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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.

Steve NicastroJan 20, 2021

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Replacing or repairing a roof, whether it's a cosmetic update or a necessary fix, can be an expensive project. Homeowners spend an average of about $8,371 on roofing projects, according to the U.S. Census Bureau's 2019 American Housing Survey.

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 roofing project.

These online lenders offer personal loans you can use to repair or replace a roof.

Summary of Roof Loans: Financing Your Roof With a Personal Loan

Our picks for

Roof loans

Lightstream
Check rate

on LightStream's website

LightStream

5.0

NerdWallet rating 
Lightstream

Est. APR

4.49 - 20.49%

Loan Amount

$5,000 - $100,000

Min. Credit Score

660
Check rate

on LightStream's website

Min. Credit Score

660

Key facts

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.

Pros

  • No fees.

  • Competitive rates among online lenders.

  • Offers .5% rate discount for setting up autopay.

  • Special features including rate beat program and satisfaction guarantee.

Cons

  • No option to pre-qualify on its website.

  • Requires several years of credit history.

  • Does not offer direct payment to creditors with debt consolidation loans.

Qualifications

  • Minimum credit score: 660.

  • Several years of credit history.

  • Multiple account types within your credit history, like credit cards, a car loan or other installment loan and a mortgage.

  • Strong payment history with few or no delinquencies.

  • Investments, retirement savings or other evidence of an ability to save money.

  • Enough income to pay existing debts and a new LightStream loan.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. AutoPay discount of .50% points is only available when selected prior to loan funding. Rates without AutoPay will be .50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 6.14% APR with a term of 3 years would result in 36 monthly payments of $304.85. Truist Bank is an Equal Housing Lender. ©2021 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Read Full Review
Marcus by Goldman Sachs
Check rate

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

NerdWallet rating 
Marcus by Goldman Sachs

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

Min. Credit Score

660
Check rate

on Goldman Sachs's website

Min. Credit Score

660

Key facts

Marcus loans can be used for any purpose, including home improvements. Loans start around 7% APR for good-credit borrowers, with repayment terms up to six years.

Pros

  • No fees.

  • Wide variety of repayment term options.

  • Offers .25% rate discount for setting up autopay.

  • Offers direct payment to creditors for debt consolidation loans.


Cons

  • No co-sign, joint or secured loan option.

Qualifications

  • Minimum credit score: 660 FICO.

  • May need to provide proof of income, including recent pay stubs or bank statements.

  • May need to provide Social Security number, Individual Tax ID number or a photo ID.

Available Term Lengths

3 to 6 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

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SoFi
Check rate

on SoFi's website

SoFi

5.0

NerdWallet rating 
SoFi

Est. APR

4.99 - 19.63%

Loan Amount

$5,000 - $100,000

Min. Credit Score

680
Check rate

on SoFi's website

Min. Credit Score

680

Key facts

SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.

Pros

  • No fees.

  • Offers co-sign and joint loan options.

  • Offers .25% rate discount for setting up autopay.

  • Offers unemployment protection.

  • Provides mobile app to manage your loan.

Cons

  • No secured loan option.

Qualifications

  • Must legally be an adult in your state.

  • Must be a U.S. citizen, permanent resident or visa holder.

  • Must be employed, have sufficient income or have an offer of employment to start within the next 90 days.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Fixed rates from 4.99% APR to 19.63% APR (with AutoPay). SoFi rate ranges are current as of August 11, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

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Wells Fargo Personal Loan
See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

4.5

NerdWallet rating 
Wells Fargo Personal Loan

Est. APR

5.74 - 19.99%

Loan Amount

$3,000 - $100,000

Min. Credit Score

None
See my rates

on NerdWallet's secure website

Min. Credit Score

None

Key facts

Wells Fargo offers low starting loan amounts of $3,000, so its loans may work for a minor roof repair or an inexpensive roof replacement.

Pros

  • No origination or prepayment fee.

  • Joint loan option.

  • Offers wide range of loan amounts and repayment terms.

  • Rate discount for autopay.

  • Able to fund loans on same or next business day.

Cons

  • No option to pre-qualify.

  • Some features only available to existing customers.

Qualifications

  • Must provide personal and contact information.

  • Must provide employment and income information; documentation may be required to verify this information.

  • Must provide desired term and amount to borrow.

Available Term Lengths

1 to 7 years

Fees

  • Origination fee: None.

  • Late fee: $39.

Read Full Review

» 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.

» MORE: Pre-qualify for a personal loan on NerdWallet

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.

» MORE: Calculate the right financing option for your remodel

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 or Ally. 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.

» MORE: Roof replacement cost: How to save money

Last updated on January 20, 2021

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 30 lenders. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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. 

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read our editorial guidelines.

To recap our selections...

NerdWallet's Roof Loans: Financing Your Roof With a Personal Loan