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A Comprehensive Guide to Roof Financing

A strong, durable roof is essential to protecting your home — if yours is aging or damage occurs, you’ll want to prioritize its repairs or replacement. Waiting too long can lead to higher expenses and potential harm to your space. However, you may not have the funds readily available to pay for a new roof. That’s where financing comes in.

You can work with a trusted roofing company that finances these repairs, so you have more flexibility and can tackle your project now. Use this comprehensive guide to roofing costs and financing options to learn more. 

What to Know About Roof Loans

If you are in a position where you can pay for your roof replacement without any financial strain, that’s amazing. If not, keep hope — there are other options!

Financing a new roof works just like financing a house, car or business. If you don’t have the cash needed for the total expense, you may be able to secure a loan that you can pay back later. 

Roof repairs and replacement projects often come as a surprise to homeowners, and since the average cost of a new roof is $10,000, many do not have the money readily available to pay for it. At the same time, you can’t live comfortably without a safe and reliable roof. 

Roof replacement and repair financing can be a saving grace for many families, giving them peace of mind and allowing them to make upgrades when needed.

Here are some key benefits of having a loan for your roofing project.

• Get a new roof sooner: If your roof needs urgent repair but you don’t have the necessary funds to facilitate this, you may need to wait a few months to save up before you can pay for your new roof. On the other hand, you can get your roof fixed much sooner with a loan. 
• Prevent damage from worsening: Similar to the previous point, if you need to wait months to afford roof repairs, the damage can get significantly worse and cost you more. Roof financing means you can get the issue tended to before it progresses. 
• Pay for your roof over time: For the average person, having to pay significant upfront costs for a new roof without planning for the expense means their finances will take a big hit. However, if you choose financing, you can use payment plans for roofing services that allow you to manage your cash flow and spending better. 

Why Choose Local Roofing Companies That Finance?

Choosing a company that offers in-house financing for roofs is a good option for those who can’t afford a new roof otherwise. If that company happens to be local, even better. 

Local roofing companies often offer tailored financial options to their customers, allowing you the flexibility you need to pay for your roof. Some other benefits of roof financing with local businesses include:

• Personalized service: Smaller roofing companies can often offer you more personalized service and get to know you better. They will likely be able to inspect your roof before quoting to give you a more accurate estimate, unlike bigger, national companies that often do this process online rather than in person. They can typically dedicate more time to your project and help you determine affordable roof financing options for your specific budget and situation.
• Knowledge of local building codes and regulations: Many neighborhoods have specific rules that contractors must adhere to. Contractors unfamiliar with the area may not know the ins and outs of these rules. On the other hand, someone who specializes in roofing within a specific region will know what to expect. 
• Community support: Small businesses comprise 99.9% of total businesses in the United States. They drive the economy and are often a community’s backbone. By supporting a local roofing company, you’re helping grow your community. 

You might not even need to look outside your local area to find the best roofing companies that offer financing. Just ensure you select an option known for its excellent workmanship and durable roofing solutions. 

Types of Roof Financing Options Available

Let’s get into the important part — how to finance a new roof. As with most loan and financing options, this isn’t a one-size-fits-all scenario. The finance option you pick will depend on factors like which roofing company you select, how much your roof costs and your credit score. The following are common loan types for roof upgrades:

• Home equity loans: If you’ve built up some equity in your home and a bad credit score prevents you from taking out other financing options, a home equity loan for roofing might be something to consider. Pursuing this means you will borrow against your home equity.
• Personal loans: Another option is looking into personal loans for roof replacement. With this option, you don’t need to put your house up for collateral. Depending on your financial situation, you can choose a short-term or long-term personal loan. Personal loans are also great if you need the money quickly since they often offer faster approval — especially if you’re already preapproved. 
• Credit cards: While financing your entire roof repair on a credit card isn’t the best idea, your credit card can come in handy if you already have most of the money for your renovation and just need that extra bit to cover it. Alternatively, you can use your credit card for an initial payment while you wait for your financing to come through. However, credit card debt is a serious issue, and if you decide to go this route, you should manage your debt carefully. 
• In-house financing: More and more roofing companies are offering their own in-house financing options. This can be a highly advantageous option. You don’t have to worry about working with a third party. Instead, you can streamline the process and do everything directly through the roofing company. These financing plans still come with terms and conditions, so be sure to do your research to understand how everything will work.

Between these different options, you are likely to find a roofing option that works for you. 

What to Look for in Financing Options

With so many financing options available, you may feel overwhelmed when it comes to making the right choice. Should you use a home equity loan or your credit card? Is a personal loan best, or would you be better off with in-house financing? Once you’ve selected what type of financing you want to apply for, you need to find a trusted provider that can work with your unique budget. 

Whether you ultimately choose a financial institution or a roofing company that offers in-house financing, be sure to inquire about the following factors to find the perfect fit for you:

• Interest rates: You need to select a financing option with manageable interest rates. You should also consider whether you want a loan with a fixed or variable rate. Fixed interest rates are generally better since you know what to expect, but it depends on what your options are. Consider all possibilities to help you determine the most affordable options. 
• Loan terms: You’ll also need to understand the roof financing terms — this is extremely important because you need to know how long your payment period will be. 
• Total costs: Also consider the total costs of your project once you’ve paid off your loan. Use a loan payment calculator to help you determine this amount and ensure you can comfortably make the monthly payments before signing your agreement.
• Flexibility: Ideally, you should have a flexible payment plan that makes provision for unforeseen circumstances. Finding flexible payment plans for roofing repairs can give you greater peace of mind over your finances. 

Everyone’s financial situation is different, so what works well for one person may not work well for another. It’s important that you find a financing option that works with your individual needs. 

How to Choose a Roofing Company With Financing Options

As great as finding a roofing company that offers financing is, you might need help figuring out where to start. Here are a few tips:

• Do some research: In today’s digital age, the internet is the first place you should go when researching a company. Do they have an online presence? Perhaps you can find photos of their work or reviews and ratings that tell you whether their services are good or not. Remember, lenders often have specific credit score requirements, so look into these prerequisites.
• Ask for recommendations: Many people find great companies through word of mouth, so if you have friends or family who’ve recently upgraded their roofing, ask them about their experience. If they have someone they can recommend, that’s excellent! If they had a negative experience, at least you know which companies to avoid. 
• Verify their claims: Before you agree to work with a roofing company, ensure they are the right people for the job. Check that they have insurance, as well as the necessary licensing. Using the earlier example, if you live in Indianapolis, you should thus look for Indianapolis roofing companies that finance and also have the correct licensing.
• Get quotes from multiple companies: The best way to choose the right local roofing company for you is to assess all your options. You want to get quotes from multiple companies. Looking at numerous options allows you to compare all the options to see what works best for you. You can also ask for a written contract before making your final decision. 

Keep these tips in mind when narrowing down your financing options, and don’t be afraid to ask questions to ensure you understand their process. 

Steps to Secure Roof Financing

Once you’ve selected your desired roof financing option and you’ve found a reputable financial institution or roofing company to secure your loan, it’s time to get started.

The specific process will differ depending on the company you finance with, but you’ll likely need to do the following:

1. Assess your budget and needs: The first thing you need to do is determine how much your project will cost. Minor repairs, for example, will cost less than an entirely new installation. In some cases, you may not need financing to cover all your costs and you can tackle the rest out of pocket. 
2. Gather your necessary documents: When you first apply for financing, you will receive a list of documents you need to provide with your application. While these documents may vary slightly, most companies require at least a credit score and income verification. 
3. Submit your application: You can submit your application to one or multiple lenders to see what’s approved. Keep in mind that not all institutions will necessarily approve your application — about 50% of Americans have received loan rejections. You can always consider other financing options for roof replacement if your first choice falls through. Working with a local roofing company is one of the best ways to ensure approval. 
4. Review your options: Once you’ve heard back from the lenders or contractors, you may have more than one financing request that’s been approved. In this case, you should select the best option. 

You should note that financing is rarely guaranteed, and different places use different ways of determining who they give funding to. Just because one place rejected your application doesn’t mean you shouldn’t try again. 

Frequently Asked Questions About Roofing Loans

Explore the answers to some of the most commonly asked questions regarding financing a roofing project:

What Credit Score Is Needed for Roof Financing?

The exact credit score needed for roof financing will depend on the lender you work with. Some may not even require borrowers to provide their scores — you’ll need to ask the company for their specific requirements.

Can You Finance Your Roof if You Have Bad Credit?

Good credit is generally a requirement for financing, but can you secure roof financing with bad credit? There are a few options. 

As mentioned, home equity loans for roofing could be a potential route to financing your roof, even with a bad credit score. Another option is to have someone co-sign your loan. 

How Long Does It Take to Be Approved?

Again, this will depend on where you get your roof financing, but as a general rule, it doesn’t take very long. Some places even offer same-day approval. 

If you’re in a rush to get your financing approved so that you can start your roof repairs, ask about the approval process upfront.

Transform Your Roof With Cornett Roofing Systems

Now that you know about the importance and benefits of financing, it’s time to take the next step with a trusted provider. Cornett Roofing Systems offers flexible financing for roofing services, including installations, repairs and replacement. We’ll work with your budget to ensure your home’s roof is secure without causing financial strain. You can use our online financing tool for a better idea of your monthly payment estimates

Our experts will also help you determine the best roofing system for your home, whether you’re interested in slate, metal, copper, tile or solar. We have over 35 years of experience and serve homeowners throughout the Midwest. Our craftsmanship and expertise help us deliver permanent, high-quality roofing solutions that last. 

Looking for roof financing in Indianapolis? Contact us for a free estimate and our team will be in touch soon!