Finance Your Roofing Project

Fortunately, there are a few different roofing financing solutions available to help out.
 
 

Knowing Your Financing Options

Austin Roofing and Construction's Project Financing Options

A great way to get your roof financed is through the company that's going to install your new roof. You can usually get friendly terms of 10-to-15 years and an interest rate that's better than almost every credit card out there. In many cases, you'll discover an interest rate under 11%. Even if you don't have the best credit, you're still likely to find that the rates at your roofing company are better than those on a personal loan. They know how much you need your new roof and will do everything within their power to help you afford it.

GAF Solar Roofing Options

No payments for 12 months with rates as low as 7.9% and terms as long as 25 years!

Another option goes as low as 5.49% with terms up to 25 years!

The longer terms allow for the monthly payments to be much lower.

Click Here & Let Us Walk You Through Your Roofing & Financing Options

Home Equity Loan

Home equity loans can be one of the best ways to pay for a new roof for a number of reasons. First, this type of loan often has a significantly lower interest rate than other loans & credit cards. In 2022, the average interest rate for a home equity loan is 5.96%. A home equity loan is essentially a second mortgage that you take out on your property against the equity you've built up in your property
 
Equity is the difference between the current value of your home and how much you owe on it. This type of loan can take longer to get because you'll have to get your property appraised before knowing how much you can borrow. However, you are essentially paying yourself back (minus the interest rate) for money taken out against the value of your property. You can usually get a 15- or 20-year term on a home equity loan.
 
 

Home Equity Line of Credit

This type of financing is similar to a home equity loan except that the credit you are extended is made available on a revolving basis, much like a credit card, but at significantly lower interest rates.
 
If you already have a HELOC and you haven't used it all, this may be the way to get the best roofing financing deal. You won't have to wait for your property to be appraised and you'll already know how much money you have available. However, if you do not have a HELOC yet, you will have to wait for a lender to determine how much credit they're going to extend to you. Terms can be between five and 20 years for HELOCs.
 
 

Government Home Improvement Loan

There are two types of government loans that can help you get the financing for your new roof. The first is an FHA 203(k) standard loan, which requires you to refinance your property and roll the amount of the loan (minimum of $5,000) into the total amount owed. The second is an FHA Title I loan, which is similar to a personal loan, except amounts over $7,500 are secured by your property and funds must be used for home improvements.
 
These two government loans have lower credit score minimums (500), so if you're not able to obtain a personal loan at a decent interest rate or at all, you may qualify for a government loan. Interest rates are somewhat higher than regular mortgage interest rates but are much lower than credit card interest rates. You also may have to provide a down payment of between 3.5% and 10% depending on your credit score. Insurance premiums may also apply.

Personal Loan

Personal loans can often get you the best financing deal for a new roof, especially if you have excellent credit. This is because you can choose your lender and your interest rate (depending on your credit score). These unsecured loans can give you the best financing deal because you don't have to have any collateral, you can typically get funded right away (within 24 hours in many cases), and the rates are lower than most credit cards.
 
With a personal loan, you can easily apply over the Internet, and if you're approved, you can get your roof replaced right away. Interest rates on personal loans vary from about 4.49% to 25%, but some lenders can go as high as 36%. So, if you have excellent credit, a personal loan would be a smart move. However, if your credit is poor, you could pay a hefty interest rate that may not be the best deal you can get.
 

Improve Your Credit

If you don't have a roofing emergency, you might have time to improve your credit somewhat before you seek financing, which can help you secure a better deal on your roof financing. The higher your credit score, the lower your rates will be, no matter which financing option you choose. All lenders will offer lower rates if you have proven that you're a lower credit risk through your credit rating. However, it does take time to increase your score.
 
Some ways to improve your credit include making on-time payments to your current creditors, becoming an authorized user on an existing unsecured credit card and using it responsibly, opening a secured credit card on your own and using it responsibly, and maintaining low credit card balances to improve your debt-to-income ratio. Check your credit score regularly and monitor the progress you're making until you feel like your score is high enough to get a great deal on your roof financing.
 
 
No matter which financing option you select for your roof, there are several ways to ensure you get the best deal possible, including those listed here. Of course, you need to start somewhere, especially if you're in a situation where you need a new roof immediately. Contact Austin Roofing and Construction today to see how we can help you get financed quickly and easily. Approval is right around the corner!