Financing a new roof can be intimidating, and it can often come as a surprise to homeowners. While there are certainly cases in which you’ve planned and saved for a roof replacement, it’s not unusual to be caught off guard when a roofer recommends replacement.

Fortunately, there are quite a few financing options available to homeowners who are in this predicament. If you don’t want to drain your savings or max out your credit card, multiple types of loans are available to help you complete your roof replacement promptly.

Here’s what you need to know about the various roof loan options available to you and how to determine the best choice for your roof replacement.

Types of Roof Loans

Roof loans come in a few different shapes and sizes, and finding the right one for you is the first step before you can contact a lender and get your renovation started. In today’s day and age, it’s easy to get a quick turnaround on a loan approval as long as you have the information needed for the application.

A Home Equity Loan or Line of Credit (or HELOC)

A home equity loan or line of credit allows you to borrow against the equity you have built up in your property, so if you have a good amount of equity in your home or you’ve been in it for some time, these may be good options. It can also be an ideal choice if you have poor credit.

With a home loan, you can count on fixed interest rates and payments, however a HELOC means opting for fluctuating rates and payments. Another upside: you can draw the funds gradually rather than dealing with a large sum.

Construction Loan

While construction loans are more often used for ground-up whole-house construction, it is possible to use them for renovation projects. However, they can come with extensive inspection requirements. You also don’t usually get all the money upfront—this may or may not be a deciding factor for you, but it’s worth being aware of.

FHA Title I Loan or FHA 203k Loan

These government-insured loans require lower minimum credit scores than some of the other roof financing options. An FHA 203k loan can cover costs of at least $5,000 and allows you to refinance your existing home, rolling the costs for the roof replacement into the new mortgage.

A second option is an FHA Title I Loan. These have fixed interest rates and are designed for both small and large home improvement projects. Loans under $7,500 are unsecured, but any loans above that amount are secured by a mortgage or deed of trust on the property.

Personal Loan

Personal loans, sometimes marketed as “home improvement loans” are a great option if you don’t want to put your house up as collateral. They can also offer faster approval, and money upfront for your roof replacement project. Both short-term and long-term loans are available, and while short-term loans have lower payments, they also typically have lower interest rates, so it’s worth sticking with a short-term loan if you have the funds for it.

Roof Loans at Approved Mortgage

If you’re looking for a lender for your roof replacement in Indianapolis, our team at Indy Roof & Restoration often recommends Approved Mortgage. They are one of the largest and oldest locally-owned mortgage bankers in Central Indiana, having funded over 6.5 billion Indiana families. They offer a variety of loan options and have an in-house underwriting staff that allows for same-day approvals.

Approved Mortgage accolades include:

  • Zillow® 5-star lender
  • Top 20 broker by Expertise®
  • Ranked in the Top 25 Best Small-Company Cultures by®
  • A+ Better Business Bureau rating

To apply for a roof loan or get more information, visit or call (317) 882-2255.

How to Apply for a Roof Loan

Once you’ve determined which roof financing option is best for you, here’s how to make it happen.

Step-by-Step Roof Loan Process:

  1. Get a quote from your roofer
  2. Determine how much you can afford to pay each month
  3. Pre-qualify and compare options
  4. Gather the documentation you need to apply
  5. Apply for your roof loan

Best Roof Replacement in Indianapolis

Our expert roofing team at Indy Roof & Restoration is dedicated to walking you through the entire roof replacement process from start to finish. We pride ourselves on friendly service and educating our customers so they can make the best decision for their home. Whether you’ve recently suffered storm damage and you’re working with an insurance provider to fix your roof, or you’re completing this home renovation on your own budget, we have experience working with a variety of situations for countless Indianapolis residents.

For more information about roof replacement or roof financing options, please contact our team at Indy Roof & Restoration today for a free quote.

Aaron Christy

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