# How to Finance a Roof Replacement: 5 Options Compared

> Roof replacement averages $9.5K–$32K. Five financing options for projects not covered by insurance — with real APRs and FICO requirements.

![How to Finance a Roof Replacement: 5 Options Compared](/images/roofing/shutterstock_2176301913.jpg)

Reviewed by the Remodel Your Home editorial team · Updated August 19, 2026

Roofing is a forced-replacement category — most homeowners don't choose to replace a roof, they have to. That urgency means financing decisions happen fast. Before signing a contractor's payment plan, compare it against a personal loan or HELOC. The difference in total cost can be thousands. Typical project cost: **$9,500–$32,000**.

## Financing Options Compared

Home Equity Line of Credit (HELOC)

APR:  7.3–7.5% variable

Loan range:  Up to 85% of home equity

Term:  Draw 5–10 yrs, repay 10–20 yrs

Min. credit:  620+

Best for:  Large or phased projects where you draw funds over time

**Watch out:** Variable rate — payments rise if rates rise. Your home is collateral.

Home Equity Loan Best for this project

APR:  ~7.5% fixed

Loan range:  $20,000–$300,000

Term:  5–30 years

Min. credit:  620+

Best for:  Defined lump-sum projects with a fixed scope and cost

**Watch out:** Closing costs of 2–5%. Takes 2–6 weeks to fund. Home is collateral.

Personal Loan (Unsecured) Best for this project

APR:  11–36% depending on credit

Loan range:  $1,000–$100,000

Term:  2–7 years

Min. credit:  600+

Best for:  No home equity, fast funding (1–3 days), smaller projects

**Watch out:** High APR on lower credit scores. Short terms mean high monthly payments.

Contractor Financing (GreenSky / Hearth) Best for this project

APR:  0% promotional / 7–30% after promo

Loan range:  $1,000–$100,000

Term:  12–84 months

Min. credit:  580+ (Hearth); 640+ (GreenSky)

Best for:  Approved at point of sale; no separate application process

**Watch out:** Most 0% offers are DEFERRED INTEREST — if not paid in full by the deadline, all accrued interest (at ~20–27%) backdates to day one. Read the fine print.

0% Intro APR Credit Card

APR:  0% for 15–21 months; 17–30% after

Loan range:  Practical limit: $5,000–$15,000

Term:  Revolving

Min. credit:  700+

Best for:  Smaller projects you can pay off within the intro period

**Watch out:** Deferred interest if you miss the payoff window. Low limits may not cover large projects.

FHA 203(k) Rehab Loan

APR:  ~7–8%

Loan range:  Up to FHA county limits ($524K–$1.25M)

Term:  15–30 years

Min. credit:  580+ (3.5% down); 500+ (10% down)

Best for:  Purchasing and renovating simultaneously; low equity situations

**Watch out:** Complex process — requires HUD consultant, 3–6 month timeline, limited to primary residence.

## The Deferred Interest Trap — Read This Before Signing

Most contractor “0% financing” offers are **deferred interest** plans, not true 0% APR. The difference is significant: with deferred interest, if you don’t pay the entire balance before the promotional period ends, all of the interest that accrued since day one gets added to your balance at once — typically at 20–27% APR.

On a $15,000 project with an 18-month deferred-interest plan at 24.99% APR: if you have $1 remaining at month 19, you owe an additional $5,700 in backdated interest. Always ask your contractor:*“Is this true 0% APR, or deferred interest?”*

**How to tell:** True 0% APR means no interest accrues during the promotional period. Deferred interest means interest accrues but is waived if paid in full. The loan agreement will say “No interest if paid in full within X months” — that’s deferred interest.

## Contractor Financing for Roof Replacement

**What roof replacement contractors typically offer:**

Best Choice Roofing, Hansons, and Home Genius Exteriors offer contractor financing. Always ask whether the promotional rate is true 0% APR or deferred interest. On a $12,000 roof, a deferred-interest plan that backdates at 26.99% if you miss the payoff date costs you an extra $3,200+ in surprise interest.

## How to Choose the Right Option for Your Project

The best financing option depends on three factors: your home equity, your credit score, and how quickly you need funds. Here’s a simple decision path:

- **Have equity and 620+ credit score?** A HELOC or home equity loan will give you the lowest rate.
- **No equity or need funds in under a week?** A personal loan at 11–20% APR is cleaner than most contractor plans.
- **Contractor offers financing and you’re confident you’ll pay it off?** A 0% deferred-interest plan can work — set a calendar reminder 60 days before the deadline.
- **Project under $5,000?** A 0% intro APR credit card is often the simplest option.

[Use our loan calculator to compare monthly payments across options →](/home-improvement-loan-calculator/index.md)

## Related Guides

- [Roof Replacement cost guide — what to budget](/roof-replacement-cost/index.md)
- [Signs it’s time to replace, not repair](/roof-replacement-signs/index.md)
- [Questions to ask your contractor about financing](/roofing-contractor-questions/index.md)

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Source: https://remodelyourhome.com/roof-replacement-financing/