A Guide to Financing Your Home Exterior Project

Happy family sitting with accountant talking about budget

Can I Finance a New Roof or New Siding?

You need a new roof. If you have begun your research you have found out a new roof is expensive. In fact, you have probably figured out a new roof can cost as much or more than a new kitchen or bathroom.

The good news is, most local roofers offer payment plans to help offset the entire cost. Roofers who finance typically offer payment plans at a low monthly payment but what are the real cost and pitfalls?

What should I do to prepare for roof financing?

Everything in your home is under your roof. As you are doing your research you have probably found out it’s not only an expensive endeavor, it’s stressful to choose from all of the differing roofing manufacturers, their products, warranties and then who will install the product and their labor warranties. It’s a lot to educate yourself on.

The good news is almost all established roofing companies offer payment financing options. A roofing company that offers financing is important criteria but should be the last factor in choosing which company to oversee and install your new roof.

A new residential roof will last 20 years or much more depending on the product you chose for your home. It’s a decision you can not undo once the new roof is installed.

Let’s assume you have done your homework and the roofer you choose has many online reviews, the proper insurance, references, and has been in business for many years.

Next, you have chosen which manufacturer, warranty, style of roofing, and reviewed all of the options available for your home. Your roofer has presented you with the final cost for your new roof. Now it’s time for the financing options.

How does a roofing and siding company offer financing?

Roofing companies with payment plans do not offer financing themselves. Instead, and this is a good thing, they will use a third party vendor. A reputable financing company will have made the roofing company qualify to offer its financing.

The qualifications that have to be met are different per financing company but usually focus on the total number of years the roofing company has been in business, the number of clients installed per year, the types of roofing being installed, a reference from the roofing companies material supplier, and the ratio of completed jobs vs client complaints.

What is the process to get qualified for financing?

In today’s digital world, qualifying for roof or siding financing only takes a few minutes. Your local roofer should either offer you a phone number to call or a third party secure website to fill in some basic information. What you do not want to do is give your personal information to the roofing representative. Only the financing company will need your most personal information.

Typically you will only need to supply your name, address, phone number, email address, social security number, and employer information. Once this information is given to the third party vendor your wait time is less than 5 minutes.

How many months can I finance my new roof?

Once you have given your information over the phone or via a website the financing company will provide you with your options to finance. It’s important that you review all of your payment options and the total amount of interest you will pay over the term of the financing.

Financing companies typically offer 6 months no interest payment plans and up to 10 years payment plans.

A low monthly payment is usually the worst long term option. Every additional year you finance your roof you pay additional interest. When you add up the difference between a 5 year payoff plan and a 10 year payment plan you could be paying twice as much for the roof with the additional interest.

What is my monthly payment going to be?

Your monthly payment will be determined by the total amount loaned to you and the number of years that you finance your new roof.

Let’s assume you want to have the lowest possible payment. If a new roof will last 20 years, a 10 year payment plan means the roof will be paid off with at least 10 more years of life in it.

For our example, we will use a standard 2 story home in Saint Louis Missouri. The cost to remove the existing roof, install drip edge, starter strip on all eaves and rakes, synthetic felt, cap nails, ice and water shield around all penetrations, lead boots on your pipes, a big 3 architectural shingle (Owens Corning, GAF or Certainteed) with a single chimney flashing will cost $14,500.00.

As a rule to finance your new roof over a 10 year period you would use $72.00 per $5,000.00 borrowed as a monthly payment.  $14,500 / $5,000 = 2.9.

2.9 x $72.00 = $208.80 monthly payment. $208.80 x 120 payments is $25,056.00. Your roof cost is $14,500 which means you paid $10,556.00 in interest.

How can I use the roofers financing as a quick fix and get a lower rate through my bank?

Why you need a new roof determines how much time you have to research your roofing and payment options. There are many scenarios that require you to put on a new roof much faster than your bank or mortgage company can pull the financing together.

Most roofing financing companies do not charge a penalty for early payoff. If you find yourself in a position that requires a new roof, obtaining quick roof financing through a local roofer will allow you to make low monthly payments while your banking institution finalizes their paperwork. When the paperwork is completed you simply pay off the local roofer payment plan with your low-interest rate loan.