Tags: Cost & Pricing
A new roof is a significant investment, and not everyone has $15,000 or $20,000 sitting in a savings account ready to go. That is completely normal. It does not mean you have to put off a roof you need or choose the cheapest contractor just to make the numbers work.
There are several ways to finance a roof replacement, and understanding your options helps you make the best decision for your situation.
Contractor financing
Many roofing companies, including us, offer financing through third-party lenders. This is typically a personal loan specifically for home improvement that gets processed quickly and can be applied for right during the estimate appointment.
The terms vary by lender and your credit profile, but you can often find options with reasonable interest rates and monthly payments that fit a normal budget. Some programs offer promotional periods with reduced or deferred interest.
The advantage of contractor financing is convenience. It is built into the process, and you do not have to separately shop for a loan. The disadvantage is that you should still compare the terms to other options to make sure you are getting a competitive rate.
Home equity loan or HELOC
If you have equity in your home, a home equity loan or home equity line of credit (HELOC) can be a good option for financing a roof. These typically offer lower interest rates than personal loans because your home serves as collateral.
A home equity loan gives you a lump sum at a fixed rate. A HELOC works more like a credit card, letting you draw what you need up to a limit, with a variable rate. Either can work for a roof replacement.
The downside is that these take longer to process than contractor financing. If you need a roof urgently, you might not have the luxury of waiting for a home equity application to go through. Plan ahead if this is the route you want to take.
Insurance claim
If your roof was damaged by a storm, your homeowner's insurance may cover most or all of the replacement cost. The amount depends on whether you have an ACV or RCV policy and what your deductible is. We covered the insurance process in detail in our Storm Damage section.
With an RCV policy, your out-of-pocket cost is typically just your deductible. With an ACV policy, you may owe a significant difference between what insurance pays and what the roof actually costs. Financing can bridge that gap.
Credit card
I will mention it because people ask. Yes, you can put a roof on a credit card if your limit allows it. But credit card interest rates are almost always higher than any of the other options listed here. If you go this route, make sure you have a plan to pay it off quickly, or transfer the balance to a lower-rate option as soon as possible.
Personal savings
If you have the cash, paying outright is the simplest option. No interest, no monthly payments, no applications. Some contractors offer a small discount for cash payment, though this varies.
What I would recommend
Every situation is different, so I am not going to tell you which option is right for you. But here is what I will say: do not let the cost of a roof force you into a bad decision. A bad decision looks like choosing the cheapest contractor because they fit your budget, or putting off a roof that is actively leaking because you are not sure how to pay for it.
A good roof protects your home, your family, and your biggest investment. It is worth financing properly. Talk to us about the options available through our lending partners, and compare those to what your bank or credit union offers. Make the decision that works best for your finances.
Have questions about your roof? We offer free roof assessments. We will take a look, tell you what we see, and give you honest recommendations. No pressure, no obligation. Give us a call or schedule online.
"He gave us a very fair price for the quality work done. We recommend Bob Harvey Roofing to anyone looking for a great roofing job at a fair price."Terry Flitton , Google Review