3 min read

Should You Use Financing to Pay for Your New Roof Replacement?

Should You Use Financing to Pay for Your New Roof Replacement?

For most homeowners, the biggest concern for the majority of home improvement projects, is the price, and rightfully so!

These kinds of projects can be very pricey, and roof replacements are usually some of the most expensive.

Roof replacements often cost $10,000 to $20,000, which is money that most people don’t have sitting in their couch cushions. Because of this, many homeowners ask about options to finance their project using monthly payments, instead of paying for it all at once.

Financing is an option plenty of people choose to tackle large projects and purchases whether it be a mortgage for a house, or a payment for a new car.

But are roofing companies even willing to accept this kind of payment? How does that process work?

In this blog, we’ll be talking about:

Let’s get started!

Can You Finance a New Roof?

Most roofing contractors will offer some form of financing for their customers, so yes, financing is absolutely an option to consider when looking at starting your roof replacement project!

roof financing in progress_WebP

The way that this works will vary from company to company, but should always start with getting an estimate from the company. From that point, you’ll need to figure out what method you want to use to finance the purchase. There are several options available, that we will talk in more detail about later, but in general: you might be able to finance through the roofing company itself, a home equity loan, a home equity line of credit, a loan from your bank, or through a credit card.


Each of these options will have their own interest rates and benefits for choosing them, but once you decide on that, you’ll apply for the loan, and assuming you get approved, you’ll be able to move forward with your roofing project.

Benefits of Financing a Roof Replacement

financed new roof_WebP

Though there are certainly other ways to pay for a roof replacement, financing provides some pretty unique benefits.

Naturally, financing your roof replacement would allow you to break up the lump sum into smaller, more easily manageable monthly payments. This strategy is similar to what a lot of people do to purchase a nicer car, or house, than they would otherwise be unable to afford all at once.

Financing also allows you to have more negotiating power up front, as far as how you’ll be paying the total amount that you need to. You can negotiate with your lender on payment frequency, duration, and down payment.

Depending on the terms of your loan, you might also be able to delay payment up front, which can be handy when your roof receives some damage that needs to be repaired as soon as possible, even if you don’t have the cash on hand.

Options for Roof Financing

another financed roof replacement_WebPOnce you’ve figured out how much the new roof is going to cost you, you should looking around at all of the different options for financing your purchase. The ones we mentioned earlier in this blog are the ones we see homeowners using the most often. Those being: financing through your roofing company, a home equity loan, a home equity line of credit, a loan from your bank, or through a credit card.

Each one of these has their own terms and conditions, so be sure to read through everything so you fully understand what you are signing up for.

Roofing companies all have their different ways of doing financing through them, so it's hard to give you any actual information on how it might be done. Some also use third party companies to provide the loans for the project.

A home equity loan is when a homeowner borrows a lump sum using the value of their home. This option could be good for homeowners with strong credit and a steady income, because it is a more difficult application process, and if you are not able to pay on time, your home could be used as collateral. A home equity line of credit functions similarly to a credit card, using your home's equity value. The drawback here is that the interest rates change over time, so it's hard to predict how much it will actually cost you when it's all said and done. Using a loan from your bank would work the same way as a loan for a car, or mortgage would, and using a credit card also functions in the manner that credit cards normally do.

Obviously, you’re going to opt for the kind of plan that is most advantageous to you, and keeps your costs manageable. You’ll want to look for plans with low or no interest, so you don’t end up spending too much more money on your replacement than you would have with the lump sum.

How much does a roof replacement cost?

We mentioned at the top of this article that asphalt shingle roof replacements can cost anywhere between $8,000 and $20,000. That’s a big part of why homeowners are likely to finance such a huge purchase!

There are three main factors that affect how much your new roof is going to cost you: the roofing material you decide to go with, the size and complexity of your roof, and the contractor you decide to hire.

To read more about how these factors will impact your roof replacement’s cost, and whether or not you’ll need to finance it, read our blog on How Much a New Roof Costs in Raleigh NC in 2022!

On Tops Roofing has been helping Raleigh homeowners understand the roof replacement process since 1991. If you have questions about your own roofing project, feel free to reach out to us!

We’ll be happy to help.

What are the Different Kinds of Roof Vents?

What are the Different Kinds of Roof Vents?

Observing your roof's vents may not be the first thing on your mind when you step outside or venture into your attic. You might wonder what these...

Read More
What is a Roof Water Test? (How to Check for Roof Leaks)

What is a Roof Water Test? (How to Check for Roof Leaks)

Roof leaks can be incredibly frustrating for homeowners, and pinpointing their exact source can indeed be a challenging task. Visual inspections...

Read More
Do All Roofs Need Ventilation? (How Unvented Attics Affect your Roof)

Do All Roofs Need Ventilation? (How Unvented Attics Affect your Roof)

When it comes to taking care of your home, understanding the various components that contribute to its health and longevity is crucial. One of the...

Read More