Financing Your Roof: 2025 Homeowner's Guide

If your roof needs replacing but your savings aren't quite ready, you're not alone. Whether you're dealing with storm damage, an aging roof, or just moved into a fixer-upper, the cost of a new roof can feel impossible to shoulder all at once.

At Equity Roofing, we've helped hundreds of homeowners across Central PA, Northern Indiana, and Southern Michigan navigate roofing projects they didn’t plan for. That experience has shown us one thing: most people are surprised by how accessible financing really is.

In this guide, you’ll learn what 2025 roof financing options are available, the pros and cons of each option, and how to choose a payment strategy that makes sense for your situation. 

We’ll Cover: 

• How to Know if You Need a New Roof
• What Affects Your Roof Replacement Cost?
• Roof Financing Options With Pros and Cons 
• Tips to Get a Discount on Your New Roof
• What Roofing Loans You Should Avoid
• Roof Financing FAQs
• How to Plan for Your Roof Replacement
  
  

How to Know if You Need a New Roof

Before exploring financing options, make sure you actually need a full roof replacement. Here are the key warning signs that warrant a professional inspection: 

Roof Damage That May Lead to a Roof Replacement  

• Water damage or leaks: Even minor leaks can turn into major problems quickly
• Sagging ceiling: This suggests moisture buildup from a leaky roof
• Streaks and stains: Dark marks on walls or ceilings indicate water intrusion
• Shingle problems: Cracked, curled, missing, or granule-covered gutters

The Average Lifespan of Roofs Based on Material 

• Asphalt shingle roofs older than 20-30 years typically need replacement
• Wood shake roofs last about 30 years
• Metal roofs can last 40-70 years
• Slate or tile roofs can last 50-100+ years

What Affects Your Roof Replacement Cost?

New roofs can range from $12,000 to $ 35,000 or more, depending on their size, material, and complexity. Materials and labor make up around 60% of the total cost.

Factors That Can Influence the Cost of Your New Roof 

• Material choice (metal costs 50-70% more than shingles)
• Additional features (chimneys, skylights)
• Seasonal timing (peak season = higher prices)
• Contractor fees and permits

For a more detailed breakdown of cost and example price ranges, visit our 2025 Cost Guide for Homeowners.  

What are The Best Ways to Finance a Roof in 2025? 

Homeowners can explore multiple options for financing their new roof, from working directly with their roofer to a third-party loan. Some states also offer government programs that can be used in place of or in combination with traditional financing. 

Credit Scores for Roof Financing 

1. Roofing Company Financing 

What it is: Unsecured loans through specialized lenders (like GoodLeap Financial) that partner with roofing companies. Approval is based on credit score and income.

Best for: Most homeowners with decent credit

• Requirements: Credit score 650+
• Pros: Fast approval, no collateral needed, payments start 60 days after completion\
• Cons: 0% loan converts to a high-interest loan after 12 months, 10.99% stays the same even with higher credit 
• There are two main options:
  • 0% for 12 months: Perfect if you can pay off quickly (from home sale, 401k, etc.)
  • Fixed-rate loans: 10.99% APR for up to 15 years ($20,000 roof = $200-300/month) 

2. Home Equity Loan/HELOC

What it is: Secured loans that use your home as collateral to borrow against the equity you've built up. HELOCs work like a credit line you can draw from as needed.

Best for: Homeowners with significant equity who can wait

• Requirements: Credit score 620+, 15-20% home equity
• Pros: Lower interest rates, larger borrowing power, tax-deductible interest
• Cons: Uses home as collateral, approval takes 1+ months
• HELOC difference: Variable rates, draw money as needed, repayment 10 to 20 years instead of 10 to 30 years for Home Equity Loan 

3. Personal Loans

What it is: Unsecured loans from banks or credit unions based solely on your creditworthiness and income. No collateral is required, but higher interest rates apply compared to secured loans.

Best for: Quick approval without risking your home

• Requirements: Credit score 580-650+
• Pros: Fast approval, no collateral
• Cons: Higher interest rates (7-36% APR)

4. Credit Cards

What it is: Using existing credit cards or applying for new ones to charge roof costs. Some offer 0% introductory rates, but most carry high interest rates.

Best for: Small repairs under $5,000 or supplementing other financing

• Average rate: 25.27% APR per Forbes
• Consider only if: You have excellent credit (740+) or a 0% introductory rate and can make all payments within its timeframe 

5. Government and State Programs

What it is: Federal and state assistance programs designed to help homeowners with limited income, poor credit, or special circumstances finance home improvements.

Best for: Low-income homeowners, seniors 62+, or those with very limited financing options

HUD Programs

• HUD Title 1 Loan (FHA Title 1 Loan): Designed for low-to-moderate income homeowners who don’t qualify for home equity loans. Ideal for those with bad credit or no equity. 
• 203(k) Mortgage Loan (FHA 203(k) Loan): Combines home mortgage and home remodeling or repair into one loan. Ideal for new homebuyers with low credit scores. 
• Home Equity Conversion Mortgages for Seniors: Allows homeowners 62+ to use their home equity without monthly payments. The loan is repaid when the homeowner sells or passes away. 

Rural Housing Service (RHS) Programs

• USDA Section 504 Home Repair Program (Single Family Housing Repair Loans & Grants): provides loans to low-income homeowners or grants to low-income homeowners 62 and older 

State Programs

• Pennsylvania Housing Finance Agency (PHFA) Loans: Offers several low-interest loan programs for home improvements and repairs for homeowners in PA. 
• Help‑A‑House program from LaCasa, Incorporated for Goshen, Indiana: Offers a 0% interest, $0 monthly payment loan that is due when you sell or are no longer living in the home.

How to Get a Discount on Your New Roof

Paying even a partial amount of your roof’s bill in cash can come with a 2–3% cash discount. The exact percentage varies by contractor and their current promotions. 

Cash payments are considered ACH transfers (an electronic money transfer between banks), check, or dollars. You can use a home equity loan or HELOC for partial payment and still receive the cash discount, as long as you're not using the company's in-house financing.

Which Roof Loans Should I Avoid? 

Some loans may be appealing because they overlook low credit scores, but be wary of their terms and conditions. 

Watch out for:

• Prepayment penalties
• Variable interest rates that can increase
• Short loan terms (5 years or less)
• Customer service and support quality 
• When the first payment is due 

If financing through a roofing company, make sure to ask:

• Can I pay early without penalties?
• When is my first payment due?
• Is the interest rate fixed?
• Will you help me through the financing process?
• What happens if I lose my job and can't make payments?

The ideal roofing company can track your application status, assist you with troubleshooting, and answer your questions. Look for companies that are fully integrated with their lender and have dedicated account managers who respond quickly.

Roof Financing FAQs

Can I finance mobile home roofs? 

Yes, as long as you own the land. If the land is owned by a family member, both parties should be on the loan.

Do I need to pay a deposit when financing a roof?

• Financed jobs: No deposit required
• Cash jobs: 25% deposit required to move into production
• Split financing/cash: 25% of only the cash portion

What if I lose my job and can't make payments on my roof’s loan? 

Great question! The exact process for hardship situations varies by lender, but many offer employment protection or grace periods. Ask your roofing company's financing representative for specific details about hardship options.

Can both spouses apply for a single roof loan? 

Yes, and it's recommended since a higher combined income improves your debt-to-income ratio.

What Happens During a Roof Replacement?

After realizing you need a new roof, it's common to feel overwhelmed by the potential cost, especially when the expense catches you off guard. Many homeowners have faced the same uncertainty, wondering how they'll pay without draining their savings or taking on risky debt.

Now, you understand that roof financing isn’t just possible; it’s accessible, flexible, and designed to ease the burden during an already stressful time. You’ve seen your options and know how to choose the one that best fits your situation.

At Equity Roofing, we guide homeowners through every step of the roof replacement process, from financing to final inspection. For your next step, read our article What to Expect With a New Roof Replacement so you know exactly what’s ahead before making any decisions.