Common Roof Financing Options: An Overview

Asphalt Roof Installation Scranton / Wilkes-Barre

New roof installation will greatly enhance the architectural beauty of your home and improve the performance of your home by increasing the energy efficiency throughout your interior space. This results in less demand on your heating and cooling systems, leading to less energy usage and, therefore, lower utility costs over time.

Roof replacement is definitely an important investment for homeowners since it involves significant costs – a particular factor in remodeling ventures for which you have to thoroughly prepare. Fortunately, there are plenty of financing options available that will allow you to pay in installments. This benefit also helps ensure that you are not rashly pouring money down the drain, shingle by shingle. Read on to learn more about the most common financing options for a roof replacement.


Cash is the simplest tool to pay for a product. You can use your cash funds as long as you can afford it and believe that it is feasible for your situation. It is actually not a bad idea to pay out-of-pocket since it helps you avoid loans and spending more on interest. However, this financing option is not for all homeowners because some simply do not have that kind of savings, especially when it comes to comprehensive and more costly home improvement projects.


Every homeowner is required to have a homeowner’s insurance – a type of property insurance that covers a private residence. This coverage is essential whether you have a monthly mortgage payment or not. It generally covers you from financial loss and injuries to the structure of your home and personal belongings due to fire, theft and other circumstances, such as natural disasters and calamities.

There are times when you can pay for a roof repair or replacement directly through your insurance company. However, this is only a viable option when your roof sustained damage from a cause other than normal wear and tear and negligence of regular maintenance. If you are eligible to fix roofing issues through your insurance policy, make sure to get in touch with your insurance provider in order to determine how much the company will cover as well as the process of receiving payment.

You may also want to connect your insurance company and roofing company so they can communicate directly. This will allow a seamless transaction throughout the renovation process until needed repairs and replacements are completed.

Home Equity Loan

Is your planned roof repair or replacement not covered by your homeowner’s insurance? You can explore other common alternatives for roof financing like a home equity loan or home equity line of credit. A home equity financing option allows you to borrow against the equity in your residence as collateral. The loan amount is based on the difference between the current market value of your home and the balance you still owe on your mortgage. If your loan-to-value ratio is 85% or less, a home equity loan or line of credit may be a reasonable financing option for you. Home equity loans tend to be fixed-rate, while home equity lines of credit (HELOCs) generally have variable rates.

A home equity loan or a home equity line of credit is helpful because it normally comes with a notably lower interest rate as compared to other financing options for roof repair. This is possible because the house itself is used as collateral to secure the loan, minimizing the risk for lenders in case someone defaults on payments. But keep in mind that you are also putting your home on the line, which means that you could end up with a bigger debt than what your home is worth if real estate values decrease.

This financing option is usually ideal for covering large costs and expansive home renovations, including a roof replacement. You need to have strong credit and steady income to qualify. In fact, your credit score and payment history will play an important role in calculating the amount of the loan and the rate of interest that will be charged to you.

Personal Loans

A personal loan with a competitive rate is a great means to finance home remodel projects like roof repair or replacement. A roof loan allows you to receive a lump sum upfront through a traditional bank or online from a specific lender. The loan amount and the interest rate charged over the duration of the loan will largely depend on your credit score and history, similar to home equity loans. It may be a smart alternative to use a few financing options mainly if the repayment term is longer or the interest rate is lower.

roof installation contractor recommends thoroughly reviewing the terms of the roof loan before putting your signature on a legally binding document to make sure you find the best personal loan for you.

Credit Cards

If you have strong credit, you may qualify for a 0% APR credit card either as a new card member or as a balance transfer offer. Credit cards as a roof financing option may provide a higher spending limit as compared to some personal loans. Moreover, you can save a significant amount of money over the financing period if there is no interest. However, it is important to consider that credit cards with 0% interest typically have a much shorter time frame for a full repayment than other financing options, such as home equity loans and roofing company financing, seeing that you need to pay off the entire balance before the 0% introductory term elapses.

Roofing Company Financing

It is possible to get roof financing assistance from your roofing company as well. Most of the time, professional contractors understand that the total cost for repair or replacement can be too expensive for some homeowners to pay all at once so they choose to provide financing options that allow customers to send payments over time.

The home improvement company will work with the bank to help manage the cost of your home improvement project based on your allotted budget. The company may also offer attractive promotions since it can get special rates from the bank due to volume lending. This means the roofers can pass these benefits along to their valued customers.

It is likely that your roofing company will charge interest; however, this financing alternative is usually sound and practical for residential owners with little home equity or less than ideal credit. A lot of people find it a better choice than banks and other lenders. Be sure to carefully read the terms and conditions of your contract and make sure the required monthly payment fits well within your allocated budget for home maintenance.

Contact Green Rhino Builders for Your Exterior Remodeling Needs

Green Rhino Builders is a leading source of home improvement solutions in Pennsylvania. We work diligently to provide a smooth and stress-free roofing experience to our residential clients – whether they need minor repairs due to daily wear and tear or new energy-efficient roof installations. We offer flexible financing options so you can get your new roof in no time and without breaking the bank.

We are also the primary option for top-quality vinyl siding installation and window replacement services in the area. Call us today at (570) 901-1334, or fill out our contact form to set up an appointment.