New Roof Financing–Some Concrete and Workable Tips
Having brand new roofing in place could prove to be highly cost intensive. Despite your best efforts to keep the budget within strict control, you could end up spending a whopping $15,000 or more depending upon the size and the kind of changes you need to bring about in your roofing plan. Therefore, paying out of your pocket may not be an option at all!
The best thing to do would be to opt for a suitable new roof financing option. However, there would be some specific planning involved in evaluating the specific costs involved in your roofing job so that suitable financing options can be sought. Comparing roofing materials for landing at the best possible rates would also be necessary.
A Step by Step Approach to Set Up a New Roof Financing Plan
- Get in touch with not one but at least three contractors in order to arrive at a concrete estimate. Make sure the contractor has included all necessary costs including the cost of materials and labor among other things. The more comprehensive the budget, the more precise would be the comparison.
- Once you have the estimates at hand, get in touch with your insurance provider. Check if some of the cost parameters would be covered by the insurance provider. Then, you seek a new roof refinancing loan for the balance amount. If your roofing has been damaged as a result of a natural disaster like a typhoon or a storm or due to a major fire, some insurance cover could be availed of, in most cases. Therefore, it would be important to check up on the specifics of your insurance policy.
- Now that you are aware of the amount you require for new roof financing, the next step would be to start considering your finance options. The 203K Streamline Program of the FHA would allow homeowners to borrow an amount of up to $35,000 from the federal government for making home repairs that includes home replacement. The money that you borrow would be adjusted along with your current mortgage outstanding amount.
- An equity line of credit would be most suitable for you, provided you can afford the payments. In order to estimate the amount you would be eligible for, just subtract the amount you owe on the mortgage, from the current market value of your property. You can get in touch with your local property office for accessing accurate rates for current property values.
- You can opt for a personal loan, provided you have a decent credit score to boast of. You would be required to bring along a few documents that would be representative of your credit scores including the bank statements as well.
- Often, you would come across reputed roofing contractor firms that would allow you open up a line of credit with them. Often, contractors would allow you to pay for their services over a period of time, and the rates of interest would be lower in comparison to mortgages and personal loans as well! But do not make assumptions on this; compare the numbers first.