Do you need a new roof but are worried about paying for it? Are you considering financing your roof replacement?
The biggest concern all homeowners have about any roofing project is the cost. So, looking into financing such a large investment makes sense.
The problem is knowing where to turn. Do you do it through a roofing company? Do you apply directly with a bank?
The best place to start is by learning if roofing companies even offer financing and how they do it.
For over 30 years, Bill Ragan Roofing has helped homeowners understand the options available if budget is a major concern. That’s why I’ll break down how roofing companies handle financing.
By the of this article, you’ll learn the answers to the following questions:
Yes, most roofing companies offer financing options. However, every company does it differently.
So, how financing works really depends on the roofer you hire. With that in mind, roofing companies offer financing in a couple of ways.
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 the approval process. So, the requirements to qualify for financing may be less.
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.
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.
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 an option to consider.
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.
However, there’s much more flexibility, and the interest rates are almost always 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 pay for your new roof.
Financing is a great option for anyone, whatever their financial situation. A roof is a big, expensive purchase.
And the reality is that many homeowners don’t have the money to pay for it all at once. Financing simply makes it easier to afford a new roof investment with easy monthly payments.
While I can say it's a great choice, it really depends on your situation. Maybe you don’t want to mess with your financial portfolio or dip into your savings, college fund, retirement, etc.
However, you’re the only one who can decide. But no matter what, financing is a great way to take the upfront financial burden off your shoulders.
After reading this article, you’re better prepared for the financing discussion with your roofing contractor. As I said, it’s a great option.
It’s just a decision every homeowner has to make for themselves. But can you make this 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.
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.