This is something that is subjective to the business you use. But at My House Renovation Inc. we believe in supporting customers through our Energy Programs which allow for dynamic financing opportunities. In the previous article we discussed how to find an affordable and quality roofing contractor. Moving forward we need to pay for that new roofing system. So we will cover 6 ways to finance a roofing system.
All customers want low interest and payment options. So contractors that are customer oriented will try to offer the most competitive financing options available. Contractors with an expertise in financing will be able to get every roofing project funded. Approximately 90% of My House Renovation Inc. customers take advantage of our Energy Programs. Since roofing is a considerable cost it is no surprise that financing is such a popular option.
Contractor Specific Loan
Contractors will offer loans to help cover the costs of a roofing project. These will be pretty specific to the contractor. A lot of consideration needs to be made when searching for a bank that will finance customers. If a contractor skimps on the effort in this area you will suffer. Contractors act like middlemen to make connections between customers and the banks. By shopping around on the customer’s behalf contractors can secure superior rates than most consumers could on their own.
The big benefits of getting a loan is you do not need any home equity. You can often get your funds quickly by comparison to a cash out refinance or options that are based on the equity in your home. Rates for loans are very competitive. Loans are perfect for projects that go up to $35,000, while you can get personal loans for much more than that, it will not be optimal for the situation.
Before you accept any contractors loan package you should look at options such as PACE, or home equity lines of credit. A skilled consumer could even work to secure 0% interest financing through credit cards and unsecured loans. A reputable contractor will offer a fair and competitive rate for consumers, this is a huge part of their business.
Programs such as Property Assessed Clean Energy (PACE) use the equity in your home to qualify customers for financing. So if you are in a position where you have some equity in your home, it is important to check these programs out. They often allow for little or no money down. With fixed, competitive terms and rates that will allow for maximum flexibility. Programs that use the equity in your house will not look at your credit score for credit worthiness. So customers with challenged credit, or no credit can use the equity in their home to help finance their roofing system.
Applying for PACE is simple. For those of us working with a qualified contractor you can request an assessment for PACE financing. Since not every contractor is qualified, it is important to be sure you are working with a professional service to take full advantage. One of the great features of PACE is you can use it on more than just roofing projects. Consult with your contractor for details on PACE financing and what projects qualify.
Same As Cash Option
For customers that might have availability to funds there are same as cash options. These allow for a customer to determine the terms of payment a bit more granularly. Typically there is no interest in same as cash transactions. You can choose to pay the bill upfront, or over installments. This is not an option for long term financing, this is only for customers that want to repay quickly.
Home Equity Line Of Credit
A home equity line of credit is a great choice for a customer with equity in their house. This allows for the most flexibility, and best terms. Roofing can be a great way to improve the value and efficiency of your home. Using the equity in your house to pay for upgrades that add value to your home, as well as provide comfort and usefulness is an incredibly wise way to use the equity in your home.
Cash Out Refinance Or Second Mortgage
This is not an optimal decision. But if you are in a spot where you could benefit from a refinance, and have a fair amount of home equity available to you, this could be a good option. Reinvesting money back into your home in the form of upgrades is a great way to build value in your house, and get functionality. Home mortgage rates are low, and the opportunity to extend payments for a few years allows you flexibility with repayment terms.
A final resort for financing should be unsecured credit cards. These often offer the highest interest rates, and will be the most expensive way to finance your roofing purchase. But sometimes it is all that you have. Using a certified roofing contractor can help you to avoid this option if possible. But utilizing 0% interest credit cards, points or miles credit cards, or any rewards cards can help lessen the sting of the eventual high interest.
Last Word On Financing
Financing is subjective to the contractor providing it. As we referenced in the last article there are tiers of contractors. Often the first tier will rely heavily on credit cards and equity in your house. But as contractors mature they form relationships with financing entities. These relationships often work out in the customers favor in forms of lower interest and monthly payments.
Different contractors will call their financing different things, but they all break down into very similar components that you can shop around for. Unless you want the task of organizing your own financing, hearing out what your contractors can offer is going to be worth your time. Cobbling together a series of 0% interest credit cards is a bit higher risk, but potentially a huge savings if you stay committed. This is a good chance to use the value in your home to help pay for some of the financial burden. But the best option is the one that makes the most sense for you.