October 14, 2022
How To Finance a New Roof in Miami & Fort Lauderdale
In a city like Miami, it’s important to ensure your roof is in great shape and can withstand any unpredictable weather South Florida might throw your way. When it comes time to invest in a roof replacement, it may seem like an overwhelming, daunting, and costly undertaking. The idea of paying for a new roof out of pocket is unrealistic for many homeowners since new roofs can cost tens of thousands of dollars, depending on size and other factors. That said, there are financing options that offer payment plans that are available for those who need a hand. Luckily, there are several places to turn to that can help you finance your new roof, which can ease any financial stress and uncertainty.
Benefits of Financing a Roof in South Florida
Roof financing is a great option for those in the market for a new roof without the ability to make this investment all at once. Borrowing the money you need to upgrade your roof can offer you the benefit of keeping more of your savings in the bank initially–with no down payment required. This enables homeowners to select better options and upgrades and increases budget flexibility for other projects.
Choosing to upgrade your home to increase energy efficiency or safety can result in monthly savings in energy or insurance costs that may help offset the monthly financing cost. The application process for roof financing is typically easy with fast approval, which will allow you to start the project right away while avoiding delays, inflation, and increasing interest rates. In some cases, you are able to group multiple home improvement projects under one loan.
Roof Financing Options We Offer
T&S Roofing Systems offers two financing options to make the process of buying a new roof in South Florida easier than ever.
Roof Financing Option #1: Non-Credit Based (PACE)
Property Assessed Clean Energy (PACE) is a way for qualified homeowners in subscribed communities to finance a variety of home improvements, including new roof financing. With PACE financing, homeowners can leverage their property’s equity to make improvements with zero initial costs.
PACE funding may not exceed 15% of the property’s value, while the total loan-to-value ratio of the PACE assessment and any outstanding balances on loans related to the property must not exceed 97%. To ensure a quality job, all products installed in a PACE-financed project must meet government efficiency or performance standards. Some benefits of the PACE program include:
Advantages of PACE Financing
- Easy to qualify – PACE eligibility is a lot easier than home equity loans, which are common options for homeowners. PACE loan assessments are based on property equity instead of credit score, employment history, monthly income, and debt, which makes it easier for homeowners to qualify.
- No down payment is necessary – PACE financing does not require an initial investment or upfront cost to start making home improvements. This means you can begin your project quickly without spending a large sum at once or having to move money around. The loan is repaid over 10 to 30 years through the annual property tax bill.
- The assessment may stay with the property – Homeowners may not be responsible for paying off the loan if they decide to move after making improvements. This will depend on the mortgage company of the buying party. For buyers who qualify, Instead, the loan stays with the property, so it can be transferred and paid off by the next owner. The property has also likely increased in value due to the improvements made and can potentially sell for more money.
- Interest payments may be tax deductible – Based on the specific home improvements made with PACE financing, homeowners may be eligible for energy tax credits and rebates. Pace funding also helps some property owners deduct payments from their income tax liability.
Disadvantages of PACE Financing
- Selling the property could be more challenging –While you might be able to ask for more money with your home’s improvements, there’s also a chance you could have trouble selling the property with additional property taxes attached.
- Some contractors recommend PACE to serve their own interests – It’s important you understand the details of what you are signing up for, such as the interest rate of the loan, project costs, fees, and payment terms. Be sure you have the income to cover the increase in property taxes. Some contractors may push for PACE financing to serve their own interest, without properly explaining the process or how the loan may be paid back, and it may not always be the best solution for the homeowner.
- Payments might be due in large chunks once or twice per year – Since property expenses are often paid only once or twice per year, you may be faced with larger payments to make at once. Even if you choose an extended repayment period, these payments can be a burden if you are not financially prepared for these payments.
- Interest rates are higher than traditional loans – In some cases, PACE financing interest rates can be higher than a home equity loan or line of credit. Whether or not you can get a better deal with other options depends on numerous factors, such as having good credit, but PACE financing is not necessarily a low cost.
PACE Programs in South Florida
FortiFi provides 100% financing services with zero money down. Eligibility criteria mainly depend on household income, home equity, and debt payment history instead of credit score–which means most properties can qualify. One of FortiFi’s main advantages is that they provide competitive, fixed rates with long repayment terms (up to 30 years depending on the useful life of the products installed and property location). They demand no payments for up to 17 months and offer financing as much as 20% of your property value. Additionally, FortiFi only works with carefully screened and experienced contractors. Interest on payments may be tax deductible. Consult your tax advisor to see if you qualify for potential tax benefits.
Renew Financial created PACE financing as a simple way for South Florida homeowners to finance the cost of energy and safety-related home improvements. With Renew Financial, you can receive $0 down financing for your property’s upgrades, which can be repaid on your property taxes over the course of 30 years for some projects. Financing with Renew Financial has no FICO requirements, which means your credit rating does not impact your ability to qualify. PACE is often approved in minutes and rates are always fixed, providing long-term peace of mind to homeowners.
Roof Financing Option #2: Credit Based
GreenSky, which was acquired by Goldman Sach in 2022, offers a low-interest, point-of-purchase loan for home improvement projects of up to $65,000. Its loans are funded by banks and offered to consumers through home improvement contractors and retailers who use GreenSky’s financing platform. GreenSky may offer 0% interest loans if the balance is repaid in full within the promotion period, which can be beneficial if you know that you can repay the balance in full. If you need more time longer to repay the loan, you might be offered a reduced-rate loan with a lower APR and repayments of up to 25 years. Whenever possible, applicants can be approved for additional credit. This helps homeowners go beyond the basic, insurable project, increasing both value and overall satisfaction.
There you have it. With multiple roof financing options throughout Miami, there’s no reason to delay your new roof. Convenient, affordable solutions across South Florida are just a phone call away.