Experiencing roof damage is something no one ever wants to deal with. Its structural integrity plays a major part in making your home comfortable and safe, and without that, your entire life can be flipped upside down. But if you don’t have homeowner’s insurance, the weight of roof damage is even greater. The thought of roof repair or replacement costs can be daunting when you’re not sure about the extent of the damage.
We won’t sugarcoat it—it’s no secret that homeowner’s insurance makes roof damage a lot less scary (albeit still a nuisance to deal with). However, it doesn’t mean that you have to live with a hole in your roof perpetually. Depending on your financial situation, there may be other options to finance your roof repair.
First Step: Get a Quote
It does no good to try to figure out how to finance something when you have no idea what the final cost will be. If you’ve experienced roof damage and you know that it’s going to need to be fixed, the best first step you can take is to contact your local roofing contractor and schedule an inspection. They’ll be able to take a comprehensive look at the type of damage you’re dealing with and tell you whether you need to repair or completely replace it. Plus, they can give you a detailed quote, so you know how much money you need to finance the repair or replacement process. This document will also work as verification for any lenders if you need to take out a loan during the process.
How to Finance Roof Repair or Replacement Without Homeowner’s Insurance: Your Options
Pay Cash
Perhaps the most obvious option in financing roof repair or replacement is to pay cash. This option is the cheapest and fastest, and it keeps you from having to pay in monthly installments, tying up your money each month.
If you don’t have money in a savings account that you can use but want to pay cash, consider selling something you own or taking on a side hustle for a little while to make money to pay for the roof. Your roofer should be able to give you an idea of whether it’s an urgent need; if you have some time to make the money before you spend it, you can avoid dealing with lenders altogether.
If you’re still not sold on paying cash, consider this: you don’t have to pay interest, which saves you money in the long run, and you also don’t have to worry about any eligibility requirements set forth by lenders.
One caveat to the cash option: estimates are not set-in-stone numbers. If you don’t have the ability to cover any surprise costs, it may be wise to finance the roof in another way.
Take Out a Personal Loan
While eligibility requirements vary from lender to lender, you can typically get a personal loan for just about anything. From major home repairs to purchasing home furniture, personal loans cover a wide spectrum of uses. Another bonus? Some lenders specialize in offering loans to individuals with poor credit, so that doesn’t need to stop you from qualifying for a loan.
Unfortunately, interest rates for personal loans tend to be pretty high (especially if you have poor credit). While you may be able to get the money quickly, you’ll be paying it off for quite a long time, and you’ll end up paying much more than the cost quoted to you. Lastly, personal loans can be difficult to secure if you already have a significant amount of debt, so keep that in mind as you weigh your options.
Use a Credit Card
A credit card can be a better option than a personal loan if you have good credit. While high interest rates can make some homeowners standoffish, utilizing introductory periods of a credit card can be beneficial. If you can find a credit card with a 0% APR introductory period, and you pay off the debt within that timeframe, you essentially get an interest-free loan to complete your repair. However, you need to be diligent about making payments to avoid getting hit hard when the introductory period is over.
Apply for a Home Equity Loan or HELOC
Home equity loans are popular for homeowners who want to avoid the high interest rates associated with personal loans and credit cards. These options essentially put your home up as collateral for the loan, and while this reduces your interest rate significantly, it also means that anything happens to cause you to default on the loan, you could potentially lose your house.
Point-of-Sale Financing
Some roofing contractors offer point-of-sale financing, meaning you may be able to qualify for a loan directly through their office. The convenience of this is extremely appealing, but you may get stuck with a higher interest rate than if you were to search for a loan on your own.
What Roof Financing Option is Right for You?
When deciding which financing option is the best for your situation, there are a number of factors to consider:
- Your credit score
- The amount of liquid assets you have at your disposal
- The time you have to do the repair
- Whether you have other debt
However, no matter which option you choose, it’s crucial that you do your due diligence comparing options. If you need to take out a loan, be sure to compare different lenders to get the best rate and lock in the option that gives you the best deal.
Your Indianapolis Roofing Expert
If you have recently experienced roof damage, contact Indy Roof & Restoration today to receive a free quote and expert advice. We specialize in making the roofing process easy and providing friendly guidance as you navigate a challenging season. We walk you through the roofing process from start to finish so you always know what’s going on and the next steps.
Questions? We’re here to help. Reach out to our team today to learn more about your options.
