Roofing Finance Options
  • Owner
  • 22 June 2022

Renovating a new house can not only take up a lot of your time but also dig your pockets deep. This is one of the many reasons why people do not consider investing too much in their roof and end up neglecting it altogether at times. Well, what if we tell you there are many ways financing options available today for you to choose from and give your rooftop the investment it deserves.

If you are someone who has great roofing ideas for your residence and are looking for some finance, then you are just where you should be. Read this post till the end to know 8 ways to finance your new roof.

Home Equity Loan
The Federal Trade Commission lends Home Equity Loans to the people in need. They offer a fixed amount (85% of your house value minus the remaining mortgage balance {if any}) to your house. Anyone with a strong real estate credit score and a fixed source of income.

You can repay the loan within a set amount of time, between 5 to 30 years, depending on the terms and conditions. A home equity loan is a good option because they are available at a low-interest rate. The collateral here is the part of the houses that you have ownership of.

Personal Loan
A personal loan is yet another option that you can go ahead with for your roof repair or installment. However, this might not be your best choice as you might have to pay a higher rate of interest on these loans. Since you put no collateral on personal loans, the interest rate varies on your credit scores. The lower the rate, the higher the interest.

Home Equity Line of Credit (HELOC)
Home equity line of credit works quite similarly to how credit cards operate. You can borrow any amount from your lender, and he sets a fixed spending limit for you. The best part is that you can borrow an amount again that you will have to repay within a fixed time.

Now, if you go ahead with this financing option, you will have to put your house as collateral. This eventually ends up in a lower interest rate.

Cash-out refinance
Cash-out refinance is a great source of financing for your roof replacement and repair. This finance service is where the lender lends you a mortgage amount that is more than your existing mortgage and pays the difference to you in cash.
The advantage of this option is that you can negotiate the interest rate, repay time, and make new adjustments to your existing obligations.

FHA Title 1 Loan
If you are looking for different financing options, FHA Title 1 Loan might be the one to consider. People who do not own enough ownership of your house. These leads are offered by FHA-approved lenders that are registered with the Department of Housing and Urban Development. These loans are provided at a fixed rate of interest.

However, it is important that you have a 45% or less ratio of debt to income. Also, you can only go for these loans if you have occupied the house for 90 days or more because the house is to be kept as collateral. These loans are for people with good income.

FHA 203(k) Loan
Another loan option for people with insufficient house equity, run by the government, is the FHA 203(k) loan. The lenders here are also registered under the Federal Housing Administration. FHA 203(k) focuses on people who do not have a decent income source.
The DHUD offers these loans as standard and limited. Limited FHA 203(k) loans are offered for small renovations, while standard ones are offered for extensive housing renovation. This loan is lent on the basis of your credit score.

Credit Cards
Well, one option for financing your roof repair or installation is by making the payment with your credit card. Even though this method might sound convenient because of the higher spending limit, most credit cards have a very high-interest rate.
Although if you have good rewards and offers on our card, this might work for you. Also, if you hold a great credit score, then you can go for a new card and make the payment with 0% interest in the first 12 months.

Roofing Contractors Financing

Another way to raise money for the task is by contacting roofing contractors. Many contractors have connections with lenders who are ready to loan you out some money. Although this loaning option is quicker and easily approved, it is a bit risky. The interest rate depends on your credit score as well as the contractor.

Make sure that you understand the terms and conditions before signing up for these loans, and look out for a teaser interest rate. This basically means that the rate will increase after the teaser period is over.

Wrapping Up

With these financing options, you can easily get your new roofing system installed whenever you need to. You will not have to save money for years and will make the changes to our house when you desire. You can also check out the Big Texas Roofing and Solar for better plans on various roofing services. 
 

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