Does your roof need an upgrade or a complete replacement? If so, getting the required funds to cover the costs can be a tad daunting. After all, a roof replacement can be an expensive home improvement project and is not something to take lightly. Nor should a roof repair be delayed due to lack of roof financing. The holdup can cost you dearly!

Should your old roof fail, it can be really disastrous for you and your family. A damaged roof can allow water to destroy the inside of your home, and its very foundation! From damaging your attic insulation to your newly remodeled kitchen — a leaking roof can mean big trouble for you. 

Moreover, installing a new roof will also make your home more energy-efficient — helping you cut down on your monthly energy bills in the long run. Without a doubt, older roofs are less energy-efficient, which puts a huge strain on your heating and cooling system as well as electricity bills.

So, if you’re planning on replacing your roof, fixing a roof leak, or installing new flashing, do not dilly-dally. 

The good news is that there are various roof financing options available. You just need to choose the best roof loan for your requirements. If your roof is nearing the end of its useful life, it’s time to do your research and get the new roof financing in place before soliciting bids from roofing companies or roofing contractors near you.

Before you can start your roofing project and the roof financing project, ask yourself some vital questions first:

  • How much will a new roof cost?
  • How will you pay for a new roof or a large roof repair project?
  • How do you pick the best roofing loan — that doesn’t mess up your financial plan?

How much does it cost to finance a roof?

Fixing a damaged roof, either caused due to a natural disaster or from general wear and tear, should be a top priority. However, since the cost of a roof repair or a full roof replacement is high, many homeowners delay the home improvement project. 

The average roof replacement cost is over $7,500 — with most homeowners spending between $5,100 and $30,000, or $3.50 and $5.00 per square foot, for a new roof. Of course, the total roof repair cost depends on the size of the roof, the damage, labor cost, and the roofing material cost. 

For example, the average cost to replace an asphalt roof on a 2,000 square foot home runs to about $7,220. As far as the roofing materials go, the most common types of roofs are asphalt roofs, metal roofs, wood roofs, clay roofs, cement roofs, slate roofs, glass roofs, and even roofs with plastic liquid coatings. Each one of these roofs come with their own price tags. 

Should I pay cash for a new roof?

Installing a new roof doesn’t come cheap. However, if you plan your roof replacement and its payment well, it doesn’t have to be an outrageously expensive expenditure. The best way to evaluate how much a new roof will cost you is through a certified roof inspector. Once you get a cost estimate, the best option, of course, is to plan for this repair and to pay cash. 

Advantages of paying for a roof repair with cash

The easiest and perhaps the most cost-effective way to pay for a roof repair or a complete replacement is through cash. Unlike a loan, you needn’t be in constant fear of maintaining or proving that you have good credit to get approved for the funding. 

Most importantly, there’s no extra interest to pay on the loan amount. If you have sufficient cash or savings for the home improvement project, it may turn out to be the wisest decision. However, if it’s your emergency fund, it’s best not to touch it, and opt for a loan instead.

A cash payment does require some vigilance on your part. Always get proof of payment by making sure that you ask for a signed receipt with the payment date for every financial transaction. This will help you prove that you don’t owe anything to the roofing contractor. Always, always hire a reliable and licensed roofing company for the job.

Disadvantages of a cash payment for a roof replacement

Depending on the scope of the renovation, you may end up spending a lot on your roof repair. When you decide to pay full in cash, it may cause your other funds to suffer. Always keep in mind that you need to have a sufficient amount of cash ready for your emergency expenses. Dip into your savings only if you have enough for roof financing.

What is the cheapest way to replace a roof?

A roof replacement is one of the most important investments that you could make. Do not delay installing or repairing a roof; it may make the remodeling more expensive, and the roof more difficult to repair or replace.

Although a roof replacement involves significant costs, you could choose from the various payment options available for this upgrade. These include a personal loan, credit card, home equity loan, upfront cash, among others. 

You may also be eligible for certain roof grants offered by the government to replace a roof with a new one or to help you with extensive and expensive repairs. This kind of economic assistance from your local government comes to those who’re struggling with their financial situation. In such a case, you’ll have to certify your financial need.

Another way to save money on your roof repairs is to undertake the task yourself instead of hiring a professional roofer. However, we would advise you not to treat the work as a DIY project. Without proper experience and expertise, you could end up damaging your roof — and yourself!

If you’re looking for the cheapest roof to install, it’s with asphalt shingles. At $100 to $150 per square, they are the cheapest roofing material. The next best low-priced option is to opt for standard styles of metal and concrete.

Read more: Deck loans & financing options

Can you get financing for a new roof?

Yes. You can apply for a roof loan. The roof financing will cover the cost of repairing or replacing a roof. Apart from using your credit card, you can tap the equity in your home, get a personal loan, or apply for a government-backed loan. Any of these will help you finance your roof project in a manageable way. 

However, whichever loan option you choose, ensure that you’re able to afford the loan payments on time. A default in your monthly payments will adversely affect your credit score as well as credit history.

Looking for a home renovation loan for your roofing project? Peruse through Kukun’s easy loan options. 

Roof loan options: Ways to finance roof repairs and roof replacements

As far as financing roof repair and roof loans are concerned, the rates and terms of the financing options may vary. The best roof financing for you depends on several factors, including your renovation budget, credit score, income, and personal preferences. Let’s cover each one of the roof loan options for your benefit.

Personal loans for a roof replacement

Personal loans are unsecured loans that are advantageous if you do not want to tap your home equity or don’t want to max out a credit card. Such loans provide you with a fixed amount of money — usually over a loan term of two to seven years. 

The annual percentage rates aka APR range from about 6% to 36% — depending primarily on your credit profile. The cons of using personal loans include higher interest rates than home equity loans. Plus, you cannot claim a tax deduction on the interest you pay.

Read more: Best house siding financing for good & bad credit

Home equity loan/Home equity line of credit (HELOC)

The advantages of using your home equity to finance a new roof include lower interest rates, longer repayment terms, and a potential tax deduction for your interest payments. The downside of such loans is that funding takes longer since the loan application as well as the loan approval process requires an appraisal. Moreover, you need a really good credit score to get loan approval. Most importantly, if you fail to make timely payments on your home equity loans or HELOC, you can put your home at risk.

Government-insured loans

Home improvement loans such as the Federal Housing Administration or FDA loans require lower minimum credit scores than other types of conventional mortgages. FHA 203(k) standard loans can easily cover costs up to $5,000. Or, you could refinance your existing mortgage with an FHA 203(k) loan and combine your roof replacement costs into the new mortgage. The downside to a government loan is that the eligibility for the financing is rigid. 

Credit cards

Credit cards are great for lower-cost roof repairs. Not for large-scale roof replacement, though. The loan rates are notoriously high. In case you have an excellent credit score, you may qualify for a 0% interest credit card. In that, if you pay back the loan amount during the promotional period, you will not have to pay interest.

How can I finance a roof with bad credit?

Roof financing for bad credit is possible, but it does come with higher interest rates. If you have a bad credit score, a personal loan is your best choice for roof financing. The loan application is easy too. You can simply apply online, with multiple loan lenders. After you submit your application form online, you can get multiple personalized personal loan offers within a short span.

How can I fix my roof with no money?

If you have homeowners insurance, you may qualify for a free roof repair or replacement. Provided your roof has been damaged by natural events such as hail, wind, or storms. Generally, most insurance providers and insurance companies give roof repair coverage insurance only for such unpreventable damages, not for general wear and tear or damage caused due to lack of roof maintenance. 

Does a new roof increase home value?

A new roof definitely increases your home resale value. Experts believe that homeowners who have installed new roofing can expect to recover an average of 62.9% of the roof installation cost through increased home value.

Roof replacement is undoubtedly one of the biggest investments you will make. If done right, the home improvement will yield the biggest return on your investment.

Interestingly, more than 30% of real estate agents accredit roof restorations as one of the most common reasons for a quick sale. So if your roof needs urgent repair or replacement, do not put it off.

Do most roofing companies offer financing?

Yes, getting financing through a roofing company is also a possibility. Although, smaller roofing companies may not always offer any type of financing due to lack of volume. Medium-sized companies may provide you financing for your roof, but their rates won’t be as competitive as personal loans or home equity loans. 

Your roofer may either offer in-house financing or loan options through a third-party financial company. One big drawback is that the loan rates and terms will depend entirely on the discretion of the roofing company and your credit score.

Want to apply for roof financing?

Once you decide to opt for roof financing, Kukun’s easy loan options will help you along the way. You can compare personalized roof repair loan offers from multiple lenders, check the rate and terms on a loan — with no impact on your credit score.

With over 20 lending partners in our loan program, we provide roof financing for a wide range of client profiles and contractors. Our customer-friendly loan process is designed to help you find affordable roof financing options without any hassle.

Read more: Home repair loans for good & bad credit

New Roof & Roof Repair Financing was last modified: January 28th, 2021 by Ramona Sinha
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