Financing a Roof Replacement with Bad Credit

Written by Posted On Sunday, 25 February 2018 06:22

Your home needs a new roof, but paying for it is the last thing your bank account needs. Storms can leave your roof in pieces. It’s normal to see hail damage, missing shingles, and water leaks, but paying for a new roof after a storm can be difficult.

Undoubtedly, it’s always the best idea to pay cash for new roofing. But sometimes, your bank account is not in tandem with your new roofing desire and your roofing project just can’t be put on hold. A seemingly minor roof problem like a lifted shingle or faulty flashing becomes a major issue that requires an emergency roof replacement.

How can I finance a roof replacement with bad credit?

In case you are replacing your roof because it’s nearing the end of its natural lifespan but it hasn’t shown any signs of structural damage, it’s best to draw up a budget to put aside cash for the work.

However, in situations whereby waiting is not an option for the new roof replacement, you’ll need a roofing loan, either in the form of a zero-equity personal home improvement loan or a home improvement credit card, each of which has its own advantages and disadvantages depending on the cost of the project and your financial situation. In this post however, our focus will be on the zero-equity personal home improvement loan.

Personal Roofing Loans for Bad Credit

Personal loans are also known as zero-equity home improvement loans. They are considered the best for major roofing projects when you need more than $1,000 or $2,000 to complete the work. If you’re looking at a complete roof replacement, which can cost as much as $10,000 or more, this may be the better option.

Using the personal loan option for getting your roofing done comes with a lot of advantages which you might want to consider, however, this is not to say that is doesn’t have its own Cons and disadvantages too.

Advantages

One of the advantages is the fact that is Fixed and predictable; predictable monthly payments help you budget responsibly for your roof repair or replacement project. With this, you can budget for your roofing replacements and still get other things done.

Also, terms of between 3 and 7 years can help you get lower monthly payments to fit your budget; the fact that it can be spread over period up to 7 years is an added advantage which can allow you to make monthly savings/payments without difficulty.

In addition, the process can be done online without any hassle. An easy online application and approval process lets you see your options quickly, usually in less than 24 hours. It also has a fast funding feature(generally 1 to 10 days) which means you can get your roofing work done right away.

Lastly, no hidden fees; you pay a single loan origination fee when your loan is approved and there is no prepayment penalty if you want to pay your loan off early.

Disadvantages

As earlier mentioned, with the above good features of getting a personal roof loan, this is not to say that it doesn’t have some noticeable disadvantages too and they include:

Credit score barrier; most lenders look for a credit score of 640 or higher in order to qualify, although there are some lenders who may offer personal home improvement loans if your credit is above 580.

Similarly, interest rates on roofing loans for bad credit will be higher, in some cases significantly higher than loans for homeowners with good credit.

Conclusion

All said and done, the valid point in essence still remains that you don’t have to ignore a major roof repair issue just because your credit is below average. Getting a financial assistance for your new roof replacement can help you stay warm and dry with your family.

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