Roof Financing: Best Personal Loans to Consider in 2024

The average cost to replace a roof in the U.S. is about $8,700 while a roof repair averages about $1,000. Those amounts can be difficult to pay out of pocket, especially if they come up unexpectedly. Roof loans make it possible to get the money you need quickly so you can protect one of your biggest investments — your home. To help you find the best roof loan for your needs, our team of financial experts reviewed and ranked more than 30 online lenders.

Because personal loans can have a big impact on your finances, it’s important to spend a little time reviewing your options to make sure you’re not overpaying. Also, it’s usually worth comparing your rates across multiple lenders to ensure you’re getting the best deal for your credit history and financial situation.

Our team of financial experts ranked lenders based on our ratings methodology for personal loans and found the best emergency loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Roof Financing: Full Overview of The Best Personal Loans 

Now that you know how we analyze roof loan lenders, here’s a look at our top 8 picks and when they are best.

How to Choose the Best Roof Financing Option

Before getting into the top roof financing options, let’s first take a look at the main factors we consider when assessing a lender’s roof loan offering:

• Loan features: The loan amount range needs to cover the cost of a roof repair or replacement. There can’t be any rules that restrict the funds from being used on a roofing project. Further, the loan’s term options need to enable you to split the cost up over several years into affordable payments.
• Interest rates and fees: A good roof loan is an affordable one. We look at the annual percentage rates (APRs) and fees to ensure that the loan comes with competitive pricing.
• Application process: Many lenders have streamlined the application process by creating online applications, using soft credit pulls for quotes, and implementing algorithms that quickly qualify applicants. We look at how easy or difficult a lender makes it to apply and how that impacts the time to funding.
• Qualification process: We look at each lender's unique eligibility requirements to find out what borrowers they target. For example, lenders may have a minimum credit score or annual income requirement.
• Customer support: Lenders offer varying levels of customer service. We look into the channels available, the hours of operation, and other resources the lender provides to support borrowers.
• Online user reviews: We also consider how a lender fares in reviews from trusted, independent review sites like Trustpilot.
• Perks and bonuses: Some lenders set their loan offerings apart from the rest with unique features like payment flexibility, credit building tools, budgeting apps, and more. We consider these as well.

The best roofing loans provide not only ample loan amounts and low costs but an overall positive experience that spans from the initial application to the day a loan is paid in full.

Main Features of The Best Roof Financing

What is Roof Financing?

Most lenders don’t offer loans specifically to purchase or repair a roof. However, many do offer unsecured personal loans that can be used for almost any purpose — including to cover roofing costs. You can apply and the lender will analyze your creditworthiness. If approved, you’ll get a lump sum you repay (plus interest and fees) over a set term in monthly payments.

How Much Does it Cost to Finance a Roofing Project?

The cost to finance a roofing project will depend on a few factors such as the cost of your roofing project, how long you need to repay the loan, and the interest rate and fees charged by your lender.

For example, if you borrowed $10,000 for five years with a 12% APR, your financing costs would be approximately $3,346.00. However, if you only needed $5,000 for three years and got an 8% APR, your financing costs would only be about $640 total.

Pros and Cons of Personal Loans for Roof Financing

Personal loans can be a huge help when you need to finance a roofing project. However, there are a few drawbacks. Here’s what you should know.

Pros

• Fast: Personal loans can be funded as soon as the same day.
• Convenient: You can apply online and have the money wired to your bank account.
• Large loan amounts: Lenders offer a range of loan amounts sufficient to cover roofing projects.
• Flexible repayments: Terms are available that span several years which can make payments affordable.
• Low costs for good credit: Borrowers with good credit can get very low APRs which make the loan affordable.

Cons

• Credit required for approval: Not everyone will get approved. Lenders will assess your credit and income to decide if they will lend to you or not.
• High costs for bad credit: If your credit is poor or fair, you can face high APRs that make the loan expensive.

How to Get a Roof Loan

If you want to get a roof loan, here are the typical steps you’ll need to take:

• Estimate roof project costs: First, figure out how much you need to borrow. Reach out to a few contractors (at least three) and ask them for quotes on your roofing project.
• Check your credit: Find out where your credit currently stands by checking your credit scores with Experian, Equifax, and Transunion. You can then find lenders that approve borrowers with your scores.
• Compare lenders: From there, shop around to find lenders that lend to borrowers with your credit score and offer large enough loans to cover your project. Look for competitive APR ranges, low fees, and good reviews from past borrowers.
• Get quotes: Next, get quotes from the lenders that top your list. Find out what loan amounts, rates, and terms they will offer you.
• Select your roof loan: With the above information, you’ll be able to choose the best roof loan for your needs and accept it. This will typically require signing paperwork electronically.
• Receive your funds: Once finalized, the lender will send the loan amount to your bank account and you can pay for your roofing project.
• Repayment: Following the loan disbursement, you’ll start to make monthly payments to repay the loan amount plus any fees or interest that apply.

Getting a roof loan can be pretty simple, especially now as many online personal loan lenders have streamlined the process. You can apply, get a quote in minutes, and have the funds as soon as the same day.

Other Options to Finance Roofing Projects

If you’re having trouble getting approved for a personal loan or just want to shop around, there are a few other options you can consider to finance roof replacement or repairs, including:

• Credit cards: If you have good credit, you can get approved for a credit card with a large enough credit line to cover the costs of a roofing project. However, the APRs on credit cards are often higher than those on personal loans so beware of expensive interest costs. You may be able to save if you can find a card with a 0% APR introductory offer that gives you enough time to pay off the roofing project without any interest.
• Home equity loan: Home equity loans enable you to take out a second mortgage backed by the equity you’ve accumulated in your home. These typically come with low interest rates and can be a good option if your credit is less than perfect. However, if you can’t keep up with the payments, your home will be at risk of foreclosure.
• Home equity line of credit (HELOC): HELOCs are another way you can borrow against your home’s equity. However, instead of a lump sum loan, you’re given access to a credit line. You can withdraw from the credit line as needed for the roofing project and will only pay interest on the funds you use. After a set period, the credit line will close and you’ll be required to pay off the balance — either in a lump sum or through monthly payments.
• Roofing companies that offer financing: If you are installing a new roof, you may find some roofing companies that offer financing. However, you’ll want to be sure to compare their costs to other options like personal loans so you don’t overpay.

Personal loans are typically the fastest and easiest way to get financing for a roofing project with the least amount of risk. However, you will need to get approved and will likely pay higher interest rates than you would with a secured loan or credit line (like a HELOC).

Roof Financing Tips

How can you make the roof financing process as smooth as possible? Here are some tips to keep in mind.

Check your homeowners insurance

Before you go ahead and finance the cost of a new roof or roof repair, you should first make sure that your homeowners insurance policy won’t cover the costs. Generally speaking, homeowners insurance covers damage if it was the result of an unusual accident that couldn’t have been prevented or an act of nature. If either of those situations applies, call your agent to see if the costs can be covered.

Check your warranties

You may also be able to avoid paying out of pocket if your roof is under warranty. But what kind of warranty?

• Material warranties: A material warranty is the most common which is provided by the manufacturer of your roof’s materials. It may be on the manufacturer’s specific materials, like shingles, or your entire roofing system. The length and coverage vary from one manufacturer to the next.
• Workmanship warranties: A workmanship warranty is provided by contractors and covers problems that arise due to improper installation.
• Home warranties: While most home warranties don’t cover roofs, some companies offer the coverage as an add-on option. If you have a home warranty, it can be worth checking your policy.

A roof should be built to last for many years. If it’s failing due to the fault of the installers or manufacturer, you shouldn’t be on the hook for the costs.

Comparison shop

Lastly, to get the best deal, never blindly take the first thing you’re offered. When it comes to getting quotes on the cost of your roofing project from contractors, choosing a credit product, and deciding on the best offering between lenders, you should always compare at least three options. Doing so will help you to see how costs can vary and give you more context.

Conclusion

Your roof is one of the most important components of your home as it protects you and your belongings from the elements. Being so, it needs to be regularly maintained and kept in tip-top shape. Unfortunately, that can come at a sizeable cost, especially when you need a large repair or a total replacement. However, you’ll end up paying a lot more if your roof fails. Roof loans help you to avoid the latter. If you’re not sure where to look for the best roof loans, be sure to check out the lenders above. All provide competitive personal loans that can make your roofing project affordable and convenient.