How to Finance a Roof
Updated
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Of all the home repair projects you ever undertake, roof replacement is not the most exciting, because for the most part, a roof is a roof and your main concern is how well it protects your home. Here, we'll talk about how much a new roof costs, how the best personal loans work, and other options for covering the expense.
According to This Old House, you should budget between $4,500 and $8,000 for every 1,000 square feet of shingles. Here are a few factors that go into determining the final price:
In regard to the type of material used, here's a quick breakdown of how much prices differ:
| Material Type | Average Price by Square Foot | Lifespan |
|---|---|---|
| Laminated architectural asphalt shingles | $4.46 | 30 - 35 years |
| 26 Gauge ribbed galvanized steel | $8.76 | 30 - 50 years |
| 16-inch blue and red label cedar wood | $10.88 | 30 - 35 years |
| Glazed red mission tile | $14.71 | 50 - 75 years |
| Unfading gray/black metal | $14.78 | 50 - 75 years |
One option for covering the cost of a new roof is a personal loan. You can use the funds to cover the cost and pay it off in monthly payments. A nice thing about using a personal loan to finance a new roof is that you can customize monthly payments to fit your budget.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Apply Now for Discover Personal Loan
Powered by Credible
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
8.99% - 19.49%**
|
$2,000 - $30,000
|
740
|
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
6.70% - 35.99%³
|
$1,000 - $50,000¹
|
300
|
In a nutshell, a personal loan is money you borrow from a lender and repay with interest. Personal loans are typically paid in equal monthly installments, and because the interest rate is almost always fixed, you never have to worry about the monthly payment changing.
Most personal loans can be used for almost any purpose, including a new roof. When we refer to a "new roof loan," we're really talking about a personal loan that is used to pay for the roof.
Before applying for a personal loan, it pays to carefully consider each pro and con -- here are the pros:
Here are a few strikes against a personal loan:
Depending on how you weigh these pros and cons, a personal loan for a new roof may or may not be the best fit for your finances.
Ideally, if you decide to take out a personal loan to pay for your new roof, you'll score the lowest possible interest rate. Getting a low rate depends on many factors, including the following.
Borrowers with the highest credit scores typically qualify for the lowest available rates. If your score is lower than you would like, consider borrowing the money from a lender that allows cosigners.
Here's how a cosigner works: You ask someone with a high credit score to sign onto the loan with you. You make the monthly payments as you would if you were the only name on the loan. However, when determining creditworthiness, the lender considers the cosigner's credit history when making its decision.
Lenders want to know that you earn enough money each month to repay the loan. If you can't provide proof of employment and income, you'll likely have a tough time getting loan approval. However, a positive employment history and adequate earnings may score you a lower interest rate.
With a fixed-rate loan, you know what your monthly payment will be because the interest rate never changes. Variable rates, on the other hand, can go up and down over time. The personal loan interest rate on variable-rate loans usually starts lower than that of a fixed-rate loan. However, if rates increase, you could find yourself with a loan you can't afford.
If you take out a secured personal loan, you put an asset of value, such as your home or car, up as collateral. While most personal loans are unsecured, it's possible you'll benefit by finding a lender that offers secured loans. When a lender knows it can repossess collateral if you miss payments, it worries less about losing money on the loan and may offer a more attractive interest rate.
If you borrow money over a longer period of time, there's more risk to the lender and you may be required to pay a higher interest rate. Shorter-term loans often carry a lower rate.
Since you pay interest on the amount of money you borrow, it's generally best to borrow the smallest amount possible any time you take out a loan.
Each lender sets its own minimum required credit score. Before going through the hassle of applying for a loan, check your score. The higher the score, the lower the interest rate you're likely to be offered.
If your credit score is low, decide whether you want to ask someone with a high score to cosign. One thing to keep in mind is that your cosigner will be on the hook for making any payments you miss and their credit score will be negatively affected by late or missed payments -- the same as yours.
Take the time to compare multiple lenders. There are plenty of reputable online loans available, as well as loans from brick-and-mortar institutions. Because each lender has its own lending criteria, you never know where you might find the best offer.
Once you decide which of the lenders you checked best fits your needs, go through the prequalification process with at least three of them. Most lenders will ask you to provide basic information, such as:
Prequalifying for a loan means the lender believes you're a good candidate and are likely to make it through the loan approval process. Once you've heard back from all lenders, compare their offers and decide which one you want to work with.
The significant difference between a full loan application and the application you fill out to prequalify is the amount of information you'll be asked to provide. As an example, lenders will likely want to see proof of income and a list of your monthly debt payments.
Once your application goes through underwriting, the lender will let you know if it's been approved. At this point, it's time to read the loan contract carefully and ask for clarification if there's anything you don't understand. Finally, you'll sign the loan agreement and wait for money to hit your bank account.
When considering the pros and cons of using a personal loan to pay for your new roof, why not take a look at other options?
Contractors know that many customers don't have cash available to pay for a major roof repair. That's why some roofing services offer loans -- either directly or through a lending partner.
While accepting a roofing loan on the spot may seem convenient, it pays to check your other options to make sure you're getting the best interest rate, loan term, and monthly payment possible. It's possible that a roofing loan will provide all the best loan features available, but you won't know if you don't shop around.
A home equity loan lets you borrow against your mortgage to finance the new roof. To determine how much equity you have, simply subtract the amount you still owe on the mortgage from how much the home is worth.
As the name implies, a HELOC is a line of credit. A line of credit is similar to a credit card -- the lender gives you a specific spending limit, and you can borrow as much or as little as you need up to that limit. In fact, you can take a lump sum, pay it back, and borrow it again for a set number of years (generally 10).
Like a home equity loan, a HELOC uses your home as collateral. HELOCs also carry low interest rates, and when you're taking on a home improvement project as large as a roof replacement, it makes sense to pay as little interest as possible.
If you have excellent credit, paying for a new roof using a credit card with a 0% promotional rate can make sense. Promotional rates typically last from 12 to 24 months. Let's say your roofing project costs $14,000, and the credit card you qualify for offers an 18-month promotional period. If you can swing a monthly payment of $778, you'll pay the card off in 18 months and never pay a penny in interest.
Borrowing money to install a new roof is nothing like borrowing money to pay for a kitchen remodel or destination wedding -- you can't postpone the project until you have time to come up with the cash on your own. Instead, you have to make the best decision possible with the limited time you have.
As long as you receive bids from several roofing contractors and shop for the best loan available to you, you can rest assured that you've done all you can.
The lender determines every detail of a personal loan -- from minimum loan requirements to interest rate. You won't know which lender is best for you unless you shop around.
The higher your credit score, the better the terms of your loan. If you're in immediate need of a roof, this piece of advice doesn't do you any good. However, if you're reading this and don't immediately need a personal loan, do yourself the favor of checking your credit score and, if needed, taking steps to boost it.
If you qualify for a larger loan, it's your decision whether to borrow more. However, the more money you borrow, the higher your monthly payment will be and the more interest you'll pay.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Citi® Personal Loan Disclosure
**Terms, conditions, and fees for accounts, products, programs and services are subject to change at any time. You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Existing Citi deposit and credit card customers who have been a Citi customer for less than 12 months are not eligible for a Citi® Personal Loan.
If you apply online, you must agree to receive the loan note and all other account disclosures provided with your loan origination in an electronic format and provide your signature electronically.
Rates as of 06-03-2025. Your APR may be as low as 8.99% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, a loan term of 24 or 36 months, and includes a 0.5% APR discount for enrollment in automatic payments at the time of loan origination. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. Citi offers personal loans with a period of repayment between 12 and 60-month terms. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
Existing Citigold and Citi Priority customers will receive an additional 0.25% discount to the APR. If you are in default, your APR may increase by 2.00%. Rates subject to change without notice.
To check for offers you may qualify for, Citi conducts a soft credit inquiry. If you are presented with an offer and choose to proceed with the application process, Citi will conduct a hard credit inquiry which may have an impact on your credit score.
Citi® Personal Loan proceeds cannot be used to pay for post-secondary education expenses or for business purposes. Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
If you are approved for a personal loan with Citi, you can get your funds the same day with a Citi deposit account, or up to 2 business days for a non-Citi account when using direct deposit. Or, you can select to receive a check by mail in approximately 5 business days.
Personal loans are made available by Citibank, N.A., Equal Housing lender
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Citi® Personal Loan Disclosure
**Terms, conditions, and fees for accounts, products, programs and services are subject to change at any time. You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Existing Citi deposit and credit card customers who have been a Citi customer for less than 12 months are not eligible for a Citi® Personal Loan.
If you apply online, you must agree to receive the loan note and all other account disclosures provided with your loan origination in an electronic format and provide your signature electronically.
Rates as of 06-03-2025. Your APR may be as low as 8.99% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, a loan term of 24 or 36 months, and includes a 0.5% APR discount for enrollment in automatic payments at the time of loan origination. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. Citi offers personal loans with a period of repayment between 12 and 60-month terms. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
Existing Citigold and Citi Priority customers will receive an additional 0.25% discount to the APR. If you are in default, your APR may increase by 2.00%. Rates subject to change without notice.
To check for offers you may qualify for, Citi conducts a soft credit inquiry. If you are presented with an offer and choose to proceed with the application process, Citi will conduct a hard credit inquiry which may have an impact on your credit score.
Citi® Personal Loan proceeds cannot be used to pay for post-secondary education expenses or for business purposes. Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
If you are approved for a personal loan with Citi, you can get your funds the same day with a Citi deposit account, or up to 2 business days for a non-Citi account when using direct deposit. Or, you can select to receive a check by mail in approximately 5 business days.
Personal loans are made available by Citibank, N.A., Equal Housing lender
