There’s no question that a roof replacement can be expensive. But what do you do if you have a badly leaking roof – one that’s causing significant damage to your home – but don’t have the money on hand to pay for a replacement?
Can you finance a roof replacement, in that case?
The answer is yes, you can finance it in several ways, including the three we list here.
1. FHA Loan
A Federal Housing Administration loan is an excellent way to fund home improvement projects such as roof replacements. They’re available through FHA-approved lenders and have a fixed interest rate.
The FHA program places limits on what type of improvements you can use the money for, but those that involve structural alterations, reconstruction, modernization, and improvements almost always qualify.
FHA loans are offered by banks and credit unions, which have their own requirements and interest rates. They’re excellent for older homes that need renovation to improve their livability.
The only catch with an FHA loan is the total amount borrowed must be within FHA loan limits for your area.
2. Financing Through Your Roofer
Some roofing contractors, such as J. Carnes & Son Roofing, offer payment plans that help make the cost of a roof replacement more affordable. These plans can help you spread out payments over an extended period but may differ from roofer to roofer.
Financing through J. Carnes & Son Roofing has several advantages, including that you can get 100% unsecured financing from $1,000 to $45,000 on approved credit. There’s also no application fee, closing costs, or prepayment penalties, plus you’ll get a credit decision in about 10 minutes.
3. Home Equity Loan
A home equity loan allows you to borrow cash against the value of your home. Your existing mortgage remains in place while you take out a new loan with a fixed interest rate.
Among the advantages of a home equity loan is that the interest rate is usually lower than personal loans or credit cards. The biggest drawback to a home equity loan: you could lose your home if you fall behind on payments.
Call J. Carnes & Son Roofing if you’re considering a roof replacement. We can help you review financing options.