Most homeowners will have a little advance warning that their roof will need to be replaced in a year or two. If you are one of these lucky ones, it gives you the opportunity to save money for the future replacement. But what if your roof suddenly fails or is damaged beyond repair in a storm?
So, what are your options to finance your roof replacement if you do not have the cash savings or insurance to cover it?
Pay with a Credit Card
You could choose to finance a roof replacement with your credit card. However, this might not always be the best option. Financing with a credit card will decrease your available credit that you might need for other emergencies.
Financing with a Loan
Depending on your credit score and history, most loans will have a better interest rate than a credit card. You also need not worry about interest rates fluctuating because loans come with a fixed rate.
Some loan options to consider include:
- Home Equity Loan. If you have equity in your home, you may be able to take out a home equity loan (HELOC) for your roof replacement. But if you have only lived in your home for a few years, your equity might not have built up yet. This could make it difficult to obtain this type of loan.
- Personal Loan. If you have a great credit score, you may be able to take out a personal loan. The benefit of this type of loan is that the interest rates are usually less than a credit card. You can also request a longer repayment period to make your monthly payments more affordable.
- Federal Housing Administration (FHA) Title I Loan. An FHA loan is a good option for homeowners who have good credit, but do not have much equity built up in their home yet. This option is available from funds through banks and other qualified lenders to protect them from loss. The money from the FHA loan can be used for roof replacements and other home improvements.
Talk to Your Local Trusted Roofer
If you aren’t sure what type of financing is best for your personal situation, talk to your local roofer. Bill West Roofing has been providing trusted service to Kansas City area residents for over 40 years. Our trustworthy team can help you decide what payment option is in your best interest. Call us today at (816) 295-6299.