Your roof is the unsung hero of your property, standing firm against the elements and keeping your property safe and secure.

But it’s also a part of the homes that most of us don’t really think too much about until a problem presents itself. In fact, that usually means a leak.

Roofs don’t last forever. And most homeowners will need to carry out significant repairs to or even completely replace their home’s roof at some stage. That’s a fact.

It is commonly accepted that a typical residential roof will generally last for around 20 to 25 years, but we’re going to take a guess that you’ve probably found yourself in a position of need to either carry out repairs or a replacement if you’re reading this guide.

A roof replacement can be expensive, and homeowners often find themselves needing to carry out the work unexpectedly, either as a result of damage or following an inspection. This means that many turn to their emergency savings to pay for it, but the reality is that a number of different roof financing options exist that can mean you don’t need to touch these.

And in this guide, we’re going to take a look at the different routes you can go down to pay for a new roof, introducing you to RenoFi Loans, highlighting why you might struggle to use a home equity loan or line of credit, and more.

Specifically, you’ll learn:

When Should You Replace Your Roof?

Sadly, it’s not uncommon for a roof to become a victim of a storm or even become damaged during a tornado or hurricane.

When sudden damage happens, significant repairs or a replacement are inevitable.

But what about when you start to experience a leak or other problems with your roof without an obvious cause?

It’s probably age. 

It’s always recommended that you carry out a roof replacement or repairs before problems arise and cause other resultant problems, but what are the common signs that you need to give it a little TLC?

Watch out for:

  • Shingles cracking, buckling, or curling up
  • Shingles that are losing granules
  • Shingles that are falling apart or missing in some parts
  • Discolored singles

If you have any concerns about the condition of your roof or are experiencing leaks, it’s important that you speak with a roofing company that can carry out an inspection and advise you on your options. 

How Much Does It Cost to Replace a Roof?

So, how much does it cost to replace or repair a roof? 

According to HomeAdvisor, the homeowner in the United States pay around $8,230 to reroof their house, with most replacements costing somewhere between $5,407 and $11,087. 

However, this is a very rough set of parameters, and there are many different factors involved in calculating the cost of the replacement and it’s important that you are aware of what these are as you consider the different financing options that are available to you. After all, you need to know how much you need to borrow.

The Cost of Replacing a Roof

A roof replacement project can be a major undertaking, and there are many variables involved. These variables will have a marked effect on the total price of the project.

Costs are usually based upon:

The size of your roof

The larger the size of the roof, the greater the cost. 

Roof sizes are typically measured in “squares,” which is generally how a roofer will quote their price to you. But it’s important to note that squares, in this sense, are not “square feet” but are instead equal to 100 square feet. 

The average roof size will be around 17 squares (or 1700 square feet) according to the US Census.

To gain a better understanding of the cost of a new roof, take a look at these average cost ranges based on the size, by area, of your house. Just bear in mind that the actual size of your roof will not be the same as the area of your home, as the pitch and the extent to which it overhangs the edges of your house will also need to be taken into account.

The prices shown in the table below are based on a nationwide average cost for a roofing project involving the installation of architectural shingles on a roof with a standard pitch of 4 vertical feet by 12 horizontal feet.

House (& Roof) by Square FootAverage cost to reroof
1,000 square feet$4,000 - $5,500
1,100 square feet$4,200 - $6,000
1,200 square feet$4,500 - $6,500
1,500 square feet$5,500 - $8,000
1,600 square feet$6,000 - $8,500
1,700 square feet$6,500 - $9,000
1,800 square feet$6,700 - $9,500
1,900 square feet$7,000 - $10,000
2,000 square feet$7,400 - $10,500
2,500 square feet$9,000 - $13,000
3,000 square feet$11,200 - $16,000

The pitch of your roof

The roof pitch refers to the angle of the roof — or the vertical rise distance divided by the horizontal distance between the edge of the roof and the position of the apex.

Steeper roofs may be more difficult to install, increasing the cost.

Your chosen method of installation

If you already have a roofing frame in place, the installation will be relatively inexpensive, but if you need to install a new frame or repair an existing one, this can add a considerable amount of cost to the project.

Your choice of roofing materials

You have a number of different options available when it comes to replacing or repairing a roof. 

Roofing materials include asphalt shingles, stainless steel, or slate, among others, and each one comes at its own price point. 

It’s also important to remember that different materials bring widely different costs — we’ll be exploring these in more detail below.

Materials are not limited to the roofing squares themselves, however. You’ll also need to pay for any consumables used during the roofing project — for example, to affix the roofing squares to the frame. 

All in all, materials tend to make up around 40% of the total project cost.

The number of layers

If you are simply replacing the top layer of shingle, the cost of the project will be less than if you need to replace the underlying layer of shingle also. 

The more layers you need to work with, the more expensive the project.

Local regulations

The cost of replacing a roof can differ between locations, and to get an idea of the costs for this in different states, here’s how this can vary across the US:

LocationTypical roof replacement cost
Florida$8,000 - $16,500
Los Angeles, California$6,400 - $15,400
Seattle, Washington$7,000 - $13,800
Colorado$6,300 - $12,300
Michigan$6,550 - $11,900
Houston, Texas$5,750 - $10,600
New Jersey$5,800 - $10,000
Phoenix, Arizona$5,600 - $10,000
Maryland$4,500 - $9,500

Additions

A roof is rarely just a uniform, angled surface. There are other elements you will need to consider and that you may need to replace or repair as part of a re-roofing job. 

These include windows or skylights in the roof material, chimneys or ventilation ducts, pipework and plumbing, flashing and guttering, and a range of other features that you may need to add to your roof.

Generally speaking, the more elements you need to include in your project, the greater the cost overall. 

Labor

We have already noted above that materials and products will contribute around 40% of the total project cost, and the remaining 60% of the project cost will come from labor. 

Various things can impact the cost of labor, and these include:

  1. The rates offered by different roofing companies and contractors
  2. The duration of the project itself
  3. The access difficulty of your roof
  4. The pitch of the roof
  5. The complexity and scope of the project — for example, if you need to simply replace part of your roof or if you are carrying out a full re-roofing project
  6. The removal of waste from the project site
  7. Other factors involved — your contractor will brief you on this before they provide you with a quote.

The Cost of Choosing Different Roofing Materials

You have various options at your disposal when it comes to selecting the right materials for your roof. These materials range from the low-cost and traditional to more expensive materials used for technical applications and higher-end materials that provide a specific aesthetic.

As a general guide, take a look at the table below. Prices in the table are based on a nationwide average price — actual prices may be different in your area — and do not take into account factors such as labor, additional elements, or extra costs.

Roofing material choiceAverage cost
3-tab asphalt shingles$2,500
Galvanized steel roofing materials$3,000
Stainless steel roofing materials$14,000
Roofing slates or high-quality stone$20,000
Copper roofing materials$25,000 or more

As we can see, there is a significant difference in price between the lower-cost options and the higher-end options when it comes to materials. 

Some materials may also be more difficult to work with, which can increase the labor cost on top of the total material cost. 

Depending on your climate, you may also need to add protective layers and coatings to the material, further increasing the cost.

The Cost to Reshingle a Roof

A shingle-style roof refers to any roof that consists of different panels or components that are installed together, either in an overlapping or side-by-side configuration. This includes traditional asphalt shingles as well as other types of material.

Typically, roof reshingling will cost you somewhere between $5,300 and $11,000 once all the project elements are factored in — including labor, waste removal, and material costs.

The Cost of an Entirely New Roof

If your roof is damaged, beginning to show its age, or not performing at its best, you may consider investing in an entirely new roof. A new roof will enhance the look of your home and may add to the value of the property in the long term.

Expect to pay between $10,000 and $20,000, although prices for replacing garage roofs (between $1,000 and $2,000) and townhouse roofs (between $2,000 and $5,000) tend to be considerably lower.

Does a New Roof Add Value to Your Home?

While most homeowners only replace their roof once it’s beyond repair, that doesn’t mean it stops the questions of whether or not it will add value to the home.

And the simple answer is yes, a new roof will add value to your home.

According to Remodeling’s Cost vs Value report, you will be able to recoup 65.9% of the cost of an asphalt roof replacement and 61.2% of a metal roof replacement.

A recently replaced roof is a strong indicator that there are unlikely to be any problems or needed repairs for some years, and this stands out to homeowners. At the end of the day, the opposite of this is a roof that’s at the end of its life and is ready to be replaced in the near future. 

The Pros & Cons of 6 Roof Financing Options

If you know you need to replace your roof, we’ll take a guess that you’re considering the best way to pay for it, hopefully without turning to your emergency savings.

And we’re the first to admit that understanding the different types of roof financing that are available to you can be confusing.

Below we take a look at the pros and cons of 6 different options:

A RenoFi Loan

RenoFi Loans are a new type of home renovation loan that let you borrow based on your home’s after-renovation value and, as a result, increase your borrowing power. Think of them as combining the best parts of a construction loan with a home equity loan.

This means that they’re perfect for homeowners who haven’t yet built up sufficient equity to tap into to finance their home renovations and repairs, with this often being simply because they only recently purchased their home.

Based on the fact that RenoFi Loans let you borrow based on your home’s after renovation value, this can increase your borrowing power by 11x, on average, when compared with a home equity loan and, unlike other renovation loans, there’s no requirement to refinance. This means you can keep that great rate you’ve locked into on your first mortgage. 

And what does this increased borrowing power mean?

It means that homeowners can get started on their entire renovation wishlist today, rather than completing it project by project over the course of many years or the alternative of reducing the scope. 

Available as both a home equity loan and a home equity line of credit, a RenoFi Loan could make it possible for you to affordably borrow the money to talk to your contractor about more than just your roof, whether you’re looking to remodel your bathroom, your kitchen or even install solar. Whatever’s on your renovation wishlist, a RenoFi Loan can make it possible. 

Here’s what you need to know about RenoFi Home Equity Loans:

  • Loan amounts from $20k to $500k
  • Low fixed interest rates like traditional home equity loans
  • Repayment terms up to 20 years
  • Ability to borrow up to 90% of the after renovation value
  • The full loan amount available at closing

And here’s what you need to know about the RenoFi Home Equity Line of Credit:

  • Loan amounts from $20k to $500k
  • Variable rates 
  • 10 year interest-only period, followed by 20 year amortization
  • Ability to borrow up to 95% of the after renovation value
  • Line of credit that can be drawn down & paid back at your leisure for 10 years
Renovation Home Equity LoanSingle-Close Construction To Permanent Loan (CTP)Fannie Mae HomeStyle LoanFHA 203k (Full)Two-Close Construction To Permanent Loan (CTP)
Is this a mortgage?YesYesYesYesYes
1st or 2nd mortgage?2nd1st1st1st1st
Require refinance of existing mortgage?NoYesYesYesYes
Typical Interest RateMarketAbove MarketAbove MarketAbove MarketAbove Market
Loan Limit (Renovation Cost + Mortgage)$500,000Jumbos allowedConforming onlyConforming onlyJumbos allowed
Loan Term (max)20 years30 years30 years30 years30 years
Credit Score Required660+700+620+580+580+
Loan to ValueUp to 95%Up to 95%Up to 95%Up to 96.5%Up to 80%
Can be used for building new home?NoYesNoNoYes
Restrictions on type of improvements?NoNoNoYesNo

Take a look at how a RenoFi Loan compares with other roof financing options:

Too many homeowners turn to a high-interest personal loan when they need to finance a new roof, usually because they haven’t built up enough equity and aren’t aware that alternatives exist. A RenoFi Loan is that alternative and lets you borrow the most money for your renovation with the lowest monthly payments.

Why not speak with one of advisors today and see whether a RenoFi Loan could be the right method of roof financing for you? Alternatively, enter your details into {{ }} to find out more about how much you could borrow and what your monthly payments could be. 

A Home Equity Loan or Line of Credit (HELOC)

Home equity loans and home equity lines of credit (HELOC) are two common methods that can be used by homeowners to borrow against the equity they have built up in your property. 

The loan will give you the peace of mind of fixed repayments and interest rates, but you will have to pay interest on the loan amount immediately. With the HELOC, your interest rates and premiums can fluctuate, but you will be able to draw the funds gradually, as and when needed during an initial draw period.

Both options are limited by equity, up to 90% of the total property value, but there’s one big problem that many homeowners face.

It takes time to build up equity.

Just look at how long it takes to build up $100k in tappable equity:

Recent homeowners often find that they haven’t got the equity that they need to use a home equity loan or line of credit and unnecessarily turn to personal loans or unsuitable methods of financing to pay for a new roof or other home improvements and repairs.

If you’ve not built up enough equity, a RenoFi Loan could be perfect for you, instead letting you borrow based on your home’s after renovation value rather than it’s current value.

But even if you do have enough available equity to finance a new roof, what happens next time? When you want to get started on your next project to turn your house into your forever home? 

Even though a home equity loan might make sense right now, a RenoFi Loan could help you to borrow all of the money that’s needed to finance your entire renovation wishlist upfront. 

A Cash-Out Refinance

Most homeowners shouldn’t use a cash-out refinance for any renovations or home improvements.

Why?

Because in almost all instances, you’ll end up refinancing onto a higher rate and pay unnecessary closing costs based on the whole loan amount.

A higher rate, of course, means higher monthly payments. 

Instead of turning to a cash-out refinance to pay for your new roof, take a look at how using a RenoFi Loan could let you borrow the money you need without having to refinance your first mortgage and paying higher than necessary closing costs.

The only time when a cash-out refinance makes sense is when you’re significantly reducing the rate by doing so. Otherwise, look at other financing options. 

A Construction Loan

It’s not uncommon for homeowners to turn to construction loans to pay for major renovations, but for the most part, there are better options available.

For starters, using a construction loan to pay for a new roof and other renovations means you’ll need to refinance, and this is going to result in closing costs based on the whole loan amount and higher monthly payments as a result of going onto a higher rate.

But that’s not all. Construction loans are infamous for their complex inspection and draw process that means you won’t get all of the money up front. This adds complexity to your project and many contractors will even refuse to work with this type of financing. 

Construction loans are intended for ground-up construction, and for other home improvement projects, alternative methods of financing are usually going to be preferential. 

An FHA 203k, FHA Title I Loan, or Fannie Mae HomeStyle Loan

At first glance, government-backed renovation mortgages like the FHA 203k Loan or the Fannie Mae HomeStyle Loan may seem an ideal way to finance a new roof.

Both of these options let you borrow based on your home’s future value, like a RenoFi Loan does, and can be used to combine the purchase (or refinance) of a property and renovation costs into a single loan. 

But both of these options add unnecessary complexities to the financing process that can often result in delays. You’ll also be forced to refinance your existing mortgage onto a higher rate which will inevitably increase your monthly payments. 

Both FHA 203k and Fannie Mae HomeStyle Loans are options, but most homeowners will likely be better off considering a RenoFi Loan.

That is, unless you’ve got a poor credit history.

203k and HomeStyle Loans have a lower credit score requirement than other types of financing, and might be the only available option that lets you borrow against your home’s future value if this applies to you.

An FHA Title 1 Loan, on the other hand, will give you the option to borrow a small amount of capital upfront, with no security beyond a signature or a higher amount when secured against a property. This is great if you only need a small amount of funding, but this will only be useful for small projects, and you will likely need to look elsewhere if you need a higher level of finance.

If you have been considering one of these government-backed loans, take a look at our FHA 203k Loan vs Fannie Mae HomeStyle Loan guide.

A Personal Loan / Home Improvement Loan

Homeowners who are unable to borrow using equity often turn to a personal loan to finance a new roof. Loans advertised as ‘home improvement loans’ are also often considered for this reason.

What many aren’t aware is that these are commonly just high-interest personal loans marketed at homeowners looking to borrow to pay for home improvement projects. What appear to be specialist ‘roof loans’ usually fall into this category, too. 

Homeowners often turn to personal loans because you won’t need to put your home up as collateral, and you should get approved quickly if you are eligible, but they come with their downsides for most projects. 

Interest rates tend to be high, typically between 8% and 15%. And higher interest rates means higher monthly payments. Repayment periods are also usually shorter than other roof financing options. 

That said, if you’re only looking to borrow a small amount of money for a roof repair or smaller roof replacement, this might be your best option, especially when you consider that a RenoFi Loan starts at $20k. 

What’s the Best Way to Finance a New Roof?

The best source of funding for your new roof depends greatly on your circumstances.

In many cases, however, a RenoFi Loan is going to be a great option, whether or not you’ve got sufficient equity available. 

But whatever type of financing you’re considering, you need to make sure you’re thinking about the following:

  • How much is your replacement roof going to cost?
  • Do you have a larger renovation wishlist? 
  • How much money do you need to borrow?
  • How much equity do you have in your home?
  • What’s your credit score and credit history?
  • Do you have any other debt on other loans and credit cards?
  • What is the maximum monthly payment you can afford? 
  • How long do you want to repay the loan over?

Get quotes from a number of different roofing companies to make sure you understand your options and take the time to consider all of your financing options. At the end of the day, going down the wrong route can increase monthly payments considerably or reduce your borrowing power, so finding the option that lets you borrow all of the money you need at the lowest cost is important. 

Reach out to our team today to discover more about how a RenoFi Loan can help you get started on your roof replacement project.

How do I know if a RenoFi Loan is right for my project?

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