Best Roof Financing Options in 2025

Other ways to pay for a roof

Although home equity loans, HELOCs and personal loans are common ways to pay for a new roof or roof repairs, here are some other options to be aware of.

Cash-out refinance loan

A cash-out refinance replaces your current mortgage with a new, larger mortgage. The difference between your new loan amount and the old loan balance is what you receive in cash. If interest rates have dropped since you got your original mortgage, cash-out refinancing might enable you to lower your rate and monthly payment, while also providing cash to pay for your roof. The downside is that you’ll have to get a home appraisal and pay closing costs, because you'll be getting a new mortgage.

Here’s what you can expect if you use a cash-out refinance to pay for a roof:

• Loan amount: 80% to 90% of your home’s value, minus what you owe on the mortgage.

• Repayment terms: 15 years and 30 years are common mortgage repayment terms.

• APRs: Vary depending on the lender.

• Costs: Typically requires payment for appraisal and closing costs, unless the lender waives these expenses.

» MORE: Compare cash-out refinance lenders

Roof company financing

Your roofer may offer in-house financing or loans through a third-party financial company. Rates and terms depend on the roofing company and your credit score. Carefully read the loan offer’s terms and conditions. Then compare it to other options to be sure you’re getting a good deal. Often, this type of financing comes with higher interest rates.

Government-insured loans

Home improvement loans insured by the Federal Housing Administration require lower minimum credit scores than conventional mortgages. FHA-backed options are:

• FHA 203(k) standard loans, which enable you to buy or refinance a home that needs work and roll renovation costs, such as a new roof, into the new mortgage. Renovation costs must be at least $5,000, and maximums are determined by FHA loan limits for that county.

• FHA Title 1 loans, which are fixed-rate loans designed to finance home improvements. Loans up to $7,500 are typically unsecured, while loans for $7,500 or more must be secured by a mortgage or deed of trust on the property.

How to get a roof loan

1. Get a firm cost estimate: Get quotes from several roofing contractors, so you can compare and know how much you will need to borrow before you apply for any roof financing option.

2. Check your budget: Review your income and expenses to determine how much you can repay each month. Use a home improvement loan calculator to see what loan amount, APR and repayment term you’ll need to fit the payments into your budget.

3. Pre-qualify and compare: Many lenders let borrowers pre-qualify to preview loan rates and terms. Pre-qualifying doesn’t impact your credit score, so you can compare offers from multiple lenders to find the lowest APR, which is the least expensive loan.

4. Apply: Once you choose a lender, it’s time to apply. Tip to move things along: Gather documents such as W-2s, pay stubs, bank statements and a government-issued ID before starting the application. Expect to hear from the lender within a day or two — credit card applicants usually receive an immediate response.

Roof financing tips

Check your homeowners insurance: A roof damaged in a storm may be covered under your policy. However, you may have to pay a deductible before coverage kicks in.

Home warranty coverage: If you’ve purchased a home warranty, or your home is new and covered under a home warranty, it may cover roof repairs due to leaks.

Shop around: Compare estimates from multiple roofers to get a competitive price on materials and labor. Estimates should include all expected costs and a warranty covering any defects in roofing materials or labor.

Methodology

Personal loan methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

Home equity loan methodology

The star ratings on this page reflect each lender's performance in NerdWallet’s home equity loans category. For inclusion in this roundup, lenders must offer home equity loans and achieve a star rating of 4.5 or above in the home equity loan rubric from NerdWallet. We scored the category and chose lenders for this page using the following methodology:

NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.

All reviewed mortgage lenders that offer home equity loans were evaluated based on (1) maximum CLTV, (2) application fees, (3) closing costs, (4) whether or not an appraisal is required, (5) range of repayment terms, (6) rate transparency, (7) digital application availability and (8) customer support options. The highest scoring lenders appear on this page.

NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews.

HELOC methodology

The star ratings on this page reflect each lender's performance in NerdWallet’s HELOC category. For inclusion in this roundup, lenders must offer HELOCs and achieve a star rating of 4 or above in the HELOC rubric from NerdWallet. We scored the category and chose lenders for this page using the following methodology:

NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.