BEST OF
Roof Loans: Financing Your Roof With a Personal Loan
A roof loan is a personal loan that you use to cover the cost of repairing or replacing a roof. Compare roof loans plus other financing options.
Replacing a roof is a major project that costs homeowners about $7,800 on average, according to HomeAdvisor. Delaying the work can lead to even costlier repairs and unsafe living conditions.
If you need to repair or replace your roof now and you can’t pay with cash, use a credit card or tap the equity in your home, a personal loan can help you finance a roof project.
The online lenders listed below offer personal loans you can use for a roof. Learn the pros and cons of roof loans and compare them with other financing options.
Replacing a roof is a major project that costs homeowners about $7,800 on average, according to HomeAdvisor. Delaying the work can lead to even costlier repairs and unsafe living conditions.
If you need to repair or replace your roof now and you can’t pay with cash, use a credit card or tap the equity in your home, a personal loan can help you finance a roof project.
The online lenders listed below offer personal loans you can use for a roof. Learn the pros and cons of roof loans and compare them with other financing options.
Summary of Roof Loans: Financing Your Roof With a Personal Loan
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
LightStream on LightStream's website | Best for Roof loans | 4.49 - 20.49% | 690 | on LightStream's website |
Marcus by Goldman Sachs on Goldman Sachs's website | Best for Roof loans | 6.99 - 19.99% | 660 | on Goldman Sachs's website |
SoFi on SoFi's website | Best for Roof loans | 5.99 - 18.85% | 680 | on SoFi's website |
![]() Wells Fargo Personal Loan See my rates on NerdWallet's secure website | Best for Roof loans | 5.99 - 24.49% | None | See my rates on NerdWallet's secure website |
Our picks for
Roof loans
on LightStream's website
LightStream
Min. Credit Score
Est. APR
Loan Amount
on LightStream's website
on Goldman Sachs's website
Marcus by Goldman Sachs
Min. Credit Score
Est. APR
Loan Amount
on Goldman Sachs's website
on SoFi's website
SoFi

Min. Credit Score
Est. APR
Loan Amount
on SoFi's website

on NerdWallet's secure website
Wells Fargo Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
» MORE: Compare home improvement loans
Personal loans for a roof
Personal loans are unsecured loans that provide a fixed amount of money that you repay over a period of two to seven years. Annual percentage rates range from about 6% to 36%, and qualifying depends primarily on your credit profile.
Borrowers with good to excellent credit (690 or higher on the FICO scale) have the best chances of qualifying and receiving low rates on a roof loan. For borrowers with lower credit scores, there are some lenders that offer home improvement loans for bad credit, but you can expect a higher interest rate.
» MORE: See estimated payments with a home improvement loan calculator
This type of roof loan is a good option if you don’t have enough equity to borrow against your home and you don’t want to max out a credit card. Consider these pros and cons of roof loans:
Pros
No collateral: Because personal loans are unsecured, you don’t have to pledge your home or another asset and then risk losing it if you can’t repay the loan.
Fast funding: With some online lenders, you may get your funds the same or next day after approval, while others may take up to a week.
Lower rates than credit cards: Especially for borrowers with strong credit, average personal loan rates are lower than average credit card rates.
Cons
Higher rates than home-equity options: With no collateral backing the loan and shorter repayment terms, personal loans have higher interest rates than home equity loans and lines of credit.
No tax benefits: Unlike with some home equity loans and lines of credit, you can’t claim a tax deduction on the interest you pay on a personal loan.
Most online lenders allow you to pre-qualify to check the rate and terms you might receive on a loan. The pre-qualification process doesn’t impact your credit score, so it’s smart to pre-qualify with multiple lenders to compare options.
Other ways to finance roof repairs and replacements
Credit cards
Credit cards work best for lower-cost repairs that you can pay for over 12 to 18 months. Borrowers with strong credit may qualify for a 0% interest credit card that has a promotional period during which you pay no interest.
Home equity
The benefits of using the equity in your home to finance a new roof include lower rates, longer repayment terms up to 20 years, and a potential tax deduction for interest payments. But funding takes longer since the process requires an appraisal and title search.
Borrowers typically must have about 20% equity in their home to qualify, and because your home is used as collateral, failing to make payments can put your home at risk.
» MORE: Best home equity lenders
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 can cover costs of at least $5,000. The process involves refinancing your existing mortgage with an FHA 203(k) loan and rolling the roof replacement costs into the new mortgage.
FHA Title I loans are fixed-rate loans designed for home improvements. Loans up to $7,500 are unsecured, while those $7,500 and higher are secured by a mortgage or deed of trust on the property.
Roofing companies
Your roofer may offer in-house financing or loans through a third-party financial company, such as GreenSky. Rates and terms depend on the roofing company and your credit score.
Carefully read the loan offer’s terms and conditions. For example, the loan may offer a no-interest or reduced-interest introductory period, but then charge a high interest rate on unpaid balances after the promotion expires.
Roof financing tips
Check your homeowners insurance: A roof damaged in a storm may be covered under your homeowner’s insurance policy. You may have to pay a deductible before the insurance coverage kicks in.
Home warranty coverage: If you’ve purchased a home warranty service, or your home is new and covered under 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. The estimates should include all expected costs, plus a warranty that covers any defects in roofing materials or labor.
Last updated on January 20, 2021
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.
To recap our selections...
NerdWallet's Roof Loans: Financing Your Roof With a Personal Loan
- LightStream: Best for Roof loans
- Marcus by Goldman Sachs: Best for Roof loans
- SoFi: Best for Roof loans
- Wells Fargo Personal Loan: Best for Roof loans