Congratulations! You’ve finished the first step in the process of getting a new roof–deciding what type of new roof you want. New roofing is almost always a solid investment in your home–that is, the resultant sale price increase, the improved protection, and other benefits will outweigh the price of getting it installed–but metal roofing often winds up paying for itself even more than many of the other options.
Perhaps chief among the reasons for the high return on an investment in metal roofing is its longevity. A metal roof can last up to four times as long as a traditional asphalt roof. That means that however difficult or expensive the process may be, it’s probably the last time you’ll ever have to go through it as long as you live in this house.
But how to pay for it? Obviously, cash is the ideal option because it’s the only one that doesn’t carry an interest charge. But most of us who have houses and families and cars and the like don’t have roof money just lying around. Thus, we learn about metal roofing financing. Read on for a helpful introduction to the best methods of securing your metal roofing financing.
Metal Roofing Financing
If you have to take out some kind of loan for your new roof, you’ll of course want to make it as small of a loan as possible. After you decide how much cash you can spare for the project, it’s time to whittle down the total price. Getting estimates from multiple roofing companies is always a given, but there are also some ways to lower the final price no matter what company you go with.
The first metal roofing financing finagle to look into is through the Database of State Incentives for Renewable Energy (DSIRE). At DSIRE, there are over 100 rebates, loan programs, and other formats of incentive in Colorado alone. Of course not all of them will apply to you–but one might. And one might be all it takes to bring your pricetag right back down to Earth.
The other place to look for new roof incentives is the Department of Energy. Here you can find information about tax credits and other tips on how to maximize both the energy savings that comes from your new metal roof and government rewards.
Now, when it comes to the actual borrowing aspect of your metal roofing financing, all the classical borrowing rules still apply. You’re trying to borrow as little as possible (see above) and to hunt out the lowest interest rates available. You’ll want to do all you can do to get your credit score as high as you can while you’re researching the best lenders before you submit an application.
The type of loan to target is a home equity loan or line of credit, also known as a HELOC. The reason is that this type of loan usually has the lowest APR of all relevant types of financing. At Partner Colorado Credit Union, for example, their HELOCs carry APRs in the neighborhood of 5%-7%. Their next-best option is a personal loan; it carries an APR of about double that.
During your research, you may find a few articles suggesting the use of a credit card for metal roofing financing. While that’s certainly an option, credit cards just tend to charge a lot more interest than HELOCs or personal loans. Keep your credit cards as backup, but see if you can qualify for something a little more user-friendly first.
Getting Approved for a Loan
Again, all the classical borrowing rules apply–including the ones that govern who the lender approves. Credit score, borrowing history, loan amount, home equity… and government programs come into play.
Above, we discussed government programs for lowering the amount you need to borrow. But also, if you have trouble getting approved, you should be aware that there is a type of insurance that the government provides to some lenders which can help them approve you more readily. Loans with this insurance are called Title 1 Property Improvement Loans. Their purpose is to finance alterations that “substantially protect or improve the basic livability or utility of the property.” A new roof certainly fulfills that requirement.
If you default, the government will cover the lender’s losses. But the government also doesn’t want to be out that money, so the rules involved in this program are meant to make sure you’re as serious and as solvent as possible. For example, any Title 1 Property Improvement Loan of more than $7500 has to be secured by your mortgage or deed of trust. That is, if you default on a loan that’s more than $7500, they’ll repossess your house. But that was already true of your mortgage. Don’t let the specter of repossession frighten you out of making a good investment; just be careful.
Metal Roofing in Denver, Colorado
Metal roofing in Denver, Colorado is a great option. Metal roofing is a great solar reflector by default and can be treated with special paints and finishes to reflect heat from the outside while retaining heat that’s already on the inside. It’s a good thing, too, because once you make the change to metal roofing, you may end up keeping that roof for the next half-century or more.
As with any home improvement project, the question of how to finance it begs to be answered. If you have the cash on hand, question answered. Don’t get distracted by low APRs and friendly lenders. That whole world is for homeowners who will need some help paying.
If you do need a loan for the project, target a HELOC. It’s a classic type of loan that’s frequently used for home improvements and it will probably carry the lowest APR you can find. Look at least three lenders and compare their rates.
If you need more than a HELOC, a personal loan takes priority over credit cards, but credit cards shouldn’t be forgotten as an option. If you need a roof, you need a roof; a credit card can make sure you get one.
Finally, don’t forget to look into tax and other incentives that the government makes available to homeowners who want to make their homes more energy-efficient. You don’t necessarily need to select a special, high-tech type of roof to qualify. Metal roofs are often efficient enough.
Best of luck on the journey, and remember to contact Rocky Mountain Exteriors for a free estimate!