The cost of a new roof replacement can run between $10,000 and $30,000. With such a steep price tag, it’s no wonder that an old roof can be a dealbreaker for many homebuyers. After several decades of age, even the best roofs will need a full replacement.

How to pay for a roof

But few homeowners can afford the expense of a new roof. That’s where roof financing options can help. There are many ways to pay for a roof replacement even when you lack the savings to do so.

Don’t ignore the signs of an aging roof. That’ll just lead to more expensive repairs down the road. Instead, take control of the situation with these six ways to pay for a new roof.


1. Roof Financing Loans

Personal loans are always an option when you lack immediate funds. But before you start comparing interest rates, there are a few things you should know.

FHA Title 1 loans can help you secure a personal loan offer. The Federal Housing Administration offers a Title 1 Loan to homeowners who need cash to improve the value of their home. Although the FHA does not issue the loan itself, they pledge to reimburse a lender should you default. Traditionally, an FHA Title 1 Loan is disbursed to those who own fixer-uppers.

If you don’t believe you’ll qualify for a Title 1 Loan, you still have other loan options. A typical personal loan gets the job done, although your credit will need to be in good shape.



2. Savings

Maybe you have the cash to afford a new roof, but you’re not sure if you should use all your savings. It’s certainly a cause for concern if the money is coming out of your emergency fund. Without it, you’ll be in a precarious situation should another large, unexpected expense pop up.

But the cheapest way to pay for a roof replacement is with your own money. Either by cash or check, you’ll avoid high-interest rates by compensating the contractor directly, without the aid of a lender.

As a safe middle-ground, you could pay for half the roofing project with your savings and rely on a loan for the other half. Although you’ll still lose money from interest, it’ll help mitigate the damage.

Paying out of pocket isn’t an option if your business needs a roof replacement. But the price can be offset by choosing durable materials. Compare roofing options and save big.



3. Home Equity Loan

In place of an unsecured personal loan, a home equity loan is a popular option. By using the equity in your home as collateral, lenders will feel more comfortable offering you a loan. This can lead to significant savings.

For example, you can expect to pay an interest rate of 5.2% with a home equity loan. This is far below the average interest rate of a standard, unsecured personal loan. And since roofing costs can be a significant expense, every percentage point accounts for hundreds of dollars in savings.

The problem with a home equity loan is, well, you need equity. If you’re a new homeowner, a home equity loan won’t be an option. Your lender can also repossess your home should you ever default.



4. Point-of-Sale Financing

You may not have to worry about roof finance at all if it’s not your thing. Why not? Because just like most car dealerships, some roofing companies will have financing options that are unique to them.

Rather than comparing the best interest rates and deals, you can save yourself the hassle by going with the contractor’s recommended lender. This is known as point-of-sale financing. Either online or by phone, you can qualify for a large loan in under an hour.

Point-of-sale financing is a great option when you really want the contractor to get started right away. Although you’ll lose out on the best deal, this is also the easiest and fastest way to get the money you need for a new roof.



5. Warranty

But maybe you don’t need money at all. The roof may be covered by warranty. In fact, roof warranties come in two flavors.

You might have a material warranty, which covers the quality of roofing components. If there is a material defect that causes a problem with your roof, your warranty can cover the cost of new roofing materials.

Some contractors also provide a warranty for their work. When poor roofing practices mean you need to install a new roof, this type of warranty has you covered.

Lastly, you should know that many new homes are covered by the builder’s warranties. If you purchased a new home, you should see if it came with a special new-home warranty.



6. No-Interest Credit Card

A new roof can break the bank. But with good or excellent credit, you may qualify for a 0% APR credit card. It probably can’t pay for the entire roofing project, but it can cover some of the burden.

The benefits of a 0% APR credit card are clear: You don’t have to pay interest. That means you can borrow money to pay for a new roof and not worry about additional fees.

Keep in mind that these credit cards are introductory offers. After a certain period, they’ll carry interest like any other card.



You Can Afford a New Roof

Don’t let your roof come crumbling down. You have a plethora of roof financing options to keep your home in one piece. Whether you use the equity in your home or a Title 1 Loan, several options are available.

Even if you have to use point-of-sale financing, that’s better than devaluing your home when the roof starts to go. Plus, a weathered roof typically leads to more expensive repairs as water seeps into your home.

Consider your financial situation to figure out which payment option is right for you. And remember that if you own a home or a business, you can impact the cost of your roof replacement by choosing the right materials.