Looking for an effective and efficient way to finance a new roof?
All of us have been there at one point or another in our lives. Whether it’s building a new home to put on the market, revamping a newly bought home before shifting in, or repairing an older roof for maintenance purposes, house owners usually need some financial assistance to get the project done. Luckily, there are plenty of options available nowadays other than conventional cash paying or availing home equity loans. Curious to know how you can finance your roofing system? Here are six practical and straightforward ways you can do it:
1. Contractor Specific Loan
Most contractors themselves offer roofing project loans. Basically, contractors act as a middleman between the bank and the customer. Contractors can secure better rates than an ordinary customer by shopping around on the customer’s behalf. This loan does not need you to own any home equity to be eligible for it. However, you have to be vigilant while making considerations for a bank that will finance you.
2. PACE Financing
Property Assessed Clean Energy (PACE) are programs that consider the equity in the home to qualify customers for funding. If you have considerable equity in your home, you must check these programs out before going for anything else. They allow maximum flexibility as they have fixed, reasonable terms and rates. Another benefit of PACE programs is that they do not depend on your credit scores and only use the equity in your home to finance the project. However, keep in mind that not every contractor is qualified for PACE financing. So, choose a professional service like CustomFin to take complete advantage.
3. Cash Payment
Cash payment is the best and most feasible option if you have funds availability. This would save you from hectic banking loan procedures. You do not have to pay the entire amount up-front. The cash payment option lets you choose the payment terms a bit more granularly. It is entirely upon your discretion to either pay the whole amount at once or in installments. However, this option is viable only if you can repay quickly, as it is not a long term financing.
4. Home Equity Line of Credit
A crossbreed of a home equity loan and credit card, HELOC is a favorable and practical solution for people having equity in their homes. Unlike a home equity loan, a lender agrees to lend you a sum of money up to a credit limit, just like a credit card. The interest rates may be low but variable, which may inflate and impact your monthly installments as well as the overall loan amount.
5. Home Equity Loan / Second Mortgage
Borrowing money against your equity in the home from the bank has both pros and cons. Pros: It has fixed interest rates with payment in installments that keeps you aware of what you owe monthly. The option of stretching the loan over the years is also available to further lower the monthly payments. Con: If you fail to pay the loan, the bank has a right foreclose on your home and sell it at an auction.
6. Payment with Credit Card
Credit card payment is your final resort if other methods fail. Although this is an expensive option for your roofing system, sometimes it is all that you have. Credit cards offer the highest interest rates, but using cards with 0% interest rates or any reward cards can help you neutralize the sting of higher interest rates.
Takeaway
Do you desperately need a new roof, but think you cannot afford it? Worry no more. Custom Financing Solutions has a solution for you. With its cloud-based technology and an array of financing options available online, CustomFin has financing options to make things easier, simpler, and better for you.
Sign up today and start offering financing to all of your customers.
