Best Roof Financing in June 2025

If your roof is leaking, caving in, or simply letting conditioned air escape, repair or replacement isn’t optional — it’s necessary. It can also be expensive. Home services website Angi reports that the average cost to repair a roof is $1,151. For replacement, the average cost is $9,514.

If you don’t have the money to pay upfront, you can finance the work through a personal loan, home equity loan, or other options. LightStream offers the best personal loans for roofing, with no origination fees, same-day funding, and loan amounts up to $100,000 for home improvement projects.

Below, we’ll give you an overview of the best roof financing options available and walk you through the pros and cons of roof loans and how to get one.

Current personal loan rates

Compare personal loans for roofing

Best roof financing loans

Personal loans and home equity loans each offer years-long repayment terms and lower average interest rates than credit cards. Home equity loans, however, may not be suitable for emergency roof repairs or replacement, as they can take a month or more to close. You'll also need sufficient home equity to qualify. For these reasons, we've considered personal loans exclusively when determining the best loans for roof repairs and replacement.

Methodology

Credible evaluated 31 lenders across 899 data points to find the best personal loan lenders for roof financing. Our selection process focused primarily on lenders that offer personal loans for home improvement or non-specified major purchases. We also considered factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. 

We chose the best lenders based on the following weighted categories:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How to compare roofing financing options

When comparing personal loans for financing your roof repair or replacement, consider a few key factors:

Eligibility requirements

Although specifics vary by lender, requirements for a personal loan typically include:

• Minimum credit score
• Minimum income
• Positive credit history

Most personal loans, including home improvement loans, are unsecured and don’t require you to pledge collateral such as your car or your home.

Annual percentage rate (APR)

Personal loans, credit cards, and other forms of credit typically express the cost of borrowing through the annual percentage rate, or APR. A personal loan’s APR includes the interest rate plus any upfront lender fees, such as an origination fee, and provides a fuller picture of how much the loan will cost than the interest rate alone.

Repayment term

Personal loan repayment terms typically range from two to seven years, although some lenders offer shorter or longer terms. For instance, LightStream offers terms between two and 20 years for home improvement loans. The length of the repayment term affects the size of your monthly payments and your total interest costs over the life of the loan.

Loan amounts

Get a quote from your contractor so you know how much the job will cost. Then make sure any lender you’re considering allows you to borrow that much. Rule out any options with maximum borrowing amounts below the price of the roof replacement.

Funding time

You can typically get a personal loan within a few business days after you’re approved. If you need an emergency roof repair or replacement, prioritize lenders that offer same-day approval and funding.

What is a roof loan and how does it work?

A roof loan is any type of loan that covers the cost of roof repair or replacement. Home improvement is a common use for personal loans.

Most personal loans are unsecured and don’t require you to put up collateral, which means you don’t need home equity and can expect to get the funds in a few days. You’d then use that money to pay the contractor. Over the next several years (depending on the terms of your loan), you’d make monthly payments to the lender until you’ve repaid the money you’ve borrowed, plus interest.

However, you could also use a credit card, home equity loan, or home equity line of credit to finance roof repairs or replacement. 

Pros and cons of personal loans for roof financing

Financing your roof with a personal loan carries several advantages, but there are some negatives to weigh before applying for a personal loan to cover roof costs.

Pros

• No collateral needed: While you can get a secured personal loan with collateral if you have poor credit, most personal loans are unsecured, which means you don’t have to offer collateral, such as your home (like a mortgage) or vehicle (like a car loan).
• No equity needed: Unlike home equity loans or home equity lines of credit (HELOCs), personal loans don’t require you to borrow against the equity in your home. This makes them a great option if you haven’t built up much equity.
• Fast funding: Unlike home equity loans or HELOCs, which can take a month or longer to fund, many personal loan lenders can have money deposited into your bank account within a few days of approval. Some of the best personal loans have same-day funding.
• Fixed interest rates: Personal loan rates have fixed interest rates, which means you know exactly how much you’ll spend each month and over the course of the loan.
• Lower rates than credit cards: Personal loans have much lower rates than credit cards — 2-year personal loan rates averaged 11.66% in 2025 compared to 21.37% for credit cards, according to the latest Federal Reserve data.

Cons

• Interest rates: While personal loan interest rates are typically more competitive than those of high-interest credit cards, they’re still usually higher than rates for other financing options, such as home equity loans.
• Initial credit score impact: Applying for a personal loan typically results in a hard inquiry on your credit report, which can temporarily lower your credit score. A personal loan also increases the amount of debt you owe overall, which can adversely affect your credit score as well.
• No tax deduction: Unlike a home equity loan or HELOC, you can’t usually deduct interest on a personal loan, even when used for home improvements. 

How to apply for a roof loan

Is a personal loan the right strategy for financing your roof repairs or replacement? Here’s what to do:

1. Research lender eligibility requirements: Before you get started, use Credible’s free credit monitoring tool to see your credit score and know whether you meet a lender’s credit score minimum. Then, check eligibility requirements with at least a handful of lenders to give yourself multiple options. 
2. Prequalify: Personal loan prequalification can help you get a sense of rates and terms you might qualify for. Prequalification won’t hurt your credit score, but it's not an offer of credit. You'll need to apply for the loan to see the rates and terms offered. Once you apply, the lender typically conducts a hard credit pull that could lower your credit score as much as 10 points for up to a year.
3. Compare: Once you’ve found lenders you might qualify with, compare them based on factors such as the interest rate, fees, loan amounts, repayment terms, funding speed, and customer service.
4. Apply online: Most lenders have an easy online application process. You’ll need to supply some paperwork, including proof of identity and proof of income (such as bank statements, 1099s, W2s, and pay stubs). 
5. Wait for funds: If you’re approved, it may take a few business days to receive your funds (typically via direct deposit into your bank account). Some lenders offer faster funding, such as same-day funding or the next business day.
6. Start repaying the loan: To protect your credit score, it’s crucial you make all on-time payments. Set reminders in your phone and schedule automatic payments if the lender offers that option. Some lenders offer a small interest rate discount if you set up autopay.

Other ways to finance roof repairs and replacement

A personal loan isn’t your only option for financing roof repair or replacement. Here are a few other funding options to consider:

Home equity loan

If you’ve built up enough equity in your home, you may be able to borrow against it with a home equity loan. Unlike a personal loan, a home equity loan is considered a “second mortgage,” meaning your house serves as collateral on this loan, as well as your mortgage.

While home equity loans typically have lower interest rates than personal loans, you often need a stronger credit score to qualify. Plus, the funding timeline is longer, and there are more costs (such as appraisals and closing costs) to consider.

Compare: Personal Loan vs. Home Equity Loan

Home equity line of credit

Similarly, a home equity line of credit (HELOC) lets you borrow against the equity in your home. In this instance, however, you’ll have an open line of credit during a draw period (often five to 10 years), borrowing what you need as you need it. Then you’ll have a repayment period (often up to 20 years).

HELOCs are helpful if you’re funding various home improvement projects over a few years. Like home equity loans, they tend to have lower interest rates than personal loans, but they can take longer to fund, require a certain amount of home equity, and use your home as collateral.

Compare: HELOC vs. Personal Loan: Which To Choose

Government loans and grants

Low-income homeowners may be able to finance a roof repair or replacement with help from agencies such as the Federal Housing Administration (FHA) or U.S. Department of Agriculture (USDA).

• FHA Title 1 property improvement loans: These federally-insured loans allow low- and moderate-income homeowners to hire contractors to perform home improvements (or conduct the home improvements themselves). Homeowners can borrow up to $7,500 without any collateral, though you can borrow more (depending on the type of home) with your home as collateral. Max loan terms range from 12 to 20 years (again, depending on the type of home).
• FHA 203(k) loans: These loans can be used to finance major and minor home repairs. If your roof will cost less than $35,000 to replace or repair, you may be eligible for a limited 203(k) mortgage, or a streamlined version. Repairs in excess of $35,000 may be funded through the standard 203(k) mortgage.
• Single Family Housing Repair Loans and Grants (Section 504 Repair): This USDA program provides loans and grants to eligible low-income homeowners for home repairs. Loans have 20-year terms at 1% interest, with a maximum amount of $40,000. Grants, which are available only to those age 62 or older, have a lifetime limit of $10,000 and can be used only for the removal of health and safety hazards.

Savings

A major roof repair or replacement is definitely a good use of the money in your emergency fund, if you have one. Rather than finance roof repairs and pay interest, take the money out of your savings account to cover the cost, then focus on replenishing your savings before the next emergency expense.

Related: How To Save Money: Strategies for Every Budget

Credit cards

Paying for major expenses with a credit card can be expensive if you’re unable to pay off all the charges before your next due date. Credit cards typically have high, variable interest rates, and your debt will continue to climb each month if you make only minimum payments. Think of your credit card as a last resort, unless you can pay off the expense within a month.

One exception, however, is if you qualify for a 0% APR promotional period. Promotional or introductory periods may last up to 21 months, during which time you could potentially pay off all roof-related expenses interest-free. Just be careful with 0% APR financing offers. It’s imperative to repay the loan before the APR adjusts to avoid paying interest at the card’s standard APR, which could be around 30% or higher. 

Compare: Personal Loan vs. Credit Card: Which Is Better?

Roofing companies

Many contractors offer their own financing, either in-house or through third-party lenders. While it never hurts to explore your options, you should always compare their offers against what you could get from lenders on your own.