The Best Roof Replacement Financing Options

A roof replacement can be expensive, especially if it’s not planned. Here are some financing options to help you budget.
Written by Talullah Blanco
Reviewed by Melanie Reiff
Whether your roof replacement is a planned update or an unexpected yet necessary fix, installing a new roof can be expensive. Before your roof replacement project, compare your financing options 
Homeowners spend $8,627 on average to install a new roof with costs ranging from $5,605 to $11,772. This is a substantial expense and is why most choose to finance their roof replacement projects when their home insurance won’t cover it or they're left with a hefty deductible. 
price comparison and insurance
super app
has compiled a guide to help you find the best roof replacement financing option for you. We’ll cover personal loans, home equity loans, government-insured loans, credit cards, and financing through a roofing company.

Will home insurance cover a new roof?

Your home insurance will cover the cost to replace your roof if damages were caused by a natural disaster or unexpected accident detailed in the policy. You’ll want to read your policy carefully to see what
named perils
are covered as not all natural disasters will be covered. 
However, if damages are due to wear and tear or lack of maintenance, you’ll have to pay out-of-pocket or finance your roof replacement project.

Roof financing options

There are several financing options available for roof replacements but each offers different term rates and amounts depending on credit history and project cost. Let’s review the roof financing options below to find the right one for you.

Personal loans

You may be able to get a personal loan at a competitive rate to use as a home improvement loan to replace your roof. 
With this loan, you’ll receive funds all at once and repay the loan with interest in fixed monthly installments. The lender will review your credit score and history to determine the amount offered and the interest rate charged over the repayment term.
Roof loans amounts can range from $1,000 and $100,000 with annual percentage rates between 6% and 36%. The larger loan amounts and better interest rates are typically reserved for borrowers with good credit scores.

Home equity loan

A home equity loan allows you to borrow money for your roof replacement using the equity you’ve built in your home as collateral. 
You’ll receive a lump-sum amount and repay the loan with fixed rate installments over the repayment term. These loans usually come with lower rates and longer repayment terms than personal loans, which means lower monthly payments.
However, you could risk losing your home if you miss a payment. Be sure to carefully review the conditions of your loan including the repayment term, interest rate, and monthly payment to ensure the personal loan fits your budget and that you can make every payment. 

Credit cards

Homeowners with good or excellent credit scores may qualify for a 0% interest credit card as a balance transfer or new cardmember which you can use to pay for your roof replacement. 
Credit cards may provide a higher spending limit than personal loans, but have a much shorter repayment timeframe and a sky-high interest rate once the 0% promotional period ends after 15 to 21 months. Make sure you can pay off the credit card balance in full before the 0% introductory period is over to get savings. 
Key Takeaway Use credit cards for low-cost repairs that can be paid off before the 0% promotional period ends to avoid high-interest rates. 

Government-insured loans

FHA Title 1 loans are home improvement loans backed by the U.S. Department of Housing and Urban Development (HUD). 
The loan amount offered will depend on the need and your personal credit history. These loans have fixed interest rates, long repayment terms, and typically require lower credit scores than home equity and personal loans. 

Roof company financing

Because roof installation is so expensive, roofing companies often offer clients the option to finance the project. Financing may be available to you directly through your roofing company or they may offer financing via a third-party financial company. 
The rates and terms of the loan will depend on the roofing company and your credit score. Loan amounts and terms may vary by the roofing company, so shop and compare offers to get the best deals. 
Key Takeaway The roof financing options available to you will depend on the total cost of your roofing repair, credit score, and history. 

How to save on home insurance

While your insurance may not cover a roof replacement, it doesn’t hurt to take a look at your policy and make sure you’re getting the best price. 
The best way to save money on your home insurance policy is by bundling it with your
car insurance
. Most insurance companies offer bundling discounts that can save you between 5% and 10% on both policies. 
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Homeowners have plenty of options available to finance a roof replacement project including personal loans, home equity loans, government-insured loans, credit cards, and financing through the roofing company.
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