Eight Options for Financing a Roof Replacement

Replacing your roof is a vital part of maintaining your home. A poorly maintained roof can easily lead to thousands of dollars in damage to other parts of your home. You can take the patch-it-up approach, but this is will only be a temporary fix for a very serious problem.

It doesn’t take a rocket scientist to determine that roof replacement is expensive. This is one of the main reasons why many homeowners cringe when they find out that it’s time to replace their roof. A home improvement project of this size can easily start at $12,000.

The first step begins with you getting estimates from several reputable contractors in your area. Home improvement experts suggest that you should get at least five estimates. This will help you get the best price for the project. It’s also important for you to make certain that the contractors are licensed in your state. Getting several estimates will help you see what you are facing.

Fortunately, there are several options on the table for financing a roof replacement. Each has its advantages and disadvantages. We will now take a close look at each one.

Personal Savings

There’s an old saying, “Save for a rainy day.” Saving money can help anyone be prepared for emergencies. Well, replacing your roof should be considered as an emergency. If you fail to take immediate measures to resolve this issue, you could be looking at further problems that will cost you more money.

For instance, a leaking roof can cause mildew. Besides replacing your roof, you will be on the hook for paying a company to remove the mildew. This can be costly!

Your personal savings should be the first option to take into consideration. If you have enough cash on hand, it only makes sense for you to pay for the roof replacement project out of your pocket. This can help you avoid the fees that are attached to loans.

Homeowners Insurance

The roof replacement project may be covered in your homeowner’s insurance policy. You need to sit down and ready your policy carefully. Contact your insurance agent if you don’t understand some terms or if you need further clarification. If your roof was damaged due to a fire, storm, or other event, your insurance may cover you. If you’re covered, you will only be required to pay your deductible.

Personal Loan

Financing a roof replacement can be done with a personal loan. In many cases, a personal loan means lower monthly fees and interest rates if you were flirting with the idea of paying with your credit card. Banks and credit unions offer personal loans with flexible terms to borrowers that can show steady income and a decent credit score. The lender may ask for more personal information if they feel like you are a viable candidate for a loan. You should make an earnest effort to shop around for the best rates.

Home Equity Loan

You may be eligible for a home equity loan if you have equity in your home, a steady job, and a solid credit score. Homeowners normally use home equity loans for large purchases that will increase the market value of their home. An appraisal may be required to determine the market value of your home. The lender will use the market value of your home to calculate how much financing they are willing to offer you. Checking with several lenders will help you find the best deal.


Many homeowners are not aware that they may be able to use incentives to help pay for their new roof. These incentives are typically offered for energy efficient roofs. Getting in contact with the energy department in your area will help you find out if you qualify for an incentive. Incentives can help you save a great deal of money.

Company Financing

Financing a roof replacement can be done with company financing. Many roofing companies offer company financing or a roof loan. They work with preferred lenders that extend financing to their customers. The preferred lender will verify your income and credit score. In most cases, it will be easier for you to get approved for company financing. Unlike banks and credit unions, you can get approved for company financing in a matter of moments. However, you should be ready to pay a higher interest rate.

If you decide to use company financing to pay for your roof, make sure that you don’t agree to terms that will push you beyond your financial comfort zone. You don’t want to sign a company financing agreement that will wreck havoc on your finances in the near future.

Credit Card

Credit cards come in handy for a variety of reasons. You may be able to use your credit card for your new roof. Please keep in mind that you should only use your credit card as a last option. If you can cover the roof replacement project with your credit card, you should be ready to deal with higher interest rates and fees.


Crowdfunding is a new form of lending where you present your need to a pool of potential investors. These investors are not the savvy investors that you will find in the banking industry. Crowdfunding investors are ordinary people that are interested in making a decent return on their money. Simply visit a crowdfunding platform and tell the crowdfunding investors you need a new roof. They may give you the funds.

Replacing your roof is one home improvement project you cannot afford to ignore. If you do, you could be facing more problems down the road. Financing a roof replacement can be done if you use your creativity and exercise one of the options above.