With the average cost of a roof replacement ranging from $12,000 to $20,000, few homeowners pay the entire balance in cash. In fact, industry data suggests that nearly 65% of roofing projects involve some form of financing.
This guide compares the three most common ways to fund your project: Contractor Financing, HELOCs, and Personal Loans.
1. Contractor Financing (The “Easy” Way)
Most large roofing companies partner with third-party lenders (like ServiceFinance or GreenSky) to offer loans directly at the kitchen table.
- Pros: incredibly fast approval (often minutes) and convenient paperwork.
- Cons: Interest rates can be higher than bank loans. Be wary of “0% Interest” offers—they often front-load the interest into the quote price as a “Dealer Fee.”
2. Home Equity Line of Credit (HELOC)
If you have significant equity in your home, a HELOC is often the smartest financial move.
| Feature | HELOC | Personal Loan |
|---|---|---|
| Interest Rate | Lower (Secured by home) | Higher (Unsecured) |
| Tax Deductible? | Often Yes (for capital improvements) | No |
| Speed | Slow (30-45 days) | Fast (1-3 days) |
3. FHA Title 1 Loans
For homeowners with limited equity or lower credit scores, the FHA Title 1 program is a government-backed option specifically for home improvements.
- Limit: Up to $25,000 for a single-family home.
- Requirement: The money must be used for property livability (a leaking roof qualifies perfectly).
💡 Pro Tip: Always get a “Cash Price” quote first. Then ask for the “Financed Price.” If the financed price is 10% higher, you are paying a hidden dealer fee.