Guide · 2026
Roof financing
How can I pay for a new roof?
The main options are a home equity line or loan (national averages 7.28% and 8.39%), a personal loan (11.86% average APR at banks), an FHA Title I loan of up to $25,000, or contractor financing. There is no federal tax credit for roofs installed in 2026.
Monthly payment on a typical roof
A typical architectural shingle replacement on a 2,000 sq ft single-story home is $17,967 at US-average labor (new roof cost). Borrowing all of it at the published average rates:
| Option | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| Personal loan Federal Reserve G.19, 24-month personal loans at commercial banks, Q2 2026 | 11.86% | 2 yr | $845 | $2,303 |
| HELOC Bankrate national average, September 23, 2026 (variable) | 7.28% | 10 yr | $211 | $7,379 |
| Home equity loan (5-year) Bankrate national average, September 23, 2026 | 8.39% | 5 yr | $368 | $4,093 |
Payments are standard amortization at the average rate shown; your rate depends on credit, equity and lender. A HELOC rate is variable.
Your options
- HELOC or home equity loan. Usually the lowest rates, because the home is the collateral. The FTC warns that if you don't repay, the lender can take your home.
- Personal loan. Unsecured, with higher rates.
- FHA Title I property improvement loan. HUD-insured, from approved lenders: up to $25,000 for a single-family home, secured by the property above $7,500, terms up to 20 years and 32 days.
- Contractor financing. Convenient, but compare it. The FTC's advice: never agree to financing through your contractor without shopping around and comparing loan terms.
- Insurance. If the roof was damaged by hail or wind, a claim may pay part of the cost: roof insurance claims.
Grants and assistance
- USDA Section 504 Home Repair (rural areas): loans up to $40,000 fixed at 1% for 20 years; grants up to $10,000 for homeowners aged 62 or older with very low income, to remove health and safety hazards. Loans and grants combine up to $50,000. Grants must be repaid if the home is sold within 3 years.
- Weatherization Assistance Program (DOE): energy-efficiency work, including some necessary repairs, for households at or below 200% of the poverty guidelines. The Program Year 2026 limit is an average of $8,813 per home across the program, not a set grant to each household.
Tax credits: none for 2026
The IRS states that the 25C energy efficient home improvement credit will not be allowed for any property placed in service after December 31, 2025, and the 25D residential clean energy credit will not be allowed for any expenditures made after December 31, 2025. For 25D, an installation completed after that date counts as made after it. Ordinary roofing was not on the 25C list of qualifying items; solar shingles qualified under 25D until it ended.
Sources for the figures on this page
Loans and rates
- eCFR, 24 CFR 201.10 Loan amounts (retrieved via eCFR API, version 2026-09-01), retrieved 2026-09-28:
(i) Single family property improvement loans—$25,000, except that a loan for a manufactured home that qualifies as real property shall be limited to $17,500.
- HUD, Allowable Loan Parameters, Title I Property Improvement Loans (Word doc; source 24 CFR 201.10 and 201.11) (page dated 2016-05-24 (document last saved)), retrieved 2026-09-28:
A Title I Property Improvement loan amount is limited to the lesser of the actual cost of the improvement project, plus any applicable fees that are permitted under section 24 CFR 201.25(b), or the tables below. [...] One$25,000$7,500 6 months 20 years and 32 days
- HUD, Title I Insured Programs, retrieved 2026-09-28:
Any loan or combination of outstanding balances of Title I loans that exceed $7,500 must be secured against the subject property. No prepayment penalty.
- Federal Reserve, G.19 Consumer Credit (release date September 8, 2026), Terms of Credit table (page dated 2026-09-08), retrieved 2026-09-28:
Personal loans 24-month 9.38 9.87 11.87 12.27 11.50 11.57 11.14 11.63 11.36 11.86 11.86 n.a. n.a.
- Federal Reserve, G.19 notes (page dated 2026-09-08), retrieved 2026-09-28:
Interest rates for new-car loans and personal loans at commercial banks are simple unweighted averages of each bank's most common rate charged during the first calendar week of the middle month of each quarter.
- Bankrate, HELOC rates (page dated 2026-09-28), retrieved 2026-09-28:
The national average HELOC interest rate is 7.28% as of September 23, 2026, according to Bankrate’s latest survey of the nation’s largest home equity lenders.
- Bankrate, HELOC rates (page dated 2026-09-28), retrieved 2026-09-28:
HELOC 7.28% 3.99% - 11.60%
- Bankrate, Home equity loan rates (page dated 2026-09-28), retrieved 2026-09-28:
The national average home equity loan interest rate is 8.39% as of September 23, 2026, according to Bankrate’s latest survey of the nation’s largest home equity lenders.
- Bankrate, Home equity loan rates (page dated 2026-09-28), retrieved 2026-09-28:
5-year home equity loan 8.39% 6.00% - 10.34% 10-year home equity loan 8.49% 6.25% - 10.50% 15-year home equity loan 8.46% 6.51% - 10.75%
- FTC Consumer Advice, Home Equity Loans and Home Equity Lines of Credit, retrieved 2026-09-28:
If you do this, you’re using your home as collateral to borrow money. This means if you don’t repay the outstanding balance, the lender can take your home as payment for your debt.
- FTC Consumer Advice, How To Avoid a Home Improvement Scam, retrieved 2026-09-28:
Never agree to financing through your contractor without shopping around and comparing loan terms.
- FTC Consumer Advice, How To Avoid a Home Improvement Scam, retrieved 2026-09-28:
He offers a deal to install a new roof or remodel your kitchen. He says he can arrange financing through a lender he knows.
Grants
- USDA Rural Development, Single Family Housing Repair Loans & Grants (page dated 2026-09-22 (page metadata dateModified)), retrieved 2026-09-28:
Maximum loan is $40,000 Maximum grant is $10,000 Loans and grants can be combined for up to $50,000 in assistance
- USDA Rural Development (page dated 2026-09-22), retrieved 2026-09-28:
Loans are termed for 20 years Loan interest rate is fixed at 1%
- USDA Rural Development (page dated 2026-09-22), retrieved 2026-09-28:
For grants, be age 62 or older and have a household income that does not exceed the very low limit by county
- USDA Rural Development (page dated 2026-09-22), retrieved 2026-09-28:
Loans may be used to repair, improve or modernize homes or remove health and safety hazards Grants must be used to remove health and safety hazards
- USDA Rural Development (page dated 2026-09-22), retrieved 2026-09-28:
Grants have a lifetime limit of $10,000 Grants must be repaid if the property is sold in less than 3 years
- DOE Weatherization Program Notice 26-1 (issued July 9, 2026) (page dated 2026-07-09), retrieved 2026-09-28:
Therefore, the adjusted average expenditure limit for PY 2026 is $8,813.
- DOE WPN 26-1 (page dated 2026-07-09), retrieved 2026-09-28:
Through this separately appropriated fund, WAP addresses necessary repairs (e.g., health and safety issues, structural repairs) in dwellings and reduces the frequency of deferrals of homes eligible for weatherization services.
- DOE, How to Apply for Weatherization Assistance, retrieved 2026-09-28:
Households at or below 200% of the poverty income guidelines or that receive Supplemental Security Income are considered under DOE guidelines as eligible for weatherization services.
- DOE, Weatherization Assistance Program, retrieved 2026-09-28:
The program supports 8,500 jobs and provides weatherization services to approximately 32,000 homes every year using DOE funds.
Federal tax credits (IRS)
- IRS FS-2025-05 (Aug. 21, 2025), FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (OBBB) (page dated 2025-08-21 (fact sheet issue date)), retrieved 2026-09-28:
25C Energy efficient home improvement credit The credit will not be allowed for any property placed in service after December 31, 2025.
- IRS, Energy Efficient Home Improvement Credit (page dated 2026-04-28), retrieved 2026-09-28:
You can claim the credit for improvements made through December 31, 2025.
- IRS, Energy Efficient Home Improvement Credit (page dated 2026-04-28), retrieved 2026-09-28:
Beginning Jan. 1, 2023, the credit equals 30% of certain qualified expenses, including: Qualified energy efficiency improvements installed during the taxable year Residential energy property Home energy audits
- IRS FS-2025-05 (Aug. 21, 2025) (page dated 2025-08-21 (fact sheet issue date)), retrieved 2026-09-28:
25D Residential clean energy credit The credit will not be allowed for any expenditures made after December 31, 2025.
- IRS FS-2025-05, Q7 (page dated 2025-08-21 (fact sheet issue date)), retrieved 2026-09-28:
If installation is completed after December 31, 2025, the expenditure will be treated as made after December 31, 2025, which will prevent the taxpayer from claiming the section 25D credit.
- IRS, Residential Clean Energy Credit (page dated 2026-07-04), retrieved 2026-09-28:
The credit is not available for any property placed in service after December 31, 2025.
- IRS, Residential Clean Energy Credit (page dated 2026-07-04), retrieved 2026-09-28:
For example, roof trusses and traditional shingles that support solar panels don't qualify, but solar roofing tiles and solar shingles do because they generate clean energy.
- IRS, Instructions for Form 5695 (2025), retrieved 2026-09-28:
These solar roofing tiles and solar roofing shingles can qualify for the credit. This is in contrast to structural components such as a roof's decking or rafters that serve only a roofing or structural function and thus do not qualify for the credit.
Rates change weekly; the ones here are the dated averages quoted above. This page is general information, not financial or tax advice. Written by the Thomas Town Digital editorial team. We match homeowners with roofers; we do not roof.
Roof financing questions
How can I finance a new roof?
The usual options are a personal loan, a home equity line of credit (HELOC), a home equity loan, an FHA Title I property improvement loan, or financing arranged by the contractor. Low-income rural homeowners may qualify for USDA Section 504 repair loans and grants.
What credit options have the lowest rates?
Loans secured by your home usually cost less: Bankrate's national averages on September 23, 2026 were 7.28% for a HELOC and 8.39% for a 5-year home equity loan, against an 11.86% average APR for 24-month personal loans at banks (Federal Reserve, Q2 2026). The trade-off is that the lender can take the home if you do not repay.
Is there a tax credit for a new roof in 2026?
No. The IRS says the 25C energy efficient home improvement credit is not allowed for property placed in service after December 31, 2025, and the 25D residential clean energy credit (which covered solar shingles) is not allowed for expenditures made after December 31, 2025.
What is an FHA Title I loan?
A HUD-insured property improvement loan. For a single-family home the maximum is $25,000; any amount over $7,500 must be secured by the property, and terms run up to 20 years and 32 days.
Are there grants for roof replacement?
USDA Section 504 offers rural homeowners repair loans up to $40,000 at a fixed 1% for 20 years, and grants up to $10,000 for homeowners aged 62 or older with very low income, to remove health and safety hazards.