You’ve finally decided to get your roofing work done on your Manhattan roof, but you’re not sure how to pay the roofing company. Whether you are starting a roof repair project or installing a new roof, there are many different ways that you can go about paying for the service. This blog post will help walk through some of these payment options and discuss best for your situation.

7 Payment Methods For Your New Roof Project

Residential roof replacement and shingle roof repair payments can be made in various methods, each with advantages and disadvantages for both the homeowner and the roofing company near you.

The following factors determine the optimal option for you and your property:

The quantity of money you have in your bank account
How many hoop jumps are you willing to make to save money?
Your yearly earnings
Your credit score (whether you have good credit or bad credit)
Whether a large storm has damaged your home’s roof,

Below, we’ll go over each of your alternatives in depth.

Cash or Check (Easiest Method)

Paying in full cash to local roofing contractors is unquestionably the quickest and most convenient approach to completing the task! However, not everyone has the financial money to pay for a new roof entirely in cash (or by check). Furthermore, even if you have the cash on hand to pay for the job in full, you may not want to do so.

Why is this procedure so straightforward? Aside from the contract with your chosen roofing team to execute the work, there is no cumbersome paperwork or approval process to deal with. All required is a deposit, with the remaining cash being transferred once the roof has been installed.

Why do roofers require a deposit? Because deposits ensure that everyone is serious about the project and on the same page. Contractors risk purchasing roofing materials, spending time arranging, and then having the homeowner back out at the last minute if they don’t have a deposit. Though it isn’t widespread, it is a significant drain on resources for large and small contractors.

Credit Card

Is it possible to put the cost of a new roof on a credit card? Yes, to put it briefly.

Using a credit card to pay for your new roof can be advantageous if you have a card with high rewards and incentives, particularly cash-back offers. For example, a new credit card with 0% interest for 12 months allows you to place the entire project on the card and pay it off over the next year.

If you don’t have a “no interest” offer, high-interest rates are a major deterrent to using your credit card for roofing. However, if you have other financing options (such as a home equity loan), you’ll save more money over time than if you use a credit card with a higher interest rate.

Another downside of paying with a credit card is the processing fees levied by the roofing contractor when your payment is processed. These transaction fees can range from 3% to 5% depending on the card you’re using, which can add up quickly when you’re talking about a $10,000 purchase. As a result, practically all roofers who accept credit cards will pass these fees on to the buyer if they choose this method. However, if your credit card’s benefits and incentives are good enough, using a credit card to fund your roof or other large home repair job may still be the best option!

Personal Loan

Is it possible to get a personal loan for roofing, vinyl windows, or other home repair projects?

You may be eligible to use a personal loan to fund your roofing project, depending on loan approval variables that differ from lender to lender. A bank or financial institution, such as Bank of America, Chase Bank, Wells Fargo, or a local bank in your community, is the most typical funding source for a personal loan.

You’ll want to shop around if you go this way to save the most money in the long run. Different creditors will charge different interest rates and have different repayment terms, so think about which criteria are most essential to you before looking for a lender. When contemplating a personal loan, the loan period and interest rate are the two most important considerations.

Some loans, for example, may be for a short period (2-6 years), while others will be for a longer period (15 years or more). Interest rates might range from under 5% to over 20%, depending on your credit score, income, and the lender’s assessment of your trustworthiness.

Home Equity Loan

Small plastic house models on top of stacked coins represent a real estate mortgage concept.

According to the Federal Trade Commission, a home equity loan is a “loan for a specified amount of money that is secured by your home,” according to the Federal Trade Commission. These loans are repaid in the same way as a mortgage, with fixed payments over a predetermined time—for instance, $99 per month for ten years.

Home equity loans are a good option if you have equity in your home and want a non-variable and predictable payment schedule. Many homeowners prefer this loan since the interest rates are typically lower than personal loans or loans obtained through a roofing business. But, unfortunately, it won’t be all rainbows and sunshine. This kind of financing has several drawbacks.

The most significant disadvantage of a home equity loan is that the lender can foreclose on your home if you fail to make payments (or ‘default’ on loan). This is because your home serves as security for the loan. To qualify for a home equity loan, most lenders want excellent credit scores and consistent income. If this describes you, we recommend that you look into it.

Use this formula to determine your available equity if you want to quickly figure out how much money you might be able to get from a home equity loan:

Find out how much your house is worth right now.
Subtract the remaining balance on your mortgage.
Multiply the difference by.85 to get the total.

By law, you can only borrow 85 percent of your available home equity, so if your property is worth $400,000 and you owe $350,000, the remaining amount is $50,000. Now increase $50,000 by 0.85 (to achieve 85 percent), and you have $42,500 in potential home equity.

As you can see, the amount of money you could get through a home equity loan could be rather large. If you think this is an option for you, contact your bank or preferred lender to inquire about current interest rates and availability.

Insurance Coverage

An insurance claim is one of the toughest and most challenging ways to pay for a new roof.

It may be a little easier if the cause of the roof damage is evident. For example, consider what would happen if a tree fell through your roof. In this scenario, we urge that you do everything you can to ensure that your insurance company covers the cost of the repair or replacement. However, seeking aid from your homeowner’s insurance carrier in less obvious scenarios can be difficult.

Because most homeowner insurance policies do not cover regular “wear and tear” on any aspect of your home’s exterior, insurance claims for roofs that have gotten progressively worse over time become unattainable. In these circumstances, insurance companies (such as Geico, Allstate, or Metlife) will frequently refuse your claim due to the roof’s age or lack of upkeep.

If you believe you may be covered by insurance for your roofing project, we recommend speaking with your insurance agent directly to discuss a possible claim. Just keep in mind that if your case isn’t evident, you’ll most likely be denied.

Roof Company Financing

If you don’t have enough cash on hand to pay for the roof in full or any home equity to put toward a new flat roof, you may want to go with a licensed roofing contractor who offers to finance.

Because most homeowners prefer not to pay cash for major home improvements, certain established roofing businesses can assist by providing financing either directly or through a third-party financing vendor. Because most of the stages are completed in-house, this process can be significantly simpler and uncomplicated than home equity and personal loans.

Another advantage that most people overlook is that if a roofing business can assist you with financing, they are far more reputable than a firm that lacks these resources. It signifies they are in excellent standing with their lenders, and you may have more confidence in them to replace your roofing system properly!

Government Funded Home Improvement Loan

Do you want the US government to pay for your entire roof? It may sound like a pipe dream, but if you own a single-family house, you may be eligible for an FHA Title I Property Improvement Loan.

The Department of Housing and Urban Development offers these loans through pre-approved lenders, and there are a few requirements to complete to qualify. The property must be a single-family house or one of the other categories of properties that have been occupied for at least 90 days.

The loan must also “significantly safeguard or improve the fundamental livability or usability of the property,” as well as “be used in combination with a 203(k) Rehabilitation Mortgage,” according to HUD.

These loans have no prepayment penalties.

How Should I Pay For My New Roof?

It’s ultimately up to you to make a decision…

We recommend paying cash if you have enough funds in your bank account to pay for the job in full comfort. It’ll be the simplest method, and once completed, it’ll be completed.

If you have enough equity in your home and can get a home equity loan from a reputable lender, this is one of the most cost-effective solutions if you don’t mind using your property as collateral.

If neither of the options above suits you, talk to the roofing and siding contractor that offered you the best quote about financing directly with them.

Whichever option you choose, know that TCI Manhattan is here to assist you in completing the work and all your roofing needs. We are the best roofing company, and we have a lot of experience with homeowners who utilize any of the seven payment methods listed above. And we’d love to earn your business as well. So contact us today to get started on a free roofing estimate and roof inspection!