Do you need a new roof? Are you wondering if you can finance your new roof to avoid paying for it all at once?
A roof replacement is an expensive project that most homeowners don’t budget for or have money on hand to handle. But when it’s time for a new roof, it’s time for a new roof.
That’s why one of the first questions homeowners have when getting estimates is whether or not they can finance their new roof. But can you do it?
For over 30 years, Bill Ragan Roofing has helped homeowners understand the financial side of getting a new roof. So, let’s break down what you need to know about financing a roof replacement.
By the end of this article, you’ll have the answers to:
- Can you finance a new roof?
- Why should you finance your new roof?
- Do roofing companies offer financing?
- Can you use a HELOC to finance your new roof?
Can you finance a new roof?
Yes, you can finance your new roof. Financing simply makes it easier to afford the large investment of a roof replacement with monthly payments.
But like most loans, approval is usually based on proof of income and a credit check. So, getting approved depends on a homeowner’s specific financial situation, credit score, and where they get it.
If you do get approved, financing your new roof is a great way to take the upfront financial burden off your shoulders.
Why should you finance your new roof?
Financing a new roof is a great option for anyone, especially with how expensive it is. As I just said, this simply makes it much easier to afford a new roof with monthly payments instead of the large upfront cost.
Some homeowners even choose to finance to avoid messing with their financial portfolio or dip into their savings, college fund, retirement, etc. However, you should strongly consider financing a new roof if you’re looking for the cheapest price.
You get the quality you pay for when replacing your roof, and getting a cheap roof almost guarantees premature failure with low-quality products and labor. So, you’re better off financing to get a quality roof with monthly payments instead of a cheap roof with continuous costly problems.
Do roofing companies offer financing?
Yes, most roofing companies offer financing. However, roofing companies generally offer financing in a couple of ways.
Some do it in-house, while most offer it through a 3rd party financial institution. Keep in mind that every company does it differently, so how it works really depends on the roofer you hire.
In-house financing
While not super common, some roofing companies offer in-house financing. This could be through their own finances or an arrangement with a local bank.
The good thing about in-house financing is that the roofing company has more control over approval. So, the requirements to qualify may be less strict.
However, being able to offer financing heavily depends on financial stability. That’s why some companies partner with a local bank to keep an in-house approach without being responsible for the full financial burden.
3rd party financing
The most popular way roofing companies offer financing is through partnering with a 3rd party vendor. Plenty of companies offer financing services to roofers; we use Advancial.
They usually have special offers, like 0% interest for the first year. However, the qualifications are usually stricter compared to in-house.
On top of this, the roofing contractor has no say in the approval process or how much monthly payments are. In-house financing and 3rd party financing are both great options, and one isn’t better than the other.
It just really depends on the specific company you hire and the financial institution they use. If one is more important than the other to you, make sure to talk to your roofer on the front end.
Can you use a HELOC to finance your new roof?
Whether in-house or with a 3rd party, financing is always the first option homeowners consider. However, a Home Equity Line of Credit (also known as a HELOC) is also becoming a popular way to finance a new roof.
A HELOC loan is tied to the equity you have in your home to borrow against. It takes a little bit longer to get it approved than normal financing, but there’s more flexibility, and interest rates are better.
Now, tapping into a home’s equity isn’t an option for all homeowners. So, talk to your roofing contractor and mortgage holder to learn more about opening a HELOC to finance your new roof.
How much does a new roof cost?
After reading this article, you know you can finance a new roof, why you should, if roofing companies offer financing, and if you can use a HELOC.
As I said, it’s a great option, but every homeowner has to decide if it’s right for them. However, you can’t really make the decision without knowing how much you’ll have to finance.
Unfortunately, it’s impossible to give you an exact price without a roof inspection. However, I can still give you an idea of the budget a new roof requires.
Check out How Much Does a New Roof Cost to learn the average cost of a new roof, pricing for different roofing materials, and what directly impacts the final cost.
