Did you just get the news that your roof needs to be replaced? Are you wondering how it's possible to afford a new roof in your current situation?
The average cost of a new roof in the United States ranges from $15,000 to $25,000 on standard homes. So, you're not alone if being able to afford one is a huge concern.
In fact, pricing is the biggest hurdle homeowners face when it's time to replace their roof. Unfortunately, roofing prices are at an all time.
However, there are options available if you think you can’t afford a new roof or are very worried about budget.
For over 35 years, Bill Ragan Roofing has helped homeowners prepare for their roof investment and guide them to the best options for their situation. So, I want to break down your options if money is tight and affording a new roof seems out of the question.
So, take a deep breath and let's look at the following options to afford a new roof:
- Get a second opinion
- Finance your new roof
- Repair your roof until you can afford to replace it
- File an insurance claim
1. Get a second opinion
If you're worried about affording your new roof, don't be afraid to get a second opinion. It's a good idea to get multiple estimates for a new roof anyway to compare prices, learn if the work required is correct, and choose the roofing contractor that's a good fit for you.
So, this actually helps you determine if you actually need a roof replacement or the roofer was just trying to sell you a roof. If one roofing contractor says you need a new roof, but two others say you don't, it’s a safe bet that it’s not time for a roof replacement.
Just keep in mind that reputable roofing companies will never sell roofs to homeowners who don't need one unless they specifically ask for one. But if you're cash strapped, it ok to double check for safety.
2. Finance your new roof
Financing is the best option if your worried about affording a new roof. It's actually very common in the roofing industry, even for homeowners who have the budget.
However, there are a few different ways to finance a new roof:
- Financing through your roofer
- Use your Home's Equity Line of Credit
- Apply for a personal loan
Financing through your roofer
Most roofing companies offer financing, either in-house or through their partnership with a financing company. Even if it's in-house, it'll be done through their bank or another financial institution.
Keep in mind that every company has specific criteria set forth by their financing partner. So, approval and interest rates vary based on credit with the roofing contractor having no power over approval.
Benefits of financing your new roof with a roofer include:
- 0% interest for a certain time
- Monthly payments over a fixed term
- Some plans offer promotional periods
Use your home's Equity Line of Credit
In recent years, homeowners have utilized their home's equity to pay for new roofs. A home equity loan or HELOC (Home Equity Line of Credit) allows you to borrow against the value of your home.
Using a HELOC is a great way to pay for a new roof if you have a lot of equity in your home and plan on living there for the foreseeable future. The interest rates are usually better than regular financing, approval usually takes a little longer compared to other loans or financing.
Pros of HELOCs:
- Lower interest rates
- Longer repayment terms
- Interest may be tax-deductible (under certain conditions)
Cons of HELOCs:
- Your home is collateral
- Requires very good credit and equity
- Longer approval process
Apply for a personal loan
Personal loans can be used on a new roof, especially when other options aren’t available or you weren’t approved. However, this is completely up to you to find and shop around for.
Getting a new roof through a personal loan usually has:
- Fixed monthly payments
- Higher interest rates
- No collateral required
- A heavy impact on credit score
This is probably the least common option, especially with roofing companies offering financing. However, it’s also the one that may be a necessity depending on how bad the roof is.
3. Repair your roof until you can afford to replace it
If you can't get approved for financing, repairs may be possible. So, if money is tight, repairs may hold you over until you can afford a new roof.
Doing this come with big risks, including leaks that cause even more expensive damage. On top of this, you risk hiring a cheap roofing contractor looking to make quick money on a repairs.
That's why I don’t recommend repairs for everyone who needs a new roof. However, it’s an option for homeowners on a really tight budget or in a dire financial spot.
4. File an insurance claim (storm damage required)
If your roof is covered by an RCV policy through your homeowners insurance, filing an insurance claim can help you afford a new roof. However, your roof must have clear signs of roof damage caused by a covered peril.
Insurance policies cover roof damage caused by:
- Straight line winds
- Hail
- Fallen trees or limbs
Now, keep in mind that the insurance company and their adjuster have all the power in the approval process. So, there are certain things they’ll look for that aren’t covered.
Insurance generally does not cover roof damage caused by:
- Old age
- Normal wear and tear
- Improper installation
- Inadequate attic ventilation
- Product defects
- Lack of maintenance
If your roof is simply worn out, been neglected, or reached the end of its lifespan, insurance will not pay for the replacement. But if you and your roofer are adamant that the roof needs to be replaced due to storm damage, there are options if your claim gets denied.
What are the risks of getting a cheap roof?
Now you know your options if you can’t afford a roof replacement. A new roof is always going to be an investment, no matter the size.
There are ways to get a quality roof at an affordable price. However, it's tempting to try to find the cheapest roof replacement possible, even with financing as an option.
Unfortunately, if you’re shopping for the lowest price, your new roof is already at risk before it’s installed. The last thing you want is to watch the money you spent affording new roof go down the drain, leaving you in an worst spot than before.
That’s why you need to know the risks of buying a cheap roof out of desperation.
Check out the 6 Risks When Getting a Cheap Roof Replacement to learn why you need to invest in quality to help your peace of mind and your wallet.
