How Do I pay for a New Roof? Here are the Top 5 Common Financing Options

Wondering if you have financing options to pay for a new roof? You do! Here we discuss 5 of the most common ways people finance roof replacements.

A new roof can be an expensive proposition, particularly when needing a replacement in “the future” quickly becomes “now.” We know how that goes. Time flies!

Fortunately, if you need a roof replacement for a non-covered event (like a tree falling on your roof or it getting damaged in an ice storm) there are ways to affordably finance the project so you don’t have to come up with a lot of cash. As we like to say, there’s no such thing as “extra” money, but if you’ve got stacks of it around then paying in cash is a good option. Even if you do have the funds, you may prefer to invest them elsewhere rather than tying up money in your roof.

Insurance Coverage

As noted above, if you have a coverable event then your home insurance may pay for it. You are likely required by your mortgage lender to have home insurance. This protects you in the case of an accident. According to Investopedia, “Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.” If you do have damage to your roof, you should call your insurance company to see if they can cover it. If they do, you’re only out your deductible. Side note: beware of roofing companies that attempt to defraud insurance companies by getting you to report damage you may not even have, like after a hail storm.

Personal Loan

A personal loan may be an affordable way to finance a new roof. Rates change over time, but if you have an existing relationship with a bank this may be your easiest option. As the money management site Motley Fool points out, personal loans are often less expensive than what you might find on a credit card. Our friends at keep a running list of consumer loans that may make sense for you.

Promotional Offer on Credit Card

Though we just noted above that credit cards can have higher rates than personal loans, you may be able to take advantage of a promotional offer, often 0% for up to a year. Some go even longer. Thomas Donaldson, a published expert writing at, has put together a handy resource noting his favorite options for low or no interest cards.

Home Equity Line of Credit (HELOC)

Another popular financing option for homeowners is the Home Equity Line of Credit, or HELOC. According to’s definition, a HELOC “uses home equity as collateral — but rather than providing a lump-sum loan, it establishes a revolving credit account you can use much like a credit card. As with a home equity loan, a HELOC allows you to access a maximum of 85% of the home’s value minus the remaining balance on your mortgage.”

If you own your home (we assume you do if you’re paying for the roof replacement), a HELOC offers a flexible way to borrow against the equity in your house as if you’re using a credit card. The terms can be flexible and workable for some people, but exercise caution: if HELOC payments aren’t made then your house may be on the line.

Roofer Financing

Last but not least, many roofers offer financing. Some larger companies may offer their own, but many have a bank they work with on behalf of their clients. For example, our company, Cecil Jennings Construction, offers a roof replacement lending product in Athens, GA through our partners at Wells Fargo. We invite you to check them out.

Of course, just like with the estimates you receive for the roofing job itself, shop around! Ask questions, do your research, compare your options, and get that roof!