8 Creative Ways to Pay for a New Roof

With the increases in inflation, federal interest rates, and utilities, many Americans are having trouble affording anything. Because of this, many people might put off costly home improvements. After all, the roofing business has not been immune to the effect of inflation and roofing materials are more expensive than they were a few years ago.

The problem is that delaying important repairs or replacements can cause even more issues–and expenses–down the road. If your roof is sagging, damaged, or leaking, these are all signs that you probably need to find out how to pay for a new roof. Luckily, there are a variety of helpful programs for those in need and some unconventional ways to make some extra cash. In this article, we’ve compiled a list of some of these creative ways to pay for a roof. 

Find a Relevant Government Funded Home Improvement Grant

One of the best ways to pay for a roof is through a home improvement grant. However, not everyone is eligible for these. There are specific requirements, depending on the type of grant. Grants may be available for veterans, some Native Americans, seniors, and those with a very low income. Below are some of the specific types of government funded home improvement grants:

• Local or State Home Investment Partnership Programs - These are programs through the U.S. Department of Housing and Urban Development (HUD) that provide a variety of different types of grants and loans, often in partnership with local nonprofit groups. Generally, grants are provided to low income households and can include home improvement projects. These vary by location, but it is worth checking over the options for your specific locality and state.
• American Indian and Alaskan Native Housing Improvement Program - A grant of up to $60,000 for members of federally recognized American Indian tribes or Alaska Natives that live in an approved tribal area and have an income that does not exceed 150% of the U.S. Department of Health and Human Services (DHHS) Poverty Guidelines.
• Disability Housing Grants for Veterans - A rather generous grant of up to $117,014 for veterans with a qualifying service-connected disability to buy or improve a home.
• Section 504 Home Repair Program (for Rural Residents) - A grant of up to $10,000 for elderly (over 62 years of age), very-low-income homeowners to remove health and safety hazards.

If you think you might be eligible for a government grant to pay for a new roof, it is definitely worth doing a search that is more specific to your situation and location.

Finance a Roof Through a Roofing Company

If you don’t fall into one of the categories for grant eligibility, you might want to consider financing your roof. Many roofing companies, like Honest Abe, offer roof financing options to spread out payments over time. This can help you get the quality roof you need without forking over $10,000 to $20,000 up front.

Financing through the roofing company can often be the simplest route. For example, with Honest Abe, you can apply for our flexible roof financing options on a mobile app, online, or by calling in and talking with our Customer Care Representatives. Then, once your information is submitted, an approval can arrive within minutes.

Find a Low Interest Government Loan

While taking out a loan for a roof replacement may not seem ideal, there are some programs that offer low interest loans for this purpose. These can save you from spending hundreds or even thousands of dollars of additional money on interest. 

Because these are government sponsored loans, they have some similar eligibility requirements that the above mentioned grants have, but a little less stringent. For example, the Section 504 Home Repair Program also offers home improvement loans of up to $40,000 for low-income rural residents, but there are no age requirements.

The U.S. Department of Housing and Urban Development also offers a low interest, fixed-rate loan, called a Title I Property Improvement Loan. These are offered to low or moderate income households for any type of home improvement–including roof replacements.

As with grants, many low interest home improvement loans are state or locality specific. You can find these low interest loans for roof replacements by searching for government funded loans in your state or city.

Use the Equity in Your Home to Pay for a New Roof

A home equity line of credit (HELOC) is a line of credit available to many homeowners. A HELOC allows you to use the available equity in your home to make large purchases, like a new roof, with your house as collateral. These will typically offer lower interest rates than something like a personal loan. 

With a HELOC, you have a draw period in which you can withdraw as much of your equity amount as you’d like, followed by a period in which you repay this amount. Often, you only need to pay the interest during the draw period, which can be up to ten years. This can be used as a kind of flexible loan to pay for your roof replacement.

Use Weatherization Assistance Programs for Roof Repair and Insulation

The Department of Energy offers assistance to low income households for some types of roof repair under their Weatherization Assistance Programs. These programs aim to make homes more energy efficient through weatherization, saving the homeowner more money in the long term. When it comes to roofs, these programs might help the homeowner repair their roof and install insulation to make heating and cooling more efficient.

Sell What You Aren’t Using

Maybe you want to avoid taking out loans altogether and you aren’t eligible for low income grants. If you’d rather find a creative way to pay for your loan in cold hard cash, you might consider taking stock of your assets. Maybe it’s time to sell that old boat you haven’t used in ten years or see what you can get for that old stamp collection you inherited. Sometimes you don’t know what you have until you put a little effort into getting something appraised or even putting it up on Facebook Marketplace to see if you have any takers.

Shift Your Other Investments to an Investment in Your Home

If you have stocks, cryptocurrency, or other types of investments, you might consider shifting some of these assets into a new roof. Instead of thinking of this shift as a loss of valuable assets, keep in mind that a new roof can increase the value of your home by up to 61% of the cost of the roof, according to a 2023 Cost vs. Value report. Over time, the value of your home will also increase due to inflation, further increasing your investment. 

Consider a Side Gig

There is an abundance of new and innovative ways to earn a little extra money these days. Some of the most well known are food delivery services, like DoorDash and Grubhub or the grocery variety, like Instacart. It’s fairly easy to get started with these and you can make your own schedule. You could also consider tutoring, either in person or on platforms like Varsity Tutors if you are skilled in a particular subject. If you are more comfortable with animals, you might try walking dogs or pet sitting.

Finding a side gig that works for you and devoting a little time each week can help you save up for a new roof much faster. 

Quality Matters

Replacing a roof is a major financial decision. Now that you have some ideas for paying for your new roof, don’t be tempted to just get the cheapest one you can find. A quality roof will last longer and, most likely, help you save money in the long run by making your home more energy efficient. 

At Honest Abe, we take our craft seriously and invest in quality materials. If you’re ready to make the most out of your investment, contact us today.