How to Pay for Your New Roof

Updated on April 9, 2024

At a Glance

  • When it comes to paying for a new roof, there are several options to consider.
  • Insurance can cover costs for weather-related damage. Government home improvement loans, personal savings, credit cards, and vendor financing are additional avenues.
  • Home equity loans provide lower interest rates but require collateral, while personal loans offer flexibility. Factors influencing the cost include season, size, materials, labor, and disposal.
  • To save on a new roof, compare quotes, choose cost-effective materials, and consider non-peak seasons.

Roofing can be expensive. If your house needs emergency roof repairs or upgrades, there are several ways you can pay for that. Read on to learn more about how to pay for a new roof.

7 Ways to Pay for a New Roof

Whether your roof needs emergency repairs or it just time needs to be replaced, the cost will likely be several thousand dollars. A few of the ways you can cover these costs are outlined below.

1. Insurance

If your roof was recently damaged by an extreme weather event such as a hurricane or hailstorm, then you may be able to use your insurance policy to pay for a roof. If you have a replacement cost insurance product, then you can submit a claim to your insurance company. 

If your claim is approved, the insurance company will give you money so you can hire a roofing contractor to begin the repair. Some insurance companies may appoint a contractor.

2. Government Home Improvement Loans

The U.S. federal government, through the Department of Housing and Urban Development, offers loans for certain types of home improvement projects. This loan is called the FHA Title 1 Property Improvement Loan. If you have a single-family home, you can apply for this loan as a method of how to pay for a new roof.

3. Cash

One obvious method of how to pay for a new roof is simply to pay for it yourself from your savings. Although this is the simplest method, because the money is immediately available to you and you do not have to apply for anything, there are some important things to consider.

Firstly, it is very important that you choose a reputable, reliable roofing contractor, even if they are more expensive than others. A shoddy roofing job can make your home unlivable, so it is important to get it right. 

Secondly, it is important to communicate clearly with your chosen roofer how payment will be made, such as the size of the deposit and when payment is expected throughout the job.

4. Credit Card

If your credit card offers generous benefits such as cash-back bonuses, and interest-free periods, it can be a good option for paying for a new roof. 

However, keep in mind that after the payment holiday, credit cards tend to have higher interest rates than many other lending products. In addition, you may pay large transaction fees when using your credit card. 

5. Vendor Financing

Some roofing contractors allow you to finance your roofing job in-house or through a financing partner. Not all roofing companies offer this option, so contact roofers in your area to ask if this is possible. Keep in mind that financing offered through the vendor is not guaranteed to be the cheapest or best for your needs.

6. Home Equity Loan

A home equity loan works by using your home as collateral. If your home equity loan application is successful, you receive the money as a lump sum. 

If you are approved, you begin paying back a home equity loan continuously until the end of the repayment period. Home equity loans tend to have lower interest rates than personal loans

However, using your home as collateral to pay for a new roof is not a decision to take lightly. If you fail to make repayments, your lender could foreclose on your home to recover the money you borrowed. Keep this in mind when deciding how to pay for a new roof.

7. Personal Loan

A personal loan is a sum of money that you borrow from a lender and receive as a lump sum. Interest is charged on the entire lump sum, and you must repay the loan on a schedule. Personal loans are usually unsecured, although secured personal loans also exist. You can spend the funds from a personal loan as you see fit.

People often get personal loans to cover major, well-defined expenses such as:

  • large medical bills
  • fixed price home or auto repair bills
  • small business start-up capital
  • debt consolidation.

How Much Does a New Roof Cost?

There are a lot of different factors that affect how much a new roof costs. Like with many other construction and renovation jobs, it is not possible to get an accurate generic amount for the cost of a new roof. However, having an idea of what affects the cost will help in your decision-making. A few of these factors are listed below.

  • Season: Generally, summer is when demand for roofing work is highest. This makes it the most expensive time of year to get a new roof. You might be able to get a better rate if you wait until winter or early spring.
  • Size: Naturally, the larger a roof is, the more material and labor hours are required to build it. This makes a larger roof more expensive to replace than a small one.
  • Material: The specific materials that you choose for your roof (e.g. asphalt vs slate) directly affects the cost.
  • Labour: Different roof designs also require a different amount of labor to install. The skill level required also affects cost.
  • Disposal: The contractor will also charge you for safely removing the materials that made up the old roof. Disposal costs vary with distance from the disposal site and material cost.

How to Save on a New Roof

Of the different methods for how to pay for a new roof, you do not have to choose just one. You can combine several to reach a solution that works well. One way is to combine savings with a small amount of lending. 

Another useful tactic is to try to minimize the amount you spend on the roof. Listed below are a few ways you can save on costs when getting a new roof.

  • Compare: Make sure to compare the prices quoted by multiple roofing companies in your area. You don’t necessarily have to choose the lowest (or highest) quote, but make sure you know exactly what each roofer is offering. Do the same with lenders, find the cheapest lending product that works for your needs.
  • Materials: Choose cheaper roofing materials like asphalt over better-looking but more expensive alternatives.
  • Timing: If the climate in your area allows for it, choose non-peak seasons like winter to get a new roof. This is the time when roofing companies have less demand and will quote lower prices.

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Final Thoughts

There are several methods of how to pay for a new roof that you can explore. These include various kinds of credit, insurance payout, or savings. You can combine more than one of these methods for a solution that works best for you. When choosing a roofing contractor, compare the offerings of as many different companies as you can to find the best. It is important to find a reputable, reliable contractor for such important work. You can minimize the cost of the roof by getting it done in the off-season and choosing affordable materials. And when you’re done, you might be able to make a tax deduction if you took out a loan for the work!

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Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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