5 Ways to Pay for a New Roof

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

installing a new roof, ways to pay for a new roof, working on a roof, fixing a roof
Logo

We’ve got your back! Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

If your roof is in bad shape, you’re facing an expensive repair. According to Home Advisor, it costs an average of $7,336 to replace a roof.

Most Americans don’t have anywhere near that amount in savings. Without that kind of money in the bank, you’ll need to use other financing options to cover a roof replacement cost.

Factors that affect roof replacement cost

When it comes to installing a new roof, many factors affect the price you’ll pay.

  • Time of year: Late summer through the fall is the busiest time of year for most roofing companies, according to Angie’s List. If you want your roof installed during that time frame, you likely will pay extra. By contrast, you might get a cheaper price by opting for winter or early spring.
  • Size of home: Roofers usually base the price on the square footage of your roof, according to the Roofing Calculator. The larger the house, the more you’ll pay.
  • Materials: If you opt for an asphalt roof, you’ll pay much less than if you went with metal or wood.
  • Labor: Each roofing company charges different hourly rates for labor, and the rates can vary widely.
  • Disposal: The roofer also will charge a disposal fee to rent or supply a dumpster for the old roof and supplies.

How to save on a new roof

To minimize how much you need to borrow, follow these tips to save money on your roof replacement.

  1. Shop around: Before moving forward with a roofing company, make sure you get quotes from multiple businesses. The cost can vary widely from company to company, and you might find a cheaper roofer who delivers high-quality results. If you’re not sure where to find reputable companies, start your search on Angie’s List.
  2. Consider cheaper materials: Although a metal roof might look nice, it’s much more expensive than some other materials. If possible, opting for an asphalt roof can help you save money.
  3. Time it right: If your roof doesn’t need to be replaced right away, you could save a significant amount of cash by waiting until the winter to replace it.

5 ways to pay for a new roof

Although replacing a roof can be expensive, there are ways to finance the project to make it more affordable. Here are five of the most common options.

1. Insurance coverage

If you have homeowners insurance, you might be able to use your policy to cover the cost of a new roof. According to Esurance, many insurance policies will cover roof repairs or replacement if it was damaged by a storm, fire, or theft. If your roof degraded because of age or lack of maintenance, however, your insurance company won’t cover its replacement or repair.

Contact your insurance agent to discuss your policy and the needed repairs or replacement to see if the insurance will pay for it.

2. Roofing company payment plans

Some roofers offer payment plans to help make the roof replacement cost more affordable. With this option, you can spread out your payments over the course of several months or even years. Most plans charge you interest, which can add to the total cost of your roof replacement, so make sure you’re comfortable with the interest rates and monthly payments.

Each roofer has its own plans, requirements, and interest rates, so contact your chosen roofing company to find out what’s available.

3. FHA Title I home and property improvement loan

If your roof needs major repairs or a replacement, one of the best ways to pay for it is with a Title I home and property improvement loan. The Federal Housing Administration (FHA) runs the Title I loan program and insures the loans, thereby reducing the risk faced by lenders.

If you own a single-family home, you can borrow up to $25,000 under the Title I program and have up to 20 years to pay it off.

However, keep in mind that loans over $7,500 must be secured by either your mortgage or deed of trust on the property. If you fall behind on your payments, the lender can seize those assets.

Title I loans are offered by banks and credit unions. Each lender has its own requirements and interest rates. It’s a good idea to consult several financial institutions to ensure you get the best deal. Use the U.S. Department of Housing and Urban Development’s locator tool to find an approved Title I lender near you.

4. Home equity loan

If you have equity built up in your home, taking out a home equity loan can be a cost-effective option to pay for a new roof. You work with a bank or financial institution and use your home’s equity as collateral for the loan.

Your home’s equity is its current value minus the amount you owe on your mortgage. For example, if you have a $250,000 home and owe $180,000, your home equity is $70,000. According to the Federal Trade Commission, you usually can borrow up to 85% of your home’s equity. So, on a home equity of $70,000, you could borrow up to $59,500.

However, there are some downsides to home equity loans. Because your home’s equity serves as your collateral, there are steep consequences if you fall behind on your payments. You could even lose your home. To minimize your risk, borrow as little as possible to cover the roof replacement cost and make sure you can afford the monthly payments.

5. Personal loan

If the above options don’t work for you, another way to pay for a new roof is to take out a personal loan. With a personal loan, you work with a bank, credit union, or other financial institution to borrow up to $100,000.

You usually don’t have to offer any form of collateral when taking out a personal loan, so you don’t have to put your home or other valuables at risk.

However, consider some of these drawbacks to personal loans:

  • Shorter loan terms: Personal loan terms tend to be shorter than other kinds of home improvement loans. For example, you can have up to 20 years to pay back a home equity loan, but most personal loans need to be repaid within two to five years. That means you’ll have higher monthly payments, which can stretch your budget.
  • Higher interest rates: Although you’ll see personal loans with interest rates as low as 4.99%, lenders reserve those rates for borrowers with excellent credit scores and incomes. If your credit score is good or below, you could end up with a much higher rate. With bad credit, you could pay a rate that’s as high as 199.00% on your loan.

A personal loan makes sense when you have good credit and can afford the payments comfortably under a shorter repayment term. If you think this option is right for you, get quotes from low-interest personal loan lenders.

Repairing your home

If you need a new roof right away, the price can be prohibitive. However, there are financing options that can make the cost more manageable with your budget.

Interested in a personal loan?

LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

RATES (APR)loan amount
5.99% – 20.01%1 $5,000 to $100,000
6.14% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree now
NMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 20.01% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 15, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 4.93% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
2 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

Published in Loans, Personal Finance

You're on your way...

You are being redirected to LendingTree.com where you’ll be able to fill out an online form. Based on your creditworthiness, you may be matched with up to five different personal loan lenders in our partner network.