Financing a Roof? Here's What to Know

Lauren Wellbank
Written by Lauren Wellbank
Updated December 16, 2021
white cottage with grey roof
Photo: Ursula Page / Adobe Stock


  • You have a few options for financing a new roof. 

  • Depending on the cause, some costs may be covered by insurance. 

  • Otherwise, you’ll have options like loans. 

  • Some financing options will be better suited to you than others based on things like credit score and timeframe.

Your roof is the backbone of your home, and it’s able to bravely withstand the elements for many years. However, when torrential downpours, whipping winds, or falling tree branches come to town, you may have to consider installing a new roof. Fortunately, there are ways to finance this home project. We’ve rounded up some key points to know before you consider borrowing the funds you need to replace your roof.

Determining How Much You’ll Pay for a New Roof

Nationally, the average homeowner can expect to pay around $14,360 for a new roof. Those costs will change significantly depending on where you live and your roofing material. Certain materials—like slate or natural stone shingles, which can cost homeowners $32,000 to $50,000—will increase the amount you’ll need to pay. 

If left untreated, roof damage can lead to other issues over time, like mold and damage to other areas of the house and your belongings.

Know Your Financing Options

If you’re looking to borrow the money you’ll need for a roof repair, you have a few solid options.

Insurance Claims

While filing an insurance claim isn’t the same as taking out a loan—you don’t need to pay your insurance company back if they are covering the cost of a roof repair—it is a way to pay for your roof without needing to dip into your savings. This option will only be viable if the damage was caused by an insurable event. For example, storm damage is usually covered, whereas damage caused by neglect or normal wear is not. 

The payout process will differ from carrier to carrier. Some insurance companies will issue you a check for the lump sum of the repair, while others will send the money in installments. Talk to your provider to find out exactly how they plan to cover your new roof and just how long it will take to get that check in your hand. Some insurance companies can deliver funds almost immediately, while others may take 30 days or more to release them. 

Roofing Warranties

Just like filing an insurance claim, filing a claim on your roof warranty allows you to pay for your roof repair without needing to come up with the full balance out of pocket. If your roof has a warranty, and the damage is covered under that warranty, the company providing the warranty should pay for the cost of the repair. Not all warranties are created equally, though: Some may only cover the cost of materials, while others might just cover the service. Check the terms of your warranty to be sure. 

Financing Through Your Roofer

The contractor doing the work on your home may offer their own type of financing for your roofing project. Sometimes contractors will pair with banks or credit unions to offer their clients financing options if they can’t pay out of pocket. These types of loans typically come with higher interest rates since they are unsecured, or not tied to your home or other properties, and can have less favorable terms than going through your own lender. 

Just don’t expect the lender to cut you a check; normally, this money goes directly from the bank to your roofer’s account without ever making a pit stop in your hands. This process can make things move a little bit quicker on the financing end. 

Taking Out a Loan

There are plenty of lending options if you want to borrow your way to a new roof. You can refinance your mortgage, take out a personal loan through a bank or other lender, and even put it on your credit cards. 

Each of these options has pros and cons—credit cards and personal loans have less favorable terms than rolling the cost into your home mortgage, for example—but if you don’t have the funds to pay for a new roof right now, borrowing is the way to go. Personal loans and credit cards can sometimes offer you same-day financing, while a mortgage may take 30 days or more to process. Depending on just how quickly you need your money, you might want to opt for the faster route. 

Traditional Refinancing Isn’t an Option

Since replacing a roof can be such a large expense and can greatly alter the value of a home, most mortgage lenders won’t extend traditional financing if an appraiser notes that there’s significant damage. This means that in taking advantage of the low-interest rate, you might find pursuing a cash-out refinance won’t be an option if there is noticeable damage present. 

Be Sure You Understand Roof Financing

You can finance your roof repair using a personal loan. Unlike a mortgage, a personal loan isn’t secured against your property, so the lender isn’t going to be worried if your roof is already showing signs of damage. Pursuing a personal loan can be a great option if you need cash fast and have good credit, as they can often be funded within one business day. 

If you have less than stellar credit, you might end up paying a little more in the long run to finance your roofing project. Borrowers with higher credit scores can expect to find interest rates towards the lower end, starting around 6%, and those numbers go up as credit scores go down, sometimes costing borrowers as much as 36%.

What to Know About Financing Through the Roofing Company

close up of grey roof
Photo: Rokfeler / Adobe Stock

In some cases, the company doing the repair will offer financing. These options are often great for people who can’t obtain financing through traditional lenders. However, just like with many unsecured loan options, the interest rate, fees, and terms might be less favorable. If you’re going to go this route, it’s important to get quotes from at least three different companies to ensure you’re getting the best price and rate possible. 

The Benefits of Financing Your Roof

Even if you already have a nice chunk of change set aside for a rainy day, you might be wondering if there’s any good reason for you to opt to finance your roof repair. Borrowing the money you need to fix your roof can offer you the benefit of a fixed monthly payment and allow you to keep more of your savings in the bank. 

  • If you already have a healthy savings account, that money can continue to collect interest while you’re fixing your roof.

  • Sometimes taking out a loan can improve your credit (as long as the credit you’re currently using never goes above 30% of your available credit).

  • Financing your roof means you don’t have to worry about where you’ll come up with the funds for a needed repair.

Of course, there are cons too. Whenever you borrow money, you’ll need to come up with a way to pay it back. That could mean adding a large monthly debt into your budget. However, if your roof is in desperate need of repair, coming up with a quick funding fix may be a top priority. 

Next Steps Once You Have Financing

Once you have your financing all lined up, you’ll have to find a local roofing contractor for the job. Be sure to always pick a pro who is licensed and insured. This part is especially important if you’re filing an insurance claim, as they won’t cover work from an unlicensed pro. 

We recommend getting quotes from at least three companies before you settle on the one you’ll hire for your project. Depending on the time of year and your location, certain home improvement projects may take longer than normal. However, typically, you can expect a roof repair project to take between one and four days to complete, while a totally new roof typically takes longer.