Best Roof Financing Options in 2025
A new roof is a major expense, but roof financing can help. Here are various ways to pay, along with nine roof loans to consider.
Replacing or repairing a roof usually comes with a big price tag, and that may lead to the need for roof financing. On average, homeowners pay about $9,500 for a roof replacement, but that amount can surpass $45,000 when premium roofing materials are used.
If you're contemplating how to pay for a new roof, here are a range of roof financing options to consider.
What is your best roof financing option?
Your best choice for new roof financing depends on factors such as the cost of your roofing project, how soon you need the money, your credit and whether you have equity in your home. Here we cover the different types of roof financing — which may be in the form of a home equity loan or line of credit, personal loan, cash-out mortgage refinancing, roofing company financing or government-insured loan.
To help you determine the best type of roof financing for you, we cover the advantages and disadvantages of each along with our top picks for lenders that provide roof loans.
Home equity loans
A home equity loan is a second mortgage on your home. It has a fixed interest rate. You receive a lump sum of money, using your home as collateral. You pay the loan back in fixed monthly payments over a period of time, usually five to 30 years. Home equity loan interest rates tend to be lower than some other options, such as personal loans, because your home secures the loan.
Using your home as collateral can put it at risk if you get behind on the loan. But, if you don't foresee problems with staying current on payments, and you want to pay for the roof without needing ongoing access to funds for other home improvements, a home equity loan may be a good choice.
Here’s what you can expect if you use a home equity loan to pay for a roof:
Maximum loan amount: Typically 80% to 90% of your home’s value, minus what you owe on the mortgage. Some lenders will go to 100%.
Repayment term: Up to 30 years.
APRs: Vary depending on the lender.
Costs: Typically requires payment for appraisal and closing costs, unless the lender waives these expenses.
Timeframe: Approval and funding will take longer than a personal loan if an appraisal is needed.
Best for no closing costs
Online lender Better’s home equity loans offer flexible terms and personalized rate tools, but application or support options are somewhat limited.
Online lender Better’s home equity loans offer flexible terms and personalized rate tools, but application or support options are somewhat limited.
Best for high borrowing limit
Rate’s home equity loans feature high borrowing limits and flexible long-term options, but lack transparent rate information. Be aware that the loan will come from a third-party partner.
Rate’s home equity loans feature high borrowing limits and flexible long-term options, but lack transparent rate information. Be aware that the loan will come from a third-party partner.
Best for military borrowers
Navy Federal’s home equity loans feature flexible terms and high borrowing limits, but you'll need a military connection to join the credit union.
Navy Federal’s home equity loans feature flexible terms and high borrowing limits, but you'll need a military connection to join the credit union.
» MORE: Compare home equity loans
Home equity lines of credit (HELOC)
A HELOC is an open credit line that you can draw on as needed for a period of time (usually 10 years); then you repay the borrowed amount plus interest. HELOC interest rates typically are variable, meaning your monthly payment could rise or fall over time. Most lenders have an option to pay only interest (and not principal) during the draw period, and interest is based on the line of credit amount that you use. Usually, you'll be required to draw a minimum amount to open the HELOC.
Like home equity loans, a HELOC uses your home as collateral, meaning your home could be at risk if you get behind on payments. If you don't anticipate that being a problem, and you want a flexible financing option, a HELOC may be a good solution. Because HELOC funds are available as you need them, you can pay for a roof as well as future home improvements.
Here’s what you can expect if you use a HELOC to pay for a roof:
Maximum loan amount: 80% to 90% of your home’s value, minus what you owe on the mortgage. Some lenders will go to 100%.
Repayment term: A 10-year draw period followed by a 20-year repayment period is common.
APRs: Vary depending on the lender.
Costs: Typically requires payment for appraisal and closing costs, unless the lender waives these expenses.
Timeframe: Approval and funding will take longer than a personal loan if an appraisal is needed.
Best for no closing costs
Fourleaf's HELOC features no origination or annual fee and solid customer support, but be prepared for a slower closing.
Fourleaf's HELOC features no origination or annual fee and solid customer support, but be prepared for a slower closing.
Best for fast closing
Online lender Figure is one of the top HELOC lenders in the nation by loan volume. The main appeal is its fast closing, but you’ll need to draw 100% of the line amount at closing and only have five years to keep borrowing.
Online lender Figure is one of the top HELOC lenders in the nation by loan volume. The main appeal is its fast closing, but you’ll need to draw 100% of the line amount at closing and only have five years to keep borrowing.
Best for fixed-rate borrowers
U.S. Bank's HELOC has no origination fee and no initial draw requirement. However, the lender charges a $75 annual fee (waived for those with a U.S. Bank Platinum checking account).
U.S. Bank's HELOC has no origination fee and no initial draw requirement. However, the lender charges a $75 annual fee (waived for those with a U.S. Bank Platinum checking account).
» MORE: Compare HELOC lenders
Personal loans
A personal loan is a type of unsecured loan offered by banks, credit unions or online lenders. It allows you to borrow a fixed amount of money and repay it over time through monthly installments, usually with a fixed interest rate.
Personal loans don't require collateral, such as your home. Instead, lenders rely heavily on information like your credit score, income and other debts, to decide whether you qualify and at what annual percentage rate. Each lender has its own borrower criteria and loan features. Personal loans do tend to have higher interest rates than home equity options, so they may be a better fit for borrowers who want to finance a lower amount, such as a roof repair.
Maximum loan amount: Depending on the lender, can be $1,000 to $100,000.
Repayment term: Two to seven years.
APRs: 6% to 36%, and the lowest rates often go to borrowers with good or excellent credit (scores of 690 or higher).
Timeframe: Because there is no appraisal, loan funding is typically faster than with a home equity loan or HELOC.
Best for credit-building tools
2025 Best Personal Loan
Fair Credit
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
2025 Best Personal Loan
Fair Credit
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Best for long repayment terms
2025 Best Personal Loan
Good Credit
LightStream is a solid option for good- and excellent-credit borrowers, with no fees and a promise to beat competitors’ rates.
2025 Best Personal Loan
Good Credit
LightStream is a solid option for good- and excellent-credit borrowers, with no fees and a promise to beat competitors’ rates.
Best for joint loans
2025 Best Personal Loan
Excellent Credit
SoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
2025 Best Personal Loan
Excellent Credit
SoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
» MORE: How to get a personal loan
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 roof financing 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. So, approval could take longer.
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.
Timeframe: Approval and funding will take longer than a personal loan if an appraisal is needed.
» MORE: Compare cash-out refinance lenders
Roofing company financing
You may work with a roofing company or contractor that offers financing, usually through a third-party financial company. Rates and terms will vary based 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 roof 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. These FHA-backed options may be funding sources for a new roof.
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.
Replacing a roof can be a good time to consider eco-updates like solar panels or solar shingles. Recent government tax credits can help offset the installation cost, but solar upgrades 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 quotes from several roofing contractors, so you can compare and know how much you will need to borrow before you apply for roof financing.
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. To help 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.
Factors that affect your roof cost
The cost to replace a roof varies widely depending on several factors.
Your roof's size.
The type of roof shingles used.
Roof contractor and labor costs in your geographical area.
Complexity of the job, for example a very steep roof.
Any structural repairs needed before putting down a roof.
These variables will affect how much you need to borrow to finance a roof.
Other 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 roofing contractors to get a competitive price on materials and labor. Estimates should include all expected costs and a warranty.
Frequently asked questions
How can I find affordable roof financing near me?
Local banks and credit unions often offer roof loans with competitive rates, especially for existing customers. However, it’s a good idea to compare roof financing from multiple lenders, and applying to lenders outside of your area may give you access to lower rates or better terms. Many lenders let you apply and manage a loan from anywhere. Look for lenders that offer pre-qualification, so you can compare potential rates and loan terms without affecting your credit scores.
Should I finance a roof through my contractor?
Many roofing companies do offer in‑house financing or partner with third‑party lenders. While convenient, these plans often have higher interest rates, so it’s important to compare them against other loan options to ensure you're getting the best deal.
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.
All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) HELOC loan volume, (2) maximum CLTV, (3) whether they offer a fixed-rate option, (4) annual fees, (5) origination fees, (6) transaction fees, (7) initial draw requirements, (8) length of draw and repayment terms, (9) application availability online or via mobile app, (10) range of customer support options, (11) average closing time transparency, (12) interest rate transparency and (13) transparency regarding how to access funds. A recent regulatory action against a lender may affect its HELOC star rating. The highest scoring lenders appear on this page.