A roof over your head is a symbol of comfort and safety, a sign that you’re home. Unfortunately, even with the right care and precautions, roofs will need service and repairs from a quality roofing specialist at some point. It comes with the job description of protecting you and your home from outdoor elements. Years of sun, rain, snow, and wind will eventually take their toll on your roof. Additionally, there are recommendations for the best roof in hot climates.
While every homeowner will eventually have to deal with roof repairs, financing for those repairs may be challenging, especially for larger-scale operations. Will roofing companies finance repairs, replacements, and general roofing services? Read on to learn more about roofing financing and payments.
What Affects the Cost of a Roofing Repair?
There are a variety of different factors that can contribute to the cost of a roofing repair. This includes:
- Size of your roof and home – The most significant factor for your roofing costs is the size of your roof and home. Residential roofing contractors usually base their initial price on the size (in square feet) of your roof. This naturally means that a larger roof will result in a higher cost.
- Materials – The cost of your roofing repairs is also affected by the type of materials actually used on your roof. Asphalt and composite roofing materials are the most common option and will likely cost less than the more expensive wood and metal roof options. However, depending on your payment options and needs, you may consider investing in these more durable materials as they may help you save on future repairs in the long run.
- Labor and disposal – Roofing companies each charge their own hourly labor rates, along with disposal fees for renting or supplying a dumpster to recycle or dispose of old roofing materials and supplies.
- Season – The peak season for most roofing companies is late summer through fall. This means that you may have to pay extra if you need roofing repairs during this time. Of course, you can’t always predict when your roof will need repairs, but if you can wait, you might get a more affordable price for your roofing project if you wait until winter or spring. However, this also runs into the potential of dealing with the colder, wetter seasons that may cause extra damage to your roof.
As there are so many different factors at play, your specific roofing costs will vary, though experts estimate that the national average cost for a roof replacement or installation can cost upwards of $7,500.
Roof Financing Options
Whether you need to patch a leak or replace a substantial portion of your roof, you do have several financing options available to you.
Do roofing companies finance repairs? More roofing companies provide their own financing in the form of payment plans that charge interest. The specific terms and rates will obviously vary based on the contractor and your credit score, but many roofers have existing relationships with lending companies and may be able to provide special deals or interest-free periods.
Applying for financing through a roofing company is relatively simple and quick, usually involving a simple credit score check that can be performed over the phone. Ask if your contractor is a member of a local or regional trade association, which ensures that they are plugged into local and national regulations and guidelines.
Interest rates can be the biggest danger with financing through a contractor, so pay special attention to the terms and details. If there is an interest-free period, ask what the interest rate will be after this period. Too high and you may be paying exponentially more than you bargained for.
Homeowners insurance may cover the cost of a roof replacement or roof repair. However, this mainly applies to roofs that have been damaged by a fire or storm or during a theft. Damage or degradation caused by age, wear and tear, or a general lack of maintenance will not be covered by homeowners insurance. Still, if you are in need of repairs, it may be worth it to consult your insurance provider to discuss your policy and the repairs that you need.
FHA Title I Loan
The Federal Housing Administration operates the Title I loan program that provides fixed-rate loans that are insured by the government. These loans are meant to fund any home improvements designed to improve the general livability of a home, so a roof repair or replacement should fit that description.
With a Title I loan, you can borrow up to $25,000 with 20 years to pay it off. However, any loan that exceeds $7,500 must be secured by a mortgage or deed of trust. You will also need a debt-to-income ratio below 45 percent. This means that defaulting on a loan may result in you forfeiting your home.
Home Equity Loan
Taking out a home equity loan may be cost-effective if you have already built up equity in your property. This involves you working with a bank and using your home’s equity as collateral. This means you may risk losing your home, but you can potentially minimize the risk by borrowing as little as possible just to cover your roof repairs and making sure you plan your monthly payments.
How to Choose the Right Roofing Company
Out of all the options for paying for roofing repairs, using your own savings is the best way to go, but that’s just not feasible for every homeowner. Financing options from roofing companies are often your second best option, but you also need to know what to look for.
Look at several different roofing companies, focusing primarily on local roofing companies that have well-established ties with the local community. You want to find a roofing company that is well-rooted, uses quality roofing products and has been in business. If they go out of business in a few years, you could be left hanging with some hefty payments.
Most roofers will provide free estimates, which usually starts with a visit to your home for an inspection. They will then provide a proposal that you can review. During this time, the contractor should be able to provide a certificate of insurance as well as workers’ compensation insurance. If they can’t, that could be a red flag, even if they provide an affordable rate. You have the right to know who is working on your roof.
Once you have a handful of proposals from different roofing companies in hand, it’s time to do some comparing. Each proposal should feature a total that sums up all of the potential costs, along with a unit cost per square foot should the workers experience any unexpected damage. This should include:
- All permits required by the city and county
- All labor costs and personnel fees
- Cleanup costs
Check with your insurance company to see if they might cover any of the roofing costs. Most insurance providers won’t unless the damage to your roof was caused by a fire or natural disaster. Many companies may also have strict guidelines in place that regulate the types of roofing materials that they cover. However, insurance companies may cover a replacement cost that falls under leaks related to wind or hail. It doesn’t hurt to ask.
So do roofing companies finance? These days, many contractors do provide a variety of financing options, If you are unable to pay for roofing repairs out of pocket, seeking financing directly from a roofing contractor may be your best option.