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Offer terms:
LightStream: Best for Large roof loans with long repayment terms
Est. APR
6.99-25.29%
Loan amount
$5K-$100K
Min. credit score
660
View details
Qualifications:
LightStream offers home improvement loans up to $100,000 that can be used to finance a new roof, with funding as fast as the same day.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
SoFi Personal Loan: Best for Co-signed or joint roof loans with low rates
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
View details
Qualifications:
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
Upstart: Best for Roof loans for bad credit
Est. APR
7.80-35.99%
Loan amount
$1K-$50K
Min. credit score
None
View details
Qualifications:
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Universal Credit: Best for Roof loans with credit-building tools
Est. APR
11.69-35.99%
Loan amount
$1K-$50K
Min. credit score
580
View details
Qualifications:
- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
Best Egg: Best for Secured roof loans
Est. APR
7.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
View details
Qualifications:
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingPoint: Best for Fast roof loans
View details
Qualifications:
- Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
- Minimum credit history: 2 years.
- Maximum debt-to-income ratio: 45%, not including mortgage payments.
- Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
- Must be at least 18 years old in most states.
- Must have a Social Security number, a government-issued photo ID and a personal bank account.
- Origination fee: Up to 10%.
- Late fee: 5% of the payment amount or $30.
First Tech Credit Union Personal Loan: Best for Joint or co-signed roof loans for members
View details
Qualifications:
- Minimum credit score: 660.
- Maximum debt-to-income ratio: 50%.
- Must be a member of First Tech Federal Credit Union.
- Must provide a Social Security number and copy of your driver's license or other state-issued ID.
- Late fee: $29
LightStream: Best for Large roof loans with long repayment terms
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
LightStream offers home improvement loans up to $100,000 that can be used to finance a new roof, with funding as fast as the same day.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
SoFi Personal Loan: Best for Co-signed or joint roof loans with low rates
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
Upstart: Best for Roof loans for bad credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Universal Credit: Best for Roof loans with credit-building tools
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
Best Egg: Best for Secured roof loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingPoint: Best for Fast roof loans
View details
Qualifications:
- Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
- Minimum credit history: 2 years.
- Maximum debt-to-income ratio: 45%, not including mortgage payments.
- Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
- Must be at least 18 years old in most states.
- Must have a Social Security number, a government-issued photo ID and a personal bank account.
- Origination fee: Up to 10%.
- Late fee: 5% of the payment amount or $30.
First Tech Credit Union Personal Loan: Best for Joint or co-signed roof loans for members
View details
Qualifications:
- Minimum credit score: 660.
- Maximum debt-to-income ratio: 50%.
- Must be a member of First Tech Federal Credit Union.
- Must provide a Social Security number and copy of your driver's license or other state-issued ID.
- Late fee: $29
» MORE: Compare home improvement loans
What is a roof loan?
A roof loan is a personal loan used for repairing or replacing a roof. If approved, the loan is funded and you repay it with interest in fixed monthly installments.
Roof loan amounts are from $1,000 to $100,000, and annual percentage rates range from 7.5% to 36%. Repayment terms are typically two to seven years.
Most roof loans are unsecured, meaning there is no collateral. Instead, a lender reviews your credit and debts to decide whether to offer you a loan and at what APR.
Borrowers with good or excellent credit (a score of 690 or higher) typically qualify for the largest loans and the lowest rates. Some lenders offer home improvement loans for bad credit (a score below 629), but you can expect a higher interest rate.
Roof loan pros and cons
A roof loan is a good option if you don’t have enough equity to borrow against your home and don’t want to max out a credit card.
Consider these pros and cons of roof loans:
Pros of roof loans
No collateral: Personal loans don’t require you to pledge your home or another asset and risk losing it if you can’t repay the loan.
Fast funding: With some 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: Personal loans can have lower rates than most credit cards, especially for borrowers with strong credit.
Cons of roof loans
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 home equity financing, you can’t claim tax deductions for using a personal loan on a home improvement project, such as a roof repair.
Nerdy Tip
Replacing a roof can be a good time to consider eco-updates like solar panels. Recent government tax credits can help offset the installation cost, but solar panels may only make sense if you intend to stay in the home for five years or more.
How to get a roof loan
Get a firm cost estimate: Get a few quotes for the roof’s cost so you know how much to borrow. A personal loan is funded once as a lump sum, so you can’t request more funds.
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.
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.
Apply: Once you choose a lender, it’s time to apply for a personal loan. Tip to move things along: Gather documents like 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.
Other ways to finance roof repairs and replacements
Home equity loan
A home equity loan is a second mortgage that works similarly to a personal loan: You get the funds in a lump sum and repay them in fixed monthly installments. Good credit isn’t required to qualify, but you must build up equity before you can borrow against it.
Your home is collateral on a home equity loan, so you can lose it if you don’t make payments. These loans usually have lower rates and longer repayment terms than personal loans, meaning the monthly payments are lower.
» MORE: Compare home equity loans
Home equity line of credit
A HELOC is a credit line you can draw on as needed, typically for 10 years. This type of financing can have low rates and repayment terms of 20 years, so monthly payments are low. You can get a HELOC with fair credit, but your home’s value must be at least 15% more than you owe.
HELOCs make sense for projects that last long or involve surprise expenses. Your home is collateral for this type of financing, and the lender may require an appraisal as part of the underwriting process, which could add a couple of weeks to the funding timeline.
» MORE: Compare HELOCs
Credit cards
Because of their high APRs, credit cards are best for low-cost repairs you can pay off quickly. If you can pay for the roof in 15 to 21 months, consider a 0% interest credit card with a promotional period during which you pay no interest. You will likely need good or excellent credit to qualify.
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 repairs that cost at least $5,000 and up to $75,000. 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 1 loans are fixed-rate loans designed for home improvements. Loans up to $7,500 are unsecured, while a mortgage or deed of trust on the property secures loans for $7,500 or more.
Roofing companies
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 and compare it to other options to get the best deal.
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.
Last updated on November 12, 2024
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
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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.
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NerdWallet's Roof Loans to Finance a New Roof
- LightStream: Best for Large roof loans with long repayment terms
- SoFi Personal Loan: Best for Co-signed or joint roof loans with low rates
- Upstart: Best for Roof loans for bad credit
- Universal Credit: Best for Roof loans with credit-building tools
- Best Egg: Best for Secured roof loans
- LendingPoint: Best for Fast roof loans
- First Tech Credit Union Personal Loan: Best for Joint or co-signed roof loans for members
