What is your best roof financing option?
Your best choice for new roof financing depends on factors such as the cost of your roofing project, how soon you need the money, your credit and whether you have equity in your home. Here we cover the different types of roof financing — which may be in the form of a home equity loan or line of credit, personal loan, cash-out mortgage refinancing, roofing company financing or government-insured loan.
To help you determine the best type of roof financing for you, we cover the advantages and disadvantages of each along with our top picks for lenders that provide roof loans.
Home equity loans
A home equity loan is a second mortgage on your home. It has a fixed interest rate. You receive a lump sum of money, using your home as collateral. You pay the loan back in fixed monthly payments over a period of time, usually five to 30 years. Home equity loan interest rates tend to be lower than some other options, such as personal loans, because your home secures the loan.
Using your home as collateral can put it at risk if you get behind on the loan. But, if you don’t foresee problems with staying current on payments, and you want to pay for the roof without needing ongoing access to funds for other home improvements, a home equity loan may be a good choice.
Here’s what you can expect if you use a home equity loan to pay for a roof:
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Maximum loan amount: Typically 80% to 90% of your home’s value, minus what you owe on the mortgage. Some lenders will go to 100%.
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Repayment term: Up to 30 years.
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APRs: Vary depending on the lender.
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Costs: Typically requires payment for appraisal and closing costs, unless the lender waives these expenses.
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Timeframe: Approval and funding will take longer than a personal loan if an appraisal is needed.
Best for no closing costs
Better: NMLS#330511
4.5
NerdWallet rating
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Min. Credit Score
Max LTV
National / regional
Better home equity loans stand out for having high borrowing limits and a convenient digital application.
Better home equity loans stand out for having high borrowing limits and a convenient digital application.
Pros
- Maximum borrowing limit is higher than industry standard.
- Borrowers can apply online or via mobile app.
- Home equity loans are available for second homes.
Cons
- Info about home equity loans is very limited on Better’s website.
Read full review
Best for high borrowing limit
Rate: NMLS#2611
5.0
NerdWallet rating
NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. Credit Score
Max LTV
National / regional
Rate home equity loans have higher borrowing limits than many competitors, but borrowers will have to contact the lender to get any information about the product.
Rate home equity loans have higher borrowing limits than many competitors, but borrowers will have to contact the lender to get any information about the product.
Pros
- Maximum borrowing limit is higher than industry standard.
- Home equity loans are available for second homes.
Cons
- Borrowers must reach out for home equity loan rates.
- Home equity loan information is not available on the lender’s site.
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Best for military borrowers
Navy Federal Credit Union’s home equity loans allow service members and their families to borrow up to 100% of their equity.
Navy Federal Credit Union’s home equity loans allow service members and their families to borrow up to 100% of their equity.
Pros
- Borrowers can access up to 100% of equity, higher than most lenders.
- Flexible term options: 5, 10, 15 or 20 years.
- No application fee, closing costs or prepayment penalty.
Cons
- Minimum loan amount of $10,000.
- Can’t customize a rate estimate on the website.
- Credit union membership is limited to those with U.S. military connections.
Read full review
Home equity lines of credit (HELOC)
A HELOC is an open credit line that you can draw on as needed for a period of time (usually 10 years); then you repay the borrowed amount plus interest. HELOC interest rates typically are variable, meaning your monthly payment could rise or fall over time. Most lenders have an option to pay only interest (and not principal) during the draw period, and interest is based on the line of credit amount that you use. Usually, you’ll be required to draw a minimum amount to open the HELOC.
Like home equity loans, a HELOC uses your home as collateral, meaning your home could be at risk if you get behind on payments. If you don’t anticipate that being a problem, and you want a flexible financing option, a HELOC may be a good solution. Because HELOC funds are available as you need them, you can pay for a roof as well as future home improvements.
Here’s what you can expect if you use a HELOC to pay for a roof:
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Maximum loan amount: 80% to 90% of your home’s value, minus what you owe on the mortgage. Some lenders will go to 100%.
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Repayment term: A 10-year draw period followed by a 20-year repayment period is common.
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APRs: Vary depending on the lender.
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Costs: Typically requires payment for appraisal and closing costs, unless the lender waives these expenses.
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Timeframe: Approval and funding will take longer than a personal loan if an appraisal is needed.
Best for no closing costs
National / regional
Max LTV
Min. Credit Score
FourLeaf HELOC borrowers don’t pay closing costs (as long as the line is open for more than three years) and can get an introductory rate below the prime rate.
FourLeaf HELOC borrowers don’t pay closing costs (as long as the line is open for more than three years) and can get an introductory rate below the prime rate.
Pros
- No closing costs.
- Easy-to-join credit union.
- Fixed introductory rate is below the prime rate.
Cons
- Must pay back closing costs if the line is open for three years or less.
Read full review
Best for fast closing
Figure: NMLS#1717824
4.0
NerdWallet rating
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Max LTV
Min. Credit Score
National / regional
Figure is a large HELOC lender and stands out for offering funding in as fast as five days. However, borrowers have to draw their full line amount at closing, and will pay an origination fee.
Figure is a large HELOC lender and stands out for offering funding in as fast as five days. However, borrowers have to draw their full line amount at closing, and will pay an origination fee.
Pros
- Specializes in HELOCs.
- The initial balance and any additional draws have a fixed interest rate.
- Closing may be available in just five days.
- HELOCs are available for second homes.
Cons
- Short draw period of two to five years.
- Requires a $15,000 minimum initial draw.
- Lender charges origination fees up to 4.99%.
Read full review
Best for fixed-rate borrowers
U.S. Bank: NMLS#402761
4.5
NerdWallet rating
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National / regional
Max LTV
Min. Credit Score
U.S. Bank’s HELOC offers a rate discount for existing customers and an option to convert to a fixed rate. However, the lender charges an annual fee and early repayment penalty.
U.S. Bank’s HELOC offers a rate discount for existing customers and an option to convert to a fixed rate. However, the lender charges an annual fee and early repayment penalty.
Pros
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
Cons
- Charges a fee for early repayment.
- Annual fee of $75.
Read full review
Personal loans
A personal loan is a type of unsecured loan offered by banks, credit unions or online lenders. It allows you to borrow a fixed amount of money and repay it over time through monthly installments, usually with a fixed interest rate.
Personal loans don’t require collateral, such as your home. Instead, lenders rely heavily on information like your credit score, income and other debts, to decide whether you qualify and at what annual percentage rate. Each lender has its own borrower criteria and loan features. Personal loans do tend to have higher interest rates than home equity options, so they may be a better fit for borrowers who want to finance a lower amount, such as a roof repair.
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Maximum loan amount: Depending on the lender, can be $1,000 to $100,000.
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Repayment term: Two to seven years.
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APRs: 6% to 36%, and the lowest rates often go to borrowers with good or excellent credit (scores of 690 or higher).
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Timeframe: Because there is no appraisal, loan funding is typically faster than with a home equity loan or HELOC.
Best for credit-building tools
Upgrade
5.0
NerdWallet rating
NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
Est. APR
Loan amount
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Pros
- Multiple rate discounts.
- Allows secured and co-signed loans.
- Fast funding.
- Wide variety of repayment term options.
Cons
- Origination fee.
- No option to choose your payment date.
Read full review
Qualifications
- Minimum credit score: 600.
- Minimum annual income: None.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum credit history: 3 years and 1 account.
- Must be a U.S. citizen and provide a valid Social Security number, email address, proof of residency and U.S. bank account.
Fees
- Origination: 1.85% to 9.99%.
- Late fee: Undisclosed.
Disclaimer: Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.74%-35.99% and a 1.85%-9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For certain discounts, collateral may be required. Repayment terms from 24 to 84 months. For example, if you receive a $10,000 unsecured loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR and other terms of your loan may vary and you may not be presented with multiple offers. If offered, your loan terms, including your rate, will depend on credit score, credit usage history, loan amount, and other factors. Late payments or other fees, as noted in your Borrower Agreement, may increase the cost of your fixed rate loan. Certain loan offers may not be available in all states. Upgrade is a financial technology company, not a bank. Personal loans issued by Upgrade’s bank partners: .
Best for long repayment terms
LightStream
4.5
NerdWallet rating
NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
Est. APR
6.49-24.89%Rates quoted are with AutoPay.
Loan amount
$5,000-$100,000Loan example: A four-year, $20,000 loan with a 13.9% APR would cost $546 in monthly payments. You’d pay $6,208 in total interest on that loan.
LightStream is a solid option for good- and excellent-credit borrowers, with no fees and a promise to beat competitors’ rates.
LightStream is a solid option for good- and excellent-credit borrowers, with no fees and a promise to beat competitors’ rates.
Pros
- Competitive APRs.
- Rate discounts available.
- No fees.
- Large loans available with long repayment terms.
- ·Same-day funding.
Cons
- Limited ability to pre-qualify with a soft credit check.
- High minimum loan amount.
- No direct payment to creditors with debt consolidation loans.
- No mobile app to manage loan.
Read full review
Qualifications
- Minimum credit score: 660.
- Maximum debt-to-income ratio: 55%.
- Must provide a Social Security number.
- Must have a valid email address and U.S. bank account.
Fees
- Origination fee: None.
- Late fee: None.
Disclaimer: Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of 5 years would result in 60 monthly payments of $202.72. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Best for joint loans
SoFi Personal Loan
4.5
NerdWallet rating
NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
Est. APR
8.99-35.49%Rates displayed are fixed and include all discounts.
Loan amount
SoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
SoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
Pros
- Multiple rate discounts.
- Large loans available.
- Has a joint loan option.
- Hardship assistance or program for borrowers in need.
Cons
- No option to choose initial payment date.
- High minimum loan amount.
Read full review
Qualifications
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
Fees
- Origination fee: 0% to 7%.
- Late fee: None.
Disclaimer: Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
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