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June 4, 2024

Can You Finance a New Roof?

Replacing a roof can be a significant financial undertaking, and many homeowners ask, Can you finance a new roof? In this blog post, we’ll explore factors to consider when replacing your roof and financing options available to homeowners looking to invest in a new roof.

Your roof is one of the most important structural elements of your home. It is one of the first characteristics that any Realtor® or appraiser considers when evaluating your property. From a street view, your roof is one of the most visible signs that your home is safe, well-maintained, and desirable. A good asphalt shingle roof can typically last anywhere between 25 to 35 years! However, significant or widespread damage may indicate that it’s time for a new one.

Repair vs. Replacement

Repairs or partial replacement may be an option if the damage to your roof is limited to one area. There are a few instances when partial roof replacement would be preferred such as when a limited roof area is damaged in a storm, or when one small area has a few failing shingles. For these kinds of small repairs or roof maintenance, homeowners should not need to replace the entire roof.

Most roofing contractors do not recommend short-term repairs when a roof has significant issues. Due to varying prices in labor and materials and changing economic conditions, replacing a roof in phases will cost homeowners more in the long run. There are safety and cosmetic reasons for replacing an entire roof. For example, if there are skylights in various parts of the roof, a partial repair may result in more leaks if the repair is not uniform across the entire roof. 

Additionally, if you have a shingle roof, phased repairs may result in mismatched and unaligned shingles which will decrease the integrity of the roof as well as the overall curb appeal and value of your home. 

Signs Your Roof Needs to be Replaced

Aged roofs, roofs with structural damage, and roofs that no longer meet building codes require total roof replacement. Here are some things to consider:

  • Is your roof more than 10 years old?
  • Does your roof show dangerous conditions or continuing damage such as exposed underlayment or water damage underneath the moisture barrier?
  • Is structural failure apparent?
  • Do you want to add green components and energy-efficient features?

Another important consideration is whether you plan on selling your home within the next few years. There are many benefits to replacing your roof before you sell:

  • A lifetime warranty to transfer with the sale of your home. 
  • Pass real estate inspections more smoothly.
  • Add value with lower homeowner insurance premiums.
  • Any needed repairs conducted by your roof contractor under its warranty. Additionally, the best roofing contractors use the best materials backed by their warranties, such as shingle manufacturers’ Golden Pledge, 3-Star GAF, and CertainTeed’s 30-year+ warranty.

If you answered “yes” to any of the above questions, then a roof replacement is the best choice for the appearance, structural integrity, and longevity of the home. 

What Goes into the Cost of a New Roof?

It’s essential to understand the potential costs associated with a roof replacement. The average cost of a new roof in the United States is about $5,000, with prices ranging from $10,000 to $20,000 depending on the roof size and pitch, roofing material, location, and more. Several factors influence the cost of financing a new roof, including the size of your home. Roof financing costs generally are based on home square footage and run between $4 and $40 per square foot, a figure which typically includes both labor and materials. In Southeastern Pennsylvania, where our company is located, the average roof installation for a median home is between $10,000 and $18,000.

Roofing Materials

Approximately half of the costs of total roof replacement go toward materials such as shingles, shakes, and tiles, as well as the underlayment and insulation, flashing, roof ridges and vents, and building supplies such as nails, tools, ladders, and other related equipment. Choosing the correct roofing material for your local climate, the weight-bearing capacity of your roof, as well as your budget is critical. Here are a few roofing material options to familiarize yourself with:

    • Asphalt shingles: Asphalt roof shingles are the most popular choice of roofing material in the Northeast due to ease of installation, clean look, reasonable cost, and low maintenance. Be sure to look for roofing contractors who are certified GAF Master Elite contractors or a CertainTeed Master Shingle Applicator
    • Cedar shingles: With excellent insulation, a low shrinkage rate, and natural preservatives that resist UV rays, moisture, and insects, cedar is one of the most stylish roof choices. Cedar has a classic honey-and-cinnamon hue and is available in several styles including hand-split shakes, taper-sawn shakes, and shingles. Cedar also is a renewable resource and long-lasting. When selecting a roofing contractor for your cedar project look for Cedar Shake and Shingle Bureau (CSSB) approved installers. 
    • Metal: Used for centuries to preserve some of the oldest structures in the country, metal is a traditional roofing material that includes tin, copper, and lead-coated copper. More recently, pre-finished metal roof materials have become popular, in part due to the lack of maintenance required as well as the numerous color choices and designs available. A new metal roof may be the best choice for lasting beauty, durability, and longevity.
    • Solar shingles: GAF Timberline Solar is a solar shingle roofing system designed to produce clean energy while protecting your home. These kinds of solar roofs offer many benefits including reduced energy costs and, in some cases, government incentives through tax credits and subsidized loan programs. 
    • Slate: Slate roofs are beautiful and can last a century. Keep in mind that they require very experienced installers and excellent slate materials, which can be expensive. 

Roofing Labor

As much as half of a new roof’s price is related to labor and the extent of the damage or wear and tear on the existing roof which is why choosing a roofing contractor with specific experience in roof replacements is very important. Experienced roofers can help you choose the roof that’s best for your home and provide a realistic estimate for the total cost. If you have a newer home and can provide the original blueprints, your contractor’s estimate will be more accurate.  

While some homeowners who are fans of HGTV may think they can save money on demolition by doing it themselves, they are usually wrong. For safety reasons alone, it likely is wiser to let the professionals remove your old roof first. Tearing off shingles costs $1 to $3 per square foot on average; removing heavier materials such as slate or tile costs $2 to $5 per square foot on average. Most roofing contractors will include hauling fees as well, but again, you won’t be saving much by doing it yourself and it is safer to have a roofing professional do the job. 

Can you finance a new roof?

Homeowners have many options for financing a new roof. For example, at Eiseman, we provide these financing opportunities through Wells Fargo. Here are some other commonly available financing options:

Homeowners’ Insurance Coverage

Insurance coverage can be a tricky concept for homeowners unfamiliar with how their policies work, which includes many of us. Most homeowners’ insurance policies cover roof replacement if the damage is the result of an act of nature or a sudden accidental event, or the result of a covered peril, such as hailstorms, fire, or other natural disasters. These are “occurrences” that happened outside of your control, that damaged your roof. If you are lucky enough to fall into this category, your insurance likely will cover the cost of roof repair or replacement with payment of the homeowner’s deductible. 

However, most homeowners’ insurance policies won’t pay to replace or repair a roof that has gradually deteriorated due to age, normal wear and tear, or lack of maintenance. Review your insurance policy and consult with your insurance provider to determine whether your roof replacement qualifies for coverage. Keep in mind that some policies have limitations or exclusions, so it’s crucial to understand the terms and conditions.

Government Assistance Programs

Several government programs aim to assist homeowners with major home repairs, including roof replacements. One drawback is that many government assistance programs do not allow partial roof replacement, which could void your existing roof warranty. Depending on your location and financial circumstances, you may qualify for grants or low-interest loans. Additionally, assistance or tax credits may be available to replace your roof with solar or a green roof. Check with local housing authorities and visit your local government websites to explore assistance programs near you. These initiatives often are designed to promote energy efficiency and environmental sustainability, so keep an eye out for green roofing options or solar shingles that may increase your eligibility.

Home Equity Loans

For homeowners with substantial equity in their homes, a home equity loan can be a viable option for financing a new roof. Home equity loans allow you to borrow against the value of your home, using it as collateral. The interest rates are typically lower than unsecured loans, and the repayment terms often are more flexible. 

Home Equity Lines of Credit (HELOC)

A HELOC is a roof replacement financing option that leverages your home’s equity. Unlike a traditional home equity loan, a HELOC operates more like a credit card, allowing you to borrow as much or as little as you need within a specified credit limit. Interest rates on HELOCs often are variable, so it’s essential to carefully evaluate the terms and conditions and be prepared for potential interest fluctuations that could affect your monthly payments.

Financing A New Roof Through Your Roofing Contractor

Many roofing contractors offer financing options that can help homeowners finance a new roof. Vendor financing plans often come with competitive interest rates and flexible terms. For example, our company has a wonderful partnership with Wells Fargo that offers a variety of favorable terms to many of our customers. As with any loan terms, carefully review the financing terms and compare them with other financing alternatives. Ensure that you understand all fees, interest rates, and repayment conditions.

Homeownership is the primary way American families build generational wealth and achieve financial stability. Ensuring that your roof remains in top-notch condition is a crucial aspect of maintaining the structural integrity of your home.

Investing in a new roof has never been easier. While it may seem overwhelming, with so many great options to consider from insurance coverage to government assistance programs, to vendor financing, the answer to “can you finance a new roof?” is yes. Cost should not be the barrier to getting the work done. 

Carefully evaluate your financial situation, explore the various options, and choose the one that aligns with your needs and long-term financial goals. By taking a proactive approach to financing your new roof, you can ensure that your home remains a secure and comfortable haven for years to come.