The Homeowner’s Guide to Roofing Financing

For many homeowners, financing is the biggest hurdle in getting a new roof. It’s no secret that a new roof is a significant expense, but it shouldn’t stop you from getting one. Fortunately, there are many ways to finance a new roof. Here is a quick guide from Quality Assurance Roofing.

Cash

Cash is indeed king, and remains the best way to pay for a new roof. Once paid, your new roof is entirely yours — no interest or installments to worry about. Many contractors offer incentives for cash payments, such as discounts and rebates. Of course, cash requires saving up, which makes it the most difficult to prepare for.

Credit Card

If your roofing estimate is $15,000 and below, you may qualify for credit card installments, which would make it the next-best financing option if your provider offers zero-interest payment plans. It is also the safest, in that it doesn’t involve collateral.

Unsecured Loan

An unsecured or personal loan is a good option if your roofing estimate costs between $15,000 and $50,000. Unsecured loans do not involve collateral, and are offered by most banks. Installments can be spread across longer periods for lower monthly payments, but these usually result in high interest rates.

Secured Loan

Secured loans can be used for projects with an estimated cost of $50,000 and above, and involve collateral. There are three types of secured loans:

• Cash-out refinancing involves recomputing your existing mortgage and taking out the funds that will go toward your project costs. Basically, it resets your mortgage payments back to square one.
• Home equity loans (HEL) is like taking a second mortgage on your home. If choosing this option, make sure that you are aware of the payment terms: you may be required to complete payment on the principal within the first 10 years or so.
• Home equity line of credit (HELOC) is mostly the same as HEL, but you get a revolving open credit instead of a lump sum. If you are planning on taking on multiple smaller projects in the future, this may be a better type of secured loan.

Contractor Financing

Roofing contractors, ourselves included, offer financing options through partners like Hearth Financing. Contractor financing is ideal for projects that need to be completed on short notice, like roofing emergencies.

Planning on getting a new roof soon? Give our team at Quality Assurance Roofing a call at (479) 279-8500 or (417) 799-7889. You can also fill out our contact form to schedule an appointment. We serve Fayetteville, AR, and the surrounding communities.