Need a New Roof? Consider These 4 Financing Options

Need a New Roof? Consider These 4 Financing Options

February 10, 2022

When a roof sustains damage, whether from a natural disaster or from wear and tear over time, repair or replacement is frequently a top concern. The cost of a roof repair or replacement, on the other hand, is an expense that many homeowners are unprepared to pay for out of pocket.

The good news is that there are a variety of roof financing alternatives available to assist in covering the costs, like home equity loans, personal loans, and others.

Roof Financing Alternatives

1. Using Insurance to Pay

Homeowners insurance is needed for all homeowners, whether or not they make a monthly mortgage payment. This coverage protects you against financial loss due to fire, theft, or other damage, including natural disasters.

In certain situations, you may pay for a roof repair or replacement directly via your insurance provider, but this is only a possibility if your roof was damaged for a cause other than normal wear and tear.

When you are qualified for insurance coverage for roofing repairs, contact your homeowner’s insurance carrier to find out how much they will cover and the process for collecting money.

You may be able to directly connect the insurance company and your roofing firm, allowing for a smooth payment after repairs or replacements are completed.

2. Paying with a Home Equity Loan or HELOC

One of the most popular ways to fund a new roof is a home equity loan or a second mortgage. This is also an option for homeowners who already have considerable equity in their home and want to unlock the value by taking out a loan against it.

If you already have a home equity loan or HELOC in place, it’s a good idea to check with your lender to see how you can use the loan to pay for roof repair or replacement costs.

This is also an option if you want to refinance your home and take out a new loan. This option is both flexible and convenient, as most lenders will use your home’s equity as collateral for a loan.

Though it is easy to attain, taking out a home equity loan does come with drawbacks. One of the most significant drawbacks is the cost of interest.

3. Personal Loans

Personal loans are another excellent way to pay for a new roof. These loans are taken out from banks, credit unions, or other financial institutions and can be used for various reasons.

Your home does not secure personal loans, so the interest rate and monthly payment will be lower, but some loan providers will only offer loans up to $35,000 or so.

However, this is still enough to cover most roof repairs or replacements, and a personal loan is typically much easier to get than a home equity loan through your bank or credit union.

4. Roofing Company Financing

Though a personal loan or home equity loan is the ideal option, you may not have one available. Some roofing companies will offer their own financing options to help homeowners finance repairs, though the terms of these loans can vary greatly.

Some companies will offer to finance directly to homeowners, helping them pay for repairs or a new roof right away. If you consider a roofing company for a roof repair or replacement, ask your roofing professional about financing options.


Paying for a new roof can be a significant expense if the roof is damaged or needs to be replaced. With that said, the cost of a new roof or roof repair can be overwhelming and may cause homeowners to delay or skip these vital repairs.

This is why having a roofing loan or other option available to you is essential. Not only is it crucial to have a roof in good condition, but it is also essential to know you can pay for roofing work you may need in the coming years.

Finance your new roof with the help of Cardinal Roofing. We are a roofing company in Birmingham that believes that being short on available funds is no reason to keep homeowners in Alabama and Middle Tennessee from getting the new roof they need. That’s why we offer many financing options for our clients through the help of our financial partners. Get in touch with us now!