Best Roof Financing Options in Denver, CO

April 30, 2024

An image of the roof of a residential home.

Roofs have a long lifespan, but they don’t last forever. The average roof lasts 20 – 50 years, and the replacement cost can be staggering. Depending on the type of roof, it could cost $3,000 – $40,000.

Keeping your roof in good shape is especially important for Denver homeowners, with hailstorms striking without warning and the possibility of heavy snow throughout several months of the year. With the high cost of roof repair and replacements, roof financing emerges as a critical lifeline to make roofing projects more affordable.

With the right financing options, you can spread out the cost of a new roof over time, paying it off in monthly installments. The key is understanding your options and comparing them side-by-side to determine which financing option is best for you.

Denver Roofing Companies that offer Financing Options

T-1) Dabella

  • MyHomePros TrustScore™: 9.8/10 (Exceptional)
  • Google Rating: 4.5/5
  • Years in Business: 7
  • Services Offered: Roof install, roof replacement, asphalt shingle roof installations, gutters, gutter replacement, gutter protection systems
  • Hours of Operation: Monday-Friday 7AM-9PM, Saturday 8AM-5PM
  • Address: 6600 E Hampden Ave Denver, CO 80224

T-1) Cenco Roofing

  • MyHomePros TrustScore™: 9.8/10 (Exceptional)
  • Google Rating: 4.9/5
  • Years in Business: 10
  • Services Offered: Roof installation, roof damage, roof inspection, skylight installation, broken roof tiles
  • Hours of Operation: Monday-Friday 7:30AM-4:30PM
  • Address: 4981 E 39th Ave Denver, CO 80207

T-3) Elite Roofing and Solar

  • MyHomePros TrustScore™: 9.3/10 (Exceptional)
  • Google Rating: 4.9/5
  • Years in Business: 15
  • Services Offered: Roof inspection, roof repair, roof installation, roof repair for storm & wind damage, roof coatings, roof financing
  • Hours of Operation:
  • Address: 5475 Peoria St Ste 4-106 Denver, 80239

T-3) Expert Exteriors LLC

  • MyHomePros TrustScore™: 9.3/10 (Exceptional)
  • Google Rating: 4.6/5
  • Years in Business: 10
  • Services Offered: Roof inspection, roof installation, roof repair, roof maintenance, roof replacement, solar, storm restoration, roof financing
  • Hours of Operation: Monday – Saturday 9AM-5PM
  • Address: 3899 Jackson St Denver, CO 80205

T-3) Peak To Peak Roofing & Exteriors, LLC

  • MyHomePros TrustScore™: 9.3/10 (Exceptional)
  • Google Rating: 4.9/5
  • Years in Business: 10
  • Services Offered: Roof damage repair, roof installation, roof inspection, hail and wind damage, preventative maintenance, roofing insurance, solar panels
  • Hours of Operation: Monday – Friday 8AM-5PM
  • Address: 4155 E Jewell Ave #1100 Denver, CO 80222

T-3) Rocky Mountain Roofing and Exteriors

  • MyHomePros TrustScore™: 9.3/10 (Exceptional)
  • Google Rating: 4.7/5
  • Years in Business: 10
  • Services Offered: Roof inspection, roof installation, roof repair, roof repair for wind & storm damage
  • Hours of Operation: Monday-Friday 9AM-5PM
  • Address: 1001 S Monaco St Pkwy #250 Denver, CO 80224

How Much Does it Cost to Replace a Roof? 

The range of roof replacement costs is vast, depending on the material and size of your home. Asphalt shingles are the least costly option but have the shortest lifespan. On average, they cost $3.60 to $6.20 per square foot. Metal roofs are on the most expensive side, with average costs ranging from $7 to $10 per square foot. The actual cost depends on the type of metal. Options include copper, aluminum, steel, and tin. Cedar roofing costs between asphalt and metal roofs, with an average of $4.50 to $9 per square foot, and tile roofing costs an average of $7.60 to $12.20 per square foot.

Types of Roof Financing

If you’re crunching numbers and wondering how you’d ever afford a new roof, check out the roof replacement financing options that may be available to you:

Home Equity Loan

A home equity loan uses your home as collateral and allows you to borrow up to 80% of your home’s value minus any outstanding loans. Some lenders allow you to borrow up to 85% of the home’s value, but this is less common. To determine your home’s equity, first find out your home’s current value. A professional appraiser or Zillow can help you estimate it. Next, multiply the value by 0.80. The answer is the amount you can have outstanding. If you have a first mortgage on the house, subtract its outstanding balance from the number above, and you’re left with how much you may be able to borrow for a new roof. Keep in mind that a home equity loan uses your home as collateral. If you don’t make your payments, you could risk foreclosure To repay a home equity loan, you make monthly installments that include both principal (some of the amount borrowed) and interest. The loan terms on home equity loans are five to 30 years.

Home Equity Line of Credit

A home equity line of credit is another loan that uses your home as collateral but works differently. A HELOC is a line of credit you borrow from your home’s value. Like a home equity loan, you can likely borrow up to 80% of your home’s value minus any existing loans on the property. However, unlike a home equity loan, HELOCs offer a line of credit you can draw on repeatedly. This can work well for homeowners who don’t know the exact cost of their roofing or who need money for other repairs or expenses. Most HELOCs have a draw period that lasts for ten years. This means you can withdraw funds and use them as needed. You’re only required to make interest payments, but you can repay some of the amount borrowed if you can. You can continue reusing the funds (like a credit card) throughout the draw period. When it ends, you enter the repayment period, which requires principal and interest payments to pay off the amount borrowed.

Cash Out Refi

A cash-out refinance is a refinance of your existing mortgage; only this time will you borrow more than you owe. You can add the cost of your roof onto your mortgage amount and receive the difference between your existing loan payoff and the new loan amount to pay for your roof. A cash-out refinance works well if you qualify for a lower interest rate than you pay currently. Depending on your current payment and loan term, you may even save money on your monthly payment and have the money needed to replace your roof.

Government Insured Loan

A few government-insured loan options exist for borrowers with less-than-perfect credit who don’t have other roof financing options. The FHA 203k is one option. This loan has flexible underwriting guidelines and allows you to borrow the cost of home renovations, such as roof replacement, on top of your regular mortgage. The requirements are a little stricter because it’s a government-backed loan, but if approved, it can be a great form of affordable roof financing that doesn’t require perfect credit.

Contractor Financing

Some contractors offer financing options through partnerships with banks and credit card companies. Ask your contractor if they provide roof financing options and compare what they have available. Be sure to read the terms and conditions closely to ensure you understand what they mean.

Credit Card

Roofing usually costs much more than a homeowner’s credit card limit, but if you have a card with a high limit or only need to finance a portion of it, a credit card may help. The only downside is credit cards have high APRs, which increases your cost significantly. If you qualify for a 0% APR card or already own one, consider using it and scheduling your payments so that you pay the balance in full before the rate changes.

Homeowners Insurance or Warranty

If you need roof replacement due to weather or other damages that fall under your insurance coverage, your insurance company may cover the roof replacement cost. Most homeowners must cover a deductible first, but even if it’s a few thousand dollars, that’s much less than the full cost of a new roof.

Tips for Comparing Roof Loans

Before choosing one of the available roof financing options, consider these tips to compare them:

Interest Rates and Fees

Most lenders charge interest when you borrow money for a new roof. Look at the interest rate charged and any fees the lender adds to the cost. Each lender should provide documents showing the loan’s APR, which is the interest rate plus fees. The higher a loan’s APR, the more it costs in the long run. Look for a loan with the lowest APR to minimize costs and pay the loan off the fastest.

Repayment Terms and Flexibility

The repayment term is how long you have to repay the loan. The shorter the term, the less interest you pay, but the higher your monthly payments will be. Ensure you can afford the monthly payment, or inquire about longer terms. They may cost more in the long run, but the monthly payments may be more affordable.

Eligibility requirements and credit score considerations

Be sure you meet the lender’s eligibility requirements, including the minimum credit score requirement. Home equity loans and HELOCs usually require a credit score in the mid-600s or higher. Lenders may have other requirements, too, including a certain income or a maximum debt-to-income ratio, which compares your total monthly debts to your income.

Potential impact on home equity and insurance

Roof financing makes your roof more affordable, but it may have consequences. For example, if you borrow against your home’s equity, it could take a while to earn it back. If you sell the house within the next couple of years, you may have much less cash in hand than you thought. If you file a claim against your insurance because the roof replacement is due to weather damage or other covered peril, it could increase your homeowner’s insurance premiums. Consider talking to your agent before filing the claim to see its effects.

Conclusion

Roof financing may help make a roof more affordable because you can spread the payments over several months or years. There are various options to finance a roof, but each has different requirements, payments, and overall costs. The Denver climate requires a solid roof to protect your home from the elements, so financing a roof often makes financial sense, but ensure you choose the most feasible option for your financial situation.

FAQs

What credit score is needed for a roof?

The type of roof financing you choose determines the required credit score. On average, most loans require a credit score in the mid-to-high 600s. Of course, the higher your credit score, the better your chances of approval.

Can you finance a roof in Denver?

There are many options for new roof financing in Denver. The key is determining what you qualify for, whether financing against your home, a credit card, or contractor financing.  

My Home Pros TrustScore™ Methodology

At My Home Pros, we understand that finding reliable home service providers is crucial for homeowners. To help you make the most informed decisions, we developed the MyHome Pros TrustScore™ — a comprehensive rating system designed to gauge the reliability and quality of companies listed on our platform. This score is calculated using a combination of factors that reflect a company’s performance, customer satisfaction, and overall business integrity. While we keep the specific metrics and the calculation confidential to maintain fairness and prevent manipulation, we assure you that each component is chosen based on its relevance and importance to consumers. The My Home Pros TrustScore™ is our commitment to providing you with a transparent, trustworthy way to evaluate home service professionals, empowering you to choose with confidence.

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