What Is The Best Way To Pay For A New Roof?

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    Home equity loans, secured loans, and finance from roofing businesses are just some of the inexpensive options for roof repair or replacement.


    Damage to a roof, whether from a natural catastrophe or even just regular wear and tear, usually requires prompt attention. Many homes, however, lack the financial resources necessary to cover the high cost of the a roof repair or replacement.

    Roofing replacement, like many other home improvement projects, can be quite pricey. As of 4 February 2021, the typical price of a new roof installation is $8,180, with prices ranging from $5,396 to $11,031. Especially if it comes as a surprise, this is a big deal for most homeowners.

    The good news is that there are numerous roof financing alternatives, such as home equity loans, unsecured loans, and more, available to help cover the costs.

    Putting a roof on a house is a huge financial commitment. So, if you don't have the funds to replace or fix your roof, don't let that stop you. Maybe there is no choice but to do it! That's because putting off roof maintenance or replacement can cause costs to rise and increase the difficulty of the job. In other words, if you put in the effort, you'll find a solution. You'd best be motivated to replace your roof, since that's not an option. When it appears like there aren't any other choices, consider these.

    Are you searching for the most reliable roofers in Melbourne? Worry no more; Roof Repair & Restoration Systems can provide expert service and repairs for your roofing needs.

    Consideration Factors

    To begin, what has prompted you to think about a roof replacement? Do you have granules from your shingles falling all over your yard, a roof full of algae, or water damage because of roof leaks? Then you should make the necessary roof repairs as quickly as possible, as the situation is likely to worsen. These are not indicators that your roof could use replacement; rather, they indicate that it must be replaced immediately.

    You should first learn the many reasons why fixing or, even better, replacing your roof is so important. In the case of a damaged roof, you may not realise the damage until it's too late. Because water can seep into places you may not be able to see, such as insulation, drywall, veneer, paint, the electrical system, etc. Don't put off receiving a consultation because you don't have the funds to replace your roofs right now. Only a professional can assess the level of damage and provide an estimate for repairs or a replacement.

    Rather than repairing, why not replace? Simply said, there's a good probability that fixing your roof will require spending money that you don't have. If your roof is less than 10 years old, you can probably get away with just patching it, but if it's 15 years old or beyond, you should probably just get a new one. Consider that the money you would spend on roofing repairs over the next few years could instead go towards a total roof replacement, which could be paid off over the same time period.

    As an added downside, many roofing fixes actually weaken the structure. The shingles on your roof are probably already rather brittle by the moment you need to fix it. So, by repairing a small section of roof at a time, you end up destroying perfectly good shingles around it! Or, if you add extra shingles (which is not recommended), you put more weight on a roof that was only meant to support a certain amount. Because mould thrives in dark, damp places, the addition of a second layer increases the likelihood that the initial layer will get infested with the fungus.

    Homeowners Insurance Policy

    Most homeowner's policies exclude roof damage caused by anything other than a natural disaster. Fortunately, this sort of maintenance is probably covered by your insurance regardless of how old your roof is. Snow and ice storms, as well as hurricane-force winds, can cause significant destruction. Of all, the insurance provider is the final arbiter of what constitutes an act of god and what does not. The cost of roof replacement due to simple wear and tear must be borne by the homeowner.

    Must give up hope completely, though. The insurance company might pay some of the costs. If you don't want to be left out in the future, it's important to plan ahead. For example, repair your roof, make sure you choose roofing materials that your insurance provider approves of, and examine to see if your insurance company would cover repairs of roofs with far more than two layers of shingles (it isn't that this is a desirable option) (not that this is a desirable option). If you want to be sure your roof is in good shape, getting a free estimate from a reliable contractor once in a while is a good idea.

    Check out our range of roof restoration specialists at Roof Repair & Restoration Systems.

    Planned Payments

    A payment plan is a good alternative if you can't afford to pay the full amount at once. Similar to how you would arrange financing for a cell phone or car, you can do the same thing here. The final price tag for the repair or replacement will determine the range of your monthly payments, but the financial institution you work with to create the arrangements will do what they can to accommodate your needs. A credit check is required, but once that's done, everything should go swimmingly.

    There are a number of considerations to consider while deciding which option is best for both you and your house.

    • Currently available resources
    • How far you're willing to go to avoid spending extra cash
    • How much you make per year
    • You should be concerned about your credit score (whether you have good credit or bad credit)
    • Whether a severe storm has ripped your roof off your house

    7 Ways To Pay For Your New Roof Project

    Check Or Cash (Easiest Method)

    The quickest and easiest method of payment is a one-time, in-person cash payment. However, not everyone can afford to pay cash in full for a new roof (or check). It's possible that you wouldn't like to pay again for job in full, even if you have the cash on hand to do so.


    To what end is this approach so easy? With the exception of a contract with your selected roofing business, there is no cumbersome paperwork or certification process required. Upon completion of the roof's installation, all that is needed is a deposit, and the remaining balance can be transferred at that time.

    To what end do roofers need a down payment? Because putting down money guarantees that both parties are dedicated to the endeavour and have similar expectations. Without a commitment, contractors run the risk of spending time and money on goods and preparation only to have the homeowner back out at the very last minute.

    This doesn't happen often, but when it does, it can be very costly for construction companies of all sizes.

    Credit Card

    Can I use a credit card to pay for my roof replacement? The quick answer is yes!

    credit card

    If your credit card offers lucrative points and incentives, such as cash-back bonuses, it may be worthwhile to charge your new roof on your card. One option is to open a new credit card with a 0% APR promotion for a year, which would allow you to charge the entire project and pay it off over the course of the next year with no interest.

    A major disincentive to using a credit card for roofing is the high interest rates (if you don't have a "no interest" incentive). Using a credit card with a high interest rate will cost you a lot more money in the long run if you don't have any other financing options (like a home loan).

    And use a credit card isn't ideal because the roofer will incur extra costs when they process your payment due to processing fees. When dealing with a sum as large as $10,000, the 3-5% transaction fee that some credit cards charge might quickly add up to. Because of this, practically all roofing companies that take credit cards will charge the customer more for using their service. However, if a credit card offers exceptional benefits and incentives, it may still be the best choice to use it to fund your roof or even other large home improvement job.

    Homeowners with excellent credit histories may also be eligible for 0% APR credit cards, either as introductory offers for balance transfers or as initial offers for new card memberships.

    You can save lot of money on interest fees and finance charges by using a credit card instead of taking out a personal loan for the same amount of money.

    When comparing credit cards having 0% interest to other financing options, such as home equity loans, unsecured loans, or financing offered by roofing companies, keep in mind that the time frame for full payback may be substantially shorter with the former.

    Personal Loan

    Computer, fan, and a calculator

    Can I get a personal loan to pay for vinyl windows, a new roof, or any other major house renovations?

    Your ability to obtain a personal loan to fund your roof renovation job will depend on a number of factors, some of which are not readily apparent. Personal loans typically come from banks like Bank, Bank, Wells Fargo, or even your own local bank.

    If you decide to go this route, it's in your best interest to compare prices across providers to get the best deal possible. It's crucial to prioritise your priorities before beginning your search for a loan because different lenders will offer different interest rates and payback conditions. The length of the loan and the interest rate are the two most important considerations when taking out a personal loan.

    There will be both short-term loans (lasting two to six years) and long-term loans (lasting fifteen or more years). Lenders set their own interest rates, which can range from around 5% to far over 20%, taking into account borrowers' credit histories, income levels, and perceived creditworthiness.

    Does your roof need to be repaired here in Melbourne? Let Roof Repair & Restoration Systems handle it.

    Refinancing With Cash Out

    To simplify your monthly mortgage payments, consider refinancing your house. Also, if you want to pay off debts or, in this case, purchase a new roof, you can get a mortgage for more cash than you need and use the extra money to do so. Even though you'll have to pay interest and possibly hundreds or thousands in closing costs, you can finally afford that new roof!

    However, if you're strapped for cash, you can always refinance into a new 30-year mortgage. While it may take longer to pay off your loan in the long run, the monthly payments are more affordable this way. But if you put some of your money towards high-interest bills, you ought to have more money in your monthly budget.

    You run the danger of additional damage to your roof and property during the time it takes you to refinance.

    Home Improvement Loan From The Government

    So you want the federal government to foot the bill for your new roof, huh? If you live in a single-family residence, you might be able to apply for a loan from the Federal Housing Administration (FHA) to help pay for repairs or renovations to your house.

    These loans are made available by the Department of Housing and Urban Development through participating lenders; however, there are requirements that must be met in order to qualify. One of the other property types indicated below must be a single-family house that has been occupied for the at least 90 days.

    The loan must be utilised in conjunction with the a 203(k) rehabilitation mortgage, and it must be used to "substantially safeguard or improve the basic liveability or usability of the property," as required by HUD.

    Insurance Protection

    Insurance claims are frequently one of the trickiest but most time-consuming ways to cover the cost of a roof replacement.

    It could be simpler if it were clear what had caused the roof damage. Take the case of a tree crashing through your ceiling. We advise that you take all necessary steps to ensure that your insurance carrier covers the cost of the necessary repairs or replacement. However, it can be difficult to seek assistance from a homeowner's insurance carrier in less obvious situations.

    Most homeowners insurance policies need not cover regular "wear and tear" on any portion of your home's exterior, including the roof, making it hard to collect damages for a roof that has deteriorated over time. If your roof is old or hasn't been maintained, your insurance company (like Geico, Nationwide, or Metlife) may deny your claim.

    We advise getting in touch with your insurance agent to discuss a possible claim if you believe you may be covered by insurance for your roofing project. Please keep in mind that if the reason for denial is not clear, it is highly likely that your request will be denied.

    Home Equity Line Of Credit

    The amount of ownership stake you have in your house is measured in terms of equity. With more if your mortgage paid off, you have more ownership of your house and more equity.

    In comparison to obtaining financing through with an unsecured programme, this is a great approach to obtain a low return loan if you have sufficient equity in your property and acceptable credit. An equity credit line on your house is frequently the best method to get the cash you need quickly.

    Borrowing limits are often determined by dividing the current worth of a home by the sum still owed on its mortgage. Calculating the loan-to-value ratio in this way (LTV). Lenders want to see an LTV of 80% or less, which indicates that the borrower has 20% equity or more in the collateralized property. Also important to lenders is a credit score of at least 620 and a demonstrated history of timely bill payment. Finally, a debt-to-income ratio of 43% to 50% is prefered by most lenders. Total your repayments and then divide that total by your monthly gross income to get your debt to income ratio. If you satisfy these requirements, you should be fine to go!

    Other Alternatives

    If you're having trouble finding the money to pay for a new roof, look into assistance programmes that are created for people in your situation. Most likely, you can get a grant from a local organisation. Find out if there is a church or other charity programme in your area that you could join. Crowdfunding is always an option. Furthermore, consider exploring available county programmes. It's possible that you'd be eligible for financial aid from the government of your area if you knew the criteria. If you qualify for one of these programmes, you can get the funds you need to fix up your home without needing to pay anything back.

    There could be some hesitation on your part to seek for help because of the stigma associated with receiving charity. Imagine it as a helping hand. Keep in mind that there is no shame in needing assistance because we are all in this together. Remember that the longer you put off getting a new roof, the more money that may end up giving to the roofing company that eventually does the job. In addition, if you feel compelled to do so, you can "pay it forwards" by making a monetary contribution to the organisation that provided assistance to you in your time of need. If you replace your roof only when you need to, you can even give the money that save to charity.


    As with many other types of house improvements, roofing replacement may be fairly costly. New roof installations typically cost around $8,180 as of 4 February 2021. There are a variety of ways to pay for a new roof, including home equity loans. Repairing your roof could end up costing more than you have on hand. Repairing a roof often weakens the structure, therefore it's better to replace it.

    Instead of making small repairs to your roof over the next few years, maybe it's time to replace the whole thing. A new roof repair or replacement can be paid for in a number of ways. It's important to weigh your income, debt, and the cost per square foot before settling on a solution. It could be smart to put the cost of your new roof on a credit card if the card offers valuable rewards, such as cash-back bonuses. You may be able to charge the full project and pay it off interest-free over the course of the next year if the company is offering a promotional APR of 0% for that time period.

    Content Summary

    1. Low-cost roofing repair and replacement choices include home equity loans, secured loans, and financing through roofing businesses.
    2. Yet, many houses do not have the financial means to afford the expensive repair or replacement of their roofs.
    3. However, there are several options for getting the money to pay for a new roof, such as home equity loans, unsecured loans, and more.
    4. An enormous investment in time and money is required to put a roof over a person's head.
    5. Don't let a lack of cash prevent you from replacing or repairing your roof.
    6. Since putting off roof replacement is not an option, you had better be eager to do it.
    7. Then you should hurry up and fix your roof before the problem gets any worse.
    8. Before deciding whether or not to repair or replace your roof, you should familiarise yourself with the various benefits of doing so.
    9. Just because you can't afford to replace your roofing right now doesn't mean you shouldn't get a consultation.
    10. In order to determine the extent of the damage and the cost of repairs or replacement, only a trained expert should be consulted.
    11. Put another way, it's likely that repairing your roof will cost more money than you now have.
    12. Think about the fact that the money you plan to spend on roof maintenance over the next few years could be used to finance a brand new roof that you can make payments on over the same amount of time.
    13. By the time you notice your roof is leaking, the shingles are typically in pretty bad shape.
    14. As luck would have it, regardless of how old your roof is, this sort of maintenance is probably covered by your insurance.
    15. The responsibility for paying to have a roof replaced due to normal wear and tear falls squarely on the homeowner.
    16. It's possible that the insurance will cover at least portion of the bill.
    17. Planning ahead is essential if you don't want to be left out in the future.
    18. If your roof needs fixing, for instance, check with your insurer to see if they'll pay for it if you use roofing materials that exceed the two layers of shingles often recommended (this doesn't mean you should go crazy with the number of layers) (not that this is a desirable option).
    19. Getting a free estimate from a dependable contractor once in a while is a good idea if you want to make sure your roof is in good repair.
    20. Future Transfers If you are unable to make a full payment at once, setting up a payment plan is a viable option.
    21. The financial institution you work with to set up the arrangements will do what it can to meet your demands within a reasonable payment range, which will be determined by the total cost of the repair or replacement.
    22. A new roof is an investment, but not everyone can afford to pay for it all at once (or check).
    23. The only thing you'll need is a contract with the roofing company you choose; all else is streamlined.
    24. It could be smart to put the cost of your new roof on a credit card if the card offers valuable rewards, such as cash-back bonuses.
    25. The high interest rates (if you don't have a "no interest" offer) associated with using a credit card to pay for roofing can be a huge deterrent.
    26. If you can't find any other way to finance your purchase, using a credit card with a high interest rate can end up costing you a lot more money (like a home loan).
    27. You shouldn't necessarily use a credit card for such a major purchase, but if it comes with a plethora of perks, it could be the smartest option for financing a new roof or other expensive home improvement.
    28. Use a credit card instead of getting a personal loan to pay for the same purchase and you'll save a tonne of money on interest and finance costs.
    29. There are a lot of variables that will affect how easy it is for you to get a personal loan to pay for your roof rehabilitation project, and some of them aren't obvious at first glance.

    Frequently Asked Questions About Roof

    The average roofing labour cost is between $1.50 and $3.00 per square foot. In roofing, there's a common term called a “square” that you need to know. One roofing square covers 100 square feet. So you may receive a labour quote of $150 to $300 per square.

    Grants for a new roof are usually given, providing your home falls into the category of being below living standards and the occupants of the property being at serious risk. You can apply for the Home Repair Assistance Grant, but it is discretionary, so there's a chance you could apply and be turned down.

    Manufacturer prices are continuously rising due to the increased cost of raw materials (like oil), most roofing materials required during the manufacturing process.

    Asphalt Shingles

    Asphalt is the cheapest of all roofing materials in the market and will last you between 15 to 30 years. This is the best option for homeowners facing budgetary constraints. It is also widely available and comes in a variety of colours.

    Asphalt shingles are the least expensive option for people installing a roof on their homes. While they don't last as long as other options, they still last up to 30 years, often more than enough for most homeowners.

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