How to Finance a New Roof


  • Tax credits are available if you replace your roof using energy-efficient materials. You are eligible for this tax credit from Jan. 1, 2009, through Dec. 31, 2009. Earn a tax credit of 10 percent or up to $500 for the cost of materials. Labor costs are not included. Ask your contractor if it is possible to patch the roof. If the roof is less than 10 years old or isn't damaged beyond repair, patching weak spots gives you more time to save up for a new roof.

Since a new roof can cost $15,000 or more, depending on the size, paying out of pocket is not an option for most homeowners. Financing by taking out a line of credit or a loan is how most homeowners pay for expensive repairs. Contact a licensed contractor to discuss roof replacement or repair options. Knowing how much a new roof will cost can help you determine which type of financing to seek. Compare roofing materials to determine which are the best for your budget.

Contact at least three contractors to provide estimates for roof replacement. Estimates should include cost of materials and labor. Before taking out a loan or making repairs to the roof, contact your insurance provider to see if it will cover some or all of the costs. If damage to the roof occurred as a result of a hurricane, earthquake or fire, you may be covered for roof repairs or replacement.

Consider your finance options. The FHA 203K Streamline Program allows homeowners to borrow up to $35,000 from the federal government to make home repairs, including roof replacement. The money borrowed is rolled into your current mortgage. For more information, visit the U.S. Department of Housing and Urban Development website.

Calculate the overall costs for home equity lines of credit and personal loans. Depending on your current finances, you may not be able to afford additional payments and interest for a new roof on your home.

Take out a home equity line of credit if you can afford the payments. To estimate how much you qualify for, subtract what you owe on your mortgage from the current value of your home. Yearly property values can be obtained by contacting your local property assessment office.

Take out a personal loan. You will need to bring recent pay stubs and financial information such as a banking statement and a copy of your credit report when you speak with a loan officer.

Ask your contractor if he would allow you to open a line of credit with his company. Much like a home equity line of credit, some companies allow you to pay for services over time and may charge less interest than other lending institutions.