Best Roof Financing of November 2024

• Our experts reviewed the top personal loan lenders for roof financing and found Lightstream to be the best option. This lender is a great choice for borrowers looking for flexible repayment terms, no origination fees, same-day funding, and loan amounts up to $100,000.

Replacing your roof can be a major expense. The average cost for a professional roof repair was $1,146 in September 2024, according to Angi. That amount could be higher depending on the size of your home, the type of shingles you want, the pitch and overall complexity of your roof, and other factors.

If your home insurance won't cover it and you can't pay out of pocket, you may need to finance the repairs. Fortunately, you have options. Personal loans and home equity loans each offer years-long repayment terms and credit-card-beating interest rates. Home equity loans, however, may not be suitable for emergency roof repairs or replacement as they can take a month or more to close. You'll also need sufficient home equity to qualify. For these reasons, we've considered personal loans exclusively when determining the best loans for roof repairs and replacement. 

Compare personal loan rates for roof financing of November 2024

Best roof financing loans

The lenders below offer roof financing loans either directly through Credible or via their websites. To find the best roof financing loan, compare available loan amounts, repayment terms, and fees between lenders. Then, prequalify to get a sense of the rate and terms you might qualify for based on your credit and income. 

Most lenders let you prequalify before applying, and it only takes a few minutes. It won't hurt your credit, but it's not an offer of credit (you'll need to apply for the loan for that). Once you apply, the lender will conduct a hard credit pull which could impact your credit score for up to a year. 

Methodology

Credible evaluated the best personal loan lenders for roof financing based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

What is a roof loan?

A roof loan is any type of loan used to cover the costs of a new roof or roof repairs. They come in two general flavors:

• Secured loans require collateral, such as your house or car, to secure the loan. These loans can have lower APRs, but rely on a valuation of your collateral to approve the loan, which can make them less ideal for emergency roof repairs. Also, if you fail to make payments, you could lose the collateral.
• Unsecured loans do not require collateral and have a relatively quick application and approval process. Unsecured personal loans typically have higher APRs than secured loans, but this varies based on your credit and income.

Learn More: Secured vs. Unsecured Personal Loans

Personal loans

Personal loans are available from online lenders, banks, and credit unions. They typically fund within a few days of approval, but some lenders offer same-day loans (if you're approved for the loan and apply before the lender's cutoff time).

You can expect loan amounts to range from around $1,000 to $100,000 or more, depending on the lender and what you can qualify for. Repayment terms are often available from one to seven years, though some lenders offer terms as long as 12 years for home improvement loans, which roof financing would fit under. 

The average APR for a 24-month personal loan was 12.33%, according to the Federal Reserve. APRs generally range from around 6% to 36%, and interest rates are typically fixed, meaning your payment won't change over the term of the loan. The lowest rates are available to borrowers with excellent credit and strong incomes — the amount you qualify to borrow will depend on the lender, your credit score, your current debt, and income.

Check Out:

• Best Banks for Personal Loans 
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Home equity loan

A home equity loan is a loan based on the equity you have in your home — which is the value of your property minus what you still owe on it. Lender prefer that you keep 20% equity in your home, after all loans are accounted for. In other words, if your current mortgage is for 80% of your home's value, you may not be eligible for a home equity loan. Though some lenders may consider approving a home equity loan even if the total of loans against your home's value is up to 85%. 

Similar to a personal loan, home equity loans provide a lump sum upfront and a fixed interest rate, but have repayment terms ranging from five to 30 years. These loans are secured by your home, and may have lower APRs than unsecured loans. Closing costs are typically between 2% and 5%, and you run the risk of losing your home if you default.

HELOC

A home equity line of credit (HELOC) also allows you to borrow against the equity in your home, but it works more like a credit card. You can draw funds up to a certain limit over a set period of time, typically 10 years, while making minimum payments. 

Once the draw period is over, you must repay the amount, typically over a period of 20 years. Like many credit cards, the APR for HELOCs is usually variable, and like a home equity loan, they may come with closing costs. Your home is also at risk if you default.

Related: Personal Loan vs. HELOC

FHA home improvement loans

The Federal Housing Administration backs certain home improvement loans from independent lenders:

• FHA Title 1 loans can be used to improve your home, with terms ranging from 6 months to 20 years. Unsecured loans max out at $7,500, while the maximum secured loan amount for a single family residence is $25,000. The interest rate is fixed and based on the market rate for the area.
• FHA 203(k) loans are used to finance major and minor home repairs. If your roof will cost less than $35,000 to replace or repair, you may be eligible for a limited 203(k) mortgage, or streamlined version. Repairs in excess of $35,000 may be funded through the standard 203(k) mortgage.

How does roof financing work?

Most personal loans are closed-end installment loans. You’ll receive a lump sum in the beginning, then repay that amount plus interest in fixed payments over your repayment term.

Many lenders can also charge you an origination fee, which is usually calculated as a percentage of the total loan amount and subtracted before you receive the money. For example, if you take out a $15,000 roof loan with a 1% origination fee, you would receive $14,850. The lender would deduct the $150 origination fee automatically.

Check Out: Best Personal Loans With No Origination Fee

How to compare financing options

It’s always a good idea to compare a wide variety of options before deciding how to finance your roofing project. Here’s what to keep in mind:

• APR: The APR is one of the most important factors when comparing loans. It includes the interest rate and upfront fees and is a good indicator of a loan’s cost. In general, the higher your APR, the more you’ll pay in interest.
• Repayment plan: Typically, the shorter your repayment timeline, the less interest you’ll pay on your loan — but the higher your monthly payments can be. Look for the sweet spot: choose the shortest repayment timeline that still has monthly payments that fit comfortably into your budget.
• Loan amount: If you’re looking for a particularly large or small loan, you’ll want to seek out lenders that offer those amounts. The amount you qualify for depends on the lender, your income, and your credit.
• Fees: Fees, such as origination fees, also impact how much your loan costs over its lifetime. Origination fees can range from 1% to 12% of the loan.
• Cosigner: If you have bad credit, a cosigner with good credit can help you get approved for a loan. Keep in mind that a cosigner is responsible for making payments if you don’t.
• Time to fund: If you’re in a time crunch, seek out lenders with fast funding times. Most lenders can fund as soon as the same or next business day.
• Customer reviews: Read up on customer reviews to get a sense of a lender’s reputation. Trustpilot and Better Business Bureau (BBB) are two good resources to check out.

Learn More: How Long Does It Take to Get a Personal Loan?

Pros and cons of roof financing

Using a personal loan to fund your roof repairs has benefits and drawbacks compared to other funding options. Here are some of the most impactful:

Pros:

• Less costly than a credit card: On average, personal loans have lower APRs than credit cards. The average APR for a credit card was 21.86% in August 2024, according to the Federal Reserve. (As mentioned, the average APR for a 2-year loan was 12.49%.) However, the APR you ultimately get depends on your credit profile and income.
• Quick funding times: Many personal loan lenders offer fast turnaround times on applications. With these lenders, you can usually expect funds to arrive as soon as the same or next business day after approval.
• No risk of losing collateral (for unsecured loans): Most personal loans are unsecured, which means you don’t have to worry about losing your collateral if you can’t make your payments.

Cons:

• Higher APRs: An unsecured personal loan can have a higher APR than a secured loan, depending on your credit profile.
• Can lose your collateral (for secured loans): If you get a secured personal loan, collateral is required and at risk if you default.

Check Out: Best Personal Loan Rates

How to apply for roof financing

If you’re ready to apply for a personal loan, here are the basic steps you should follow:

1. Check your credit score: The overall cost of your loan can depend on your credit score, so pull your credit report and review it for errors. If your score is low, consider taking steps to improve it prior to applying for loans, such as paying down small debts and reporting errors to the credit bureaus. You can get a free credit report from AnnualCreditReport.com.
2. Prequalify: Many lenders offer prequalification processes that allow you to see your rates and terms before applying. When you prequalify, it won’t impact your credit, though proceeding to formally apply for a loan will. It’s also not an offer of credit, and your final rate could differ.
3. Compare options: Consider the APR, loan amount, repayment terms, and time to fund. This can help you narrow down the best loan.
4. Finalize loan application: Once you’ve found the best option, you’ll need to complete your application, which may require a request for documentation such as proof of identity and proof of income. After you formally apply, lenders will perform a hard credit pull, which will ding your score temporarily.
5. Get your funds: You can expect to receive your funds as soon as the same or next business day. Some lenders can take up to a week.
6. Prepare for repayment: Once your loan is disbursed to you, set yourself up for success by setting up payment reminders.

Learn More: 

• How To Get a Personal Loan
• Ways To Improve Your Personal Loan Application

Other ways to finance roof repairs

Here are other options to consider financing your roof:

• Credit card: You can use a credit card to finance roof repairs, though they often have higher APRs than most other financing options. However, if you can qualify for a credit card with 0% APR for a promotional term, that might be a good option — as long as you can pay off your balance before that promotional term ends and the standard APR resumes.
• Save up: If repairing or replacing your roof isn’t urgent, you could save for the cost over time rather than borrowing to cover the bill.

Check Out: 0% APR Credit Card vs. Personal Loan

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• Best Personal Loans for Excellent Credit
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