Roof financing: How to finance a new roof
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- If your home needs a new roof, it can cost several thousand dollars or more depending on the size and type of home.
- There are several roof financing options, including taking a personal loan, tapping into home equity, or working with the contractor on a payment plan.
- Before seeking financing for a new roof, check with your homeowners insurance company to see if you are eligible for a partial or full payment.
Putting a new roof on your home can be an expensive but necessary undertaking. In many cases, homeowners must turn to roof financing to help them cover the cost.
To help you decide which type of roof financing makes sense for you, learn more about the unique benefits and drawbacks of the various types of financing, and why it’s always wise to check your homeowners insurance first.
Yes, you can finance a roof. As a major home improvement expense, many people may not have enough cash reserves on hand to cover such a high cost. As such, there are multiple lending products homeowners can rely on to help pay for a new roof or roof repair.
The average cost of a professional roof replacement is about $10,000, but the price can have a much wider range depending on the roof size, type of roofing material used, the pitch of the roof, and where the home is located. Industry estimates say new roof costs can range from a starting cost of $6,000 to as high as $45,000.
If you need a new roof due to sudden storm, wind, or hail damage, check your homeowners insurance policy before committing to out-of-pocket financing. In many cases, policies provide partial or full coverage for roof repairs or total replacement resulting from covered perils. Contact your insurance carrier as soon as damage occurs to file a claim; while you should take immediate temporary measures to prevent water damage (such as tarping exposed sections), hold off on permanent replacement work until an adjuster inspects the property.
If homeowners insurance will not cover the cost of the roof, homeowners have a few different lending products they can use to help finance a new roof. The amount needed, the borrower’s credit status, and how much equity is available to tap into can help determine the right type of roof financing for you. Also be sure to review full terms and conditions when making your final decision.
Personal loans
A personal loan can be used to pay for a new roof if you’re looking for an unsecured product that does not use your home as collateral. This type of installment loan usually has a fixed interest rate, a straightforward application process, and fast funding. Borrowers may also have a range of loan terms from which to choose, giving them some control over how much they will pay monthly.
Home equity loans and HELOCs
Home improvement projects, such as replacing a roof, are among the most common reasons homeowners tap into their home equity through a fixed-rate home equity loan or a revolving home equity line of credit (HELOC). One potential advantage is tax deductibility: if you use the borrowed funds to substantially improve your home and itemize your return, the interest paid may be tax-deductible (consult a qualified tax advisor regarding your eligibility). Drawbacks include closing costs, a longer appraisal and underwriting process, and the requirement to pledge your home as collateral.
Cash-out refinance
Another way to use your home equity to fund a new roof is to take a cash-out refinance. This is when you refinance your existing mortgage into a new home loan, but increase the loan size so that there is some excess cash for you to use. This option can be worth exploring if you were thinking of refinancing anyway, and if you can qualify for a lower interest rate than your current mortgage.
Roofing company or contractor financing
If you prefer to work out a payment plan directly with the roofing company or contractor, many roofing contractors offer direct financing programs or partnerships with third-party lenders.
Government-insured loans
The Federal Housing Administration (FHA), an agency within HUD, insures private lenders through programs like the Title I Property Improvement Loan program to help homeowners finance essential repairs and replacements. Not all projects will qualify, as there are specific eligibility criteria such as income level, property type, and location.
Get the funds you need with a personal loan
Here are some steps to take if you want to finance a new roof.
- Decide how much you need to borrow. Before you choose a type of financing, you should get a couple of estimates so you know how much the roof will cost. If it’s on the less expensive side, you may decide to use a personal loan over a home equity loan, for example.
- Check your credit status and home equity (if applicable). Most lenders will review your credit score and other factors to determine if you are eligible for financing and to calculate your interest rate. Check your score in advance. If you’re considering a home equity loan or HELOC, verify how much equity you have in the home to see if those programs are feasible.
- Choose your financing option and compare lenders. Based on your funding needs and financial situation, choose your financing type and get some lender quotes to compare rates and terms.
- Apply for financing. Once you choose the best lender offer, begin your application. Note that personal loans and contractor financing may offer a faster application process compared to home equity products.
- Have a repayment plan. Before you accept an approved financing offer, make sure you understand the terms and are able to meet your repayment obligations. Once you accept the loan or credit offer, consider automating your monthly payments so you stick with your repayment schedule.
Choosing the right new roof financing or roof replacement financing option comes down to asking yourself questions like these.
- How much financing do you need? There’s a big difference between needing $5,000 versus $40,000. Knowing how much you need to borrow can influence your financing decision.
- What type of financing can you qualify for? Do you have a high percentage of home equity and excellent credit? If so, that may point you toward a HELOC or home equity loan. If your credit isn’t as strong, you may consider working with the contractor on a payment plan. If you don’t want to use your home as collateral and you qualify for a favorable rate, it’s worth looking into a personal loan to cover the work.
- How quickly do you want to start your roofing project? If your roof isn’t leaking or causing interior damage, you may consider home equity products that can take a bit longer to receive. If you need to start work as soon as possible, you may be better served by a personal loan that can be funded in a couple of days.
- Fixed-rate personal loans with terms from 12 to 84 months can help cover large expenses, consolidate eligible high-interest debt , or pay for emergency expenses
- Same-day credit decisions for some applicants, no origination fee, no closing fee, and no prepayment penalty
- Rate discounts with AutoPay from qualifying Wells Fargo accounts
- Most customers receive funds the same day they're approved
If you extend your loan term, you may pay more interest over the life of your loan.
If you are a service member on active duty, an eligible spouse, partner, or dependent, or currently receiving SCRA benefits, please consult with your legal advisor prior to seeking a refinance of your existing mortgage loan. In some cases, a refinance may impact your eligibility for benefits under the Servicemembers Civil Relief Act or applicable state law.
Representative example of repayment terms for an unsecured personal loan: For $15,000 borrowed over 48 months at 14.99% Annual Percentage Rate (APR), the monthly payment is $417. This example is an estimate only and assumes all payments are made on time.
Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you. Consolidating multiple debts means you will have a single payment monthly, but it may not reduce or pay your debt off sooner. The payment reduction may come from a lower interest rate, a longer loan term, or a combination of both. By extending the loan term, you may pay more in interest over the life of the loan. By understanding how consolidating your debt benefits you, you will be in a better position to decide if it is the right option for you. New credit accounts are subject to application, credit qualification, and income verification.
Late fees may still be assessed.
To qualify for a customer relationship discount, you must have a qualifying Wells Fargo consumer checking account and make automatic payments from a Wells Fargo deposit account. To learn which accounts qualify for the discount, please consult with a Wells Fargo banker or consult our FAQs. If automatic payments are canceled, for any reason at any time, after account opening, the interest rate and the corresponding monthly payment may increase. Only one relationship discount may be applied per application.
On average, 97% of customers received their funds the day they signed for their personal loan. (Based on data from July – September 2026).
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