How to pay for a New roof: Financing options compared
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Short answer: Common ways to pay for a roof are savings, a home-equity loan or HELOC, an FHA Title I property improvement loan,[1] contractor or third-party financing, and PACE financing where offered.[2] Compare the total cost, not the monthly payment. Never pay in full up front, or by wire, gift card, or crypto.[3]
A new roof is a large expense. Here are the common ways homeowners pay for one. Compare total cost, not just the monthly payment.
What are the common ways to pay for a roof?
- Savings or cash. No interest. The FTC warns against paying in full up front, though. Pay as work is completed, and never in cash, by wire, by gift card, or with crypto.[3]
- Home-equity loan or HELOC. Usually lower rates because your home secures the loan. Your house is the collateral.
- FHA Title I property improvement loans. These are made by FHA-approved lenders, and repairs that protect or improve the home can qualify. Smaller loans may not need a lien on the property.[1]
- Contractor or third-party financing. Convenient, but read the rate, fees, and any deferred-interest terms. The FTC warns that scammers sometimes push homeowners toward "a lender they know."[3]
- PACE financing, where offered. The CFPB notes that PACE repayment goes on your property-tax bill, can make selling or refinancing harder, and missed payments can put your home at risk.[2]
Where does insurance fit in?
If storm damage is involved, your policy may cover part of the cost, subject to your deductible and the policy terms. Coverage decisions belong to your insurer. Read our hail and insurance guide before you file.
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Frequently asked questions
Can I finance a roof with bad credit?
Some lenders and programs (including FHA Title I lenders) work with a wider range of credit profiles. Rates and approval vary, so compare offers and read every term.
Should I pay a roofer up front?
The FTC advises against paying in full up front. Agree on a reasonable down payment and pay the balance when the work is done and you are satisfied.
See 2026 roof replacement cost in your city →
Sources
- FDIC, Property Improvement Loan Insurance (FHA Title I) guide. www.fdic.gov/resources/bankers/affordable-mortgage-lending-center/guide/part-1-d
- CFPB, Considering a PACE loan for home improvements?. www.consumerfinance.gov/ask-cfpb/i-am-considering-a-pace-loan-for-home-improveme
- FTC, How to Avoid Scams After Weather Emergencies and Natural Disasters. consumer.ftc.gov/articles/how-avoid-scams-after-weather-emergencies-and-natural-
Sources checked November 4, 2026. Estimates are not quotes. Roofing, insurance, and legal details vary. Confirm with your contractor, insurer, or attorney.