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If you have some minor roof repairs which need to be done, that probably won’t be a significant hit on your budget. However, if it turns out that you need a complete roof replacement, that may prove to be something that you just can’t fit into a tight budget. Fortunately, there are some options available to you that will help you acquire the roof you need without producing a lump sum payment. Here are some ways you can spread payments out over a period of time to make them more manageable.

Contractor Financing

Many contractors provide financing options, making it possible for homeowners to purchase the exact type of roof they really want. While most contractors will accept credit cards, some also offer loan options to make it easier on your budget. That means before you choose a contractor, you may want to find out if they do provide any such loan options. In some cases, you will be able to complete a loan application online, so you’ll already know whether or not it’s possible to acquire your desired roof using a specific contractor.

Home Equity Loan

You may be able to borrow money against the equity in your home to acquire the cash needed for your roof replacement. You should be careful when taking this step because if you default on the loan, you may end up losing the home entirely. To qualify for a home equity loan, you’ll generally need to have a debt-to-income ratio that is under 50%, a decent credit score, and somewhere between 15% and 20% in home equity. It will generally take a couple of weeks to apply for and be approved for a home equity loan, so plan accordingly when you’re considering ways to generate cash.

Credit Card

It might be advantageous for you to use your credit card, assuming that you have enough balance available to cover your roof replacement deductible. Using your credit card, you may be able to earn rewards while also managing the roof replacement payments. Ideally, you should use a credit card with a 0% introductory rate to avoid having to pay interest. Keep in mind that introductory rates are generally only good up to 18 months, so you’ll need to pay off your replacement cost by then.

Personal Loans

If you have a good credit score and a low amount of debt, you may be able to secure a personal loan to cover the cost of your roof replacement. It may be necessary to provide collateral to secure your loan, and in some cases, a bank may want to use your home as collateral. Be aware that personal loans often carry higher interest rates than other kinds of financing options, so you may end up paying more for the privilege of securing a personal loan.

VA Loans

Veterans are entitled to various types of loans from the Department of Veterans Affairs to purchase a home or make repairs on a primary residence. If you can secure a VA loan, you’ll probably have a low interest rate, and you won’t have to be concerned about loan limits. For the most part, VA loans are easy to qualify for, and they don’t usually require any down payment. All you’ll need is a Certificate of Eligibility, which you will have earned with your honorable discharge from the service.

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