How to Finance Your New Roof if You Need a Total Tear-Off

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Finding the right roofing company becomes crucial if you plan to do a total tear-off and replacement. If you don’t know much about roofs, then you will probably need to get an experienced roofer to come take a look at your property. They can tell you whether they think some repairs will do the job or whether a total tear-off makes better financial sense.

Assuming you’re going with the total tear-off, that will probably come with a high price tag. A smaller home’s new roof might cost $15K. A larger home or one with a more elaborate roof might easily cost double that.

Many American homeowners don’t have that much money just sitting around. You will need to come up with a way to finance the project. Let’s take a moment to discuss some options if you’re facing this dilemma at the moment.

Pay for Some of the Project Upfront and the Rest in Installments

First, it makes sense to talk to the roofer who you have selected to do the job. You will want to hear the exact amount of money from them that you will need.

You may also get one or two additional quotes. You might have a couple of credible roofers, but one may give you a slightly more favorable price.

Assuming you’ve found your roofer and you know how much money they want for the total tear-off and replacement, you should next talk to them about financing. If you have very little money at the moment, then you might ask them how much they will accept as a down payment to start working.

If you have very little money to put down upfront, but they’re still willing to do the job, then you might set up a payment structure where you give them a set amount each month for the next year or couple of years. If you feel like you can stick to that schedule, then you might feel okay moving forward.

Do You Have Any Money in Savings?

If you have some money in savings, and you can pay for a decent amount of the total purchase price, like 50%, for instance, then maybe the roofer will feel okay moving forward with the project. It’s the same as buying a car. A dealership will usually feel secure when giving you a deal if you can put up a sizeable chunk of the total price at the time of the sale.

Normally, the more money you have that you can put down, the more likely the roofing company will let you pay the rest over the next few months, or even the next couple of years. If you have almost nothing to put down, then some roofing companies might not willingly move forward.

Can You Borrow Any Money from a Friend or Relative?

Perhaps you have very little money in savings, or none at all. You know that you need to do the total roof tear-off and replacement as quickly as possible, though. If you have some missing shingles and the roof leaks when it rains, then you need to try and take action as quickly as possible.

Maybe you can ask a friend or relative if you can borrow some money. However, only do this if you have that kind of relationship with the individual in question.

If you’re not careful, borrowing a friend’s cash can damage the relationship in the long term. If you can’t pay them back quickly, the money can become an uncomfortable topic of conversation between you two.

It’s the same with relatives. If you have a relative with money, and you ask them for help, maybe they are willing. Afterward, though, they may hold this debt over you. It can make things feel strained, so make sure you understand the ramifications before going down this path.

You Can Wait for a Windfall

You can also wait till you get a cash windfall if you feel like the roof can hold on for a little while longer. Maybe you can have a roofing company make some temporary repairs until such time as you can do the total tear-off and replacement that you know your roof needs.

You might always get a windfall at any time that you didn’t necessarily expect. For instance, you may win some money from a scratch-off lottery ticket or inherit some cash if a relative dies.

You can’t usually predict such windfalls, though. You’ll likely do better with a chunk of money that you expected, like an income tax refund.

If you know that you’ll have an income tax refund coming, and that you can use it as a down payment on the total tear-off, then that’s a plan that can work. Just make sure you have enough money to make the monthly payments on the rest of the project’s total cost if that’s the payment structure you and the roofing company set up.

You Might Approach a Lending Entity About a Home Improvement Loan

You have one more potential option. You might approach a lending entity and ask them if you can borrow the money via a home improvement loan.

If you do this, it’s best that you go through a credit union or a bank. You might borrow cash from less reputable sources, but that’s almost always a mistake. Some lenders have predatory practices, and you don’t want to get yourself into that type of situation.

If you’ve got at least decent credit, then a bank or credit union will probably lend you the money. Make sure that you set up favorable terms that you can live with, though.