My insurance company says I need a new roof. How do I pay for it?

What has to be true

For a home equity line: equity in the home and income that carries the new payment. The line sits behind your first mortgage, which stays exactly as it is, and you draw what the job costs when it costs it.

For a renovation loan: a written scope and bid from a contractor, and a project the program accepts. I place renovation loans, including FHA 203(k) and Fannie Mae HomeStyle, and each has its own rules about the work and the contractor.

A clear picture of the job. The insurer’s letter, the inspection report if there is one, and the contractor’s estimate are the three documents that make the first conversation useful.

What the lender checks

Your credit, your income and the equity in the home, the way any loan does.

Homeowners insurance on the home. Every mortgage lender requires it, so where your policy stands matters to the order of steps. Tell me exactly what the insurer said and by when; I do not give insurance advice, but I will tell you what the lender will need to see. If your home is on the California FAIR Plan, the page on getting a HELOC with California FAIR Plan insurance covers that case.

On a renovation loan, the work itself: the scope, the bid, the contractor’s standing, and, on some programs, inspections as the job progresses.

Limits

No rate, fee, payment or loan size is stated on this page. Those come from the program you qualify for, in writing, before you sign.

No timing is promised. The insurer’s deadline is theirs, and I will not tell you a loan will close before it. What I can do is start the day you text and tell you what is realistic.

A loan is a loan. A roof that keeps you insured is a good reason to borrow; borrowing more than the job needs is not. The home improvements page shows how a line matches a project paid in stages.

A sewer line that has to be replaced

Yes, a home equity line or a renovation loan can pay for it, and I arrange both. A sewer line is usually one bid and one job, so a line on the home handles it without touching your first mortgage, and you draw what the contractor bills.

Bring the plumber’s camera report or estimate. The lender reads the job the way it reads any other: what it costs, who is doing it, and whether your equity and income carry the loan. No cost figure appears on this page.

A foundation repair

Yes, a home equity line or a renovation loan can pay for it, and I arrange both. Foundation work often bills in stages, and a line lets you draw as each stage is billed. When the job is large relative to the home’s equity, a renovation loan built around the work itself can fit better.

Bring the engineer’s report and the contractor’s scope. A lender may ask for both on a structural job, and having them ready is what keeps the file moving. Eligibility depends on the property, your credit and your income.

Termite or dry-rot damage

Yes, a home equity line or a renovation loan can pay for it, and I arrange both. Termite and dry-rot repairs are usually found by an inspection and priced in one report, and a line covers them the way it covers a roof. If the damage is extensive enough that the home needs the repairs to be habitable or insurable, a renovation loan may be the better fit, and the program will want the inspection and the bid.

I give no insurance advice. Ask your insurer or agent what your policy covers; whatever it does not pay is what these loans are for.

Roof, foundation, sewer: which loan fits which job

A roof or a sewer line is usually one bid and one job, and a home equity line handles it without touching your first mortgage. A foundation repair can be one bid or several stages, and a line lets you draw as each stage is billed.

A renovation loan fits when the job is large relative to the home’s equity, when the program can count the value the work adds, or when you are buying the home and fixing it at the same time. Which program fits, and whether the contractor and the scope qualify, depends on the program guidelines.

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