which can be great if you’re able to pay off the balance in that timeframe.
Be sure to compare your options carefully so you know what to expect. Another word of caution: You may be on the hook for credit card fees when paying with this method. For an expensive project, these fees can add up.
Repair or Replace Your Roof with All Elements
With the numerous options available, roof repair financing can feel overwhelming. One thing you don’t have to worry about is receiving an outstanding experience when you work with All Elements.
We replace, repair, and inspect roofs for homeowners and business owners throughout Minnesota, Wisconsin, Iowa, and the Dakotas. Remember, we can also assist you through the insurance claim process if you are dealing with roof damage from storms. Contact us today to get started on your roof repairs or replacement.