While a roof should be able to last you a long time, you will eventually need to replace it. This is especially true if you’re living in an old house with its original roof or have not been keeping up with its maintenance needs.
Unfortunately, getting a new roof can be pricey. And it’s typically not something you can wait on, as your current roof may no longer be sufficient in keeping you and your family safe from the rain or outdoor elements.
Luckily, you don’t have to pay for everything upfront. There are a few roof financing options you can choose from to help you get a new roof over your heads.
1. Personal Loan
Since you can take out a personal loan for whatever purpose, it can be a great option to finance your new roof. If you go for a personal loan, you won’t need to put up any collateral. Plus, they often get approved a lot faster than other loans and typically have lower rates than some other financing options.
However, these rates will still be higher compared to home equity loans and home equity lines of credit. Another downside of getting a personal loan to finance your roof is that you won’t have a tax claim on the interest.
Despite a few drawbacks, a personal loan can still be an excellent roof financing option, especially if you have good credit. The speed of approval is definitely a perk, especially if you need the money for your new roof as soon as possible.
2. Home Equity Loan
Your home equity is essentially the monetary value of your house minus what you still owe on it. And this is what will be used to finance your roof if you choose a home equity loan.
To qualify for a home equity loan, you must have around 20 percent equity. So, it may not be a great financing option if you’ve just recently purchased your home. And since you will first need to have your house appraised before qualifying for the loan, it may take longer than other financing options to finalize.
But the plus side to using a home equity loan is that you typically have a longer amount of time to pay it off. In some cases, the repayment period may even be up to 20 years. However, before pushing through with a home equity loan, you must understand that you are essentially putting your house up as collateral. This means that failure to make timely payments can put your house at risk.
3. Roofing Company Financing
You also have the choice to finance your new roof through a roofing company. The requirements, terms, and rates will vary depending on the roofing company. But typically, this is a good financing option if you can’t get a personal loan or don’t have enough home equity. Plus, the loan terms are typically longer than most personal loans, ranging from 10 to 15 years.
Final Thoughts
It may be stressful to find out that you need a new roof as soon as possible, especially if money is tight. However, you typically have a few financing options to choose from to help you get that roof in no time. Just make sure to weigh the pros and cons of each option before making your decision.
Finance your new roof with the help of Cardinal Roofing. We are a roofing company in Birmingham that believes that being short on available funds is no reason to keep homeowners in Alabama and Middle Tennessee from getting the new roof they need. That’s why we offer many financing options for our clients through the help of our financial partners. Get in touch with us now!