Roofing Customer Financing Compared: GreenSky, Service Finance, Ygrene, and FinanceIt

Offering financing at the kitchen table closes 15% to 30% more deals than companies that do not. It also creates a new line item: dealer fees that range from 3% to 10% of contract value. This guide compares the four programs most roofing companies encounter, GreenSky, Service Finance, Ygrene (PACE), and FinanceIt, on rate ranges, approval rates, dealer fees, and operational fit.

Why Financing Matters

The average residential roof replacement runs $12,000 to $30,000. The average US household cannot write that check without stress. Financing removes the "I need to talk to my spouse about the money" objection and replaces it with a monthly payment conversation:

• A $22,000 roof at 0% for 12 months is $1,833 a month.
• The same roof at 9.99% for 84 months is $365 a month.

Customers almost always choose based on the monthly payment, not the APR. That is the actual sales tool.

The Four Major Players

ProgramRate RangeTypical ApprovalDealer FeeTerm GreenSky0% to 17.99%50% to 60%3.99% to 9.99%12 to 144 months Service Finance0% to 17.99%55% to 65%3% to 9%12 to 180 months Ygrene (PACE)5.99% to 9.99%70% to 85%3% to 6%5 to 30 years FinanceIt0% to 29.99%45% to 55%4% to 10%12 to 180 months

Numbers are directional and vary by dealer tier, state, and promotional cycle.

GreenSky

The most widely used program in home improvement. Strong promotional rates, decent approval on 680+ FICO, and a homeowner app that most customers already recognize. Dealer fees on 0% 12-month promos usually run 6% to 9%, meaning on a $20,000 job you net $18,200. The fee is often worth it because the 0% promo drives closing.

Limitations: lower approval rates on 640 to 680 FICO compared to Service Finance, stricter underwriting on stated income.

Service Finance

GreenSky's main competitor, owned by Truist. Comparable promotional rates, slightly higher approval in the 640 to 680 FICO band, and a strong dealer portal with batch funding. Popular with roofers because their reduced-interest promotional products (9.99% for 120 months) carry lower dealer fees than GreenSky's equivalent, often 3% to 5%.

Limitations: smaller consumer brand presence, which sometimes requires more explanation at the table.

Ygrene and PACE Financing

Ygrene is Property Assessed Clean Energy (PACE) financing, which attaches the financing to the home's property tax bill rather than to the customer's credit report. Key differences:

• Approval is based on home equity, not FICO. Customers with 580 FICO frequently qualify if they have 20% equity.
• Rates are higher (5.99%+) because there is no promo math.
• Repayment is on the property tax bill for 5 to 30 years.
• Mortgage issues: PACE liens sit in first position, which has caused friction with FHA/VA loans and some refinances.

PACE works well for older homeowners with paid-off or low-mortgage homes. It is regulated state-by-state. Available in Florida, California, Missouri, and a handful of others.

FinanceIt

Popular in Canada and gaining share in the US. Flexible rate table, strong digital application experience, and approval decisions typically in under 60 seconds. Approval rates trail GreenSky and Service Finance in the US mainstream band but are competitive for 720+ FICO.

How Dealer Fees Work

A dealer fee is what the lender charges the contractor to buy down the consumer rate. A 0% for 18 months promo to the customer might cost the contractor 8% of the principal. On a $20,000 job:

• Gross contract: $20,000
• Dealer fee: $1,600 (8%)
• Net funded: $18,400

You have two options:

1. Eat the fee and reduce margin by 8 points.
2. Mark up the financed price by the fee amount (contract at $21,700 instead of $20,000).

Most reputable companies pick option 2, transparently. It is disclosed in most state consumer lending laws and is standard industry practice. Check your specific state regulations because some require dealer fee disclosure to the consumer.

Operational Fit

Not every roofing company should carry all four. Most operators running $1M to $10M in revenue settle on two:

• GreenSky or Service Finance for prime and near-prime credit.
• Ygrene or a subprime option for credit under 650.

Carrying more adds salesperson complexity and dilutes volume, which hurts your dealer tier and fee structure.

Approval Rate Optimization

Approval rates are lower than most salespeople expect. Ways to improve:

• Pre-qualify before the appointment. Soft-pull at the lead stage catches obvious fails.
• Offer two tiers of financing in parallel, prime and subprime, so a decline on GreenSky can roll to Ygrene same day.
• Split the application between spouses when one has better credit.
• Train salespeople to collect income documentation at the table, not 48 hours later.

Regulatory Watch

Consumer finance regulation is tightening. The CFPB has increased scrutiny on dealer fee disclosure. Some states (California, Colorado) now require specific financing disclosures. A few cities have restricted PACE financing to specific use cases. Check with a lawyer or your state contractor association before launching financing in a new market.

Inside RoofKnockers

RoofKnockers lets you run financing applications from the estimating and proposal screens, with split-application logic and pre-qualification tags on every lead. When a customer pre-qualifies for $25,000 before the appointment, your close rate jumps by double digits. See our cash flow and chargebacks guides for how financing fits your payments ecosystem.

Bottom Line

Offer two financing options, one prime and one PACE or subprime. Understand dealer fees and price them into the contract transparently. Pre-qualify customers before the pitch. Keep your dealer tier high by running clean application flow. Financing is the single highest-leverage sales tool in residential roofing, and it is the fastest path to winning deals against competitors who still expect customers to write $20,000 checks.