How to Finance a Roof Replacement

by | Oct 13, 2021 | Roofing | 0 comments

Roof replacement projects involve so much more than just Googling “roofers near me” and booking an appointment with the first contractor you find. One of the biggest challenges when replacing an old roof is finding a budget that will cover all the work that needs to be done while, at the same time, taking your own money into consideration.

The best way to finance a roof replacement is always to pay for it fully in cash. Unfortunately, this is easier said than done. Not many people have enough money saved away for these types of projects. Even homeowners who have a home improvement savings fund may find it difficult to finance a new roof all by themselves. Let our experts at Atrium Roofing walk you through some of the best solutions to pay for a roof replacement.

Get Informed

There are a lot of factors to consider before you take on a residential or commercial roofing replacement so it pays to head out armed with as much knowledge as you can have. Take your time to research all your options and gather as much information as possible about the material, style, build, and even manufacturer of the new roof you want.

If you can decide on a material right off the bat, it will save you a lot of guesswork when you discuss your plans with your chosen roofing contractor. Here is a quick overview of common roofing types and how much you can expect they will set you back.

•  Asphalt shingles. Asphalt shingles are still North America’s most popular choice of roofing material. They are readily available, reasonably affordable, and almost all roofing installation companies are trained to handle them.

•  Metal roofing systems. Modern metal roofs are a far cry from their early versions widely used in industrial buildings. Today, metal roofs can be made to look like asphalt shingles, but with significantly higher durability. Metal roofing requires a specially trained roofing contractor to be installed properly, which drives labor costs somewhat. Expect to pay a premium if you choose this strong and long-lasting material.

•  Clay and cement tile roofing. This is a classic roofing material that outlasts all other types of roofing in terms of longevity. While these may not be as economical as asphalt shingles, they more than make up for their cost with their 100-year average life span. Make sure your home can handle the added weight of tile roofing.

Find Your Contractor

The performance and longevity of your new roof will depend largely on the quality of its installation. When you search the internet for “roofers near me,” you might get overwhelmed by the thousands of potential results. You can narrow down this list by choosing only the companies that are local. Local roofers often have the advantage of being able to respond quickly to roofing emergencies and they are more likely to know their way around local codes and building regulations.

Once you’ve filtered out roofers who are too far away from your home, sometimes, there are still dozens of potential candidates left to examine. This time, take a look at the BBB ratings of these roofers. Doing this could potentially leave out roofers who are only starting out but are skilled, so take reviews with a grain of salt. However, a roofer with years of experience and hundreds of references from past customers always stands out among the rest.

Roofing Inspections and Estimates

Once you’ve settled on a contractor, budgeting for your roof replacement becomes so much easier. If your chosen company offers financing options through them, ask them about these programs. One advantage of getting your roof replacement financed through your roofer is that you only have to deal with one other party for the entirety of the project.

Many residential and commercial roofing companies give estimates for free at your request. These are usually given after a thorough inspection of your old roof. In an estimate, you should find a complete line-by-line breakdown of all the things that your roof replacement would need, from the type of shingles you’ve chosen, right down to other components such as flashing strips, roofing felt, underlayment, ridge and soffit vents, and even gutters and downspouts. Some estimates can even include a timeline, detailing the steps involved in the project from start to finish with an estimate of how long each step would take.

Financing Options for Roof Replacements

You can pay for your new roof in a number of different ways.

•  Personal loans. Personal loans are often unsecured. The advantage of this is that your loaning institution will require no collateral from you. However, personal loans are often held back by their higher interest rates. Additionally, you can’t claim tax deductions on these interest rates.

•  Home equity loans. While personal loans usually get approved faster, the process to get a home equity loan takes a little bit more time. This is because they often involve title search and property appraisals before a bank or a financing company approves your loan. The upside here is that you can usually claim interest payments in home equity loans as a tax deduction, depending on a number of factors.

•  Government loans. Alternatively, you can also apply for government-backed loans from the Federal Housing Administration. They have lower interest rates and the credit score requirements to qualify for one is much lower than those from a private lender.

•  Roofing companies. Lastly, you can also finance your replacement through your own roofing contractor, if they offer such a service. These loans are often from a third-party company like GreenSky, but you still only have to deal with your contractor when settling payments. Financing your roof in-house is a hassle-free way of budgeting a roof replacement, but like all other loans, don’t forget to read the fine print in these types of services.

Some in-house financing options offer temptingly low-interest rates for a limited time. After the introductory period, these rates may go up, something which surprises a lot of homeowners who are replacing their roof for the first time.

At Atrium Roofing, we can help you with your roof replacement every step of the way. Give us a call at (210) 806-7171 or fill out our contact form to schedule a financing consultation and request a free estimate today.

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