You may be wondering “What are my financing options for a new roof?” or “How can I pay for a new roof with no money.” The cost of a new roof can be a major expense, especially if you’re not ready to pay upfront or just weren’t ready for such an expensive project. The average cost of a new roof will vary depending on the size and condition of your house or apartment, but with upwards of $5000 to $20,000 to shell out upfront, it can be a challenge to put together that much cash. 

But don’t despair! If you need to replace your roof in Alabama, but don’t have the cash on hand to pay for it, Watkins Construction & Roofing is happy to work with you and offer you financing options that may allow you to get the new roof you want, need, and deserve. 

Six Ways to Finance Your New Roof

1.  Personal Loans

Getting a personal loan to pay for a new roof is one of the easiest methods available if you have equity in your home. With a personal loan, you can often borrow up to $50,000 at an interest rate that will usually be lower than with a credit card. Personal loans can be approved and funded quickly, making them a great way to get the money you need now.

However, personal loans also have some drawbacks. It isn’t always easy to get approved for them, especially if you have bad credit. Interest rates are also usually higher than with other types of financing options like HELOCs; meaning that you’ll have to pay more money in interest over time if this is how you choose to finance your roof replacement. 

2.  Home Equity Lines of Credit (HELOCs)

For homeowners who have built up some equity in their homes and want to borrow against it rather than sell it, a home equity line of credit is an option. With a HELOC, you can borrow money through a line of credit rather than having to take out a traditional home equity loan. This loan can be at a lower rate than an unsecured loan and may be tax deductible if you itemize on your tax return; however, it can also be riskier because if you default on the loan, you could lose your house!

3. Credit Card 

While you may not want to take out a loan on your home’s value, you could use a credit card to pay for the roof. The main advantage of using a credit card is not putting your home on the line. But be careful, as depending on the new roof pay monthly interest rate on your card and the terms of your company’s rewards program, interest costs could add up over time.

4. Homeowners Insurance

If you’re a homeowner and were recently struck by a hailstorm, your homeowners’ insurance policy may already have you covered. Many policies will provide direct pre-approved funding for replacing your roof after it’s been damaged by hail or windstorms. If you think your policy covers hail damage, contact the insurance company or agent to find out more about filing an insurance claim. 

5. Government-Insured Loan

If you have bad credit, a low income or need a roof financing no credit check at all, government loans may be your best option for financing your roof replacement. The federal government has several programs that offer traditional loans as well as grants and tax credits for those who qualify, making it possible to get top-quality materials without paying full price. These government loans for roof replacement are available through local governments and are administered by an independent agency; they are not processed by banks or other private companies like other types of loans.

6. Cash Out Refinance 

You can take money out from your home equity by replacing your current mortgage with a new home loan for more than you owe. Then, you can use the surplus to finance your new roof replacement. This is an attractive financing option to many homeowners because it offers lower interest rates than home equity loans or HELOCs. You’ll also qualify for a mortgage interest deduction on your tax return, which could add some financial breathing room to offset the cost of your new roof.