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Financing a new roof is difficult if you’re struggling financially. Options are available to help decrease the out-of-pocket expenses you have to pay for a new roof.
Assess your budget to determine whether you want to apply for a home loan or set up a monthly payment plan. Depending on your insurance coverage, the cost of the new roof may already be covered.
Regardless of which option you choose, take time to learn about the benefits of each to make the right decision.
Find a home loan
To cover the cost of a roof, consider taking out a home loan for the amount quoted by a local roofer. Compare offers from at least two different lenders to ensure you’re getting the best deal.
Take time to assess what you must have included in the home loan agreement, including an affordable interest rate.
If you know, you can only afford a set amount and wish to browse through lenders offering this option, search for terms like “home loans under 2%” to remain on target. Remember to be realistic about what you can afford and only accept a loan amount, you’re confident you can repay over time.
Work with the insurance company to discuss the total loan amount, the designated interest rate, and the timeline for repayment before signing any documents. This prevents you from making a costly mistake and helps you choose the best loan possible.
Set up a payment plan
Another option to finance a roof is to set up a payment plan with your chosen roofing company to spread out the expense over time. Some roofers charge interest for payments made through this option, so discuss the details in advance to ensure this is something you can afford.
When you work with a Denver commercial roofing company like Metro City Roofing Services, you may have more options than if you work with an independent roofing contractor. Like choosing a home loan, take time to assess your prospects before committing.
These payment plans typically span several months, though the roofing company completing the work for you may allow you to spread payments out over a year or more.
All you need to do is contact a few roofers in your area and compare plans to figure out which is most manageable.
Get a personal loan
If you don’t want to find a home loan and you aren’t interested in the payment plans available to you, consider applying for a personal loan instead.
Contact local lenders to see if you can borrow a smaller amount through a personal loan and discuss the rates. As the borrower and homeowner, you must work within your target budget, and you should only borrow the amount of the roof and any unforeseen expenses.
Once you get a quote from the roofing company, work with a lender to determine what the payments are like to repay the roof amount over time with interest.
Sometimes a personal loan has a lower rate than a home loan, and sometimes the opposite is true. It depends entirely on the lender you are borrowing money from, the amount you wish to borrow, and your financial history.
You’ll provide the lender with tax returns and additional documents to determine your credit score and other helpful information. Once the lender has a clear idea of your finances, they decide whether you receive approval for the loan.
From there, you’ll discuss a payment schedule to keep you on track for all future payments. Good luck!
Krystle Cook – the creator of Home Jobs by MOM – put her psychology degree on a shelf and dived into a pile of diapers and dishes instead. She is a wife and mother to two rambunctious boys, sweating it out in her Texas hometown. She loves cooking, DIY home projects, and family fun activities.