If the roof of a house is leaking, this can have dramatic consequences. Because not only moisture can penetrate at the leaks. Bugs and, above all, mold can also be difficult for the homeowner. It is therefore important to repair or replace a defective roof as soon as possible in order to avoid greater damage and the associated follow-up costs.
But renovating or renewing a roof is not as simple as it may sound. Above all, not when you consider the costs involved. If only a few bricks need to be replaced, these may be limited. If, on the other hand, the roof has to be completely covered or the roof truss has to be repaired or renewed, many thousands of USD are raised, which must first be earned in order to be able to be spent.
In most cases, homeowners are looking for a loan for a new roof, since hardly anyone has saved the money needed. And even if it were there, it makes more sense, especially in times of very low interest rates, not to spend all the savings on a new roof, but to keep it as nest egg and to take out a loan for the exchange or repair.
Where can I get a loan for a new roof?
You have two options to take out a loan for a new roof. A renovation loan, which is earmarked like a real estate loan and is only recommended for work on a property, is best recommended.
This loan option is particularly advantageous if you cannot provide large collateral for the loan. With a renovation loan, the house is considered a security on which you want to renew the roof. The bank would then be entered in the land register and would remain in the land charge until you had paid back the loan in full. If this is not successful, the bank can seize and sell the house. However, only if you are the sole owner of the house and there is no further mortgage.
The second option is the traditional installment loan. Unlike the renovation loan, the installment loan is not earmarked. The bank therefore does not have to learn that the loan is being taken out for a new roof. This means that the bank does not enter the land register and you are not liable for the loan with your house.
However, you must then be able to provide sufficient other collateral. For example in the form of a very good income, an excellent private credit checker and a very steady employment relationship. If the amount of the loan is higher, the bank can also request a guarantor and will recommend residual debt insurance or risk life insurance.
What needs to be considered when taking out a loan for a new roof?
Before you start looking for a loan for a new roof, you should get a quote for the new roof from a roofer and possible other trades who will be involved in the new roof. On the one hand, a suitable loan can be found more quickly with the help of the cost estimate. On the other hand, you can use it to apply for funding that can be made available to you at very good conditions.
However, you have to meet certain requirements for the funding. It is not only necessary to have the quotations already mentioned. These must also come from local craft companies, which then also carry out the work. You are therefore not allowed to cover your roof yourself. On top of that, it has to be companies that write ordinary invoices and are registered with the tax office. All grants must have been applied for and approved before starting work. They will be approved if the new roof can improve the energy efficiency of the house. The funds can be applied for from any bank or savings bank. In most cases you will then come from Cream bank.