4 Easy Ways To Pay For A New Roof (Financing Options)

by | Oct 10, 2022 | Blog | 0 comments

If you need a new roof, the options can be daunting. However, a roof installation can significantly dent your bank account, unlike other minor home repairs. However, a professional roof replacement will ensure that the work is correct and you and your belongings are protected.

Because a roofing project is a large investment, many homeowners have concerns about the cost. Thankfully, there are several options to consider if you need to finance a new roof. This way, you can have the work completed without straining your household budget.


If your next home improvement project consists of a roof replacement, sometimes you have enough time to save money to cover the entire cost. However, you have other viable options when your home needs an immediate resolution.

Depending on the circumstances and location, homeowners can explore these four easy ways to finance a new roof:

  • Home Equity Loan
  • Personal Loan
  • Homeowners Insurance
  • Roofing Company Financing


Home equity loans are an excellent option for homeowners with equity invested in their property. In addition, this choice is ideal for obtaining low-interest rates from your financial institution when you need a large lump sum for major roof replacement costs.

It’s sometimes offered as a property improvement loan because the money you borrow is there to enhance the home.

how to pay for a new roof payment


For some individuals, personal loans are a simple way to cover the costs of a new roof. Personal loan options can provide flexible interest rates and payback terms depending on your credit history and debt-to-income ratio.

However, your loan approval often depends on your credit score and may consider your outstanding mortgage balance as a factor before you can even start thinking about monthly payments.


An insurance company may cover most (if not all) of the costs for homeowners requiring roofing repairs after a severe weather storm. Therefore, before having roofing contractors get to work, you’ll need to determine if you can submit a claim through your home insurance company.

Not all roofing companies will be authorized to complete this job, so working with your insurance adjuster is essential when having a roof installed with your insurance coverage.


Roofing contractors understand the stress homeowners feel when they are unsure how they’ll pay to install a new roof. If you recently purchased a house and do not have enough home equity to qualify for a loan or home equity line of credit, choosing finance options through the roofing company is an alternative.

Typically, a financial lender will work with roof and restoration companies to provide flexible financing with competitive interest payments for major repairs, like installing a new roof.

Applicants with good credit may receive immediate approval, while homeowners with bad credit may be subject to a higher interest rate.


Although these four ways are the most common routes that many homeowners choose when facing costs for a new roof, they may not be suitable for everyone.

how to pay for a new roof loan


If you do not qualify for other means of financing, obtaining an FHA Title loan could be your best option. These loans are available for low or moderate-income households facing expensive repairs that cannot be left incomplete. Although these loans come from a private lender, the Government secures the lender up to 90% of the total amount.

The Federal Housing Authority does invoke specific terms and conditions with their lending, restricting this option to only necessary vital repairs to ensure the residence is livable. In addition, the roofing contractor must be a recognized authority to perform the work to qualify for this Government assistance program.


Like a Home Equity loan, a line of credit is a revolving source of funds homeowners can use for significant repair costs. Their available amount will typically reflect the current equity in their home as it is secured against this value.

Although the interest rates of a HELOC is lower than some personal loans or financing options, obtaining more considerable lump sums can be challenging. This restriction can make it challenging to pay for a roof installation in advance if your available equity is not substantial enough to cover the total costs.


If you are watching your budget closely and need a new roof, you can help minimize the amount you need by completing some tasks yourself. Although the average homeowner does not have the equipment or knowledge to install roofing materials, you can trim the total bill by tackling these small tasks.

  • Remove as much damaged material as possible for the contractors ahead of time
  • Clean out the gutters and take away any debris that can get in the way of doing work
  • Take care of the cleanup and dumping at the end of the project

Little things will add up on your contractor’s bill, so anything you can do to help make the job go quicker and less involved will help save you money. For example, the average professional roofer will charge $75 per hour for labor, making the time they spend cleaning up the worksite increase your total costs.

Alternatively, if you need more time to come up with the funds for a new roof, sometimes inexpensive patching solutions will get your home through another season. Therefore, using patch methods on some problem areas can protect your home until you can have a professional replace your roof later.


It is worth researching available options when you have to find the funds for a new roof on your home. A professional roof installation is an investment in your home and should not be something that you overlook or use substandard materials or labor for the work.

Nothing should stand in the way of having a safe home with a secure roof to protect you, your family, and your belongings.