6 Ways to Finance Your Siding Replacement Project

Installing New Siding Can Create Strong Return on Investment

One of the smartest investments a homeowner can make is upgrading their exterior siding. Replacement siding, installed by a trusted contractor, can boost your home’s value, add curb appeal, and create a more energy-efficient home. Many siding choices can yield as much as 75-85% ROI when you sell your home, so it’s an excellent home improvement.

Of course, it’s important to weigh your options carefully and make the choice that’s best for your budget. Siding cost can be a significant investment for homeowners, and you want to know you’re getting your money’s worth. Once you’ve decided on new siding, there are multiple financing options that can make siding replacement affordable and satisfying long-term.

Know Your Siding Choices

As you consider your siding replacement, realize that price is not the only feature to take into account. The product you select will be on your home for a long time, and you deserve to be happy with it. Compare your options carefully so you end up with the best exterior siding for your needs. And choose a reputable siding company for the work, so you get peace of mind in a quality installation.

Common siding types in Michigan include:

Fiber cement siding

America’s #1 siding choice, James Hardie® fiber cement siding is known for its long-lasting, eco-friendly, climate-resistant performance. It also looks great on any style home—Tudor, Victorian, Greek Revival, Queen Ann, Craftsman, Ranch, Cape Cod and more.

Cultured stone siding

Another versatile choice, stone veneer is often used for accents. It can lend a hearty look to Farmhouse and Ranch style homes.

Vinyl siding

Made from PVC plastic, vinyl is a practical, affordable choice, especially for starter homes or rentals. However, it tends to fade over time and is vulnerable to denting and cracking from even small impacts.

How to Select the Best Financing Option for Your Siding Replacement

Once you have decided on your siding material, it’s time to consider how you will pay for this valuable home investment. There are many options you can choose, and all have advantages. Think about your current budget, how much you feel comfortable investing, existing debts, and your other financial details as you make your decision.

1. Pay with Cash

If you like the idea of paying for your new siding as soon as it’s installed, cash is an excellent choice. You can save until you have the full amount you need. This takes discipline, but it can also be very satisfying to know your home improvement is fully paid for.

Use cash if:

• You can afford it without depleting important savings such as emergency funds
• You can safely wait and save, such as when your existing siding is in acceptable shape

2. Use a Local Lender Your Contractor Recommends

Some home contractors have good relationships with a variety of other home-related firms in your area, including lenders. These relationships can make it easier for you to get approved for a loan, and may also offer attractive loan repayment timeframes.

Use a recommended lender if:

• You like the deal being offered and can afford to pay it off in the agreed upon timeframe
• You’ve carefully reviewed the fine print and find no red flags or conditions that concern you

3. Get a Home Equity Loan

A popular way to finance home improvements, this type of bank or credit union loan makes cash available with your existing home equity as collateral. Home equity loans often have a lengthy repayment time frame and can be deductible from your taxes.

Use a home equity loan if:

• You have time for the approval process, which often takes 6-8 weeks
• You have enough equity after existing mortgages to make this loan worth your while

4. Take Out a Personal Loan

A personal loan is a fast way of receiving funds. It’s great for home improvement projects you need to do quickly, such as siding replacement to address significant rot or mold.

Use a personal loan if:

• The interest rate is within your comfort zone (personal loan rates can be quite high)
• You don’t mind the repayment requirements (these loans can penalize you if you pay them off early)

5. Take Advantage of Peer-to-Peer Lending

Also called online marketplace loans, peer-to-peer lending often provides lower interest rates than credit cards. The approval process is fast, and there are no prepayment penalties.

Use peer-to-peer loans if:

• You have a good credit score (it’s hard to be approved if you don’t)
• You find a good interest rate that you can reasonably afford

6. Use Your Credit Card

Simply put, you can use your credit cards to pay for siding replacement, just as you can use them for anything else you buy. They’re convenient, and reliable contractors likely accept their use. But if not paid off quickly, they can create large debts for their users.

Use credit cards if:

• You need to act fast and other options aren’t available to you
• You have a way to pay off the entire balance quickly (otherwise, you’ll end up with huge interest payments over time)

Enjoy Peace of Mind from Your Siding Replacement

Siding replacement can dramatically boost your home’s curb appeal and comfort, and it’s well worth the investment—especially when you choose the beautiful, lasting value of James Hardie fiber cement siding.

As an Elite Preferred Contractor for James Hardie, our team is certified to meet the high standards of this elite company so that you enjoy premier workmanship that delights you long-term. To learn more, check out our siding services and our financing options.