Roof Financing Options For Homeowners

Roof financing

What Factors Influence the Cost of a Roofing Project?

The factors that influence the cost of a roofing project are:

– Your home’s location
– Your home’s height and roof accessibility
– Your roof’s pitch and total size
– Features of the roof like skylights
– Type of shingles and other materials
– Permits and labor

The average roof replacement today costs between $5,619 – $22,000, with the national average being $11,536. The range of the average cost is so wide because the factors listed above can vary wildly from home to home.

The good news is that you do have some say in what the total cost for your project will be. The shingle material you select will play a huge role in your total final cost. You can also save money by pulling the permits yourself if you have time and a good head for technical paperwork.

Roof Financing: Ways to Pay for Your New Roof

You actually have more choices for roof financing than you may be aware of. The most popular methods people use are personal loans, credit cards, cash/check, insurance coverage, home equity loans, government-funded home improvement loans, and roof contractor financing.

Some lenders will allow you to use a personal loan to pay for a new roof. You’d typically seek out a bank or financial institution that offers personal loans, and then shop around to find the rate which best serves you. Think about the interest rates versus the repayment terms before you decide.

Credit cards can generally be used to pay for your new roof. Doing so can actually benefit you if your credit card offers great incentives, or if you open a new credit card with a 0% interest for 12 months program. That said, the processing and interest fees can stack up quickly if you aren’t careful.

Cash or check is definitely the easiest way to pay for a roof. If you’re able to pay off the entire project in one lump sum, you get to skip all the paperwork and payment agreements you’d need to sign for financing. Keep in mind that if you want to pay cash, the roofer will typically charge a deposit to hold your project on the schedule.

Insurance coverage is one of the most challenging paths to roof financing, but it’s also the path that costs you the least out-of-pocket. Your insurer will only approve your roof repair claim if the damage is due to an obvious act of nature, like a tree falling through your house during a bad windstorm. Most policies don’t cover “wear-and-tear,” so in these scenarios your claim will be denied.

Home equity loans are tied to your home’s equity, as you may have guessed. If you have great equity and you’re okay with a regular long-term payment arrangement, this may be the perfect option for you.

Interest rates are often much lower for these loans than personal loans, too. But if you fail to make your payments, the bank’s allowed to foreclose on your home. Carefully weigh the risks and rewards before going this route. (1)

You have choices for a home improvement loan if you have a bad credit score. Online lenders, credit unions and FHA lenders may provide options.” 


Don’t forget about government-funded home improvement loans. If you own a single-family home and meet a few specific conditions, the US government just might pay for your roof. These loans are required by law to “substantially protect or improve the basic livability or utility of the property,” and a new roof definitely checks that box.

Finally, you can ask your roofing contractor about what financing options they offer. Very few homeowners actually like paying large sums of cash all at once for their improvement projects. As a result, many home service professionals are offering in-house financing options. These tend to be much simpler to handle than a personal or home equity loan because everything is in-house.

Roof Financing Explained

Roof financing explained

Now that you know your options, you might have an inkling of which would work best for you. Even so, we’re going to look at the best process for choosing financing, pros and cons to look out for, and how to finally get the ball rolling.

What to Consider Before Choosing Roof Replacement Financing

It’s no secret that the sooner you get your roof fixed, the easier repairs will be. The thing is, a roof replacement is one of the biggest and most expensive projects you can take on as a homeowner. So while you shouldn’t delay your financing choices, you absolutely should make the time for a few key considerations.

Even if you don’t think your homeowner’s insurance policy will cover any of the costs, it’s worth contacting them. Find out if your policy covers any of the work that needs to be done. Insurance policies typically have exclusions, but the amount of money you could save is well worth the phone call.

Similarly, place a claim with your home warranty if you have an active one. Like your insurance policy, you pay a monthly or annual fee with the hopes that you never have to file a claim. If you have a warranty, find out what kinds of roof damage are covered. Every warranty is different, but again, it’s worth the phone call for the potential savings.

As you start shopping around for a roofing contractor, it’s wise to get multiple quotes. Try to get a referral from someone in your neighborhood if possible. Online reviews can be helpful in narrowing down your choices, too.

Getting multiple quotes helps you make a more informed decision on what kind of financing you’ll choose. Be sure to compare what’s actually included in each quote. This makes it easy to notice any missing costs you may be hit with later, like renting a dumpster or obtaining permits.

Once you’ve picked your roofer, checked with your home warranty provider, and spoken with your insurer, you have a much clearer view of the total cost you need financed. Now you can start comparing interest rates and repayment terms to make an informed decision.

Why Financing a Roof Repair or Replacement is a Good Thing

Financing the expenses to repair your roof is the best option in some cases. If you aren’t able to pay everything upfront with cash or check, you aren’t alone. As we mentioned earlier, the average cost in the US is $11,536. That’s a lot of money to expend all at once.

With financing, you can shop around for different options to find the one that’s most convenient for you. Thanks to the internet, you have an almost endless selection of lenders offering different interest rates and repayment terms.

And so long as you make your agreed-upon payments, you can improve your credit score while living under your new roof. An improved credit score means you’ll have even better options the next time you need a loan for a home improvement project.

Don’t forget the rising cost of construction supplies and labor around the world. While you may want to save enough money to pay with cash or check, you’ll pay a higher price as a result. Locking in your contract today and paying it off over time could ultimately save you money, if your interest rate is low enough.

Potential Drawbacks to Financing Your Roof Replacement

Even if you have bad credit, there aren’t many drawbacks to financing your roof replacement. The biggest thing to keep in mind is selecting a loan with a payment you can comfortably afford.

If you’re the type of person who doesn’t like to make monthly payments, you may be able to make different arrangements with your lender. Quarterly or biannual payments may be more suited to your lifestyle, but it’s true that some people just prefer to pay everything upfront.

The terms of some loans may be undesirable to you as well. With a home equity loan, you’re literally putting your home on the line. If you fail to make payments, your home can go into foreclosure. That’s the risk of using your home as collateral for the loan. You also need to already have some equity built up in your home to be eligible for this loan.

How to Start Your Roof Financing Process

How to start roof financing process

Starting this process will look a little different depending on which route you’ve chosen. Let’s start with roof contractor financing. If you’re going directly through your roofer, simply tell them you’d like to set up financing for your project. They’ll have you fill out any paperwork and go from there. They’ll also review the payment terms and conditions with you.

If you’d like to take a swing at getting your insurance to cover it, begin a claim with them. They’ll likely require that you have a professional roof inspection performed by a contractor of their choosing. You’ll have a bit of paperwork to fill out, too. Starting this process can be time-consuming, but also incredibly rewarding if your claim gets approved. (2)

“The most important thing to do before determining how you want to finance your roofing project is to shop around for the best loan.”

–Motley Fool

For a personal loan or home equity loan, each lender has different requirements. They may ask you to choose a roofer to do an inspection, set you up with a roofer they’ve pre-approved, or just grant the loan based on your credit and/or home equity. Keep in mind that processing the paperwork can take several weeks, which can be problematic if your roof is in dire shape.

If you’d like to take advantage of a government-funded home improvement loan, you can apply at any lender. Just let them know which loan you’re there to apply for, and they’ll help you get started. These can also be quite a time-consuming procedure, and problematic if your roof replacement is urgent.

Finally, if you’re financing with a credit card, take the time to research the most cost-effective path forward. Opening a new credit card with 0% interest for 12 months and using it just for the roof repairs is one particularly popular approach. Or if you have a credit card that offers you many rewards and incentives, that might also be a good choice. Weigh the benefits against the fees and interest rates before deciding.

Roof Financing FAQs

Roof financing faqs

How long can you finance a roof for?

Depending on your preferred roof financing option, you can finance your roof for anywhere between 12 months and 30 years.

A credit card will require at least minimum payments monthly. Many credit card companies offer a no-interest program if you pay the whole purchase off within 12 months.

But if you choose to take out a home equity loan, you’re looking at financing your new roof for 5 to 30 years, depending on your loan officer. Ultimately, the length of time you can finance a roof for hinges on which financing option you choose.

Do roofers offer payment plans?

Yes, some roofers do offer payment plans and financing options. When you’re planning on hiring a roofer, asking them about roof financing options early on is the best path forward. You’ll also want to get details on when and how they bill you, plus their accepted payment methods.

If any roofing contractor you speak with doesn’t offer payment plans, this isn’t necessarily a red flag. Many family-run or local contractors give you a great price because you aren’t paying extra for their financing options, online bill-pay, or other bells and whistles.

Can my insurance pay for a new roof?

Your insurance might pay for a new roof if the damages were caused by a sudden accident or an act of nature. But most homeowners’ insurance policies would deny your claim if your roof deteriorated due to standard wear-and-tear or neglect.

If your insurance is going to pay for a new roof, they’ll require quite a bit of documentation from you. Gather before-and-after photos, all records, receipts of repairs, plus inspection reports. The sooner you file a claim with your insurance, the better your odds are of getting approval.

How can I finance a new roof with bad credit?

If you have bad credit, you can finance a new roof with certain home improvement loans, credit cards, or maybe even a line of credit with your lender.

It’s true that a bad credit score will shut you out of some financing options—typically the ones with the lowest interest rates and longest repayment periods. But that doesn’t mean you’re stuck with a leaky roof.

Some smaller lenders offer home improvement loans that look past your credit score rather than immediately disqualifying you. Many of these lenders even provide you with credit-building tools so you never have to make this compromise again.

Choosing a Roof Contractor Who Fits Your Needs

Now that you have an idea of which roof financing option is best for you, you’re ready to choose the best contractor for you. Every roof repair is different and requires expertise, a commitment to safety, and integrity from the roofer.

Sometimes, finding top-quality home service professionals can feel like hunting for a needle in a haystack. That’s why we started Same Day Pros. It shouldn’t take hours of your precious time to meticulously locate and vet roofing contractors until you find a perfect fit.

And with us, you don’t have to. Instead, you’ll give us some basic info about the nature of your roof repair and your general location. We’ll match you with local roofers who will provide competitive quotes for your project. In just a few clicks, you’ll be on your way to a free quote for your roof repair!


1. Nerd Wallet, Best Home Improvement Loans With Bad Credit

2. The Motley Fool, How to Finance a Roof

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