The Best New Roof Financing Options: 7 Loans to Consider
New roof financing covers the cost of a roof replacement or repair through a loan, credit line or contractor payment plan, instead of paying cash upfront. A full roof replacement runs $9,604, on average, so most homeowners need financing unless they’ve set aside that much in savings.
The right roof financing option depends on how fast the work needs to happen and your personal credit qualifications. Below are the seven best ways to finance a new roof, ranked by cost and speed of funding.
- The best roof financing option depends on your timeline, available home equity, credit score and whether you want to use your home as collateral.
- The lowest interest rate isn’t always the best choice when selecting roof-replacement financing, making funding speed an important factor when comparing options.
- HELOCs, personal loans and credit cards are the fastest ways to finance a new roof, but cash-out refinances and second mortgages can usually offer lower interest rates if you have time to wait for funding.
The 7 best new roof financing options to consider
A roof loan is a line of credit or lump-sum loan obtained to fix or replace a roof. The best roofing financing option for you depends on how urgent your roof repair needs are. The table below provides a quick overview of the roof financing options we’ll cover with a brief pros and cons breakdown for each.
| Roof financing type | Typical funding timeline | Pros | Cons |
|---|---|---|---|
| Personal loans (also known as “home improvement loans”) | One to seven days | Quick funding Fixed rates No collateral required | Higher rates than home equity options Shorter terms than home equity options |
| Home equity loans | Two to eight weeks | Lower rates than personal loans Tax-deductible interest | Takes longer to get funds Could lose your home if you default |
| HELOCs | Two to six weeks | Interest-only payments possible Only repay the balance charged | Variable interest rates Could lose your home if you default |
| Cash-out refinances | Six weeks | Lower rates than all other roof financing options Tax-deductible interest | Takes longer to get funds than other home equity products Higher closing costs Could lose your home if you default |
| Fixer-upper loans (also known as “renovation loans”) | One to two months | Can roll roof repair and mortgage closing costs into the loan amount Lower rates than home equity or personal loans | Higher closing costs More complicated approval process |
| Roof contractor financing | Varies | Easy approval with builder lender Interest-free options for good-credit borrowers | Higher interest rates Potential lien on home |
| Credit cards | Same day | Quick funding Easy approval | High APRs Variable rates Potential transaction fees |
1. Personal loan: Fix your roof without the risk of losing your home
A personal loan is disbursed in a lump sum and repaid in fixed-rate monthly installments. You can typically borrow between $1,000 and $100,000, depending on your credit score and the loan term.
If your roof repair needs are urgent, it’s possible to get cash in as little as one business day with a personal loan, though the process can take as long as a week, depending on the lender. Another perk: Like a credit card, you won’t have a lien placed on your home or other possessions. That means you won’t lose your home if you fall behind on payments or default on the loan.
Personal loans are available with annual percentage rates (APRs) between 5.99% and 35.99%. The best rates go to borrowers with the highest credit scores. One drawback compared to mortgage options: Personal loan interest isn’t tax-deductible.
The best home improvement loan lenders
| Lender | Best for | APR | Term | Amount | See Results |
|---|---|---|---|---|---|
|
Joint loans | 6.25% to 35.99% | 24 to 60 months |
$5k – $50k |
|
|
Secured loans | 5.99% to 29.99% | 36 to 84 months |
$5k – $50k |
|
|
Superior customer service | 6.99% to 24.99% | 36 to 84 months |
$2.5k – $40k |
|
|
Large loans with long repayment terms | 7.24% to 20.94% (with autopay) | 24 to 240 months |
$5k – $100k |
|
|
Small loans | 6.09% to 17.99% (with autopay) | 12 to 60 months |
$600 – $50k |
|
|
Same-day loans | 6.99% to 35.49% (with discounts) | 24 to 84 months |
$5k – $100k |
|
|
Flexible due dates | 7.74% to 35.99% (with discounts) | 24 to 84 months |
$1k – $50k |
|
|
Bad-credit borrowers | 6.30% to 35.99% | 36 or 60 months |
$1k – $75k |
Learn how we chose the best home improvement loan lenders.
2. Home equity loan: Cost-effective but slower to fund
Like a personal loan, a home equity loan is an installment loan that lets you borrow against the equity you’ve built up without replacing your existing first mortgage. If you’re budgeting for an expensive future roof replacement or plan to upgrade to higher quality materials, a home equity loan gives you the security of a fixed rate and terms as long as 30 years to get you the lowest payment possible.
If you’re in a hurry, though, it’s worth noting that it typically takes two to eight weeks to close on a home equity loan.
With a home equity loan, you’ll:
- Pay between 2% and 5% of your loan amount toward closing costs
- Qualify based on your income and credit history
- Need at least a 620 credit score (or higher to get the best home equity loan rates)
- Get a home appraisal to verify your home’s value
- Leave your existing first mortgage alone
- Have two monthly mortgage payments each month
- Risk losing your home if you default and the lender forecloses
An added bonus: Home equity loan interest for a roof replacement or repair is tax-deductible.
The best home equity loan lenders
| Lender | User ratings | Best for | |
|---|---|---|---|
 | User reviews coming soon | Overall and discounts on rates and closing costs | |
 |
(2624)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Low credit scores | |
 | User reviews coming soon | High LTV ratios | |
 | User reviews coming soon | Online experience | |
 |
(729)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Fast closings |
Find out how we created our list of best home equity lenders.
3. Home equity line of credit (HELOC): Use it like a credit card
A HELOC is a credit line secured by your home that works much like a credit card. You can swipe your card to make draws as needed and you’ll make payments only on the balance you owe.
Standard features of HELOCs include:
- Closing costs between 2% and 5% of your line amount
- Interest-only payment options during the draw period to keep your payment as low as possible
- Often have lower rates than most personal loans and credit cards
- Faster funding times than home equity loans and cash-out refinances. If you’re really in a hurry, you may be able to find a lender who will do it in just five to 15 days.
- Potential to lose your home if you can’t make the payments and default
The best HELOC lenders
| Lender | User ratings | Best for | Lender review |
|---|---|---|---|
 |
(645)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| High loan amounts | |
 |
(1455)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Quick closing | |
 |
(18)
Ratings and reviews are from real consumers who have used the lending partner’s services.
| Low closing costs and fees | |
| User reviews coming soon | High-LTV loans | |
 | User reviews coming soon | Fixed HELOC rates |
Read more about how we chose our best HELOC lenders.
4. Cash-out refinance: Typically offers the lowest interest rate
A cash-out refinance allows you to pay off your current mortgage with a new one at a higher loan amount than you owe. You can then use the difference to repair your roof. With this option, you’re spreading the cost of a new roof over your loan term, and you can write off the interest on the money spent to fix your roof.
Cash-out refinance rates are also typically lower than home equity loan or HELOC rates, making it the most cost-effective of all of the roof financing options. This refinancing option is also easier to qualify for than a second mortgage. For example, FHA cash-out refinance lenders may approve you with a score as low as 500, whereas most second mortgages require a 620 to 680 minimum credit score.
However, on average, it takes about six weeks to close on a refinance, so it’s not a good choice in an emergency. But if you’re able to take advantage of lower rates and you’re not in a rush to replace your roof, a cash-out refinance may be worth a look.
Some things to consider about a cash-out refinance:
- In most cases, you can’t borrow more than 80% of your home’s appraised value
- You’ll need to qualify based on your income, credit and assets
- If current rates are lower than what you’re paying on your existing mortgage, you may also save money on your monthly payment
The best refinance lenders
| Lender | LendingTree rating and “best of” category | Available features | Lender review |
|---|---|---|---|
|  Overall refinance products | Minimum credit score: Not published Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo, HELOC, interest-only and renovation loans | |
 | Online mortgage experience for traditional bank | Minimum credit score: Not disclosed Minimum down payment: 0% to 3% Available loan products and programs: Conventional, FHA, VA, jumbo | |
 |  Rate transparency | Minimum credit score: 620 Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo | |
 |  Variety of refinance products | Minimum credit score: 580 to 620 Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo, HELOC, interest-only and renovation loans, reverse mortgages, physician loans |
5. Fixer-upper loans: Finance your roof and other upgrades if you’re not in a rush
If your roofing needs aren’t urgent and you want to upgrade the materials or aesthetics of your roof (think: installing a tile roof versus asphalt shingle) to improve the value, a renovation loan may be worth a look.
Unlike a cash-out refinance, this type of loan is based on the estimated value of your home after you’ve upgraded the roof. That gives you more borrowing power than a home equity loan, HELOC or cash-out refinance, which are all based on your home’s “as-is” value.
Here’s a quick overview of some common fixer-upper loans:
| Fixer-upper loan | Minimum credit score | Notable features |
|---|---|---|
| Fannie Mae HomeStyle® renovation | 620 |
|
| Freddie Mac CHOICERenovation® | 620 |
|
| FHA 203(k) | 500 |
|
6. Roof contractor financing: If you need a lender that works directly with roofers
Some roofing companies offer financing plans to cover some or all of your roof repair. The loan options range from revolving credit card accounts to installment loans with fixed rates and payments.
Depending on your credit, roof lenders may offer you 12 or 18 months of low payments that don’t include interest charges. Before you take a zero-financing deal, compare the total cost to other roofing companies to make sure you’re not paying a “dealer fee.” Your total bill could be up to 10% more to pad the roofer’s pocket since you aren’t paying any interest.
The approval process may be as easy as a phone call, and the lender will work directly with the roofer to pay them for their work.
Like any building service provider, roofing contractors want to get paid for their work and materials. If you pay them upfront with any of the roof financing options we’ve discussed, there shouldn’t be a reason for them to record a lien on your home. If you plan to pay them after your roof is replaced, check with the roofer about getting a lien release once you’ve paid and the work is completed. If you forget this step, you may have difficulty refinancing or selling your home until the lien is removed.
7. Credit card: Quick roof repair cash, but could be expensive over time
If you need money quickly for a serious roof issue and have a stellar credit score, you may qualify for a new credit card with a 12- to 18-month introductory 0% APR. This means you could finance your roof repair interest-free — as long as you pay off the entire balance within the promotional period.
Although traditional (bank and credit union) lenders are a good option, you may also want to check out local big-box home improvement stores, like Home Depot or Lowe’s, for special financing options to cover your roof expenses.
If your credit is so-so, a credit card should probably be your last resort, unless your roof repair estimate is on the lower end and you can pay off the balance quickly. Average APRs on new credit cards recently hit 23.79%, according to LendingTree data. High rates make credit cards the least cost-effective way to borrow money for a new roof in most cases.
You could be stuck with fees ranging from 1.5% to 3.5% extra, depending on how your roofing company processes credit card payments. For example, you’d end up paying $600 toward the cost of a $20,000 roof if your roofer charges a 3% transaction fee for credit card payments.
5 tips to help you get the best roof financing
You’ve reviewed the roof financing options and understand how they work, but how do you get the best deal on the right option? These five tips may help:
- Shop for the best rates and terms. Whether you’re applying for a credit card or a cash-out refinance, get quotes from at least three to five lenders and compare the options. If you’re dealing with a roof contractor, contact a few other roofers to see what they offer. With mortgages, rates change daily, so ask your loan officer to lock your mortgage rate once you’ve chosen a lender.
- If your roof repairs aren’t urgent, spruce up your credit ahead of time. The lowest rates and best terms always go to borrowers with the highest credit scores, and 780 is the benchmark to aim for. Reduce or pay off your credit card debt, don’t apply for multiple types of credit at once and make on-time payments to boost your credit score.
- Check your home’s value for any home equity loan options. Your loan-to-value (LTV) ratio measures how much of your home’s value is borrowed. Most home equity loan and HELOC programs set a maximum 85% LTV ratio, which means you’ll have to leave 15% of your home equity alone. Some high-LTV home equity lenders will let you borrow up to 100% of your home’s value if you qualify.
- Have income documents ready. All of the loan programs listed above require proof of income and employment history. Gather current pay stubs, W-2s and tax returns for a faster approval process.
- Get your home “open house” ready if you need an appraisal. One factor for determining value is an assessment of your home’s “condition,” which means the better it’s maintained, the better the LTV ratio will be. A little extra TLC could improve your LTV ratio and help you obtain a more favorable rate on your roof loan.
How much does it cost to replace a roof?
The average cost to replace a roof is $9,604, according to data compiled by Angi for 2026. However, it can go lower or higher depending on a number of factors related to your roof’s structure.
Here’s a breakdown
Roof size
How much it costs: $4 to $11 per square foot
The more square footage a roofer has to repair or replace, the more you’ll spend.
Roof pitch
How much it costs: $1,000 to $3,000 in extra labor and materials
Roof pitch measures how steep your roof’s angle is. Roof workers may need extra safety equipment to replace a steep roof, adding to your total roof repair bill.
Materials
How much it costs: $5,800 to $20,000 for basic asphalt shingles
There are several different roofing materials to choose from, and their costs vary. Asphalt shingles are most common because of their durability in all types of climates and conditions.
Labor
How much it costs: About $40 to $90 an hour for professional replacement
There’s a lot of labor involved in replacing or repairing a roof, and you may pay extra for a steep roof pitch or if your current roofing materials need to be removed.
Location
How much it costs: Depends on the weather, climate and local housing market
Roof repairs in extreme heat or cold will cost more. Your local climate may require more expensive weather-resistant protection than asphalt shingles offer.
Permits
How much it costs: $100 to $1,400
Your roofer will include the cost of city permits in a roofing bid. If your home is governed by a homeowners association, check with them for any restrictions on the style or color of your roof.
Inspections
How much it costs: $240, on average
Some municipal governments require a building inspector’s eyes during the roof repair process, and those fees are passed on to you.
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