How to pay for a new roof with no money down in Maryland

by | May 2, 2020 | Roofing | 0 comments

We understand the struggle that many Maryland homeowners have to pay for the home improvement tasks they need, especially when they lack adequate funding. If you’ve got a roof that’s falling apart, you often can’t put it off until you’re able to save up enough money for the job. The good news is that there are several ways you can pay for a new roof with no money down. We’ll go over the top three avenues for paying for a new roof, as well as how we here at American Choice Exteriors work with homeowners to help them finance.

a close up of a desk which has a clipbaord, a pen, a calculator, and a model house

Insurance

How do I get insurance to pay for a new roof?

In order to get insurance to pay for your new roof, you first need to know what your coverage is. If you have a policy that covers roof damage, the amount of money insurance will pay you will depend on what your coverage limits and deductible are. Most policies either cover the repair or the replacement of your roof.  Replacement policies are more expensive, but they will make your roof good as new. Repair policies, on the other hand, factor in the depreciation of your roof, providing you with a percentage of the replacement cost.

If you are covered, you will need to file a claim within 30-60 days depending on your insurance. Instead of having your roof inspected by your insurance company, you should have the roof independently inspected by your roofing contractor. After all, it’s the job of an insurance company representative to provide you with the least amount of coverage possible. At American Choice Exteriors, we work directly with insurance adjustors to ensure you get the best deal possible. Our experience dealing with insurance claims puts us in the best position possible to advocate for you with your insurance company.

Does homeowners insurance pay for roof replacement?

Most homeowners policies in the state of Maryland cover sudden and accidental roof damage, such as from a fire or a snowstorm. However, they usually don’t cover damage caused by specific natural disasters such as earthquakes or floods. They also don’t usually pay for damage caused by wear and tear over time. If your roof was already deteriorating before it gets damaged by something that insurance does cover, then it may not pay you for the total cost of repairs.

If only part of your roof is damaged, homeowners insurance may only pay for the damaged part to be repaired. If your roof is over 20 years old, you may also have limited coverage (if any at all). When you go through insurance, the best way to ensure that your claim is approved is to document everything. Maintain a thorough record of any repairs done, inspection reports, and detailed before-and-after photos.

the rooftop of a house in Maryland from a drone

Financing

What is the best way to finance a roof?

The best way to finance a roof is to pay for it yourself in cash. Many people cannot afford to do so, but it will put you in the least amount of debt and prevent your insurance from possibly booting you from the policy. Therefore, if you have the cash to replace your roof yourself, you should do so. Barring that, the first thing you should do to finance a new roof is to see what, if anything, insurance will pay for it. If your policy covers part of the cost of your new roof, paying for the rest of it will be much easier. 

Next, you may want to look at contractor financing. Many contractors offer attractive financial packages with special incentives that help their customers finance repairs, and American Choice Exteriors is no different. We work with the bank, which provides us with special rates that we pass along to you to help you pay for your new roof.

How can I pay for my roof with no money?

If you’ve got a shortage of cash, there are a few options for paying for your new roof. A Federal Housing Administration (FHA) Title I loan is a fixed-rate loan insured by the government. These loans are meant to help homeowners pay for improvements that make the home more livable, and roof replacements often fall into this category. Qualifications for an FHA Title I loan include a debt-to-income ratio of under 45%. Any loans over $7,500 must be secured by your mortgage or deed of trust.

You can also take out a personal loan to pay for your new roof, although this will have the highest interest rate of any loan, as a personal loan is unsecured. Good credit is essential to receiving a lower interest rate.  A personal loan will give you the money all at once to be paid back in fixed monthly installments. The worst option to pay for a new roof is to do so with a credit card. This will come with the highest interest rates of any option, so it should only be considered if your cost of replacement is quite low.

the corner of a home equity loan application with a pen

Home Equity Loan

Is a home equity loan a good idea for home repairs?

A home equity loan is a popular source of money for home repairs. It’s a loan for a fixed amount of money that you repay in monthly payments over a fixed term. Because a home equity loan is secured by your home, your lender can potentially foreclose on your home if you don’t stick to the payment plan.

You can borrow up to 85% of your home’s equity with this type of loan. However, the amount of money you can get will also depend on factors such as your credit history and income. The higher your credit score, the lower interest rate you will receive. Be careful when choosing a lender for a home equity loan, however, as certain lenders may take advantage of homeowners with poor credit or low income.

Can I pay for my new roof using a home equity loan?

The good news about a home equity loan is that, while 43% of home equity funds are used for home improvement, you can use them for pretty much whatever you want. Whether you need funds for retirement, investing, or paying for a new roof, you can take advantage of the lower interest rates provided by a home equity loan.

If you’re approved for a home equity loan, you’ll get the money in one lump sum that you can use to pay for your new roof. If you have other home improvements you’d like to make alongside a new roof, a home equity loan is an excellent way to pay for it. Not only does it come with lower interest rates than a personal loan or credit card, but its interest rates are fixed. This means that even if interest rates go up, you won’t have to pay higher interest.

Whether you work with one of our insurance adjustors or take advantage of our financing options, we here at American Choice Exteriors are here to work with you to help give you the new roof you need. Money should never be an obstacle when performing vital home improvement tasks that improve the safety and the livability of your home. As a Maryland residential and commercial roofing company, it is our job to provide you with the roofing services you need at an affordable cost.