What's the fastest way to get money for a new roof?

A personal loan is typically the fastest of the roof financing options, with some online lenders providing funds in as little as 1-3 business days after approval.

Can I get a roof loan with bad credit?

Yes, but it will be more challenging and expensive. You may need to look for lenders who specialize in loans for homeowners with lower credit scores, and you should expect to pay much higher interest rates.

Is 0% financing from a contractor a good deal?

It can be a great deal if you can pay off the entire loan amount before the promotional 0% APR period ends. If you can't, the interest rate often jumps to a very high level, making it more expensive in the long run.

Is it better to get a loan from my bank or my contractor?

It depends. A bank or credit union may offer more competitive interest rates and better repayment terms, especially if you have an existing relationship. Contractor financing is more convenient, but you should always compare the financing terms to ensure you're getting the best deal for your financial situation.

Roof Financing Options for 2025: Loans, Insurance, and More

• September 8, 2025

Ready to replace your roof? One of the first big questions you'll hit is

"How am I actually going to pay for this?"

Let's be honest, figuring out how to handle a five figure expense can be a stressful task. It's a major investment, and navigating the world of loans, interest rates, and financing options can seem complex and mysterious.

That’s why we created this guide: to give you the clarity you need for this critical financial decision.

We're going to break down every single element that goes into roof financing. We'll start with the big picture, comparing your best loan options, and then drill down into the specific application steps so you can confidently secure the funding for your new roof.

Key Takeaways

For a quick decision, here's what you need to know:

Best for Low Rates: Home Equity Loans (HELOCs) typically offer the lowest interest rates if you have equity in your home.

Best for Speed: Personal Loans are often the fastest way to get funded, with some lenders approving funds in just a few days.

Best for Convenience: Contractor Financing is the most convenient, one stop shop option, often with promotional 0% APR offers.

Check Insurance First: Before seeking a loan, check if your homeowners' insurance will cover the cost due to storm damage.

Look for "Free Money": Don't miss out on tax credits and rebates for solar or energy efficient roofing, which can save you thousands.

Know Your Numbers First: Use a roof replacement cost calculator to get an accurate estimate of how much you need to borrow before you apply.

Don't apply for more than you need. Get an accurate estimate first.

>> Use Our Free Roof Cost Calculator to Know Your Budget <<

How to Get Roofing Cost Financing in 2025?

The price tag for a new roof is a big one, but good financing options make it a much easier task.

For homeowners who are ready to go, choosing a loan is the next move. We'll lay out a simple comparison of the top roof loans and walk you through the steps to apply, so you can get your money fast and avoid a long-term headache.

We will compare the top options, such as a personal loan versus roofing contractor financing, and provide you with a clear plan to secure funding quickly and confidently.

Compare Your Top Roof Financing Options

For a homeowner ready to make a decision, comparing the core features of each loan type is the most important step. Your financial situation and credit score will be the biggest factors in determining the best path for your roofing project.

Personal Loan:

It's a straightforward loan you can get from a bank, credit union, or online lender. The amount you can borrow and the interest rate you get are based on your credit score, not the value of your home. The biggest plus is that your house isn't on the line as collateral.

Best For: Speed and no collateral required, ideal for urgent roofing projects.

Interest Rate (APR): Typically 8-20%, with the most competitive interest rates reserved for those with good or excellent credit.

Loan Amount: Usually $1,000 - $100,000, with fixed monthly payments.

The Bottom Line: A personal loan from a bank or credit union or online lenders is a great choice for homeowners who need funding fast. Because it's an unsecured loan, your house is not on the line, and the funds are often available in a matter of days. Your credit history will be heavily scrutinized.

Home Equity Loan / HELOC

This is when you borrow against the value you've already paid into your house. It's a popular option because you usually get a much lower interest rate since your home secures the loan.

Best For: Lowest interest rates and larger loan amounts.

Interest Rate (APR): Typically 7-12%, often variable with a HELOC.

Loan Amount: Based on your home's equity.

The Bottom Line: A home equity loan or home equity line of credit (HELOC) is the most affordable of the equity loans if you have equity built up. Using your home as collateral results in a lower rate from your financial institution, but it comes with closing costs and a longer application process.

In-House Contractor Financing

This is a convenient loan that your roofing company offers directly through one of their lending partners. It's a one stop shop, and they often have good deals like "0% interest for the first year."

Best For: Convenience and 0% APR promotional offers.

Interest Rate (APR): Can be 0% for 6-24 months, but jumps to a high rate (15-25%+) afterward.

Loan Amount: Covers the project cost of the new roof.

The Bottom Line: Many roofing companies work with a financing partner to offer this convenient option. It's perfect if you can get a good 0% APR deal and are certain you can pay it off before the promotional period ends. Be sure to read the financing terms carefully.

Cash Out Refinancing

This is when you trade in your current mortgage for a new, bigger one and take the extra cash to pay for the roof. It's a major financial move, but it can be a good option if mortgage rates are low.

Best For: Homeowners already looking to refinance their mortgage.

Interest Rate (APR): Based on current mortgage rates.

Loan Amount: Varies.

The Bottom Line: A powerful option with low interest rates that rolls the roofing costs into your mortgage. However, it involves closing costs and resets your mortgage term, so it's best suited for those who benefit from refinancing anyway.

FHA Title I Loan

It's a special loan for home repairs that's backed by the government. This government insurance can make it easier for some homeowners to get approved by a lender.

Best For: Homeowners with less equity or a moderate credit score who may not qualify for other roof loans.

Interest Rate (APR): Rates are set by the FHA-approved lender and are generally competitive.

Loan Amount: Up to $25,000 for home improvements (for a single-family home).

The Bottom Line: This is a great financing solution if you're having trouble getting approved for a traditional loan. The government backing makes lenders more willing to offer funds, but remember you're still borrowing from a regular financial institution, just with FHA insurance.

Homeowner's Insurance Payout

This one isn't a loan at all. It's the money your insurance company pays you to cover the cost of a new roof if the damage was caused by a specific event, like a storm or hail.

Best For: Homeowners whose roof was damaged by a covered event (storm, hail, fire, wind).

Payment Type: Direct payment or check from your insurance provider (not a loan).

Coverage Amount: The replacement cost of the damaged roof, minus your policy's deductible.

The Bottom Line: This should always be your first step if your roof has storm damage. Filing a successful insurance claim means you might only have to pay your deductible out of pocket, potentially saving you from needing a roof loan altogether. It's crucial to document all damage and contact your insurance provider promptly.

Step by Step: How to Apply for a Roof Loan Now

Ready to take action? Here’s a simple, four-step financial plan.

Check Your Credit Score: Before you do anything, know where you stand. A higher score (generally a minimum credit score of 670) will unlock the best loan terms.

Get a Precise Project Cost: Don't guess how much you need to borrow. Use a roof cost calculator or get a few quotes to determine a realistic loan amount.

Gather Your Documents: Lenders will need to verify your financial stability. Have proof of income (pay stubs, W-2s), identification, and information about your assets and debts ready.

Submit Your Applications: It's smart to apply to multiple lenders (e.g., your bank, credit unions, an online lender) to compare real offers. Submitting all applications within a 14-day window minimizes the impact on your credit score.

Grants, Rebates, and Tax Credits

Before you sign for a loan, make sure you’ve explored these avenues that can significantly reduce the amount you need to borrow.

1. Start with Your Homeowner's Insurance

This should be your first call if your roof replacement is needed due to storm, hail, or wind damage. An insurance claim is not a loan; it's a potential payout from your insurance provider that could cover the entire roof, minus your deductible. This is different from using emergency funds to cover roof repairs.

2. Leverage the Federal Solar Tax Credit

The federal Residential Clean Energy Credit allows you to claim a tax credit for 30% of a new solar installation's cost. Crucially, if you need a new roof made of asphalt shingles or metal roofing to support the panels, a portion of the roofing costs can often be included in that credit. Always consult a tax professional.

3. Find State and Local Rebates for Specific Roofing

Many states and utility companies offer grants or rebates for installing energy efficient roofing materials, such as reflective "cool roofs." Check the DSIRE database (Database of State Incentives for Renewables & Efficiency) for programs in your area.

4. Consider Government-Backed Loan Programs

Government loans, such as the FHA Title I program, can be a secure financing solution for home improvements. The government insures these loans and may offer favorable repayment terms.

Conclusion: Secure Your Funds and Start Your Project

So, what's the bottom line? Paying for a new roof in 2025 doesn't have to be a headache. You've got plenty of great financing options to choose from, and the best choice really just comes down to what's most important to you. Need it fast? A Personal Loan is likely your best bet. Want the absolute lowest interest rates? Look into a Home Equity Loan. And for ultimate convenience, you can't beat Contractor Financing. By checking your credit score and comparing a few offers, you can find a loan with monthly payments that actually fit your budget and get this roofing project started with confidence.

A real budget starts with a real estimate. Know your numbers before you apply.

>> Calculate Your Personalized Roof Replacement Cost for Free <<

What's the fastest way to get money for a new roof?
A personal loan is typically the fastest of the roof financing options, with some online lenders providing funds in as little as 1-3 business days after approval.
Can I get a roof loan with bad credit?
Yes, but it will be more challenging and expensive. You may need to look for lenders who specialize in loans for homeowners with lower credit scores, and you should expect to pay much higher interest rates.
Is 0% financing from a contractor a good deal?
It can be a great deal if you can pay off the entire loan amount before the promotional 0% APR period ends. If you can't, the interest rate often jumps to a very high level, making it more expensive in the long run.
Is it better to get a loan from my bank or my contractor?
It depends. A bank or credit union may offer more competitive interest rates and better repayment terms, especially if you have an existing relationship. Contractor financing is more convenient, but you should always compare the financing terms to ensure you're getting the best deal for your financial situation.