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New Roof & Roof Repair Financing For Good & Bad Credit

Four walls and a roof — that’s the bare-bones definition of what constitutes a house. But what happens when a roof needs to be replaced due to deterioration or a natural disaster? In such instances, many homeowners are left wondering what their options are. Fortunately, roof financing plans are available for the vast majority of Americans.

If roof loan financing is a foreign concept to you, here’s an overview of how it works and what your options are.

Can You Finance a New Roof?

You betcha! Because most homeowners can’t afford to pay for a new roof out of pocket, there are many routes to replacing roofs that don’t require a lump sum of cash. Home equity loans, lines of credit, and traditional bank loans are three of the most popular forms of new roof financing, but other methods also exist.

Should I Finance a Roof or Roof Repair?

Cash is generally considered the best way to pay for large purchases because it allows the buyer to avoid interest, but many homeowners don’t have enough cash in their savings accounts to cover the cost of a roof all at once. That’s why many people who need to replace their roofs choose to finance the project over the span of several years. 

What Is the Best Way to Finance a Roof?

There’s no single method of roof financing that will meet everyone’s needs. The smartest solution for your situation might be vastly different than the best option for your neighbor. Your best financing option is contingent upon several factors including your credit score, the cost of your new roof, and how much interest you’re willing to pay.

How Much Should I Pay for a New Roof?

As a general rule, a new roof can cost anywhere from $3,000 to $10,000 depending on the age and size of your home, among many other factors. Some roof constructions, however, may cost far more if you live in a pricey area or if you have a relatively large living space. 

Can You Pay for a Roof in Installments?

Absolutely. If you can’t afford to pay for an entirely new roof all at once, you should be able to find a lender willing to loan you the money as long as you agree to pay it back — plus interest — over the course of several years. The only caveat is that if you have a truly horrendous credit history, it’s possible that no lenders will approve you for an installment plan.

Will Insurance Pay for a New Roof?

Depending on your homeowner’s insurance policy and the reason you need to replace your roof, your insurance company may cover some or all of the construction cost. A storm or fire, for instance, may mean you don’t have to pay for a new roof yourself. But, on the other hand, if your roof needs to be replaced due to lack of maintenance, you may be out of luck.

Do Roofing Companies Offer Payment Plans?

Many construction companies do, in fact, offer payment plans to make roof repairs and replacements affordable. And, actually, these companies are more likely to approve roof financing for bad credit applicants because they want the business.

Best Loan Options for a New Roof Or Roof Repair

If you need to replace your roof for whatever reason — but you don’t have enough cash in your savings account to cover the cost — you might be wondering about the best way to pay for this essential element of your home. Here’s a look at a few of the most popular options.

Personal Home Improvement Loans

When it comes to the construction of a new roof, many homeowners turn to personal home improvement loans. Depending on your individual credit score, however, the terms you qualify for could vary quite substantially. Here are two leading lenders that may be able to help fund a new roofing project.

LightStream

LightStream
APR range4.99% - 16.79% w/AutoPay1
Available loan terms24 to 144 months1
Loan amountsup to $100,000
Time to fundAs soon as the same day**
FeesOrigination fee: None
Late fee: None
Prepayment fee: None
Credit needed660+
Income neededn/a
Soft Credit Check?Varies
Best forBorrowers with good credit, long credit history, co-signers, debt consolidation, home improvements
Click “Check Rates” to apply to LightStream

» MORE: LightStream Personal Loans Review

LendingClub

APR range6.95-35.89%
Available loan terms36 to 60 months
Loan amountsUp to $40,000
Time to fundVaries
FeesOrigination fee: 1% to 6%
Unsuccessful payment fee: $15
Processing Fee For Personal Checks: $7
Credit needed600+
Income neededn/a
Soft Credit Check?Yes
Best forBorrowers with good credit
Click “Check Rates” to apply to LendingClub

LendingClub made a name for itself by becoming the first peer-to-peer lender to register with the SEC and offer loan trading on the secondary market.

  • Loan Amounts — $1,000 to $40,000
  • APR — 6.95% to 35.89%
  • Origination Fees — 1% to 6% of the loan amount
  • Time to Funding — 3 to 7 days
  • Repayment Terms — 3 to 5 years
Pros & Cons
  • LendingClub is a great option if you have above average credit
  • It’s not so great if you’re looking to borrow more than $40,000
  • You’ll need a low debt-to-income ratio to get approved

SoFi

APR range:5.99% to 16.99% APR (with AutoPay)
Available loan terms:24-84 months
Loan amounts:$5,000—$100,000
Time to fund:Typically 7 days
Origination fee:None
Credit needed:680+
Income needed:$50,000+
Soft Credit Check?Yes
Best for:Young professionals and graduates, good credit
Click “Check Rates” to apply to SoFi

SoFi, short for Social Finance, is a reputable personal finance company that specializes in mortgages, personal loans, and student loan refinancing.

  • Loan Amounts — $5,000 to $100,000
  • APR — 5.74% to 16.24%
  • Origination Fees — None
  • Time to Funding — One week
  • Repayment Terms — 2 to 7 years
Pros & Cons
  • Only applicants with a strong credit score and little debt will get approved
  • SoFi doesn’t charge any origination fees or late fees
APR range:16.05%—35.99%
Available loan terms:24-60 months
Loan amounts:$1,500—$30,000
Time to fund:6 days on average
Origination fee:None
Credit needed:580+
Income needed:Varies
Soft Credit Check?Yes
Best for:Those with fair to average credit, quick cash, secured loans
Click “Check Rates” to apply to OneMain Financial

Home Equity Loans

If you’ve lived in your home for some time and have paid off a substantial amount of your mortgage, you can apply for a home equity loan to pay for your roofing project. Here are two reputable companies that offer home equity loans.

Figure

APR rangeStarting at 4.99%
Available loan termsUp to 30 years
Loan amountsBorrow up to $150,000
FeesLow origination fee
Credit neededMinimum credit score 600
Best forMajor Purchases, Home Improvements or Consolidating Debt
Click “Check Rates” to apply to Figure

Figure.com specializes in simple, secure, and speedy home equity loans homeowners can use to consolidate debt, pay for home improvement projects, and otherwise meet their financial goals.

  • Loan Amounts — Up to $150,000
  • APR — As low as 4.99%
  • Origination Fees — 0% to 3% of the loan amount
  • Time to Funding — 5 days
  • Repayment Terms — 5 to 30 years
Pros & Cons
  • Figure’s online application process is fast and transparent 
  • This lender doesn’t charge any application or prepayment fees
  • Homeowners can only make additional draws on the loan within 2 years

Lines of Credit

If you haven’t yet accrued a significant amount of equity in your home, you might consider using a personal line of credit to cover the cost of a new roof. Personal lines of credit are based on your individual credit score, and while missing a few payments will affect your creditworthiness, you won’t have to worry about losing your home if you default.

Traditional Bank vs Financing

Depending on the quality of your credit history, you may have the option to either get a traditional bank loan or take advantage of special financing plans from your roofing company. Although these arrangements are relatively similar to one another, you may qualify for a promotional financing rate from your roofing company that’s more affordable than a bank loan in the long run.

Conclusion

Now that you have a good idea about how to finance a new roof, consider your options and apply for a loan or line of credit that meets your needs. You could have a new roof over your head before you know it! 

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