Roof Financing in Miami has become more common as homeowners wrestle with the reality that their roof will eventually need to be replaced and how to pay for it. Some folks just don’t have that kind of money laying around and for many others it’s a big chunk of their savings. Those fortunate enough to have an investment portfolio may rather have that money stay right there and earn enough to basically break even on the interest of the loan. Smart . . .
There are financing options out there that offer plans for those who really need it or just want to hold on to their money. Roof financing allows you to replace the roof right away, locking in a price and interest rate while avoiding further damage.
Roof Financing Options We Recommend
Roofer Mike Inc recommends three roof financing options for Miami homeowners to consider. We have always told homeowners that their own bank is probably going to offer better rates and terms than other lenders. This is still our best advice and Option 1. But the reality is, without getting into it further, that’s not always an option.
Here are two more to consider.
Option 2: PACE Programs
PACE Programs (Property Assessed Clean Energy) allow homeowners to finance by using their property’s equity to secure the loan. Qualifying for PACE is generally easier than typical home equity loans. If the homeowner is up to date on their mortgage payments and property taxes they will usually qualify. There is no down payment required. Payments are made over a 10 – 30 year period with a yearly lump sum amount attached to their property tax bill. All this means that work can start almost immediately with no payments for several months.
That’s the upside. There are some drawbacks. The loan is attached to the property, not the owner. This obviously create issues if the owner decides to sell. The buyer may agree to take over the payments of the loan after some negotiation.
Pace interest rates are generally higher than with conventional loans such as home equity loans or a line of credit. Whether or not you can get a better deal with the other options depends on several things like income and credit score.
PACE financing is not usually the lowest in overall cost and it’s not for everyone. It is convenient with easy qualifying and terms but it’s important to understand what you are getting into. It’s usually a one-time payment every year, but it’s a pretty big one. Plan for it to make sure the funds are there to make that payment.
RenewPACE is property-based financing, so credit score is not a factor. Requirements include having enough home equity to cover the project and meeting their underwriting criteria. No application fee and they can provide same-day approvals with a list of approved contractors to choose from.
The financed amount is repaid over time, as long as 20 years, through property taxes. There are no interest rate adjustments, balloon payments, or prepayment penalties. RenewPACE financing can be used for a variety of projects including solar panel installation, window and door replacements, HVAC, and roofing.
Option 3: Credit Based
GreenSky , Hearth and others offer credit based financing for a wide range of home improvement projects. and are an option for those who want to make monthly payments. Interest rates depend on the customer’s credit rating .
There are several other roof financing options for Miami Dade homeowners to choose from but these are a couple we know and trust.