Bad Credit Roof Financing: Making Roofing Loans Easier

Bad Credit Roof Financing

Bad credit roof financing has become a primary hurdle for homeowners in the roofing industry today. Our team here at American Standard Roofing advises prospective bad credit roof financing homeowners looking for roofing loans, to be extremely careful. Finding a professional roofer with great background, experience and reputation is essential. That said, when majority of roofing companies hear that you are looking for bad credit roof financing, they start using unsavory tricks. Multiple ‘plans’ suddenly start popping up for bad credit roof financing, along with options that sometimes homeowners do not need. Their salespeople try to force down more projects on you piggybacking on the bad credit roof financing and loan. Here at American Standard Roofing we think this is extremely unprofessional behavior. Our business philosophy is simple: the more aware customer is the better it is for everyone. That is why we have an article for you today that will discuss in-depth bad credit roof financing and loans for better homeowner awareness.

Bad credit roof financing shouldn’t be a hurdle for homeowners!

Bad Credit Roof Financing Hurdles

There has been a decline in some distasteful practices in financial sector over last few years. This has resulted in more cleansed environment in terms of greedy and wolfish common practices. However, unfortunately, the home improvement and roofing industry still have loopholes for bad credit roof financing that can hurt homeowners.

Discounted cash prices or bad credit roof financing?

Cash or financing

Homeowners need to understand is importance of quality products and service for the roof. This comes even before the bad credit roof financing loan. After you have decided on that, let the contractor know you are interested in financing. Any earlier and you risk being taken advantage of. This is because most roofing companies have a knack for selling things homeowners rarely need. One important thing to note here though is that usually contractors will provide a discounted cash price when you bring up bad credit roof financing. It is up to the homeowner to decide if that is a good option. In the end, the homeowners need to decide whether monthly payments (which usually come with added costs) is more feasible for their wallets, or a discounted total payment is the way to go. It all depends on individual circumstances.

Negotiate, negotiate, negotiate:

 

Negotiations

We cannot emphasize on this enough. The best way to negotiate your bad credit roof financing is by considering the total amount you are willing to pay. It is not by playing around with monthly payment amounts. Negotiate your bottom line. A common trick contractors use is throwing a low monthly payment at you. A low, fixed month payment is great. But is it great if you have to pay the amount for over a decade? Will it be okay if you miss a payment and the amount suddenly triples? Not so much. Negotiating terms before hand is also important because taking out bad credit roof financing loans comes with great responsibility. This also needs to be negotiated seriously because it comes with high chance of accumulating debt over a period of time as well. Not to mention the impact it will have on borrowers credit history.

Make your down payment after much consideration:

Think Before Making Downpayment

Homeowners need to pay special attention when making down payment for the bad credit roof financing loan. Do not let contractors change numbers mid way through the projects after you have made the down payment. A homeowner can get caught making a huge down payment and then having to pay more because original quoted amount gets changed because of ‘unforeseen circumstances’. Simply because customer has an open credit line does not give contractors the reason to charge more.

So what are some kinds of bad credit roof financing and loans?

Bad Credit Roof Financing Loans

Luckily, there is a wide variety of bad credit roof financing available. The best advice to look for such a loan is to check banks, credit unions and other lending institutions. Most of them are willing to work with bad credit. There are other options as well like personal loans, credit cards, and other lines of credit that we will discuss in detail underneath. Besides this, another option is to talk to your roofing professionals. If it is a reputable company, they should be able to offer bad credit roof financing with ease. Following are a few ways homeowners can look in getting loans:

  1. Professional Contractors: Your contractor might even be able to offer you financing. Many companies have relationships with lenders that allow them to apply for a loan for you, and the lender would pay the contractor directly. These types of loans are specific for construction, and often have 0% interest rates and other promotional specials. However, just like a credit card, if you miss a payment the interest rate will usually go up substantially, so make sure keep track of when payments are due.
  2. Federal Housing Administration (FHA) Title I: This loan can work for people looking for bad credit roof financing. If you are a home owner and you do not have a lot of equity built up, you can generally get qualified for this. It is very simple how this works. Any lending institution (such as bank or credit union) will provide loans from their funds and FHA will insure them against any loss they might take if borrower defaults. This loan can be taken to work on roof repairs, replacements and even some luxury item renovations. Here is a link to the program’s website for more information.
  3. Credit cards: These are a good mode of obtaining a loan, and their more feasible if their interest rates are low. Homeowners do need to have good to moderate credit to qualify for that, however, in most cases. Many customers with bad credit opt for applying for credit cards that have a security deposit with them and a lower credit line. These type of credit cards are easier to obtain when looking for bad credit roof financing. If you’re good with managing finances, this can work out well. Break up the cost in monthly payments and do not charge anything else to the card. An excellent tip from our experts here at American Standard Roofing.
  4. Equity Line of Credit (HELOC): This is another option customers can look into. Existing home owners can put their home as collateral for a loan and then use it for roof repairs/replacements. More information about HELOC can be found here. This type of line of credit is generally only used for large expenses. They can include medical bills and necessary home improvements. A good idea is to draw on this line of credit. Then finance a new roof with this credit, and pay it all off over time eliminating further need for search of roofing companies that finance. Home refinancing and home equity lines of credit are different in that you are putting up your home as collateral for the money they are loaning you. You should discuss with your banker what the best option is for your situation.
  5. Build Your Savings: Start saving! That is the best option among all other for bad credit roof financing. Start putting away a fixed amount today. This will gradually build up for that rainy day when you need a new roof.
  6. Grants: Finally, if you have tried looking into all other options for bad credit roof financing, and still come short, do not worry. Most areas in the US have allocated grants from the federal and state government. Homeowners will have to check with local building administrators and talk to community members check what is available. While they rarely cover whole amount of project, they can still cover a major chunk of costs without hurting the wallet.

Think quality of work, not just costs:

the right balance

Just like everything else in the world, the right balance is very important. While costs might be important, remember that a bad installation can come back and haunt you. There needs to be a good balance between the quality of work and products and the costs incurred by the homeowner. Sure bad credit roof financing is harder to get. But that doesn’t mean you should compromise on quality.

Other important questions to consider when considering taking out a loan:

  1. Another important thing to consider when working with bad credit roof financing is asking yourself if you really need the loan. Is it actually need or a want? Will you be able to survive without taking out this loan?
  2. Will the new roof or any other improvement being done from this loan actually increase your home’s value?
  3. At this time, when you are planning on taking out a loan and in need of bad credit roof financing, can you really afford the renovation? In case of roof, can you afford it in terms of monthly payments or discounted cash price?
  4. Finally, will there be any tax deductions you can claim at the end of the year? Are there any credits that you as a homeowner can earn due to taking out this loan?

Have you shopped around?

Compare Lenders

The above info-graphic is from Consumer Financial Protection Bureau. Most of the homeowners do not do necessary homework when it comes to taking out a loan. Keeping in mind the above types and conditions e mentioned, there are a variety of bad credit roofing loans out there with different interest rates. Our advice to homeowners is simple: get multiple quotes from several different contractors and lenders. You should get quotes from contractors before approaching lenders so that you’ll know how much you need to borrow. Our team also advises getting a minimum of at-least 3 quotes from different contractors.

One of the benefits for that is when you approach a lender to get a loan, they will have an easier time determining bad credit roof financing amount. This will also go on to show the lending institution that you are serious about the work that needs to be done. It will also go on to show that you have done your homework and have come to them for borrowing after due diligence. In addition, homeowners should also check with their local bank or credit union that they have an ongoing relationship with over the years. These lending institutions might be willing to work with homeowners they have known for a long period of time despite bad credit and other circumstances.

Getting more than 1 quote for the roof job also enables homeowners to find the best and the most cost effective plan tailored for them. This effectively will reduce the cost of the project and make the bad credit roof financing amount lower making it easier to get the loan.

So what should homeowners do? Go online, talk to people for referrals and do your homework when looking for contractors. There are many out there but you will have to differentiate the good ones from the bad ones. That is not an easy task in itself given the market saturation when it comes to roofing professionals.

A few things you should be looking for in contractors:

  1. Make sure contractors are licensed, bonded and insured.
  2. Make sure they offer full warranty of the product along with labor. Here at American Standard Roofing we offer 30 year product and labor warranty.
  3. Make sure the contractors are reputable. Go online and check their reviews. Customer satisfaction is key. Online reviews are an excellent way of judging how contractors treat their customers. Our reviews are best in the business.
  4. Talk to people in the community. Referrals are an excellent way of finding good contractors.

How does Credit Score Matter?

Good credit Infographic

Above is an excellent infographic from credit.org that shows what credit scores lending institutions consider when making decisions about bad credit roof financing. While not exact, it should give homeowners an idea of how interest rates vary as credit scores go up or down.

While it may look scary, but here at American standard Roofing, we work with multiple financial institutions who will work with you.

GIVE US A CALL TODAY!

We are Michigan’s #1 roofers. We have been in the roofing business for over 36 years and know what we’re doing. Over a period of time we have built relationships with a bunch of financial institutions. We will work with you and get you on your way to getting that new roof. Call us today at (248) 350-2323 or visit our website here.

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If You Need Help With Roof Loans For Bad Credit Look No Further

roof loans for bad credit    roof loans for bad creditRoof loans for bad credit

We help with roof loans for bad credit all the time!

Are you looking for roof loans for bad credit? Do you have the earning means but not the optimal credit? Look no further. Here at American Standard Roofing, we work with several lending institutions to help get you roof loans for bad credit.

A recent report by CNN money points out:

The U.S. economy grew 3.7% in the second quarter, a very big upward revision than the first official estimate, 2.3%, according to the Commerce Department’s measure of gross domestic product, the broadest measure of economic activity. Economists projected the new number to be 3.2%.

This positive growth in US economy is a welcome news in the roofing industry. It means financial institutions that lend money will be more willing to provide roof loans for bad credit.

Unfortunately, not every roofing contractor is willing to help homeowners with less than perfect credit history get roof loans for bad credit. Homeowners in Metro Detroit area have faced much hardship in the the recent past.They have been unable to keep up with their home, auto and other loan payments resulting in bad credit history. Not exactly a position to be stuck in when you are looking for roof loans for bad credit. Fear no more though. Our experts at American Standard Roofing advise that banks are now approving credit score as low as 400. They have also made a comprehensive list of recommendation when looking for roof loans for bad credit.

1. Simple Interest Loan:

When it comes to roof loans for bad credit, this is the go to loan you should look at. A homeowner can end up paying less in interest than a standard loan if he/she makes payments early. A potential drawback however can be that if payments are not timely, borrower ends up paying substantially more.

2. Prepayment Penalty:

Always make sure there is no prepayment penalty for the loan. This is useful because if the homeowner wants to pay his/her roof off early, there would be no penalty on that.

3. Fixed APR:

Our experts recommend going for fixed rate roof loans for bad credit, instead of a variable one. It provides ease of mind to borrower knowing that the rate is fixed for the duration of the term and will not go up after a certain time period.

4. Unsecured Loan:

By definition, an unsecured loan is given by keeping in view the borrower’s creditworthiness. This means no use of property as collateral. This is a much safer loan to get when searching for roof loans for bad credit. It also comes recommended from our team.

5. Shop Around for Best Options:

Make sure that when you are approved for the loan, you can shop around with different contractors, suppliers or manufactures. Sometimes loan approvals come with limited choices. This step will help ensure you can get the best deals out there.

6. Show Full Income:

Sometimes homeowners who apply for a loan fail to show complete annual income. Income includes not just your salary but any other sort of payment that might be included in your household. This can have a major impact on the result of loan approval.

7. Down Payment:

Sometimes making a down payment also helps. Lending institutions sometimes decide whether they want to give a loan based on down payment. Making a down payment shows positively when asking for roof loans for bad credit.

8. Co-signer:

While not the most ideal situation, most of the times people with bad credit need a cosigner. It helps tremendously if the cosigner and the borrower of the loan share the same house. It makes the decision easier for lending institutions.

We’re here to help!

Now that you know what to look for in a loan, you can apply directly through our website. We will find you the best roof loans for bad credit available. We’re Michigan’s #1 roofers. We have been in business for over 36 years. We know the right people who can get you financing. Call us today at (248) 350-2323. Or CLICK HERE. We’ll get you approved!

Simple Guide to Roofing Companies That Finance

project-finance

While there are many roofing companies that finance, homeowners need to do due diligence for best results. Looking for ways to pay for your new roof is no easy task. We have created a simple guide on roofing companies that finance after thorough research, weighing-in on options and different essential factors.

Why the Roof?

Roofs are an essential part of any building or house. They protect the inside of the building from natural elements such as all sorts of precipitation and extreme temperatures. Needless to say, without a roof, a building is incomplete. A perfect roof is even more important for your home. It improves the aesthetics as well as durability of the home. That is why paying special attention to roofing companies that finance is an essential ingredient of the entire mix. A new roof can be costly, tiresome and downright depressing to figure out small details. Details like how to pay for labor, products, services etc.

Fortunately for our readers, we have done most of the work for you guys. In today’s post, we will talk about different options for loans, rebates, and methods helpful to you. This will essentially cut your time in half when you are researching on roofing companies that finance.

Quick Glance at Roofing Companies That Finance:

Government Loans & Rebates

FHA Loan

A loan called Federal Housing Administration (FHA) Title I is available to US citizens looking for roofing companies that finance.This loan includes roof financing. Most property owners with limited home equity and good credit generally get qualified for this. How this works is very simple. A bank will or a qualified lender will provide these loans from their own funds and FHA insures them against any loss they might take. This can include roofs and even renovations to some luxury items like new patio, swimming pools, outside fireplaces etc. More information on roof financing can be obtained from the program’s website.

Energy Efficient Roofing

heat reflecting roofheat absorbing roof

For homeowners looking into energy efficient roofing solutions, we strongly recommend contacting Department of Energy. There are multiple rebates and tax credits available that can apply towards a new roof. We also highly recommend checking out Database of State Incentives for Renewable Energy. Their website can be accessed here. DSIRE has multiple incentives for making energy improvements to any home and also helps in financing. This can help in eliminating or short-listing the search for roofing companies that finance.

Credit Cards

Credit Cards

No interest credit cards are also a good way for your roof financing. Homeowners do need to have good credit to qualify for that however. An excellent tip from our experts here at American Standard Roofing is that homeowners should avoid charging anything else to this card. This will make the card roof specific eliminating need for further search of roofing companies that finance. Homeowners should break up the cost into twelve monthly payments. It is a great option for homeowners if they are organized and careful.

Home Equity Line of Credit

HELOC

Homeowners have another option as well. A line of credit that uses an owner’s home as a collateral. It is called Home Equity Line of Credit. The information brochure for HELOC can be accessed over here. This type of line of credit is generally only used for large expenses. They can include medical bills and necessary home improvements. A good idea is to draw on this line of credit. Then finance a new roof with this credit, and pay it all off over time eliminating further need for search of roofing companies that finance.

Savings

savings

The best option for getting your roof done, among all these roofing companies that finance, is drawing from your savings. Start putting away a fixed amount that you can spare, into your savings account. This is very important if you know that you will need a new roof in a few years. Even if homeowners are able to pay a quarter of the new roof’s price, it will make a world of difference on their wallets.

Final Thoughts

So there you have it. Having a new roof is not hard. It simply requires proper knowledge of roofing companies that finance. It also depends on available resources at hand. In addition it also requires considerable patience from the homeowners. For above mentioned or other ways of getting a loan, feel free to call us. We have been in the roofing business for over 36 years. We also know of multiple independent financing and loaning institutions as well that can help. Give us a call for any of your roofing needs. We’ll be happy to help.