Roof Financing in California: Your Options
Most homeowners pay for a new roof in one of four ways: savings, a loan secured by the house (a home equity loan, a home equity line of credit or a cash-out refinance), an unsecured loan or financing arranged through the contractor, or a PACE assessment added to the property tax bill. What separates them is what secures the debt, how it's repaid and which protections apply. Federal law gives you until midnight of the third business day to cancel most loans secured by your home, and California gives you three business days, or five for a senior citizen, to cancel a contract signed at home. PACE needs the closest look: it's repaid through your property taxes, it can keep an FHA or Fannie Mae mortgage off the table when you sell or refinance, and Los Angeles County no longer runs its own residential PACE program. This page explains how the options work; it isn't financial advice, and the terms of any loan are the lender's.
The main ways to pay, side by side
The options differ less in name than in what the lender can take if payments stop.
| Option | What secures it | How it's repaid | Rules to know |
|---|---|---|---|
| Savings | Nothing | Up front, often in stages under the contract | California caps the down payment on a home improvement contract; see the contractor guide below |
| Home equity loan or line of credit | Your home | Monthly payments to the lender | Right to cancel until midnight of the third business day after closing, when the loan is secured by your principal home |
| Cash-out refinance | Your home, as a new first mortgage | Monthly mortgage payments | Rescission rules differ for a refinance with the same lender |
| Unsecured loan or credit card | Nothing, or your credit | Monthly payments | Standard loan disclosures |
| Financing through the contractor | Depends on the lender; ask whether it puts a lien on the home | Monthly payments | The contract has to show the finance charge separately from the contract price; three or five business days to cancel if signed at home |
| PACE assessment | A tax assessment on the property, typically ahead of the mortgage | With your property taxes | State-licensed administrator, an oral confirmation of key terms before you sign, and an ability-to-pay check before any work |
The down payment cap and the other rules for the roofing contract itself are in how to choose a roofing contractor in California. Whether insurance pays depends on what damaged the roof and on the roof's age; see roof age and home insurance. How a new roof is treated for federal taxes is in is a new roof tax deductible?.
Your rights to cancel
- A loan secured by your home. Under the federal Truth in Lending rules, when a loan or a credit line is secured by your principal dwelling, you can rescind until midnight of the third business day after closing, delivery of the rescission notice or delivery of all the required disclosures, whichever comes last (Regulation Z, 12 CFR 1026.23 for loans and 1026.15 for credit lines). The right doesn't apply to a mortgage used to buy the home, and a refinance with the same lender is covered only for any new money.
- A contract signed at home. If the roofing contract is a home solicitation contract, signed at your home, California lets you cancel until midnight of the third business day after you sign, or the fifth business day if you're a senior citizen as the law defines it (Civil Code 1689.6), and the contract has to tell you so (1689.7).
- The finance charge in writing. A home improvement contract that includes financing has to show the finance charge, in dollars and cents, separately from the contract price (Business and Professions Code 7159(d)(6)).
PACE: what to know first
PACE (Property Assessed Clean Energy) financing is repaid through an assessment on your annual property tax bill. California's financial regulator, the Department of Financial Protection and Innovation (DFPI), warns that it isn't a free government program, that the added assessment can raise your property taxes substantially, and that a homeowner who can't pay them could lose the home through foreclosure. It also notes that a signed PACE contract is difficult to void.
- What it can pay for. California's PACE law is aimed at energy efficiency, renewable energy and water efficiency improvements permanently fixed to the property (Streets and Highways Code 5898.12). A roof is financed only if the program lists it as an eligible improvement, so ask the administrator before you plan on it.
- State protections. PACE program administrators have been licensed and regulated by the DFPI since 2019. Before you sign, the administrator has to confirm the key terms with you orally, and before any work starts it has to determine from your financial documents that you can reasonably afford the payments.
- Federal protections. Since March 1, 2026, PACE financing has been covered by the federal ability-to-repay rule for mortgages, and a PACE transaction can't be a qualified mortgage (Regulation Z, 12 CFR 1026.43).
- Selling and refinancing. PACE assessments typically take priority over a previously recorded mortgage. Fannie Mae won't buy a mortgage on a property with an outstanding PACE loan that has that priority, and a property that will remain encumbered with a PACE obligation isn't eligible for FHA mortgage insurance; for an FHA purchase, the sales contract has to require the seller to pay the PACE obligation off at or before closing. If the house is sold with PACE still on it, the obligation stays with the property and the new owner.
- Los Angeles County. The county no longer administers a residential PACE program of its own and supports existing participants. If someone offers you PACE, check the contractor's license with the Contractors State License Board and the administrator's license with the DFPI before you sign.
Before you sign any roof financing
- Read the roofing contract and the financing as two documents, even when they're signed the same day.
- Find the total cost over the full term and what secures it.
- Note the date your right to cancel ends.
- Make sure the roofing scope is in writing first; the lines it should name are in hidden costs in a roofing quote.
Frequently asked
Can I pay for a roof through my property taxes in Los Angeles?
Will PACE make it harder to sell or refinance my home?
Can I cancel roof financing after I sign?
Does homeowners insurance pay for a new roof?
Is this financial advice?
Related reading
Sources & methodology
Code sections, rules and figures on this page come from the primary sources below. Codes, local requirements and product terms change; each was verified October 7, 2026.
- California Department of Financial Protection and Innovation, Property Assessed Clean Energy (PACE)
- Los Angeles County ISD, Find Information About the LA County PACE Program
- Consumer Financial Protection Bureau, Residential Property Assessed Clean Energy Financing (Regulation Z), final rule, 90 FR 2434, effective March…
- Electronic Code of Federal Regulations, 12 CFR 1026.43, 1026.23 and 1026.15
- U.S. Department of Housing and Urban Development, Single Family Housing Policy Handbook 4000.1, update of August 12, 2026 (redline)
- Fannie Mae Selling Guide, B5-3.4-01, Property Assessed Clean Energy Loans (October 8, 2025)
- California Streets and Highways Code §5898.12
- California Civil Code §1689.6 and §1689.7 (home solicitation contracts)
- California Business and Professions Code §7159 (home improvement contracts)
We'll give you the written scope and price to take to any lender
Call (323) 844-7777. We inspect the roof and give you a written scope and price, which is what a lender or a PACE administrator will ask to see. Have ready the address, the roof type, and any quotes you already have.
Prepared by Cali Energy, October 7, 2026. This article is for general educational purposes only and is not legal, tax, financial, engineering, or utility advice. Rates, incentives, codes, permit requirements, equipment specifications, prices, and program terms may change; figures and timelines are estimates, not guarantees. Confirm current requirements with the applicable utility, AHJ, program administrator, manufacturer, or a licensed professional. See our Content Disclaimer. Cali Energy · 19201 Parthenia St, Unit E, Northridge, CA 91324 · CSLB #1032379 (B, C-10, C-39)