A roof is one of the most important components of your home. No one wants to replace a roof, but you cannot ignore any problems with the structure. Roof repairs are not inexpensive, and the work needs to be completed in a timely manner. Before you start any roof work, here are some ways to finance your roofing project.
What To Do Before Getting A New Roof
Before you start any roof repairs, you want to search for the right company to complete the job. There are low-cost companies that don’t care about the quality of the work. Roof replacements are a once-in-a-decade job, and many companies are not concerned about repeat business. You want to be careful about who you hire for the project. You should get a reference from neighbors and check with tradespeople in the area. HomeAdvisor and Angie’s List are places to look up reviews and ratings for a potential roofing company. You can also get client references from the company to check on their reputation. RGB Construction has received excellent ratings from past clients and several review sites.
You want to make sure the new roof will last for years to come, and you should always choose top-quality products. Some shingles are available with a warranty for up to 50 years. For more durability, you might want to consider copper flashing. While this material is more expensive, it is better suited for sealing the roof joints than aluminum products. Before starting the process of financing roof repair, you want to make sure that you choose the best products on the market.
After you have chosen your company and materials, the next step is to review the paperwork. There is a lot of liability and money involved in these projects. Your home will need a building permit for a roof replacement. That permit ensures that the company follows all codes during the project. In some cases, your roof warranty can be voided without the right permits. Next, you need to review the written contract that will outline the details, products, and cost of the project. Finally, you should receive documentation about the contractor’s insurance that confirms coverage under their policy.
How To Pay For Your New Roof?
When you need a replacement roof, you have several new roof financing options. Whether the roof was damaged in a storm or needs to be replaced due to age, you can choose the right way to pay for your project without breaking the bank.
Pay With Insurance
Whether you make a monthly mortgage payment or not, you are required to have homeowners insurance on the building. This insurance coverage will protect you from loss due to theft, fire, and other disasters, including storm damage.
In cases of natural disasters, you can pay for the new roof through your insurance company. However, you can only use this option if the damage was not related to normal wear and tear. If you are eligible to pay for a roof through your insurance, you will want to contact your provider. Your agent should tell you how much the company will cover and when you can expect a payment. With some roofing companies, they will be able to connect directly with the insurance company for a seamless payment process. Despite having a homeowners insurance policy, you might still need to pay for repairs out of your pocket. In that situation, you will need to look for other ways to finance your project.
Home Equity Loan
If your homeowners policy does not cover a new roof, you might be able to apply for a home equity line of credit or home equity loan. These financing options allow you to borrow against the equity in your home. The equity is the difference between the balance on your mortgage and the market value of your home. For those homeowners with a loan-to-value ratio of 85 percent or less, these financing options might be the best options for you.
With a home equity loan, you can get a low-interest rate compared to other forms of financing. The home is used as collateral to pay back the loan, and it offers the lender a smaller risk of the borrower defaulting on the payments.
Home equity lines of credit and loans are excellent for large home renovation projects, including a new roof. However, you must have a steady income and strong credit to qualify, along with equity in your home.
For some homeowners, they might have the opportunity to qualify for a personal loan at a competitive rate. With these roof loans, you can apply to a traditional bank or credit union for a lump sum payment. Your credit score and history will play an essential role in determining your interest rate. A personal loan offers both low-interest rates and longer repayment terms for well-qualified borrowers. Before you sign on the dotted line, make sure to review all the roof loan terms, including the monthly payment and interest rate.
If you have strong credit, you might want to think about applying for a credit card. There are many credit cards with zero percent APR, and it can be opened as a new line of credit or a balance transfer. In some cases, a credit card can provide a higher spending limit than a personal loan with no interest. Over time, you can save some money with the card’s financing terms. However, with the zero percent APR, you have a shorter time frame for a full repayment compared to other types of loans. Some credit cards also provide a zero percent introductory rate, but you must pay off the balance or face an increase in the interest rate.
Home Improvement and Repair Loan
Another payment option for your roof repair is an FHA Title I Home and Property Improvement Loan. This loan is insured by the Department of Housing and Urban Development, and you can apply for it through specific lenders. Depending on your credit history and home improvement needs, the amount of the loan can vary from borrower to borrower. These loans offer extended repayment terms and fixed interest rates. You can use these loans on many properties that have been occupied for at least 90 days, including manufactured homes.
Roofing Company Financing
Finally, you should also consider financing your new roof through the roofing company. Many professional roofers know that roof replacement and repairs are costly, and it is too high to pay at one time. They offer financing options that will allow the homeowner to pay over a set amount of time. The roofing company will charge interest with this loan. Before you apply, make sure that the payment will fit into your home’s monthly budget.
Will Homeowners Insurance Cover Roof Replacement?
Your homeowners insurance covers the replacement of the roof, but it will only pay for a roof that was damaged by an act of nature. If you have an older roof that has exceeded its lifespan, then it is not eligible for a replacement paid by the insurance.
Your roof is designed to protect the entire home, and it takes the most direct exposure to the elements. For those in northern climates, the roof is exposed to ice storms and heavy snow. Homeowners in tropical climates must brace for hurricane-force winds. These weather forces can damage a roof. When that happens, it qualifies for a partial or total replacement by the insurance company.
General maintenance costs are also not covered by homeowners insurance. The homeowner is responsible for the care and maintenance of the roof. You want to hire a professional roofing company to perform regular inspections to the roof area. Routine maintenance might even be a requirement of your insurance policy. If you fail to perform inspections and repairs, you could void your warranty. Make sure to keep the roof free from debris and water buildup. Any trees hanging over the roof need to be trimmed back from the house. With these steps, you can avoid a roof replacement.
One more thing to consider with homeowners insurance, many insurance companies have limited coverage for a roof 25 years and older. They consider these roofs to be past their life expectancy and will only reimburse a portion of the repairs. Some other exclusions can include roofs with more than two layers of material, exotic roofing materials, and the owner’s neglect of the roof.
When your roof is damaged, you want to call the homeowners company to inspect the roof. Make sure to collect all your documents, including home inspection reports, current insurance policy, repair receipts, and photos of the damage. All this material can help you move quickly in the claims process. After you call the company, an adjuster will inspect the damage and assess your claim. In a short time, you will know if the company will pay for a new roof.
How To Finance Your New Roof
Unless you have cash on hand, you will need to finance your new roof. As you already know, there are several options for you. However, your best option might be financing with the roofing contractor. These financing packages allow you to take advantage of their relationship with the lender. In some cases, you can qualify for an interest-free period. Roofing companies know that many people don’t have the money to pay for a replacement, but they need the work done immediately.
The specific rates and terms due depend on your credit and the contactor. However, the process is quick, just like a credit card application. Make sure the contractor is a member of the local trade association. Those memberships are a sign that the company is engaged in the local community and understand the town’s regulations.
Before you apply, you want to know your credit score. With any type of loan, the lender wants to see that you can pay back all the money. A higher credit score means a lower interest rate. In some cases, you need a score of 640 to qualify. If you are looking for roof financing for bad credit, there are still options for you. Some companies provide loans for those with scores as low as 500.
With any loan, your income is another factor. Lenders need to know that your income is large enough to afford the monthly payments. Once you are prequalified, most lenders will ask you to submit income verification, including a W-2 form.
Finally, a lender will have to verify your current debt. If you have a lot of debt obligations, then it can be tougher for you to afford monthly payments. Most lenders will look at the ratio of your debt to your income. This information will be used to decide on your creditworthiness for a loan.
If you are worried about getting a loan, you can always reach out to the roofing company. Their clients have a wide range of credit scores and financial issues. Whether you need to take out a loan or apply for financing, there is an option to pay for a new roof and keep you safe in your home.
Financing Your New Roof With RGB Construction
When you choose RGB Construction for your next roofing project, you can count on us to deliver exceptional customer service, including financing options. We work with Mosaic for instant approval with no paperwork. These unsecured loans also offer no prepayment penalties. When planning for an unexpected roof replacement, you want to choose an option that works for you. Mosaic features low monthly payments on their loans, which makes it affordable for many of our client’s budgets.
When you need a new roof, there are several options available to pay for the costs. With a loan from Mosaic, you can spread your payments over time without any worries. These loans can help keep your family safe and your home protected under a new roof.
Any roof financing near me? Make sure to fill out the contact form to learn more about our financing options in New Jersey.