Will Roofing Companies Finance a New Roof?
Wondering if roofing companies will finance a new roof? Here’s the answer, plus your best options for financing your roofing project.
The biggest concern for most homeowners is how much a new roof will cost. While some people may be able to afford a new roof without any penny pinching or loans, many homeowners will need to look into financing to afford a new roof. So a popular question homeowners ask when considering a new roof is, “Can I finance a new roof?”
The answer is yes, in most cases. While some roofing companies can offer in-house financing, most will offer it through an outside financing company.
Fly Roofing, for example, uses ContractorLoanPRO. A secure closed-loop financing option that uses a soft pull of credit, to find a loan product that best fits your needs.
Why Would I Finance My Roof and Not Pursue other Alternatives?
Well, let’s first look at the three common routes homeowners take to pay for a roof. We’ll touch on their benefits as well as their shortcomings when compared to financing.
Cash – Being able to pay for your roof out of pocket is wonderful. Lower stress, less outside involvement, no interest or additional fees. But it is somewhat uncommon for a person to have upwards of $20K sitting around –for fun, let alone to use on a new roof. And even if you do have a nice cash stash, choosing a same-as-cash financing option (no interest, no payments) can increase your purchasing power. So even if you can pay for your roof outright, you may not want to. You may prefer to maintain the liquidity of your assets for a time before paying your roofing bill. Using same-as-cash financing can free up your money in the short term, setting you up better for other financial responsibilities or money goals all while avoiding any interest or prepayment penalties, so long as you pay off the loan in the set time period.
Credit Card – Some homeowners would prefer to pay with credit cards. Some companies allow this, though the processing fees are always passed along to the customer and for a full re-roof those fees can really add up. Credit limits available through credit cards may not be high enough to cover a full roofing project. Rates also tend to be higher, and there are no promotional windows available. However, if you have credit cards open with high enough limits and prefer this route — some companies can accept them as payment.
HELOC – If you have a lot of equity in your home, a home equity line of credit can be a good option for financing your roof. Using a bank to get HELOC can involve a lengthy underwriting process with origination fees and higher interest rates. HELOC also requires your home to be used as collateral. With financing companies you are often getting an unsecured loan, this means you are not offering up any of your assets to back up your ability to pay for your roof, that is solely being judged off your ‘credit-worthiness’. If you have poor credit, you may see a higher rate to compensate for not having an asset backing up the loan but that is something you must weigh in your unique financial situation. For a lot of homeowners, HELOC is actually going to be the best option — if you think a HELOC is better for you, reach out to your home mortgage lender to figure out the next steps.
With financing offered through your roofer (partnered with the outside financing company), you’ll be given a choice of loan options so you can easily compare your options and find the one that’s best for you. Instant financing is available through easy-to-use, mobile-friendly technology that provides cash alternatives for projects large and small. Fly Roofing is partnered with a company that uses soft credit pulls to deliver pre-qualified offers at no risk.
So, Is Financing Your Roof a Good Idea?
After learning about some of the options above, you may be wondering if it’s a good idea to finance your roof. No matter what we may hear about the word financing, if you know what terms and options you have — financing can be a wonderful tool to help you with any expensive purchase, including a new roof.
Financing a roof makes it easier to afford the investment of a new roof with easy monthly payments.
Some homeowners don’t want to mess with their financial portfolio, or don’t want to dip into their savings, college fund, retirement, etc.
Whatever the reason, financing is a way to take the upfront financial burden off your shoulders.
Fly Roofing offers promotional financing which is a powerful tool to allow our customers to pay for unexpected large expenses, such as a new roof.
Have Questions? We’d Love to Help!
Thinking about a new roof? Want to see what financing is available to you? If you’re in the Flathead Valley, reach out to Fly Roofing with all of your roofing questions. We’re only a call away.
To get in touch with us, head over to our contact page. Or, call us at 406-203-2482!
We’re looking forward to hearing from you!