Best Roof Financing Options in 2026
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 using premium roofing materials.
If you're contemplating how to pay for a new roof, here are a range of roof financing options to consider.
What is my 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. Your options include a home equity loan or line of credit, personal loan, cash-out mortgage refinancing, roofing company financing and government-insured loans.
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
at Better
Pros, Cons, and Our View
Pros
- Flexible term options.
- Borrowers can personalize home equity loan rates online, by location.
Cons
- Charges closing costs.
- No mobile app.
Best for high borrowing limit
Pros, Cons, and Our View
Pros
- Offers a higher than typical borrowing limit.
- Flexible term options, including terms of 30+ years.
- Home equity loans are available for second homes.
Cons
- Does not post sample home equity loan rates online.
- Slower average time to close than many lenders surveyed by NerdWallet.
- Originates home equity loans with a third-party partner.
Best for military borrowers
Pros, Cons, and Our View
Pros
- Flexible term options.
- Home equity loans are available for second homes.
- Easy access to customer support.
Cons
- Appraisal required.
- Does not offer a 30-year term option.
- Slower average time to close than many lenders surveyed by NerdWallet.
» 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
at FourLeaf Federal Credit Union
Pros, Cons, and Our View
Pros
- Low introductory rate for 12 months.
- No origination or annual fees.
- Borrowers can get a rate discount for enrolling in autopay or by meeting minimum balance requirements.
Cons
- Average reported time to close on a HELOC (40 days) is slower than most.
- You must repay closing costs if you close the line of credit within the first three years.
Best for fast closing
at Figure
Pros, Cons, and Our View
Pros
- Faster average time to close than many lenders surveyed by NerdWallet.
- A rate discount is available to some borrowers.
- No annual fee.
Cons
- You must withdraw the full loan amount at closing.
- Does not post sample HELOC rates online.
Best for fixed-rate borrowers
Pros, Cons, and Our View
Pros
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
Cons
- Charges an annual fee.
- Slower average time to close than many lenders surveyed by NerdWallet.
- Has a lower than typical borrowing limit.
» 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
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- AutoPay discount, Direct pay to creditors discount, Auto-secured discount and Existing customer discount
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Emergency expenses (car repair, vet bill, etc), Vacation, Moving/relocation, Wedding, Funeral, Auto/motorcycle/RV/boat financing and Other large purchase
Pros
- Multiple rate discounts.
- Secured and co-signed loans.
- Fast funding.
- Wide range of loan amounts and repayment terms.
Cons
- Origination fee
- No option to choose repayment date
Best for long repayment terms
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- Same day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Min income:
- No minimum requirement
- Soft credit check:
- No
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Emergency expenses, Vacation, Moving/relocation, Wedding, Funeral, Auto/motorcycle/RV/boat financing, PreK-12 education and Other large purchase
Pros
- Competitive APRs
- Rate discounts
- No fees
- Large loans and long repayment terms
- Same-day funding
Cons
- Limited ability to pre-qualify
- High minimum loan amount
- No direct payment to creditors
- No mobile app
Best for joint loans
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- Same day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- Autopay, Direct payment to creditors and Direct deposit accounts
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical/dental, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, Auto/motorcycle/RV/boat financing and Other large purchase
Pros
- Multiple rate discounts.
- Joint loans.
- Hardship assistance.
Cons
- High minimum loan amount.
- No secured loans.
» 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, there 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.
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.
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.
When shopping, compare estimates from multiple roofing contractors to get a competitive price on materials and labor. Estimates should include all expected costs and a warranty.
Methodology
How we chose the best personal loans
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
5.0
Overall score
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 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.