When you have a damaged, leaky roof, there’s no time to wait. To avoid further issues, a roof replacement should be done as quickly as possible, and that’s where financing for a new roof can become essential.
Easier said than done, right? A roof replacement is often a major, unexpected expense. It can cost thousands of dollars, and many homeowners simply don’t have the cash to cover it. Thankfully, there are many solutions available that can ease some of that burden.
What should you know about financing for a new roof? In this guide, we’ll explain how to get a new roof without straining your finances.
Think about your roofing needs first
Replacing or even repairing your roof requires a significant investment. Before you decide to take a loan, you should carefully evaluate the scope and cost of your project. Can you really afford it? To pay less interest over the life of the loan, it’s best to put down as much of your own cash as possible. Sometimes, when the damage isn’t severe, it may even make sense to postpone the work until you’ve saved enough to pay upfront.
Roof financing options
Generally, there are three roof financing options for homeowners. You can take advantage of home equity loans, contractor financing, and personal loans. If you’re wondering which of these options is best, the answer depends on your specific situation and credit score. Each option has its own advantages and disadvantages. Let’s take a closer look at how they differ.
Home equity loans
If you’ve accumulated a significant amount of equity in your property, it can be a smart idea to tap into that value. Home equity loans work similarly to a mortgage – you’ll receive a lump sum that you’ll repay in fixed monthly installments. One of the reasons this is a popular financing option for roofs is that it often offers lower interest rates than other solutions.
However, you should be aware that using your home as collateral means your lender can foreclose on your home if you struggle to keep up with the monthly payments. Also, keep in mind it will likely take a longer time to get approval for a home equity loan because most lenders require a home appraisal first.
Personal loans
Another way of financing your roof is borrowing money from a credit union, a bank, or an online lender. This is an attractive solution for homeowners who don’t have enough home equity or prefer not to risk their property being repossessed by the lender.
The biggest advantage of personal loans is their predictability. Having fixed monthly payments makes it much easier to budget your expenses! However, the downside of personal loans is that they usually come with higher interest rates. It can also be tricky to qualify for them with favorable terms. You should have a good credit score – no less than 690.
Contractor financing
When looking for roofing contractors, you’ll notice that some partner with third-party financial entities to help their clients cover the big expenses. This can be a great way to access a more personalized, flexible solution based on your specific circumstances.
Use our free online roof financing calculator to determine your projected monthly payments.
Government programs
Sometimes, you may also finance your roof replacement through government grants and programs. In fact, there are plenty of opportunities at the federal, state, and even local levels. For example, the USDA Section 504 Home Repair Program offers loans for low-income homeowners, plus grants for property owners over age 62. To learn about other available grants, you can visit Grants.gov.
If you’re still in doubt about the best solution for your needs, it doesn’t hurt to chat with a financial advisor. They can advise you on the smartest decision for your financial circumstances.
Final thoughts: Financing for a new roof
When it comes to a new roof, cash is definitely king. However, there are other solutions that are worth exploring. Home equity loans, private loans, contractor financing, and government grants are all great options that can help with the high roof replacement costs.
Before you start comparing different financing options, it’s important to understand how much your roof repair or replacement project will cost you. We’ve created a roofing calculator that gives you a fast and free estimate in seconds.
Likewise, if you’re looking for a professional contractor, use our search tool to find a top-rated roofer in your area.
Fact Checked by Lita Legzdina on 06/13/2025