How To Pay For A New Roof: 7 Options To Consider

How to Pay for a New Roof

When your roof gets damaged, you have to either repair them or replace them altogether. If you are a homeowner, and this happens unexpectedly, then you may find repairing or replacing the damaged roof to be a rather expensive affair. The average price to pay for a new roof could cost you more than $5000.

Various factors affect the roof replacement cost. These include how big your home is, the material you will use for your roof, time of the year, labor rates, etc. The first one is fairly obvious. The bigger your home, the more square footage will be square footage, and the higher the cost you will have to pay to get your roof replaced. Asphalt material is a lot cheaper than wood or metal. However, labor costs can vary from one company to the other.

Before you decide which company to go with, you would do best to contact a few licensed contractors in your locality and get an estimate of how much it would cost to replace your new roofing system.

You have plenty of options at your disposal to pay for a new roof. The best choice for you depends on your income, how much money you have at your disposal, your credit rating, and of course, whether your roof is damaged due to any natural calamity.

So, let’s see what options you have under your belt to pay for repairing or replacing your new roof.

You have several options at your disposal to pay for a new roof. Let’s check each of them in greater detail.


Cash or even check is an easy and cost-effective way to pay for a new roof or get a replacement. There may be some repairs that are not covered by insurance. In such instances, it makes a lot of sense to go with cash payments or even check payments.

When you go for loans, you have to prove that your credit is good so that your loan gets approved. You don’t have to keep paying interest either. You can do away with this when you go with cash payments. 

Not everyone has sufficient savings to pay for the roof respiration costs. When you consider how much it takes to install or repair a new roof, can you imagine paying with 100% cash or check? It is so much easier to get the job done paying full cold hard cash. For one, there is no paperwork involved when it comes to cash payment (ugh, who likes complicated paperwork!).

The contract which you sign with the roofing concern is the only paperwork you have to deal with. Most roofing companies would require you to make an initial deposit before they carry on the roof installation. You can make the remaining payment once the project is done. This is just a surety, to ensure everyone is on the same page and serious about carrying the work forward. Let’s say you have a sudden change of mind after the roofing project has been started. 

The roofing company may have already ordered the materials, spent so many hours planning how to make the project work- the whole works! If as a homeowner you suddenly back out without seeing the project through, and you don’t make an initial deposit, then the roofing contractor may incur heavy losses. No matter how big a company it is, it is still a loss for them. This is why most roofers will ensure that as a homeowner you make an initial cash deposit. Once they carry out the work to your satisfaction, you can make the remaining payment.

Insurance Coverage

If you have homeowner insurance, then you may make a claim to your insurance company to recover the money for the repair or replacement. Payouts for roof repair and damages have just gotten more difficult with time because insurance companies have made homeowner policies very stringent. 

Insurance agencies will assess what was the cause for the roof repair or damage in the first place. In the case of a storm or let’s say a tree fell through your roof, then the cause for the roof damage is pretty apparent. So, getting a payout from your insurance company in these events is fairly straightforward.

You need to check the terms of the policy of your insurance agency to see what events they cover. Virtually no insurance agency will cover roof “wear and tear” that occurs with time and compensate you for the same. If the damage to your roof occurred as a result of a fire, storm, tree fall, or theft, your insurance policy will cover this. 

We recommend you connect with your insurance agent directly to discuss whether you are eligible for insurance or not. For making payment for your roof repair, contact your homeowner insurance agency to figure out how much they will cover, when and how the payment will be done, the process and means for receiving the payment, and any other queries you may have.

If the exact cause of roof repair is not apparent, then there is every possibility for your claim to be rejected. Insurance companies will simply reject your claim based on the lack of maintenance on your part! Or they may simply say the roof is aged and hence the damage, rejecting your claim entirely.

If your roof shows signs of deterioration or is entirely degraded because of age or due to poor maintenance, sorry, your insurance company will not cover its repair or replacement. 

Direct payment from your insurance company to cover roof damage will be possible only if damage occurred due to natural disasters or theft. 

Credit Card

A credit card is yet another option to pay for a new roof if it and when it gets damaged. The one major drawback of using a credit card is the interest incurred. However, when cash or credit loan is not an option, a credit card may be your only choice. Although a high interest rate may not sound very great, still, if you have a card with generous rewards and incentives (maybe even cash-back bonuses), then you can certainly pay off for the entire project on your card itself. It may take up to a year for you to complete the payment.

If you own a new credit card with zero interest over one year, then you can put the roofing repair project on the card itself. A word of caution though; credit cards with 0% interest will have a shorter time frame for full payment when compared to other payment options like equity loans, personal loans, or even the payment plans of the roofing company. So, you HAVE TO make the entire balance before the introductory period gets over. 

As a homeowner, if you have strong credit with 0% APR, then you can end up saving so much money (due to the high spending limit the card offers) that this will be a much better option when compared to even the personal loan option.

We do admit high-interest rates are off-putting, and in these cases, we recommend you go with other options like a home equity loan. Apart from higher interest incurred, another disadvantage with using credit cards is, obviously, the processing fee. And this will be charged to the roofing company.

When you consider a 3 to 5 percentage processing fee on a $7,500 price (which is the average cost of a roofing repair or restoration project), no wonder roofing companies pass this fee on to the homeowner. Like we suggested above, credit cards are a viable option when they offer good enough bonuses, cash backs, and rewards.

Roofing Company Payment Plans

If you have neither cold cash to pay for your new roof or there is no home equity, you can go with a contractor who will help with financing for your home improvements and reparation projects directly. Some roofers may even aid you with funds through the help of a third-party vendor. The process is simple, straightforward, and versatile.

Now, the best roofing companies know that it will now be possible for you to make payments in one installment. So, they may give you the affordable option of making your payments in a series of installments. It may range anywhere from six months to even several years. And of course, these plans come with interest rates, so before you jump into a plan, ensure that the monthly payment amount and interest rates are within your capability. 

And best of all? If the roofing company of your choice can assist you in the financing, then it means they are super reliable, and rest assured they will do a fabulous job replacing your roof.

Payments made over time are ideal for people who do have not much hard cash to spend, poor or less than ideal credit, or little home equity. If you are going with this option, go with a roofing company whose financial plans, requirements, and interest rates are in line with your monthly budget.

Home Equity Loan

Home equity is a wonderfully cost-effective option if you are okay with using your home as collateral for a loan that is. For large expenses such as putting up a new roof, you can go for a home equity loan.

Home equity calculation is super easy. Just subtract the current value of your home from the amount you owe on your mortgage. Did you know that you can borrow up to 85% of your home’s equity! Now wouldn’t that be great, most of your expenses will be covered. 

There is one major pitfall, however. And a huge one at that. If you fall behind on your payments, you may even end up losing your home. Whether your home equity loan gets approved or not depends on many factors, including income, how stable your job is, credit score as well as your home equity. 

You could minimize the risk for yourself by borrowing only what you can pay and ensure that you don’t fall behind on your monthly payments.

Personal Loan 

If none of the above options sounds good, you may as well go for a personal loan. This way you can finance your new roof without taking collateral on your home and risk losing it! Or any of your other valuables for that matter. While this is good, it doesn’t mean there are no drawbacks.

Interest rates and loan duration are two factors that you should keep in mind before you start looking for a lender.

Loan length: While equity loans can take up to 2 decades to pay back when you go for a personal loan the duration is generally a lot shorter. Most personal loans need to be repaid within 2 to 6 years, whereas very few personal loans will be long-term (say 15+ years). The need to repay quicker means you are on a tight budget and your monthly expenditure for loan payment may just go higher.

Interest rates: Typically, interest rates can vary anywhere from 5 to 20% depending on your credit score and income. If your lender deems you highly creditworthy, he can even lend you a personal loan at the rate of 2.5%. With bad credit and unstable income, this can even go up to a whopping 199% on the loan you borrow.

Home And Property Improvement Loan

You can opt to go for a home and property Improvement loan by checking with your bank, lender, or credit union. This way the Government will pay for your roof. How sweet is that!

The HUD (Department of Housing and Development) is responsible for offering the FHA Title I Property Improvement Loan if you own a single-family home. The HUD offers these loans through various lenders and if you meet certain criteria, you will be eligible for this loan. 

So, what are those conditions?

The property for which you are going to get the loan must be a single-fam home that has been occupied for a minimum of 3 months. Moreover, the said loan MUST improve the living conditions of the property. 

Just like with other loan options, the approval for these loans depends on the property owner’s income, credit score, and how steady his/her job has been over the years.


So, there you have it! If your roof got damaged, and you had no idea where to fund the replacement, then we hope this guide will come in handy. At the end of the day, it comes to your individual choice and financial capability.

Think of how much it will take to pay for your new roof when planning your roof financing. And don’t stop with one, but get in touch with several contractors for free quotes and interest rates before choosing one that falls in line with your budget and requirements. 

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