You would be CRAZY to put any of this on a credit card. No way you have a good interest rate no matter what your credit is. $16k on a credit card will eat you alive in interest.
There are no affordable loan options for this outside of a HELOC or re-finance.
Still? Mine use to be 5.25%, but I think with all the base interest increases by the fed it is no where near that now. Up to 10.25% now. It’s pegged to prime +2%. Prime is now 8.25%
I maintain a card that I got years ago that is a guaranteed 9% for life. They keep trying to get me to switch (and I have other cards sure) but I keep this one active just in case 9% ever looks good again.
$33k is pretty high for a reroof unless its a specialty roof or a decently large house.
A) do they have more house than they need?
or
B) are they being sold on a specialty roof rather than a standard asphalt shingle roof
Agree and to be honest if they have that large of house can’t afford upkeep, or the taxes, their days are numbered anyway. Probably best to sell and downsize since obviously some of their children are coming of age.
How many quotes have they received? Call more local roofers and check them out online for ratings. Something this expensive requires at least 3-5 quotes.
After calling about a dozen roofing companies I managed to get three to come out and give me quotes all for the exact same brand/model of steel shingle. They ranged from 22k to 38k. Guess who I went with? It’s been over 2 years and the roof is great. My neighbour across the street got them to come give him the same.
my roof cost 8.5k on a double wide modular home. THat included tear off new plywood in some places and 2 skylights. 33k sounds like a mansion or complete tearoff
What province are you in, and what quality of single? In Edmonton that's about the cost of re-shingling if you do it yourself.
Edit: just realized I'm not in personal finance Canada, so guessing that's USD cost. 😝 My bad.
It is but it’s not astronomical. At least now. I sold a house a few years ago and put a new roof on it to help facilitate a quick sale. 12k. Now it is going to cost me 22k for a house in the same town and of the same size. Multiple quotes including the people that did my last roof.
I don’t understand it.
My dad just had his roof replaced last month. 1400 sq Ft ranch, nothing fancy and it was 17k. That was the middle of the road figure. One guy was cheaper but didn’t have good reviews, a few others were around 20-22k. Everything building related has skyrocketed in the last few years, even more than any other industry I’ve seen.
A lot of roofers in the north east are still doing a lot of work down in Florida for hurricane recovery and collecting on all the insurance claim work. I think that also helps inflate demand nationally, to an extent.
It killed Waverly, TN after the flood in 2021. It’s a rural community about an hour west of Nashville. The floods left 20 dead and the whole town destroyed. It will be 2 years next month and about 80% of the homes and businesses haven’t been brought back, people can’t afford to rebuild there now with the costs of building materials. The residents have moved to surrounding areas, buying already built homes, at inflated prices with the insurance checks if they were lucky enough to have flood insurance. Sadly, most of them didn’t and were left broke and homeless. It’s a real mess
Me too. It was heartbreaking. One of my customers was killed in the flood waters. A set of 7 month twins were ripped from their momma’s arms and drowned. It’s been one of the most haunting and devastating things I have ever seen and I never want to see it again. We don’t live in Waverly thank God but a large portion of my customers do and it hurt them tremendously.
Everyone eligible for NFIP flood insurance should have it, IMO. It’s hilariously cheap for what it covers, and nothing else covers flood damage. Even if it doesn’t cover the value of the home, again, it is *so* cheap that you’re an idiot for not buying it.
>issue that will bankrupt your average homeowner.
✓ crazy interest rates
✓ skyrocketing maintence cost
✓ wages that are stagnating, especially relative to inflation
✓ overall COL rising
✓ student loans will resume soon
✓ oppreessive inflation
yup....these things will all bankrupt many home owners. wouldn't be surprised if we see a massive housing crash in the coming year or two
That seems crazy. We did a new asphalt dimensional shingle roof, flashing and gutters for 13.5k in early 2022 on a 2400 sq ft house with two separate roof peaks (70's offset tri-level home)
I don’t even think it’s that. So much of the numbers used on this sub have a “back in my day” feel with no regard for anything. This was happening pre-2020 on this sub.
The biggest issue is the vendors for materials raising their prices every couple of months. We own a small roofing company and held off raising prices for as long as we could, but we could not sustain that. A few years ago, shingle roof prices were considerably lower than tile; now, depending on the vendor, they are as much or more than a tile roof. They're a petroleum product, and well, petroleum prices are ridiculously high now
My MIL was a realtor. She would look at a listing we sent her and tell us no because the roof had too many angles. Just buy a rectangle was her advice. This house sounds fancy based on that roof estimate.
>She would look at a listing we sent her and tell us no because the roof had too many angles.
LOL. For anyone not understanding what that means or why, visit [McMansion Hell](https://mcmansionhell.com/) to learn more.
Bless you for linking this. I remember reading them a long time ago and thinking they were hilarious. I was thinking about it the other day and couldn't remember what it was called. I know what I'm doing tonight.
My parents built a custom gothic Victorian in the late 80s/early 90s. Gorgeous gorgeous house. Insane cost to replace the roof. Finding someone to get on the three story house with all the steep pitches was insanely difficult. People would drive up and say no way without even giving a quote. Pre Covid they were getting quotes from $20k-30k. They went with the dude that did it as a side job and quoted $15k. They regretted it. One of the flat roofs started leaking not too long after.
Prices are definitely up lately. I just heard a family friend was quoted $17k on a house smaller than mine. I did mine for $10k two years ago.
That said, unless this is a huge house we’re talking about, $33k sounds wildly high. Unless this is a complete new roof and not just shingles and a bit of replaced decking.
Definitely high. That's more than I paid to reroof a 5 bedroom house, 2 car detached garage, and a shed, all in one day. Also had to replace part of the roof structure once they tore off the old shingles and found the damage. The roofing company had 10+ people working on it.
I just reroofed my house that is 1400 sq feet for $6700.
I’d suggest getting more quotes
Either the quote is way too high or this is way more house than is needed.
From the very first line, my answer is “Nope.” Don’t take on debt for others. Especially if their credit score is circling the drain - if the big banks with tons and tons of capital don’t believe someone will pay them back, hence the low score, why do you?
ETA: typo
ETA again: I just saw they owe back taxes. So they have a bad credit score, presumably from not paying owed debts, AND they haven’t paid the government for owed debts. No. No. No.
People always complain about banks but I know a few people that couldn't get a loan from the bank. And let me tell you if the bank doesn't give you a loan, you shouldn't be getting a loan at all. Note: I live in Europe so we don't have credit score.
Don't take out a loan or co-sign on anything that you're not willing and able to pay back yourself without one single cent from them.
Banks think they're too risky to loan money to, and banks are much better about figuring this stuff out than we are. They have decades of experience.
Yea but it’s also a very dumb system sometimes.
Example: my parents had to go through 4 months of document proving, back and forth, and multiple no’s in order to get approved for a lower interest rate loan to prove that they can pay a mortgage of $300 less per month than the mortgage payment they’ve been making on time for 8 years.
It’s just algorithms and as a software engineer algorithms do not encompass everything there is about a subject.
They are business rules designed to reduce risk to the lender. There’s a small % of people that get denied even though they could afford it, but the business they’d gain from those, say 2%, is outweighed by the substantial risk the lender take on for those outside of that 2% that could then get approved as well.
Valid point, but also not relevant to OP, whose parents have a 670 credit score and clearly can't afford the 33k, which is why they're trying to take advantage of OP's credit score and credit limit to pay for it.
Well you started by saying it’s a dumb system. My point was that it’s not a dumb system. It’s just designed to protect the lender (obviously) and not maximize the number of people who qualify. You can always bypass these rules by having a mortgage underwriter evaluate and override them if they feel the specific case is worth the risk. But it’s still based on additional rules they have in place for them, just requires a human because the risk is inherently higher and needs a whole lot more documentation from the borrower to prove it.
I brought 4 years of on time payment receipts from my landlord when I went for a mortgage.
They told me it didn't matter.
That does not make sense to me.
Part of it is a 'stress test.' It's perfectly conceivable that you're paying £1k in rent but then suddenly you can't afford it. What do you do? You move house somewhere with cheaper rent.
That option isn't easily/quickly available with a mortgage so they want to be sure you can handle payments even if your situation changes.
I'm not defending it, just explaining it :)
No. If you have zero savings and you lose your job how are you going to pay your mortgage? If you didnt lose your job and have zero savings during the 4 years of payments then you didnt test this situation and the bank must simulate it. Based on any reasonable simulation, no money coming in + no money saved = no mortgage payment.
The lender only cares about the requirements for a "qualified" mortgage. Paying your rent on time is not a requirement, so it does not matter.
More info here: https://www.investopedia.com/terms/q/qualified-mortgage.asp
That's not exactly what's going on here. Is it easier to pay a loan that is $300 a month less than what you've been paying currently, absolutely, however that's not what the bank is seeing. When the bank is looking at your parents risk level as a borrower they are putting them in a bucket with people of a similar risk level. Their algorithms are telling them that if the expected number of people in this bucket default on their loans then the current interest rate charged to the entire bucket covers those defaults and the bank still makes their expected return.
If the bank lowers the rate at which they are charging your parents, yes it does lower the likelihood of them defaulting, but it also changes the math slightly that says their payments cover the defaults of another. That is of course until their risk assessment puts them in another bucket they can be lumped into.
Modern banking unfortunately really loves this bucketing strategy as it's "safer" and cheaper than assessing every particular borrower individually
Banks also make it nearly impossible for people in tough situations, which happen very often, to get out of them easily. There's no reason why personal loan rates are as high as they are. Many people can pay their friends back if given the chance, but a bank won't ever give a 10% interest personal loan. It's never worth it to get one of those. Luckily there are sometimes other ways of easing the pain but pointing out their metrics isn't that black and white.
As a starting point, ask for a full accounting of ALL debts they owe to anyone anywhere, and don't just take their word for it - insist on receiving a full copy of their credit report which will provide those details in black and white. There is a very good chance you don't yet know the whole story, and you should not make any decisions without it.
Also ask for any official documents relating to the unpaid taxes.
The ugly truth is, you cannot save a sinking ship with a spoon. And there is no point jumping out of your own small lifeboat to drown with them.
Offer support in the form of advice, but do not give them any money. The most likely outcome is you will just make it easier for them to ignore the root problem a little longer, and in a few years, it will be just as bad or worse. (But by then you may also be in trouble.)
As much as you want to help, you, yourself, do not have the resources to do so. And you can't replace your parents emergency with your own emergency.
Borrowing $33K using your credit card at \~22% WILL constitute an emergency. That is the kind of interest that can quickly spiral out of control.
And frankly, I don't think taking on that kind of risk is worth it for 3% better interest than what they can get themselves. The incremental extra value to THEM is far, far, far overwhelmed by the huge extra risk and cost to YOU.
Your parents CAN borrow at 25%. That is also a terrible idea. However, at least they will be the one to deal with the fallout.
Your parents MIGHT be able to open their own credit card and get closer to 20% interest that way. That is also a terrible idea, but would at least be a way for them to get that incremental value for themselves without involving you (more on this later, though.)
If you don't have the money to gift them, really and truly, all you can do is let them know you feel sad for their situation, but you really are not in a position to help them.
As others have noted, your parents:
1) Have failed to save up in advance for a roof repair, a maintenance item that you can see coming from years ahead.
2) Have failed to pay taxes on the property, to the point where legal action has already been taken against them.
What others haven't yet said:
3) If your parents are to the point they aren't paying taxes, they probably have other financial red flags. There is a good chance they cannot open a new card because their credit card debt is already overwhelming.
4) Even if they really, truly believe they won't leave you shafted, they may not have a choice. If they are to the point of teetering on bankruptcy, you could so very easily come last on the least of creditors to get paid back. Even if it doesn't get to that point... they don't have the financial skills to find ways to put you first and won't have the legal push to do so, all the pressure on them will be in favor of everyone but you.
Getting all this information will help YOU to see how much or little you borrowing on their behalf will do.
More importantly, though, getting that information will help you all see the full scope of the issue, and that is the only way you can help them develop a workable plan to tackle the problem (iso them continuing to ignore it or, worse, pushing it off onto you.)
Best and most thorough reply here.
This is a losing battle and blowing $15K+ is not going to make a lick of difference to their situation... This is like throwing a stone at a tank... But it can and will torpedo OP for years to pay that kind of money back.
The non-response answers being handed out by OP is also hugely concerning. I can't imagine lending someone, anyone, that kind of money with no due diligence on what the work is being done and what the line item prices are for supplies and labor. Let alone talking to them about repayment terms...
This is a really important point. I’m 2008 when my mom got laid off, my dad borrowed against his 401k to try to save the sinking ship. It didn’t solve the problem; they still short-sold their house and filed for bankruptcy…..and they still had to pay it back plus deal with the taxes and penalties. He says that trying to maintain their situation was his biggest financial regret.
Yikes! and the sad thing is, that 401k money might have been one of the few things protected in a bankruptcy.
And it really is comparable for OP - if parents do (eventually) face bankruptcy, it won't help OP's debts at all, even if those debts were incurred on their behalf.
Yes. It’s a refinance based on the the after complete value, and condition of the home. It’s much easier to qualify for as it’s a fully underwritten mortgage
33k for a roof??! I'd recommend more estimates unless they are in a mansion, lol. To give you perspective, I have a very high, complicated roof, steep angles, etc. On a 2 story 5 bedroom home and it was 16k for my roof replacement. Also, have they contacted their insurance and tried to get it covered? If they are behind in taxes, I wouldn't attempt to help them financially, sounds like they are unable to meet all their current financial demands, let alone being able to pay you back if you help. You should never loan family money, you can gift it if you like, but I wouldn't count on being paid back
Wow, I never heard of replacements that cheap until this thread. Maybe it's because I'm in FL. Mine was 35k for a square shaped house + patio + gutters, although I only paid a hurricane deductible and insurance covered the rest since it was hurricane damage. Maybe the quote gets inflated for insurance like with medical bills.
Are they still working? If not, they should be.
You have two good options. Do nothing, stay out of this mess because it sounds like a disaster waiting to happen.
Or
Get involved and help create an actual financial plan. They have multiple financial issues that need to be solved. Just obtaining 33k dollars will not solve all their problems.
Is the new roof an immediate need? Can repairs be made to delay the need for a new roof? Have they obtained multiple quotes/opinions on their roof?
Is selling the house an option? They may need a drastic change in lifestyle in order to make their finances work (obviously hard to tell with little information being provided).
Cosigning on a high interest loan or using your credit card is a BAD option.
Just understand that they may not be receptive to the op "getting involved". When my inlaws had financial problems we got involved and tried to help them budget and showed them how to be smarter with their money. They wanted to hear none of it. They wanted to do as they pleased. And they wanted us to hand over cash to help out. Father in law ended up selling their house and pissed away all the money from the sale within 11 months and then had nothing at all. "But family is supposed to help family!!" was their constant cry.
Unfortunately thay would not be surprising at all if that was the parents reaction.
Which is why the other option is not get involved at all. Unless OP can afford to lose the money, which did seem like the case. They need to stay out or get all the details and make a reasonable plan together.
A couple of tarps shouldn't cost too much. Harbor freight frequently has 25% coupons too.
Then they save up for repairs or fix their debt and responsibly borrow.
I meant to mention doing that in favor of putting your own finances at risk. I was in a similar boat and you have to realize you can't help your parents anymore if you sink your own boat first. So I took out a responsible loan in just my name and gifted them the money. I did not want to co-sign or otherwise mingle any of our credit and finances.
A house in my neighborhood has had a tarp for a roof for the last 8 years or so. It's best to sell before that temporary situation becomes a permanent let-the-house-rot situation.
I was once faced with a giant hole in my roof from a fallen tree. I was broke and carrying some significant debt. Roofers were quoting 10s of thousands I couldn't afford, and I wasn't sure if I could even get a loan for. I thought I'd have to leave a tarp up there forever but started watching YouTube videos on roofing. Spent about \~$400 at Lowes for plywood and shingles then patched it myself. It wasn't too hard to do, and the final result was a slight color mismatch between the old and new shingles, but it wasn't too noticeable unless you were specifically looking at the roof.
I paid $6-7k just a few months ago to completely replace my roof on a 1500sqft house, and fixing a hole, on a two-story without one story access. AND home insurance refunded over $2k. **EDIT to include:** the roof was over 20 years old.
Granted it was just standard asphalt shingles, but JFC 33k? OPs parents absolutely cannot afford their house, let alone the roof. Especially if their credit is that low and don't want a 5 year loan.
Don't co-sign or take out a loan. By all means help however you can, but they need to figure it out.
$33k seems pretty high for a roof unless they have a big house, complicated layout, or have some other repairs that are included (such as repairing trusses).
Did they get multiple quotes? Sometimes contractors will just throw out a highball number if they don't really want to take the job, because sometimes people will actually pay it.
OP this sounds like a mess. An 810 credit score is hard to obtain. They sound like they're fiscally irresponsible and you'll ruin your credit score if you're not careful. Family is family, but don't feel guilty telling them no. They need to figure out their financial situation first. If they ever declare bankruptcy, you're still on the hook for the credit card debt.
“Danger Will Robinson! Danger!”
If they are not willing to share the whole picture with you do not get involved. And even then I would highly advise against co-signing or putting anything in your name.
Oh my god, they cannot afford this house at all. It would be best to sell completely out of this house.
PERHAPS they can sublet some of their house to tenants and get some cash that way, but if they aren’t paying their taxes their days are numbered.
Cities can and will foreclose on a $400k house for $40k in back taxes, and they will set the minimum bid at the auction to the value of the tax bill.
Right. They would be better off selling, even if there is a lien on the property. That's better than the municipality taking it over and not even getting market value for it.
I understand, you want to help your parents.
But, financially speaking, *run.* Do not get your finances mixed up in any way with theirs.
Is there a particular reason they are asking for help with a $33,000 roof instead of asking for help settling their back taxes? How much do they owe in taxes and what's preventing them from paying it off?
The truth is that they can't afford that house. Better to sell it, pay their debts and start over with something more manageable. The city is gonna forclose on them anyway if they don't pay their taxes. They better get the most they can right now and move away without a foreclosure on their credit.
Anyway don't put a cent in this because you're probably gonna lose everything. My advice is to never put that kind of money on a building/house without having your name on the deed.
Don’t throw good money after bad. Your parents are in over their heads if they are behind on taxes. The best way you can help them is to pay their back taxes and help them prep the home for sale and then help them find a home/apartment they can actually afford.
If they owe back taxes the county can auction their house off to pay the taxes. Catching taxes up should be priority #1.
They are living beyond their means and unless you are ok being their piggy bank, help them figure out how to live on what their income will allow.
This is worse than you imagine. Your parents are it being completely honest and forthcoming with info. There is a reason thr only financing thry can get is at crazy rates.
I work in banking. This is true about the back taxes, however many banks will still do a HELOC and just make a required disbursement of paying the taxes in full as part of the proceeds. I would look into this further at multiple banks.
This is worse than needing a new roof. Look up how long they can owe back taxes before the county forecloses on them. Sometimes it’s a case-by-case decision, sometimes it’s one year. No need to pay for a new roof if they lose the house. How much do they owe and would it be better for this to be paid off so they can get a Heloc? If they won’t tell you the county assessor website might show which years aren’t paid for. They may need to consider selling.
Do not under any circumstances help them pay for this by signing anything. This is the biggest red flag of red flags. The house could be on fire and I'd be less concerned.
If these people weren't your parents you wouldn't lend them a Nickle. Please don't get involved. This is the cost of home ownership. Sounds like they are too proud to sell their home. A 33k roof is a big house. They are taking you for a ride.
They are robbing from you to make up for their horrible life decisions.
Some people may be snippy about it but you really shouldn't be investing cash into your parents home if they owe back taxes. There's a chance there's a lien on the home and it gets taken away regardless of the nice new roof. I would call city hall and the bank where they pay their mortgage and see how much they are behind. That can help put things into perspective for you. If it's an IRS issue I would be hesitant as well.
My suggestion would be for them to sell the home and downsize. Home prices in most parts of the country are inflated and this would benefit them the most as they're buying a cheaper home.
If you live at home with them take into account the price of the repairs vs what you'd pay in rent elsewhere. Maybe it makes sense for you to pay for the roof.
Don't ruin your chance at financial health because you tried to be helpful to your parents. They have options besides more debt they can't afford.
Heloc (or loan) is the right answer. Now we have back taxes, unknown equity, bad credit, no idea why they're replacing at least 50 sheets of decking, and no idea what bombshell is hiding under the next rug...
Your answer needs to be "that sucks" and walk away. You can help them hunt for a new apartment, and even buy for them and assemble the best furniture for it that Ikea has to offer...
Lol. You should absolutely not help them. They're adults. This is up to them to handle, not you.
You'll be fucking up your finances for a decade to come.
Your parents are hiding vital information from you but want you to take out a significant loan in your name, there's red flags all over this situation. How are they going to pay you back on top of paying back taxes and whatever other unspoken debts they have?
I'm telling you right now, if you go through with this and it comes time for them to pay you back, don't be surprised if "something comes up" and they aren't able to pay.
Notice how you had to ask them this afterwards to even get this information - had you not known this, paid for the roof in whatever way you chose, and the county foreclosed on their home, you would be stuck paying for a roof for someone else’s house for the next decade plus
They aren’t giving you the whole story.
And I know that can be tough to hear when it’s your parents, but even neglecting to disclose this alone is extremely manipulative of them to do. Or if you want to believe it’s not manipulative, it’s very incompetent of them to not disclose to you.
It’s either/or at this point because that undisclosed point is potentially life ruining for you
They are asking for you to catch this falling knife
You will never see this money again. Your parents will not be able to pay you back. Owing back taxes is not normal and it's a sign of much larger financial issues they probably aren't even telling you.
If you're ok with all that, then go ahead and help your parents. If you proceed then you need to have a plan to pay off this debt by yourself.
Do not cosign a loan unless you're absolutely sure you want it to be YOUR loan. They won't pay you back because they can't afford it. If they can't pay the loan why would they pay you?
Another way to look at this is: You are giving them $33k. They might kick in a couple bucks back but you can't count on it. As you don't have that money sitting around you must borrow it.
So the real question is: Are you ok with giving your parents $33k?
They're adults, don't think you HAVE to help them. Because they will take the help you give them and leave you high and dry!
Do not give them money, do not take loans out for them, do not cosign on anything!
If your parents haven't figured money out by now they likely never will. So you giving or borrowing money for this would be a gift that you won't be getting back. Up to you if you're good with that or not
A) that roof quote is way too high. Unless you have a Spanish tile roof on a 5,000 square foot home, get another quote.
B) any reputable roofing contractor should offer financing significantly below 25%. Even the national ones.
I’ve seen fancy metal permanent roofs cost +$20k, but $33k for a composite shingled roof is absurd. I wonder how bad the parents are lying about the quotes. I’d guess they doubled it to try and get some cash from their son?
How big is the house? Where is it located state wise? As others have said, that is a expensive bid unless they live in Silicon Valley where the labor is outrageous ($28/sq ft fully loaded cost) v Austin ($9/sq ft). Then again they could have one of those crazy roofs with six or seven peaks or just going for a Tesla roof 🤷♂️
Your parents need to get a lot more estimates. $33K is a terrible price. How big is the house? What kind of roofing material? Put it down in paper - exactly what they need to be done. How many squares of shingles, the type, brand, how many sheets of plywood and cost per sheet if repairs are needed, etc. You want to make sure that the roofers are bidding on the exact same scope of work.
There are sometimes federal or state programs that assist with home repairs. Years ago, my parents got a new roof on their home, as well as some other repairs, for $0. Sorry I don’t recall what agency it was through. They were in their 80s, so that may have been a factor.
Run. Do not cosign or take on debt for them. They need to budget, they need to sacrifice, sounds like they probably overpay for evrything and are drowning.
Now, if you want to help them, what do you know? I have a friend that knows offroad 4 wheelers and golf carts, buys them, spends a weekend cleaning, waxing, posting selling, makes thousands a month- 6hrs on Saturday at a time.
1- get the tarps
2- get them help budgeting, refi cars, sell the rv they havent used in 6 yrs, clear out the $100 a month storage, stop payday loans, heck if they have 80k in credit card debt declare bankruptcy. Get them help, they are only digging deeper
3- use your time and elbow grease if you must, I would for my family, but dont use and jepardize your wallet, credit, nor future.
Please don’t get involved in any commitments. Most you should do is gift cash that you can afford not to get back. Don’t do loans or anything like that. Don’t let family ruin you financially. It can be hard to say no to family, but when it comes to stuff like this you gotta be firm. It’s sad that you’re even being asked to help with this… it’s just such an obviously bad move to ask someone to take.
Read through the numerous posts on here from people who co-signed a loan for a friend or family. Don't do it!!! Your parents need to work on raising their credit score.
I would give them whatever you can that is liquid on your end and nothing more. Whatever you can part with. I wouldn't take a loan or use credit other than the equity in their property (which you say is not available).
If you can't afford the roof then you likely can't afford the house. Last thing you want is to invest in a 30 year roof just to have the state come after them for back taxes.
Helping our parents is always rewarding and we rarely get a chance to return all of their efforts in raising us. Just make sure you look out for yourself in the process.
33k for a roof...?
Step 1 is to get at least 3 more quotes from licensed and insured companies.
Step 2 is to confirm they are getting classic shingles versus terracotta.
Step 3 is to decide whether you are 100% okay with losing 33k + interest to help out your parents. If a bank isn't willing to take the risk, you shouldn't be unless you're willing to *gift* this amount.
If you're cool with step 3, go to your bank or a local credit union and see if you qualify for a loan. See what your options are, because a 21.99% card? May as well let your parents do the 25% loan in their name alone.
Well, scrolled through some comments and saw you mention they owe back taxes. That home can and will be eventually taken by Uncle Sam.
I urge you to not get involved in their financial hellscape. Help them escape it by selling the house, paying the back taxes, and getting into something they can afford with whatever income they currently have.
Otherwise you will end up paying for a new roof for strangers/the government.
DON’T CO-SIGN A LOAN!! If they default… what would you do? Ruin your own credit.
Are they behind on the mortgage? Or other payments? Their inability to afford the roof is a red flag that the home maintenance has been neglected for some time.
I wouldn’t loan any money unless you’re just call it a gift. Their credit score and living in a house beyond their financial means is a red flag.
I imagine this isn’t the first time they have been unable to repair their home or other things.
If they want $33k, everyone should have 2 jobs, no cable and saving every penny towards a roof.
They could also rent a room or two.
Meanwhile, put up a bunch of blue tarps until they can afford it.
Please dont take a loan out for this large sum of money for the sake of someone else even if its your parents. You are going to get screwed. You will be responsible for the loan. You will end up being the one to pay it.
A few contractors tried to scam my mom out of $30k for a new roof last year. She kept shopping around and eventually found an honest one who did it for $10k
do **NOT** use your credit card as a means to secure a loan, they are best utilized when they're treated like cash. Their interest rates are insane, way more than what you can do getting a regular loan at a bank.
Do NOT use YOUR credit to help ANYONE. Especially people with bad credit because then their bad credit will become your bad credit.
Depending on where you live, you should have them look into the USDA repair loans. You’d be surprised what cities are considered “rural” and actually fall within their criteria.
Any possibility that a recent storm rolled through their area and could possibly have the home owners insurance pay for the roof? You just need a company to come out and inspect the roof, see if it might qualify and your insurance will send out an adjuster and hopefully it gets approved. Hubby does this for a living so all I ever hear is roof talk.
Do not take out this loan. Do not co-sign on a loan with our parents. They have a poor credit rating for a reason. Do not put this on a credit card.
What is the equity in your parents home? How old are they? Do they own too much home for their needs or budget? These are the options you need to answer.
Lots of fishy stuff here. Why do they want a loan less than 5 years? Why are you framing that \*they've\* thought of using your credit card for the roof? That's your decision, not theirs. I know this isn't /r/relationship advice, but from the limited info you've provided it sounds like your parents may be attempting to take advantage of you, and whether malicious or uninformed, they definitely don't have your best financial interests in mind.
From what you wrote, it sounds like if you take out the loan (or co-sign), that you will end up paying the whole thing yourself. If you are okay with gifting your parents that amount, by all means, gift them the new roof. Your parents don't have the ability to pay you back if they owe back taxes. They're spending is more than their income and buying them a new roof is just a bandaid on a gushing wound. Honestly, I would suggest they sell the house and move somewhere more affordable.
I would look into a personal loan program. Find a lender that will take the higher of the scores. You should be able to locate a 6-8 year term pretty easily.
Give them whatever cash you can afford to part with. Period. They need to act like adults and clean up their own mess without mortgaging their child’s future.
Do not loan the money to your parents.
Sounds like they didn’t save money for emergencies and expenses. How long ago did they buy the house? If it was recent, then this should have been flagged on inspection. Or if damage from a storm, insurance could cover this.
If it was a long time ago, they should have known that a roof would have needed replaced eventually.
Don’t give them a cent. They got into this mess and you don’t owe them to get them out. As soon as you max out your credit card, your credit score will take a dump. Plus it will take them years to pay you off. Your credit and options in in life will take a hit for their mistake. They don’t want to take a loan with less than a 5 year period. That means you would potentially have debt for that long.
Plus they could literally not pay you and you would be stuck with the money. Same for co signing.
Your parents have less than ideal credit for a reason. Don’t ignore this.
Do you want to take out a loan to gift your parents $33,000? I guess you can. That's what you need to assume you are doing. I think a lot of people might do that for their parents, if they can afford it. I wouldn't.
I think a better plan is probably for them to try to sell as is, pay off the mortgage, pay off the back taxes, sell for less because of the roof, and come out "free and clear" with no mortgage. Then, move into a rental they can afford.
How old are they? What are their retirement savings? Why are they so behind on their debts? Why do they owe back taxes? Usually, those are paid via escrow from the mortgage company.
Do they own the house out right? If so is taking a loan to pay the roof and back taxes on the house an option? Or a reverse mortgage?
I am 63, have 3 sons but would never ask this of them and don't think you should give them money either. There comes a time to downsize and get things in order and it sounds like this is that time. Good Luck
Go to the website of the shingles manufacturer. Get a list of certified roofers in your area. Get a bunch of quotes. You will get them all over the map, including the dog and pony show with pressure for a discount for buying today, a discount for using shingles they already have. I told at least one that all that song and dance told me was that they were willing to overcharge me if I didn't ask questions.
You likely don't need the architectural shingles which cost $$ , just plan 20 year ones $.
Often the price is different for a tear off vs. a reshingling, so it looks like you are talking a tear off here. Find out the charge for the plywood replacement - it's often a flat charge for say 4, and then $ per other sheet (I think we had 4 replaced on our Cape Cod, but I knew that was coming since at least 2 of them were obvious and the other 2 were the neighboring sheet.
Look at their reviews. Ask around the neighborhood. Then start looking for grants. Depending on where you live, their age and their income, they may qualify for a grant towards the roofing.
The guys who did our roof ($17K tear-off, Cape Cod-ish with architectural shingles) 5 years ago told me that they get called by the city a couple of times a year to do a roofing job for the price of the grant. There are grants from the city, the state, for rural areas, veterans. You name it.
It’s difficult but don’t let the poor financial decisions continue with you. They should find a big nationwide roofer that will finance or something along those lines. Certainly get more than one quote. I manage multi million dollar homes and $15-$25k is what new roofs run. Do your parents have a 10k sq foot house or something?
They are going to have to deal with the high interest loan or other means. You can help them look but you should not take any loans / debt out in your name or co-sign no matter how much you trust them.
Don't do anything unless you want to wreck yourself financially and in turn your entire life.
You can help with navigating the roofers/quote estimates, then picking the best financial options they have available to themselves, but that's it.
If they're that bad at money, they're going to suck you dry and or do what they want and leave you footing the bill for it all.
It sounds like they need to get different estimates and then either pick the best loan they can get, if they can at all (do not take out one yourself or co-sign on one) or downsize by selling their house and moving into something smaller (other smaller house or apartment).
I don't know how to tell you how to get the money, but I am here to tell you that you should consider the $33K a gift, not a loan. If they pay it back great, but there's probably a reason they don't have very good credit. That may sound harsh but is true. Just know that you may not get it back and consider it gravy if you do. In other words, don't loan out anything you can't afford to never see again.
Question…is there a leak or broken shingles on the roof? How old is the roof and what insurance do they have? I had mine covered 100 percent, 22k covered by insurance.
What makes you think a bad credit risk will pay you back, or pay the loan?
If you do this, do so knowing that YOU are paying for their new roof, and that it may still be taken for back taxes.
There are roofing companies that offer financing and it won't be 25%. A 670 score isn't bad enough where it should warrant such a ridiculous rate. I think the rate on my roof financing was like 6-7%. With current rate adjustments you shouldn't be over 12-13% I wouldn't think. I think the company I used financed through Green Sky if I recall. I eventually used a Heloc to refinance it which would probably be a better choice.
How necessary is the roof? I’d imagine if it was so bad they couldn’t live safely, insurance would help. I’d try to prioritize finding a way to avoid taking on this debt at all, a la Dave Ramsey
If the bank won't lend them the money because their credit is wack, why should you? If you give them money, do not ever expect to see it again. If you give them money, consider it a gift to them. Co-sign for nothing.
Credit card. No. Don’t even think about it. It is literally the worst thing you can do here. You are better off tapping into retirement funds than putting this on a credit card. Money like this should have been saved on the side.
Shop around for a personal loan at an interest rate much much lower than 20% (not with credit cards!) or look for a different roofing company with better financing interest rates. Just know that by helping them take out this loan, you’re essentially gifting them the money and they may not pay you a penny back. You have to be ok with this and you have to be able to pay back the loan on your own. Don’t take out the loan if you can’t afford to pay it off yourself.
But honestly, if the roof isn’t an emergency, I’d say help them figure out how to settle their back taxes first cause that sounds like a foreclosure waiting to happen. This might be tough, but you should have a serious conversation with them about selling and downsizing. You may be able to help them once or twice, but can you afford to keep helping them with these big costs?
Check with the local county and city they may have loan programs to help with the repairs at a low interest rate. If it financially disable you, please don’t.
Live in the northeast, had my roof redone this year, 2800 sq. ft. house, $9100. Had three quotes— $8700, $9100, and one guy that said it would “at least be 18k-20k” and wouldn’t even give a firm number until he met with both my spouse and I to really do a hard sales pitch. Are you sure your parents have multiple quotes and aren’t being taken for a ride?
How long have they had their house? Any equity in it? Tell them to get a HELOC. 670 credit score should get a decent rate for them without any co-signers. They can pay off early
Woh woh woh. A $33k loan in your name will hurt your ability to buy a house or car later. And that’s assuming they never miss a payment.
The price tag is high. Get another quote or two. Don’t go for the Cadillac of roofs.
But personally? I don’t think you should take a loan for them. 25% interest?! Either their credit is worse than you know or something else is going on. Credit cards are 24.99%.
There is a lot of other good advice here but I just want to say you should absolutely not expect to get this money back. Your parents have bad credit for a reason, because they don’t pay their debts. So if it were me, I would help with what cash I can spare but I would never co-sign a loan and I certainly wouldn’t take out a loan to lend anyone money. If they can’t afford a roof I think they need to sell the home and downsize or look into a condo or something.
I think you have to reframe the problem. If your parents have no savings of their own, that's a red flag. Also, their poor credit rating would indicate that they really can't afford their bills as they are. So should you come up with the money, they just are not going to able to pay it off even if they have good intentions.
You have an excellent credit rating, but how will that last if you have an additional $33K in debt to pay off yourself?
Should you really be talking with your parents about finding a more affordable place to live? If there have been no updates on the house in 32 years as you mentioned, it won’t bring the best price, but your parents aren't going to able to handle future maintenance issues. Something is always breaking down, just saying that from my own experience.
Do either of you or they have any equity in a home? While HELOC rates aren't great right now, they will always be better than a credit card.
Also, how big is this house? I have a two story, 2500 square-foot house. I recently got the roof replaced for under $10,000 and that included some of the plywood.
That quote sounds really, really, really high unless it's an absolutely enormous house.
I'm going to say something that sounds rude: if you live in a house with a $33,000 roof, and you can't afford to replace the roof, you probably can't afford to live in that house. They are either getting screwed on the quote or have far too large of a house. For their income, at least.
Bad credit, they owe back taxes on the house… do not co-sign a loan for them.
They either need to figure this out themselves or you gift them $33k. If you aren’t in a financial position to pay for this for them, then you don’t do it.
They can stay at your house while they get it fixed. If they have a 401k they should take some as an emergency on it set up a payment plan for the rest.
Poor planning on their part.
If they need a roof due to hail, high winds or other natural disasters, their homeowners’ insurance should be paying for it.
They do have homeowners’ insurance, don’t they?
If not, they have way more issues than a roof and back taxes.
And unpaid property taxes.
They need to sell. Whether they believe it’s an option or not.
If they can’t afford to maintain their home, they can’t afford to live there. And selling now, before the county forecloses for back taxes, and they will, is their best option.
You want to help your parents. And that’s admirable. With parents as unrealistic as yours, part of helping is getting them to recognize that putting YOU in debt won’t solve their underlying issues.
I just replaced my roof and found that costs vary widely. I got one quote for $36k and one for $12k. I'm in the Atlanta area. I obviously went with the $12k roof and they did a great job. I should add that I live in a four bedroom 3,200 sq ft two story home.
Forgive me for being harsh, but here are some realities.
Your parents are surely good people and you surely love them, but the reason their credit score is 670, and the reason they can’t get a home equity loan, is because they don’t pay their bills.
And people are even less likely to pay other people’s bills (the ones you’re considering taking out) than their own.
Your credit score isn’t a bit better, it’s a lot better. Which means you do pay your bills.
Roofs don’t fail overnight. This isn’t an unpredictable emergency. It was likely getting worse for years, yet was ignored.
“They don’t want to take on a loan less than 5 years” is a bad sign. Shows they’d rather stay in (more) debt for as long as possible.
You didn’t say if the idea of putting the loan in your name was yours or theirs…but if they’re willing to risk their son or daughter’s credit to get themselves a roof, that’s disturbing.
Summary:
1: Don’t let someone else borrow money in your name. Ever. Even if you love them.
2: Buy them a new roof as a gift if you can afford it and if you want to.
3: Personally, I’d only buy someone a new roof if they were taking active steps to improve their situation. I’d want to see them paying their existing debts aggressively.
4: If they’re not willing to do 3, you might offer a gift of $1000-2000 to pay someone to make a temporary repair or put tarps on the roof. But pay for the services directly; don’t hand money directly to your parents.
You would be CRAZY to put any of this on a credit card. No way you have a good interest rate no matter what your credit is. $16k on a credit card will eat you alive in interest. There are no affordable loan options for this outside of a HELOC or re-finance.
I have a credit union card at 6% which I would consider good for unsecured credit.
Still? Mine use to be 5.25%, but I think with all the base interest increases by the fed it is no where near that now. Up to 10.25% now. It’s pegged to prime +2%. Prime is now 8.25%
I maintain a card that I got years ago that is a guaranteed 9% for life. They keep trying to get me to switch (and I have other cards sure) but I keep this one active just in case 9% ever looks good again.
You're going to make out like a king when the prime rate is like 14% some day lol
$33k is pretty high for a reroof unless its a specialty roof or a decently large house. A) do they have more house than they need? or B) are they being sold on a specialty roof rather than a standard asphalt shingle roof
Agree and to be honest if they have that large of house can’t afford upkeep, or the taxes, their days are numbered anyway. Probably best to sell and downsize since obviously some of their children are coming of age.
How many quotes have they received? Call more local roofers and check them out online for ratings. Something this expensive requires at least 3-5 quotes.
After calling about a dozen roofing companies I managed to get three to come out and give me quotes all for the exact same brand/model of steel shingle. They ranged from 22k to 38k. Guess who I went with? It’s been over 2 years and the roof is great. My neighbour across the street got them to come give him the same.
That was my thought. If it’s so large that a roof is that much and you can’t afford it…then it’s time to downsize!
my roof cost 8.5k on a double wide modular home. THat included tear off new plywood in some places and 2 skylights. 33k sounds like a mansion or complete tearoff
What province are you in, and what quality of single? In Edmonton that's about the cost of re-shingling if you do it yourself. Edit: just realized I'm not in personal finance Canada, so guessing that's USD cost. 😝 My bad.
It is but it’s not astronomical. At least now. I sold a house a few years ago and put a new roof on it to help facilitate a quick sale. 12k. Now it is going to cost me 22k for a house in the same town and of the same size. Multiple quotes including the people that did my last roof. I don’t understand it.
My dad just had his roof replaced last month. 1400 sq Ft ranch, nothing fancy and it was 17k. That was the middle of the road figure. One guy was cheaper but didn’t have good reviews, a few others were around 20-22k. Everything building related has skyrocketed in the last few years, even more than any other industry I’ve seen.
A lot of roofers in the north east are still doing a lot of work down in Florida for hurricane recovery and collecting on all the insurance claim work. I think that also helps inflate demand nationally, to an extent.
Such a bummer. I hope these inflated maintenance costs aren’t an underestimated issue that will bankrupt your average homeowner.
It killed Waverly, TN after the flood in 2021. It’s a rural community about an hour west of Nashville. The floods left 20 dead and the whole town destroyed. It will be 2 years next month and about 80% of the homes and businesses haven’t been brought back, people can’t afford to rebuild there now with the costs of building materials. The residents have moved to surrounding areas, buying already built homes, at inflated prices with the insurance checks if they were lucky enough to have flood insurance. Sadly, most of them didn’t and were left broke and homeless. It’s a real mess
Really sorry to hear that
Me too. It was heartbreaking. One of my customers was killed in the flood waters. A set of 7 month twins were ripped from their momma’s arms and drowned. It’s been one of the most haunting and devastating things I have ever seen and I never want to see it again. We don’t live in Waverly thank God but a large portion of my customers do and it hurt them tremendously.
Everyone eligible for NFIP flood insurance should have it, IMO. It’s hilariously cheap for what it covers, and nothing else covers flood damage. Even if it doesn’t cover the value of the home, again, it is *so* cheap that you’re an idiot for not buying it.
>issue that will bankrupt your average homeowner. ✓ crazy interest rates ✓ skyrocketing maintence cost ✓ wages that are stagnating, especially relative to inflation ✓ overall COL rising ✓ student loans will resume soon ✓ oppreessive inflation yup....these things will all bankrupt many home owners. wouldn't be surprised if we see a massive housing crash in the coming year or two
Yeah, and the corporations will snatch up those houses in seconds and charge astronomical rent prices
That seems crazy. We did a new asphalt dimensional shingle roof, flashing and gutters for 13.5k in early 2022 on a 2400 sq ft house with two separate roof peaks (70's offset tri-level home)
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I don’t even think it’s that. So much of the numbers used on this sub have a “back in my day” feel with no regard for anything. This was happening pre-2020 on this sub.
The biggest issue is the vendors for materials raising their prices every couple of months. We own a small roofing company and held off raising prices for as long as we could, but we could not sustain that. A few years ago, shingle roof prices were considerably lower than tile; now, depending on the vendor, they are as much or more than a tile roof. They're a petroleum product, and well, petroleum prices are ridiculously high now
>I don’t understand it. 🌈inflation🌈
My MIL was a realtor. She would look at a listing we sent her and tell us no because the roof had too many angles. Just buy a rectangle was her advice. This house sounds fancy based on that roof estimate.
>She would look at a listing we sent her and tell us no because the roof had too many angles. LOL. For anyone not understanding what that means or why, visit [McMansion Hell](https://mcmansionhell.com/) to learn more.
Bless you for linking this. I remember reading them a long time ago and thinking they were hilarious. I was thinking about it the other day and couldn't remember what it was called. I know what I'm doing tonight.
All those McMansions are going to end up filled with college students some day.
My parents built a custom gothic Victorian in the late 80s/early 90s. Gorgeous gorgeous house. Insane cost to replace the roof. Finding someone to get on the three story house with all the steep pitches was insanely difficult. People would drive up and say no way without even giving a quote. Pre Covid they were getting quotes from $20k-30k. They went with the dude that did it as a side job and quoted $15k. They regretted it. One of the flat roofs started leaking not too long after.
Whenever I browse house plans, the first thing I look at is how steep the roof is andhow many dormers. I think it's wasteful.
This is something my dad told me when I was looking for my first house. It never would have crossed my mind as a young soon-to-be homeowner.
Prices are definitely up lately. I just heard a family friend was quoted $17k on a house smaller than mine. I did mine for $10k two years ago. That said, unless this is a huge house we’re talking about, $33k sounds wildly high. Unless this is a complete new roof and not just shingles and a bit of replaced decking.
$33k??? I thought the cost of a roof was ***on the house***
Get out.
Definitely high. That's more than I paid to reroof a 5 bedroom house, 2 car detached garage, and a shed, all in one day. Also had to replace part of the roof structure once they tore off the old shingles and found the damage. The roofing company had 10+ people working on it.
What year?
Roof was this year. House is from 1958.
I just reroofed my house that is 1400 sq feet for $6700. I’d suggest getting more quotes Either the quote is way too high or this is way more house than is needed.
I paid $24k for my roof (3600 ft ) fairly recently. This house is huge, or it’s s metal roof.
It ain’t 2019 anymore friend
From the very first line, my answer is “Nope.” Don’t take on debt for others. Especially if their credit score is circling the drain - if the big banks with tons and tons of capital don’t believe someone will pay them back, hence the low score, why do you? ETA: typo ETA again: I just saw they owe back taxes. So they have a bad credit score, presumably from not paying owed debts, AND they haven’t paid the government for owed debts. No. No. No.
People always complain about banks but I know a few people that couldn't get a loan from the bank. And let me tell you if the bank doesn't give you a loan, you shouldn't be getting a loan at all. Note: I live in Europe so we don't have credit score.
Oh man. Would suck to pay all that money and then lose the home in a tax sale.
Don't take out a loan or co-sign on anything that you're not willing and able to pay back yourself without one single cent from them. Banks think they're too risky to loan money to, and banks are much better about figuring this stuff out than we are. They have decades of experience.
Yea but it’s also a very dumb system sometimes. Example: my parents had to go through 4 months of document proving, back and forth, and multiple no’s in order to get approved for a lower interest rate loan to prove that they can pay a mortgage of $300 less per month than the mortgage payment they’ve been making on time for 8 years. It’s just algorithms and as a software engineer algorithms do not encompass everything there is about a subject.
They are business rules designed to reduce risk to the lender. There’s a small % of people that get denied even though they could afford it, but the business they’d gain from those, say 2%, is outweighed by the substantial risk the lender take on for those outside of that 2% that could then get approved as well.
Yea and that’s exactly my point. The algorithm doesn’t encompass everything about the subject. It just sucks if you’re part of the hypothetical 2%
Valid point, but also not relevant to OP, whose parents have a 670 credit score and clearly can't afford the 33k, which is why they're trying to take advantage of OP's credit score and credit limit to pay for it.
Well you started by saying it’s a dumb system. My point was that it’s not a dumb system. It’s just designed to protect the lender (obviously) and not maximize the number of people who qualify. You can always bypass these rules by having a mortgage underwriter evaluate and override them if they feel the specific case is worth the risk. But it’s still based on additional rules they have in place for them, just requires a human because the risk is inherently higher and needs a whole lot more documentation from the borrower to prove it.
I brought 4 years of on time payment receipts from my landlord when I went for a mortgage. They told me it didn't matter. That does not make sense to me.
Because the system is only 30-40 years old and has no actual basis on dependability.
Part of it is a 'stress test.' It's perfectly conceivable that you're paying £1k in rent but then suddenly you can't afford it. What do you do? You move house somewhere with cheaper rent. That option isn't easily/quickly available with a mortgage so they want to be sure you can handle payments even if your situation changes. I'm not defending it, just explaining it :)
Wouldn't 4 years of receipts show that? No matter what happened, I paid.
No. If you have zero savings and you lose your job how are you going to pay your mortgage? If you didnt lose your job and have zero savings during the 4 years of payments then you didnt test this situation and the bank must simulate it. Based on any reasonable simulation, no money coming in + no money saved = no mortgage payment.
The lender only cares about the requirements for a "qualified" mortgage. Paying your rent on time is not a requirement, so it does not matter. More info here: https://www.investopedia.com/terms/q/qualified-mortgage.asp
That's not exactly what's going on here. Is it easier to pay a loan that is $300 a month less than what you've been paying currently, absolutely, however that's not what the bank is seeing. When the bank is looking at your parents risk level as a borrower they are putting them in a bucket with people of a similar risk level. Their algorithms are telling them that if the expected number of people in this bucket default on their loans then the current interest rate charged to the entire bucket covers those defaults and the bank still makes their expected return. If the bank lowers the rate at which they are charging your parents, yes it does lower the likelihood of them defaulting, but it also changes the math slightly that says their payments cover the defaults of another. That is of course until their risk assessment puts them in another bucket they can be lumped into. Modern banking unfortunately really loves this bucketing strategy as it's "safer" and cheaper than assessing every particular borrower individually
Banks also make it nearly impossible for people in tough situations, which happen very often, to get out of them easily. There's no reason why personal loan rates are as high as they are. Many people can pay their friends back if given the chance, but a bank won't ever give a 10% interest personal loan. It's never worth it to get one of those. Luckily there are sometimes other ways of easing the pain but pointing out their metrics isn't that black and white.
As a starting point, ask for a full accounting of ALL debts they owe to anyone anywhere, and don't just take their word for it - insist on receiving a full copy of their credit report which will provide those details in black and white. There is a very good chance you don't yet know the whole story, and you should not make any decisions without it. Also ask for any official documents relating to the unpaid taxes. The ugly truth is, you cannot save a sinking ship with a spoon. And there is no point jumping out of your own small lifeboat to drown with them. Offer support in the form of advice, but do not give them any money. The most likely outcome is you will just make it easier for them to ignore the root problem a little longer, and in a few years, it will be just as bad or worse. (But by then you may also be in trouble.) As much as you want to help, you, yourself, do not have the resources to do so. And you can't replace your parents emergency with your own emergency. Borrowing $33K using your credit card at \~22% WILL constitute an emergency. That is the kind of interest that can quickly spiral out of control. And frankly, I don't think taking on that kind of risk is worth it for 3% better interest than what they can get themselves. The incremental extra value to THEM is far, far, far overwhelmed by the huge extra risk and cost to YOU. Your parents CAN borrow at 25%. That is also a terrible idea. However, at least they will be the one to deal with the fallout. Your parents MIGHT be able to open their own credit card and get closer to 20% interest that way. That is also a terrible idea, but would at least be a way for them to get that incremental value for themselves without involving you (more on this later, though.) If you don't have the money to gift them, really and truly, all you can do is let them know you feel sad for their situation, but you really are not in a position to help them. As others have noted, your parents: 1) Have failed to save up in advance for a roof repair, a maintenance item that you can see coming from years ahead. 2) Have failed to pay taxes on the property, to the point where legal action has already been taken against them. What others haven't yet said: 3) If your parents are to the point they aren't paying taxes, they probably have other financial red flags. There is a good chance they cannot open a new card because their credit card debt is already overwhelming. 4) Even if they really, truly believe they won't leave you shafted, they may not have a choice. If they are to the point of teetering on bankruptcy, you could so very easily come last on the least of creditors to get paid back. Even if it doesn't get to that point... they don't have the financial skills to find ways to put you first and won't have the legal push to do so, all the pressure on them will be in favor of everyone but you. Getting all this information will help YOU to see how much or little you borrowing on their behalf will do. More importantly, though, getting that information will help you all see the full scope of the issue, and that is the only way you can help them develop a workable plan to tackle the problem (iso them continuing to ignore it or, worse, pushing it off onto you.)
Best and most thorough reply here. This is a losing battle and blowing $15K+ is not going to make a lick of difference to their situation... This is like throwing a stone at a tank... But it can and will torpedo OP for years to pay that kind of money back. The non-response answers being handed out by OP is also hugely concerning. I can't imagine lending someone, anyone, that kind of money with no due diligence on what the work is being done and what the line item prices are for supplies and labor. Let alone talking to them about repayment terms...
This is a really important point. I’m 2008 when my mom got laid off, my dad borrowed against his 401k to try to save the sinking ship. It didn’t solve the problem; they still short-sold their house and filed for bankruptcy…..and they still had to pay it back plus deal with the taxes and penalties. He says that trying to maintain their situation was his biggest financial regret.
Yikes! and the sad thing is, that 401k money might have been one of the few things protected in a bankruptcy. And it really is comparable for OP - if parents do (eventually) face bankruptcy, it won't help OP's debts at all, even if those debts were incurred on their behalf.
This. Any other take is foolish and terrible advice.
They need a 203(k) streamline renovation loan refinance. Don’t tie your finances up with theirs
Is that different than a home equity loan? Will research
Yes. It’s a refinance based on the the after complete value, and condition of the home. It’s much easier to qualify for as it’s a fully underwritten mortgage
Ty will look into this
If they owe their county property taxes then they won’t be able to refinance without paying those off first
33k for a roof??! I'd recommend more estimates unless they are in a mansion, lol. To give you perspective, I have a very high, complicated roof, steep angles, etc. On a 2 story 5 bedroom home and it was 16k for my roof replacement. Also, have they contacted their insurance and tried to get it covered? If they are behind in taxes, I wouldn't attempt to help them financially, sounds like they are unable to meet all their current financial demands, let alone being able to pay you back if you help. You should never loan family money, you can gift it if you like, but I wouldn't count on being paid back
How recent was your roof replacement?
Wow, I never heard of replacements that cheap until this thread. Maybe it's because I'm in FL. Mine was 35k for a square shaped house + patio + gutters, although I only paid a hurricane deductible and insurance covered the rest since it was hurricane damage. Maybe the quote gets inflated for insurance like with medical bills.
Are they still working? If not, they should be. You have two good options. Do nothing, stay out of this mess because it sounds like a disaster waiting to happen. Or Get involved and help create an actual financial plan. They have multiple financial issues that need to be solved. Just obtaining 33k dollars will not solve all their problems. Is the new roof an immediate need? Can repairs be made to delay the need for a new roof? Have they obtained multiple quotes/opinions on their roof? Is selling the house an option? They may need a drastic change in lifestyle in order to make their finances work (obviously hard to tell with little information being provided). Cosigning on a high interest loan or using your credit card is a BAD option.
Just understand that they may not be receptive to the op "getting involved". When my inlaws had financial problems we got involved and tried to help them budget and showed them how to be smarter with their money. They wanted to hear none of it. They wanted to do as they pleased. And they wanted us to hand over cash to help out. Father in law ended up selling their house and pissed away all the money from the sale within 11 months and then had nothing at all. "But family is supposed to help family!!" was their constant cry.
Unfortunately thay would not be surprising at all if that was the parents reaction. Which is why the other option is not get involved at all. Unless OP can afford to lose the money, which did seem like the case. They need to stay out or get all the details and make a reasonable plan together.
A couple of tarps shouldn't cost too much. Harbor freight frequently has 25% coupons too. Then they save up for repairs or fix their debt and responsibly borrow.
Not a bad idea. Thanks
I meant to mention doing that in favor of putting your own finances at risk. I was in a similar boat and you have to realize you can't help your parents anymore if you sink your own boat first. So I took out a responsible loan in just my name and gifted them the money. I did not want to co-sign or otherwise mingle any of our credit and finances.
A house in my neighborhood has had a tarp for a roof for the last 8 years or so. It's best to sell before that temporary situation becomes a permanent let-the-house-rot situation.
I was once faced with a giant hole in my roof from a fallen tree. I was broke and carrying some significant debt. Roofers were quoting 10s of thousands I couldn't afford, and I wasn't sure if I could even get a loan for. I thought I'd have to leave a tarp up there forever but started watching YouTube videos on roofing. Spent about \~$400 at Lowes for plywood and shingles then patched it myself. It wasn't too hard to do, and the final result was a slight color mismatch between the old and new shingles, but it wasn't too noticeable unless you were specifically looking at the roof.
Nah stay out of it, for gods sake don’t use your credit card. Grown people are responsible for their financial choices.
I paid 11k for a new roof on a 1600sqft house last year, is it a really big house or a fancy roof or something?
I paid $6-7k just a few months ago to completely replace my roof on a 1500sqft house, and fixing a hole, on a two-story without one story access. AND home insurance refunded over $2k. **EDIT to include:** the roof was over 20 years old. Granted it was just standard asphalt shingles, but JFC 33k? OPs parents absolutely cannot afford their house, let alone the roof. Especially if their credit is that low and don't want a 5 year loan. Don't co-sign or take out a loan. By all means help however you can, but they need to figure it out.
I got 3k back from my insurance, however after reading some comments I think I might have paid a little too much also if I am honest.
That's a good price! Nice job
$33k seems pretty high for a roof unless they have a big house, complicated layout, or have some other repairs that are included (such as repairing trusses). Did they get multiple quotes? Sometimes contractors will just throw out a highball number if they don't really want to take the job, because sometimes people will actually pay it.
OP this sounds like a mess. An 810 credit score is hard to obtain. They sound like they're fiscally irresponsible and you'll ruin your credit score if you're not careful. Family is family, but don't feel guilty telling them no. They need to figure out their financial situation first. If they ever declare bankruptcy, you're still on the hook for the credit card debt.
How much equity do they have on the house?
“We’ll that’s complicated. We can’t do a home equity loan because of back taxes” - my mom
Do not put anything on your credit card or cosign because this is a mess waiting to happen.
Imagine dropping $33k of someone else’s $ on a roof and then the county takes the house for taxes. Woooof
Oh boy. I don’t have any answers. Just don’t co-sign or borrow money for them. Don’t jump into this dumpster fire and ruin your financial future.
“Danger Will Robinson! Danger!” If they are not willing to share the whole picture with you do not get involved. And even then I would highly advise against co-signing or putting anything in your name.
Oh my god, they cannot afford this house at all. It would be best to sell completely out of this house. PERHAPS they can sublet some of their house to tenants and get some cash that way, but if they aren’t paying their taxes their days are numbered. Cities can and will foreclose on a $400k house for $40k in back taxes, and they will set the minimum bid at the auction to the value of the tax bill.
Right. They would be better off selling, even if there is a lien on the property. That's better than the municipality taking it over and not even getting market value for it.
That's what I was thinking. Probably better to sell and get something they can afford.
They are going to lose the house before the roof loan is paid. This will not remove your obligation to pay it.
That's not that complicated. Please don't buy your parents a roof. It sounds like they may lose the house before the loan is even paid off.
I understand, you want to help your parents. But, financially speaking, *run.* Do not get your finances mixed up in any way with theirs. Is there a particular reason they are asking for help with a $33,000 roof instead of asking for help settling their back taxes? How much do they owe in taxes and what's preventing them from paying it off?
The truth is that they can't afford that house. Better to sell it, pay their debts and start over with something more manageable. The city is gonna forclose on them anyway if they don't pay their taxes. They better get the most they can right now and move away without a foreclosure on their credit. Anyway don't put a cent in this because you're probably gonna lose everything. My advice is to never put that kind of money on a building/house without having your name on the deed.
Don’t throw good money after bad. Your parents are in over their heads if they are behind on taxes. The best way you can help them is to pay their back taxes and help them prep the home for sale and then help them find a home/apartment they can actually afford. If they owe back taxes the county can auction their house off to pay the taxes. Catching taxes up should be priority #1. They are living beyond their means and unless you are ok being their piggy bank, help them figure out how to live on what their income will allow.
This is worse than you imagine. Your parents are it being completely honest and forthcoming with info. There is a reason thr only financing thry can get is at crazy rates.
I work in banking. This is true about the back taxes, however many banks will still do a HELOC and just make a required disbursement of paying the taxes in full as part of the proceeds. I would look into this further at multiple banks.
This is worse than needing a new roof. Look up how long they can owe back taxes before the county forecloses on them. Sometimes it’s a case-by-case decision, sometimes it’s one year. No need to pay for a new roof if they lose the house. How much do they owe and would it be better for this to be paid off so they can get a Heloc? If they won’t tell you the county assessor website might show which years aren’t paid for. They may need to consider selling.
Do not under any circumstances help them pay for this by signing anything. This is the biggest red flag of red flags. The house could be on fire and I'd be less concerned.
You won't see a penny of this gift
Is today your first day on this sub? This is a huge 🚩🚩🚩 please go read other posts.
This is a disaster waiting to happen. Do not help with anything but cash.
If these people weren't your parents you wouldn't lend them a Nickle. Please don't get involved. This is the cost of home ownership. Sounds like they are too proud to sell their home. A 33k roof is a big house. They are taking you for a ride. They are robbing from you to make up for their horrible life decisions.
Some people may be snippy about it but you really shouldn't be investing cash into your parents home if they owe back taxes. There's a chance there's a lien on the home and it gets taken away regardless of the nice new roof. I would call city hall and the bank where they pay their mortgage and see how much they are behind. That can help put things into perspective for you. If it's an IRS issue I would be hesitant as well. My suggestion would be for them to sell the home and downsize. Home prices in most parts of the country are inflated and this would benefit them the most as they're buying a cheaper home. If you live at home with them take into account the price of the repairs vs what you'd pay in rent elsewhere. Maybe it makes sense for you to pay for the roof. Don't ruin your chance at financial health because you tried to be helpful to your parents. They have options besides more debt they can't afford.
sell the house now while the housing market is still insane. even priced to sell/as is/roof needs repair it'll make something.
Heloc (or loan) is the right answer. Now we have back taxes, unknown equity, bad credit, no idea why they're replacing at least 50 sheets of decking, and no idea what bombshell is hiding under the next rug... Your answer needs to be "that sucks" and walk away. You can help them hunt for a new apartment, and even buy for them and assemble the best furniture for it that Ikea has to offer...
Lol. You should absolutely not help them. They're adults. This is up to them to handle, not you. You'll be fucking up your finances for a decade to come.
Your parents are hiding vital information from you but want you to take out a significant loan in your name, there's red flags all over this situation. How are they going to pay you back on top of paying back taxes and whatever other unspoken debts they have? I'm telling you right now, if you go through with this and it comes time for them to pay you back, don't be surprised if "something comes up" and they aren't able to pay.
Do they own too much house maybe? Selling seems like a good option at this point.
Notice how you had to ask them this afterwards to even get this information - had you not known this, paid for the roof in whatever way you chose, and the county foreclosed on their home, you would be stuck paying for a roof for someone else’s house for the next decade plus They aren’t giving you the whole story. And I know that can be tough to hear when it’s your parents, but even neglecting to disclose this alone is extremely manipulative of them to do. Or if you want to believe it’s not manipulative, it’s very incompetent of them to not disclose to you. It’s either/or at this point because that undisclosed point is potentially life ruining for you They are asking for you to catch this falling knife
Ah so that answers my question. They probably don’t hold insurance either.
They are gonna screw you so hard if you co-sign anything with them.
Oh no
Let’s talk about getting that roof bid down. Any details, rough locations, roof type and roughy size?
The details? That amount given by the parents ain't for just a new roof.
The real question is, why 33K? That's seems very pricey for a new roof. Are they getting more than Shingles? Did they get more than one quote?
OPs parents owe back taxes and are likely hoping to have this “quote” get covered in part by their son to pay those too.
You will never see this money again. Your parents will not be able to pay you back. Owing back taxes is not normal and it's a sign of much larger financial issues they probably aren't even telling you. If you're ok with all that, then go ahead and help your parents. If you proceed then you need to have a plan to pay off this debt by yourself.
Do not cosign a loan unless you're absolutely sure you want it to be YOUR loan. They won't pay you back because they can't afford it. If they can't pay the loan why would they pay you?
Another way to look at this is: You are giving them $33k. They might kick in a couple bucks back but you can't count on it. As you don't have that money sitting around you must borrow it. So the real question is: Are you ok with giving your parents $33k?
They're adults, don't think you HAVE to help them. Because they will take the help you give them and leave you high and dry! Do not give them money, do not take loans out for them, do not cosign on anything!
If your parents haven't figured money out by now they likely never will. So you giving or borrowing money for this would be a gift that you won't be getting back. Up to you if you're good with that or not
A) that roof quote is way too high. Unless you have a Spanish tile roof on a 5,000 square foot home, get another quote. B) any reputable roofing contractor should offer financing significantly below 25%. Even the national ones.
I’ve seen fancy metal permanent roofs cost +$20k, but $33k for a composite shingled roof is absurd. I wonder how bad the parents are lying about the quotes. I’d guess they doubled it to try and get some cash from their son?
They got solar panels up there also getting replaced or something? Why so expensive?
How big is the house? Where is it located state wise? As others have said, that is a expensive bid unless they live in Silicon Valley where the labor is outrageous ($28/sq ft fully loaded cost) v Austin ($9/sq ft). Then again they could have one of those crazy roofs with six or seven peaks or just going for a Tesla roof 🤷♂️
Your parents need to get a lot more estimates. $33K is a terrible price. How big is the house? What kind of roofing material? Put it down in paper - exactly what they need to be done. How many squares of shingles, the type, brand, how many sheets of plywood and cost per sheet if repairs are needed, etc. You want to make sure that the roofers are bidding on the exact same scope of work.
If they have enough house to need a $33,000 roof, plus have back taxes owed. Time to down size! Sell as is.
$33k for a roof? That must be a mansion. I just had my roof done. They removed the old one and out a new one for $10k. Did you get multiple quotes?
There are sometimes federal or state programs that assist with home repairs. Years ago, my parents got a new roof on their home, as well as some other repairs, for $0. Sorry I don’t recall what agency it was through. They were in their 80s, so that may have been a factor.
Run. Do not cosign or take on debt for them. They need to budget, they need to sacrifice, sounds like they probably overpay for evrything and are drowning. Now, if you want to help them, what do you know? I have a friend that knows offroad 4 wheelers and golf carts, buys them, spends a weekend cleaning, waxing, posting selling, makes thousands a month- 6hrs on Saturday at a time. 1- get the tarps 2- get them help budgeting, refi cars, sell the rv they havent used in 6 yrs, clear out the $100 a month storage, stop payday loans, heck if they have 80k in credit card debt declare bankruptcy. Get them help, they are only digging deeper 3- use your time and elbow grease if you must, I would for my family, but dont use and jepardize your wallet, credit, nor future.
I would not assume a huge debt for your parents. As hard as that might be...I would help them explore other options.
Please don’t get involved in any commitments. Most you should do is gift cash that you can afford not to get back. Don’t do loans or anything like that. Don’t let family ruin you financially. It can be hard to say no to family, but when it comes to stuff like this you gotta be firm. It’s sad that you’re even being asked to help with this… it’s just such an obviously bad move to ask someone to take.
Read through the numerous posts on here from people who co-signed a loan for a friend or family. Don't do it!!! Your parents need to work on raising their credit score.
Get. More. Than. ~~One~~Two. Quotes. We got 3 for some chimney work. Knocked the price from 9k to 5 n change.
Check with a credit union. The usually offer far better rates to members. I borrowed $10k at just 6.4% from mine.
You should see if they would be willing to sell the house and move into a nice condo where these things are taken care of by HOA
Don’t use your credit or money. Their house, that it sounds like, they can’t afford to maintain.
I would give them whatever you can that is liquid on your end and nothing more. Whatever you can part with. I wouldn't take a loan or use credit other than the equity in their property (which you say is not available). If you can't afford the roof then you likely can't afford the house. Last thing you want is to invest in a 30 year roof just to have the state come after them for back taxes. Helping our parents is always rewarding and we rarely get a chance to return all of their efforts in raising us. Just make sure you look out for yourself in the process.
This is not going to end well. If the banks don’t trust them to pay back the money, you shouldn’t either. You must know that this is a terrible idea.
33k for a roof...? Step 1 is to get at least 3 more quotes from licensed and insured companies. Step 2 is to confirm they are getting classic shingles versus terracotta. Step 3 is to decide whether you are 100% okay with losing 33k + interest to help out your parents. If a bank isn't willing to take the risk, you shouldn't be unless you're willing to *gift* this amount. If you're cool with step 3, go to your bank or a local credit union and see if you qualify for a loan. See what your options are, because a 21.99% card? May as well let your parents do the 25% loan in their name alone.
Well, scrolled through some comments and saw you mention they owe back taxes. That home can and will be eventually taken by Uncle Sam. I urge you to not get involved in their financial hellscape. Help them escape it by selling the house, paying the back taxes, and getting into something they can afford with whatever income they currently have. Otherwise you will end up paying for a new roof for strangers/the government.
DON’T CO-SIGN A LOAN!! If they default… what would you do? Ruin your own credit. Are they behind on the mortgage? Or other payments? Their inability to afford the roof is a red flag that the home maintenance has been neglected for some time. I wouldn’t loan any money unless you’re just call it a gift. Their credit score and living in a house beyond their financial means is a red flag. I imagine this isn’t the first time they have been unable to repair their home or other things. If they want $33k, everyone should have 2 jobs, no cable and saving every penny towards a roof. They could also rent a room or two. Meanwhile, put up a bunch of blue tarps until they can afford it.
Please dont take a loan out for this large sum of money for the sake of someone else even if its your parents. You are going to get screwed. You will be responsible for the loan. You will end up being the one to pay it.
A few contractors tried to scam my mom out of $30k for a new roof last year. She kept shopping around and eventually found an honest one who did it for $10k
do **NOT** use your credit card as a means to secure a loan, they are best utilized when they're treated like cash. Their interest rates are insane, way more than what you can do getting a regular loan at a bank.
Do NOT use YOUR credit to help ANYONE. Especially people with bad credit because then their bad credit will become your bad credit. Depending on where you live, you should have them look into the USDA repair loans. You’d be surprised what cities are considered “rural” and actually fall within their criteria.
Any possibility that a recent storm rolled through their area and could possibly have the home owners insurance pay for the roof? You just need a company to come out and inspect the roof, see if it might qualify and your insurance will send out an adjuster and hopefully it gets approved. Hubby does this for a living so all I ever hear is roof talk.
Do not take out this loan. Do not co-sign on a loan with our parents. They have a poor credit rating for a reason. Do not put this on a credit card. What is the equity in your parents home? How old are they? Do they own too much home for their needs or budget? These are the options you need to answer. Lots of fishy stuff here. Why do they want a loan less than 5 years? Why are you framing that \*they've\* thought of using your credit card for the roof? That's your decision, not theirs. I know this isn't /r/relationship advice, but from the limited info you've provided it sounds like your parents may be attempting to take advantage of you, and whether malicious or uninformed, they definitely don't have your best financial interests in mind.
From what you wrote, it sounds like if you take out the loan (or co-sign), that you will end up paying the whole thing yourself. If you are okay with gifting your parents that amount, by all means, gift them the new roof. Your parents don't have the ability to pay you back if they owe back taxes. They're spending is more than their income and buying them a new roof is just a bandaid on a gushing wound. Honestly, I would suggest they sell the house and move somewhere more affordable.
Do not put any of that on your credit card or in your name.
I would look into a personal loan program. Find a lender that will take the higher of the scores. You should be able to locate a 6-8 year term pretty easily.
Give them whatever cash you can afford to part with. Period. They need to act like adults and clean up their own mess without mortgaging their child’s future.
Do not loan the money to your parents. Sounds like they didn’t save money for emergencies and expenses. How long ago did they buy the house? If it was recent, then this should have been flagged on inspection. Or if damage from a storm, insurance could cover this. If it was a long time ago, they should have known that a roof would have needed replaced eventually. Don’t give them a cent. They got into this mess and you don’t owe them to get them out. As soon as you max out your credit card, your credit score will take a dump. Plus it will take them years to pay you off. Your credit and options in in life will take a hit for their mistake. They don’t want to take a loan with less than a 5 year period. That means you would potentially have debt for that long. Plus they could literally not pay you and you would be stuck with the money. Same for co signing. Your parents have less than ideal credit for a reason. Don’t ignore this.
Do not use your cc or the 20+% loans, that’s crazy
I'm a roofing contractor with 15 years experience in Va. If you would provide details of the quote I could help. Did they get more then one est?
Do you want to take out a loan to gift your parents $33,000? I guess you can. That's what you need to assume you are doing. I think a lot of people might do that for their parents, if they can afford it. I wouldn't. I think a better plan is probably for them to try to sell as is, pay off the mortgage, pay off the back taxes, sell for less because of the roof, and come out "free and clear" with no mortgage. Then, move into a rental they can afford. How old are they? What are their retirement savings? Why are they so behind on their debts? Why do they owe back taxes? Usually, those are paid via escrow from the mortgage company.
Do they own the house out right? If so is taking a loan to pay the roof and back taxes on the house an option? Or a reverse mortgage? I am 63, have 3 sons but would never ask this of them and don't think you should give them money either. There comes a time to downsize and get things in order and it sounds like this is that time. Good Luck
Go to the website of the shingles manufacturer. Get a list of certified roofers in your area. Get a bunch of quotes. You will get them all over the map, including the dog and pony show with pressure for a discount for buying today, a discount for using shingles they already have. I told at least one that all that song and dance told me was that they were willing to overcharge me if I didn't ask questions. You likely don't need the architectural shingles which cost $$ , just plan 20 year ones $. Often the price is different for a tear off vs. a reshingling, so it looks like you are talking a tear off here. Find out the charge for the plywood replacement - it's often a flat charge for say 4, and then $ per other sheet (I think we had 4 replaced on our Cape Cod, but I knew that was coming since at least 2 of them were obvious and the other 2 were the neighboring sheet. Look at their reviews. Ask around the neighborhood. Then start looking for grants. Depending on where you live, their age and their income, they may qualify for a grant towards the roofing. The guys who did our roof ($17K tear-off, Cape Cod-ish with architectural shingles) 5 years ago told me that they get called by the city a couple of times a year to do a roofing job for the price of the grant. There are grants from the city, the state, for rural areas, veterans. You name it.
It’s difficult but don’t let the poor financial decisions continue with you. They should find a big nationwide roofer that will finance or something along those lines. Certainly get more than one quote. I manage multi million dollar homes and $15-$25k is what new roofs run. Do your parents have a 10k sq foot house or something?
Plywood at 8k? Wtf do your parents live in a mansion? How do they not have insurance? Too many red flags here.
They are going to have to deal with the high interest loan or other means. You can help them look but you should not take any loans / debt out in your name or co-sign no matter how much you trust them.
Don't do anything unless you want to wreck yourself financially and in turn your entire life. You can help with navigating the roofers/quote estimates, then picking the best financial options they have available to themselves, but that's it. If they're that bad at money, they're going to suck you dry and or do what they want and leave you footing the bill for it all. It sounds like they need to get different estimates and then either pick the best loan they can get, if they can at all (do not take out one yourself or co-sign on one) or downsize by selling their house and moving into something smaller (other smaller house or apartment).
I don't know how to tell you how to get the money, but I am here to tell you that you should consider the $33K a gift, not a loan. If they pay it back great, but there's probably a reason they don't have very good credit. That may sound harsh but is true. Just know that you may not get it back and consider it gravy if you do. In other words, don't loan out anything you can't afford to never see again.
Question…is there a leak or broken shingles on the roof? How old is the roof and what insurance do they have? I had mine covered 100 percent, 22k covered by insurance.
I wouldn't dare use your own credit ... Disaster waiting to happen. If you do, get it in writing.
What makes you think a bad credit risk will pay you back, or pay the loan? If you do this, do so knowing that YOU are paying for their new roof, and that it may still be taken for back taxes.
There are roofing companies that offer financing and it won't be 25%. A 670 score isn't bad enough where it should warrant such a ridiculous rate. I think the rate on my roof financing was like 6-7%. With current rate adjustments you shouldn't be over 12-13% I wouldn't think. I think the company I used financed through Green Sky if I recall. I eventually used a Heloc to refinance it which would probably be a better choice.
How necessary is the roof? I’d imagine if it was so bad they couldn’t live safely, insurance would help. I’d try to prioritize finding a way to avoid taking on this debt at all, a la Dave Ramsey
If the bank won't lend them the money because their credit is wack, why should you? If you give them money, do not ever expect to see it again. If you give them money, consider it a gift to them. Co-sign for nothing.
Credit card. No. Don’t even think about it. It is literally the worst thing you can do here. You are better off tapping into retirement funds than putting this on a credit card. Money like this should have been saved on the side.
Shop around for a personal loan at an interest rate much much lower than 20% (not with credit cards!) or look for a different roofing company with better financing interest rates. Just know that by helping them take out this loan, you’re essentially gifting them the money and they may not pay you a penny back. You have to be ok with this and you have to be able to pay back the loan on your own. Don’t take out the loan if you can’t afford to pay it off yourself. But honestly, if the roof isn’t an emergency, I’d say help them figure out how to settle their back taxes first cause that sounds like a foreclosure waiting to happen. This might be tough, but you should have a serious conversation with them about selling and downsizing. You may be able to help them once or twice, but can you afford to keep helping them with these big costs?
Check with the local county and city they may have loan programs to help with the repairs at a low interest rate. If it financially disable you, please don’t.
Live in the northeast, had my roof redone this year, 2800 sq. ft. house, $9100. Had three quotes— $8700, $9100, and one guy that said it would “at least be 18k-20k” and wouldn’t even give a firm number until he met with both my spouse and I to really do a hard sales pitch. Are you sure your parents have multiple quotes and aren’t being taken for a ride?
How long have they had their house? Any equity in it? Tell them to get a HELOC. 670 credit score should get a decent rate for them without any co-signers. They can pay off early
Woh woh woh. A $33k loan in your name will hurt your ability to buy a house or car later. And that’s assuming they never miss a payment. The price tag is high. Get another quote or two. Don’t go for the Cadillac of roofs. But personally? I don’t think you should take a loan for them. 25% interest?! Either their credit is worse than you know or something else is going on. Credit cards are 24.99%.
If repairs are costing $33,000 then why not just sell the house and move on to a newer house
There is a lot of other good advice here but I just want to say you should absolutely not expect to get this money back. Your parents have bad credit for a reason, because they don’t pay their debts. So if it were me, I would help with what cash I can spare but I would never co-sign a loan and I certainly wouldn’t take out a loan to lend anyone money. If they can’t afford a roof I think they need to sell the home and downsize or look into a condo or something.
Do they have homeowners insurance?
We paid 9k for a new roof in Ny, on a decent sized house. Lowest quote was 7.8k, highest 29k. Keep shopping
Money and family rarely goes well. There is a decent probability you will be left holding the bag and angry at your folks over it.
I think you have to reframe the problem. If your parents have no savings of their own, that's a red flag. Also, their poor credit rating would indicate that they really can't afford their bills as they are. So should you come up with the money, they just are not going to able to pay it off even if they have good intentions. You have an excellent credit rating, but how will that last if you have an additional $33K in debt to pay off yourself? Should you really be talking with your parents about finding a more affordable place to live? If there have been no updates on the house in 32 years as you mentioned, it won’t bring the best price, but your parents aren't going to able to handle future maintenance issues. Something is always breaking down, just saying that from my own experience.
Do either of you or they have any equity in a home? While HELOC rates aren't great right now, they will always be better than a credit card. Also, how big is this house? I have a two story, 2500 square-foot house. I recently got the roof replaced for under $10,000 and that included some of the plywood. That quote sounds really, really, really high unless it's an absolutely enormous house. I'm going to say something that sounds rude: if you live in a house with a $33,000 roof, and you can't afford to replace the roof, you probably can't afford to live in that house. They are either getting screwed on the quote or have far too large of a house. For their income, at least.
Bad credit, they owe back taxes on the house… do not co-sign a loan for them. They either need to figure this out themselves or you gift them $33k. If you aren’t in a financial position to pay for this for them, then you don’t do it.
They can stay at your house while they get it fixed. If they have a 401k they should take some as an emergency on it set up a payment plan for the rest. Poor planning on their part.
If they need a roof due to hail, high winds or other natural disasters, their homeowners’ insurance should be paying for it. They do have homeowners’ insurance, don’t they? If not, they have way more issues than a roof and back taxes. And unpaid property taxes. They need to sell. Whether they believe it’s an option or not. If they can’t afford to maintain their home, they can’t afford to live there. And selling now, before the county forecloses for back taxes, and they will, is their best option. You want to help your parents. And that’s admirable. With parents as unrealistic as yours, part of helping is getting them to recognize that putting YOU in debt won’t solve their underlying issues.
I just replaced my roof and found that costs vary widely. I got one quote for $36k and one for $12k. I'm in the Atlanta area. I obviously went with the $12k roof and they did a great job. I should add that I live in a four bedroom 3,200 sq ft two story home.
Forgive me for being harsh, but here are some realities. Your parents are surely good people and you surely love them, but the reason their credit score is 670, and the reason they can’t get a home equity loan, is because they don’t pay their bills. And people are even less likely to pay other people’s bills (the ones you’re considering taking out) than their own. Your credit score isn’t a bit better, it’s a lot better. Which means you do pay your bills. Roofs don’t fail overnight. This isn’t an unpredictable emergency. It was likely getting worse for years, yet was ignored. “They don’t want to take on a loan less than 5 years” is a bad sign. Shows they’d rather stay in (more) debt for as long as possible. You didn’t say if the idea of putting the loan in your name was yours or theirs…but if they’re willing to risk their son or daughter’s credit to get themselves a roof, that’s disturbing. Summary: 1: Don’t let someone else borrow money in your name. Ever. Even if you love them. 2: Buy them a new roof as a gift if you can afford it and if you want to. 3: Personally, I’d only buy someone a new roof if they were taking active steps to improve their situation. I’d want to see them paying their existing debts aggressively. 4: If they’re not willing to do 3, you might offer a gift of $1000-2000 to pay someone to make a temporary repair or put tarps on the roof. But pay for the services directly; don’t hand money directly to your parents.
1. Did they get at least 3 quotes?