It may feel overwhelming to pay for a roofing project, especially when you consider the entire cost. However, there are a number of financing options out there that can help you make roof repairs more affordable. In this article, we’ll discuss five of the most readily available avenues of financing a roof repair or installation.
Signs You Need a New Roof
A roof can be a significant investment, so you want to make sure you get all yours has to offer before considering roofing work or a new installation. Here are a few telltale signs that your roof is in need of repairs or replacement:
- Water damage or significant leaking: Leaking is perhaps the most obvious sign of a roof problem, as the chief purpose of a roof is to keep out the elements. Even if the leak is small, it should be addressed immediately, as it can quickly become a serious issue. If your roof leaks frequently or you have noticed that large amounts of water have accumulated, you will want to seriously consider having your roof redone.
- Saggy ceiling: A ceiling that’s sagging could be a sign of moisture accumulation due to a leaky roof. If your ceiling feels soft and has a cardboard consistency, speak with a professional right away about a new roof installation.
- Streaks and stains: Even if no leaks are apparent, dark streaks and stains on walls and ceilings could indicate the intrusion of water. If water has come into those parts of your house, there’s a good chance you have a serious leak on your hands.
- Shingle problems: Shingles that are decaying, damaged, or missing compromise your roof’s ability to protect your home. Call a professional to determine if a repair or replacement is in order.
- Accumulation of shingle granules in your gutters: Shingle granules in the gutters are a sign that your shingles are falling apart.
- Old age: If you have an asphalt roof that was installed over 20 years ago, there’s a good chance it needs to be replaced.
Factors That Affect the Cost of a Roof Replacement
Roof replacement is a major investment, so most homeowners are interested in finding ways to reduce the expenses associated with this project. To this end, you should be aware that there are a number of factors that influence the cost of a roof replacement.
- The time of year: Most roofing companies are at their busiest from late summer through the fall. If you want your roof installed during this time, expect to pay more. If you opt to have your roof replaced in early spring or winter, you may be able to do so at a reduced rate.
- Labor: Roofing companies generally charge by the hour, and their hourly rates vary widely based on factors such as location and the local environment.
- Materials: If you want an asphalt shingle roof, you’ll be paying significantly less than if you opt for a roof made of wood, slate or metal.
- The size of your house: Roofers generally charge by the square foot, so if you have a larger home, expect to pay more.
- Disposal: Remember that installing a new roof also requires disposing of the old materials. Roofers will often charge a fee for this service.
- Slope and Complexity of your house: Steep, complex roofs are much more labor-intensive than lower sloped and simpler-styled roofs.
How to Reduce the Cost of Your New Roof
To lower how much you’ll need to borrow for your roof replacement, keep these tips in mind:
- Shop around: Before deciding on a roofing company, you should obtain quotes from a variety of businesses. As mentioned above, the cost often varies widely from one company to another, and if you put effort into searching, you might come across a reputable roofer who does high-quality work at a lower price.
- Consider more affordable materials: While metal roofs are attractive, they’re more expensive than other materials. If you opt for an asphalt shingle roof, you can save a significant amount of money.
- Get the timing right: If there is no need to replace your roof immediately, you could save a considerable amount by holding off until the winter for a replacement.
Ways to Pay for a New Roof
If your roof is damaged, whether it be from gradual wear and tear or a natural disaster, repairing or replacing it is a top priority to keep your home and possessions safe from the elements. However, many homeowners are unprepared to shell out the money required for this project, as a new roof often costs as much as $10,000 or higher — a significant expense, especially when it is unexpected.
Luckily, there are a variety of roof financing options available to cover the costs. We’ll go over the most common ones below.
Homeowners insurance is a requirement for all homeowners, whether they have a mortgage or not. This coverage will protect you from a financial loss due to theft, fire or other damage, including some natural disasters.
Sometimes, you can pay for roof repairs or replacement directly through your insurance company, but this option is only viable in cases that don’t involve natural wear and tear over time.
When you’re eligible to pay for a roof repair or replacement through your insurance company, speak with your homeowners insurance provider to see how much they’ll cover and what the process is for receiving payment. You might be able to connect your insurance company directly with your roofing company.
Home Equity Loan (HELOC)
If your homeowners insurance does not cover roofing repairs, there may be financing options available to you through a home equity line of credit or home equity loan.
Home equity financing lets you borrow against the equity that has built up in your home over time — it’s the difference between your home’s market value and how much you still owe on your mortgage. If you have a loan-to-value ratio lower than or equal to 85%, a home equity loan or line of credit may be an option for you to consider.
This type of loan is beneficial because the interest rate tends to be lower than that offered by other roof repair financing options. The reason is that home equity loans use the home itself as collateral for the loan, which makes the lender less exposed to risk if the borrower defaults on payments.
A home equity loan is best for big expenses and home repairs or renovation, including roof replacements. However, to qualify for this loan, you must have a steady income and strong credit in addition to available equity in your main residence.
You might also have the opportunity to obtain a personal loan with a competitive rate, which can be used as a home improvement loan for financing your roof replacement or repair.
When getting a roof loan, a lender will offer a lump sum upfront. This is done either via a traditional credit union, bank or online lending institution. Your credit score and history will determine how much they offer you as well as the interest rate over the loan’s life.
It is important to look over the roof loan’s terms closely, including the monthly payment and interest rate, before you sign. Practicing caution and ensuring you understand the terms will help ensure you get the best personal loan.
Roofing Company Financing
There are also many roofing companies that offer to finance. Roofing professionals are often aware that it’s difficult for many homeowners to pay the cost of a roof repair or replacement all at once and therefore offer financing options.
The company will most likely charge interest, but borrowing may still be a good decision for homeowners who have a lower credit score or little in the way of home equity. Just make sure you read all the fine print and that you’ll be able to make the required payments.
At Joyland Roofing, we understand that putting a new roof on your home is a large and often unexpected expense. That’s why we offer Hearth financing for all our residential roofing jobs. With affordable monthly payments, you can save your cash for other things while paying for your new roof at the same time. Speak with one of our friendly team members for more information.
If you have strong credit, you might qualify for a 0% APR credit card as either a new card member or through a balance transfer. Credit cards can provide a spending limit that’s higher than certain personal loans, and with no interest, you can save significant amounts over the financing term.
However, remember that 0% interest credit cards often have a significantly shorter time frame for full repayment in comparison to home equity loans, roofing company financing and personal loans, as you’ll have to pay the balance off in full before the 0% introductory period has ended.
HUD Home Improvement and Repair Loan
You might also be able to pay for repairs to your roof with an FHA Title I home and property improvement loan. This financing type is available through some lenders and is insured by the Department of Housing and Urban Development.
The size of the loan will vary based on the homeowner’s credit history and needs. These loans have fixed interest rates and long repayment terms. They can also be used for properties, even manufactured homes, that have been lived in for 90 days or longer.
Other Things You Should Consider When Financing Your Roof
Before deciding on one financing option, there are several factors you will want to consider. One of these is that the expense of your repairs could make all the difference in terms of what finance options are available. The cost of your roof repair will be determined largely by the roof’s current condition, its size and the time of year. Make sure you account for all relevant expenses when you apply for roof repair financing.
It’s also important to consider a variety of roofing companies and compare them. Roofing contractors don’t all charge the same for their services — and they don’t all perform the same quality of work — but many will provide free quotes to help you budget for the project. Spend time getting referrals from homeowners, look over testimonials from customers and get references to determine which roofing company will be the best fit.
Whether it be through roof loans, financing from the roofing company or insurance coverage, there are many options available for paying for roof repairs over time instead of all at once. Always keep your budget in mind when you make a financing decision, and be sure to evaluate the repayment term, fees and interest rate before you make a choice for your project.
Have Your Roof Replaced by the Professionals at Joyland Roofing
At Joyland Roofing, we’re a team of experienced, certified roofers committed to education, integrity and listening to the needs of our customers. We’re also meticulous on our job sites and treat your home like we would our own. When we’re finished with your project, the only sign that we were there at all is the beautiful, brand-new roof we leave behind.
Your roof is one of the most important components of your home, as it protects you and your belongings from rain, snow, wind, pests and other external elements. For this reason, it must stay in top condition. If your roof is showing signs of age, having the professionals at Joyland Roofing install new roofing will provide you with many benefits, including:
- Enhanced safety: An old, damaged roof will compromise your home’s structural integrity as well as the safety of those who live there. A new roof installation is an excellent way to ensure the safety of your family and your belongings.
- Increased home value: A new roof will boost your home’s market value, as a buyer will pay more knowing that your roof will last many years.
- Better curb appeal: When you replace a deteriorating roof, it will enhance the look of your home. Joyland Roofing offers a variety of color options and materials for you to choose from, making it easy to find a great match for your aesthetic preferences.
- Lower energy costs: Roofing materials have seen great improvements in recent years, and roofing installation techniques have also become more energy-efficient. Once your new roof is complete, you’ll see considerable energy savings.
- Lower insurance premiums: When you replace an old roof with a new roof, you may be able to enjoy some insurance discounts since more recent roofing materials are more water- and fire-resistant than components made in the past.
- Less stress: When there’s a storm, you can rest assured your home will be well protected by your new, professionally installed roof.
If you live in or around Lancaster, Pennsylvania, Joyland Roofing is the company you’ll want to install your new roof. Contact us by calling 717.459.3499 or reaching out to us online via our contact form. We’ll have a roofing expert come out to inspect your roof, provide you with some options and offer a price quote.