Roofing companies that offer financing: here’s what you need to know

Roofing companies that offer financing: here’s what you need to know

Unfortunately, there’s a big chance you’ll eventually face an unavoidable roofing project.

Maybe you’re trying to sell your house and your aging roof is holding you back. Or those cracked and curling shingles have reached the end of their natural life, leaving your home vulnerable to leaks or worse.

Whatever the reason, you’re looking at replacing your roof—a job with a price tag that can easily reach $10,000 or $20,000. And if you’re like most homeowners, you’ll need financing to get the work done.

You may have already gone to your bank or asked a friend for financing options. But did you know that some roofing companies offer their own financing?

If you’re new to the idea of getting financing from your roofer, then this article is perfect for you. Here’s what you should know before you decide whether to turn to your roofer for roof replacement financing:

How does roofing company financing work?

Have you ever bought a new car?

You may have chosen to finance the car directly through the automaker instead of through your bank or credit union, often because the automaker offered lower rates, longer terms, or other perks your bank couldn’t match. Repaying the loan worked the same as it would through a bank, except you make your payments directly to the manufacturer, skipping the middleman.

Roofing companies that offer financing for their own projects operate on the same principle. In some cases, they partner directly with a bank or other lending institution to offer financing, and in other cases, they make the loans themselves, but the end result is the same:

You don’t have to find your own lender to finance the project, your roofing company arranges the loan for you.

Often, a roofing company that offers financing is able to offer better terms than you could get on your own because they do a high volume of roofing loans, so their partner bank gives them better rates. If they make the loans themselves, they may give you incentives in the form of lower interest rates or rebates, since they are, in effect, acting as the bank.

Are there any advantages to using roofing companies that finance?

If you have good credit, you may be able to get attractive rates and other special perks from your roofing company. Some companies offer special roofing package deals, lower installation and labor costs, or longer warranties to their finance customers.

On the other hand, the company may only finance certain types of roofing projects or offer attractive deals on one particular type of roofing material or product they want to promote. That can be a definite bonus if it’s what you already intended to use, but it can put pressure on you to choose something you might not otherwise want just to get the special promotion.

What should I know before I finance my roof through the roofing company?

Before you agree to any financing contract, you should get answers to the following questions:

Is there a minimum or maximum financing amount? Sometimes a roofing company will only finance projects above a certain amount, which means you may be urged to buy a more expensive roof than you otherwise would, just to qualify for their in-house financing. Other companies may cap their financing at an amount that may not completely cover the cost of your roof replacement project, forcing you to come up with cash to finish the job. Be sure you know exactly how much the roof you want will cost and whether the amount is within the company’s financing limits.

Is this a personal loan or a line of credit? A line of credit is like a credit card, which is a flexible financing solution that lets you borrow against your credit limit, while a personal loan is a lump sum with a fixed term and fixed monthly payments. Why does this matter? If you are replacing your roof and you decide to redo your gutters and add other enhancements over the course of your project, a line of credit may be better. On the other hand, if you know you are only planning to do a particular roofing project and you need predictable monthly payments, a personal loan option may be a better choice.

What are the terms? You need to know the interest rate and amount of time you have to repay the loan. Generally speaking, a line of credit will have higher interest rates than a lump-sum loan.

What fees can I be charged? Roofing companies that finance may tack on fees to your loan or line of credit that may include late charges, over the credit limit charges, and even prepayment penalties, so be sure to check the fine print on any finance contract before you sign.

Is there a down payment to qualify for financing? You may be expected to pay a certain percentage of your project upfront in order to get financing through your roofing company. Find out how much, if any, you need to pay and if the amount of the down payment will affect your interest rate. You may be able to make a larger down payment and get a lower APR on the balance.

Do you hold the loan in-house or contract with a bank or other lending institution? You may get more financing flexibility if the roofing company lends to you directly. On the other hand, you may not be able to get extra protections such as credit insurance that covers your payment in case you lose your job or become disabled unless your loan is through a bank.

When should I get financing from my roofer?

It’s always a good idea to get bids from several different roofing companies to get a realistic idea of a competitive price for your new roof before you decide how to finance your project.

You should also check your options with other funding sources such as your bank and online providers to see what rates are available so you can find savings.

For example, your roof replacement project may cost a bit more with a roofing company that finances, but the lower cost of financing may offset the higher project costs and give you a lower overall cost for your new roof.


Finding a roofing company that offers financing can be a definite perk, especially if you’re able to get low rates and competitive pricing on the work you need to have done. But in the long run, the most important thing to look for in a roofing company is a reputation for doing quality work, because odds are, you’ll be able to find similar financing elsewhere. So look first for a roofing company you trust, and if they offer financing, consider it a bonus, and not the deciding factor in choosing the right company to repair or replace your roof.