Detailed Answer
The majority of reputable roofing contractors offer financing options, though the terms vary widely between companies.
Typical contractor payment plan structures include:
- Same-as-cash plans: 0% APR for 12-18 months. Pay the full balance before the promotional period ends to avoid retroactive interest. This is the best deal if you can pay it off in time.
- Low monthly payment plans: 7-15% APR for 3-10 year terms. Monthly payments range from $120-$250 for a typical $12,000 project.
- Deferred payment: Some contractors allow 30-90 day deferred start on payments.
Most contractor financing works through third-party lenders like GreenSky, Mosaic, Service Finance, or Synchrony. The contractor submits your application, you get a decision in minutes, and the lender pays the contractor directly.
Approval requirements typically include:
- Credit score of 600+ (some lenders accept 580+)
- Verifiable income
- Debt-to-income ratio under 43%
Important things to watch for:
- Deferred interest traps: If you do not pay the full balance during the 0% period, interest is charged retroactively from day one at 22-26% APR
- Dealer fees: Some contractors mark up the project cost 5-15% to cover lender fees
- Prepayment penalties: Verify there are none before signing
Always compare contractor financing against a personal loan or HELOC. Sometimes the direct lender rate is significantly better.