WHAT IS THE HELOC OPTION?
Not every customer finances a project the same way. Some prefer a personal loan. Others have something more valuable sitting in their home. That’s where Hearth’s HELOC — Home Equity Line of Credit — comes in.
A HELOC lets homeowners tap into the equity they’ve already built to fund home improvement projects. It’s a revolving line of credit secured by the home itself, which means lower interest rates, higher loan amounts, and better approval odds than most unsecured options. Think of it like a credit card backed by the home — flexible, reusable, and powerful.
For your customers, it’s one of the most affordable financing tools available. For you, it means more closed jobs and fewer projects stalled by budget concerns.
WHY OFFER A HELOC?
Customers with home equity are often your best candidates for larger projects — but they may not realize they have a financing advantage. Introducing the HELOC option early in the conversation shifts the question from “can I afford this?” to “how much can I get done?”
Here’s what makes it worth mentioning to every qualifying homeowner:
Lower Interest Rates — Starting at 6.99% APR, significantly lower than most personal loans or credit cards. Customers keep more money in their pocket month over month.
Higher Loan Amounts — Up to $400,000 or more. Ideal for large-scope projects like full roof replacements, HVAC system overhauls, or multi-phase renovations.
Fixed Monthly Payments — Predictable, structured payments make it easy for homeowners to plan and budget — no surprises, no rate fluctuations to worry about.
Better Approval Odds — Because the line of credit is secured by home equity, customers who might not qualify for large unsecured loans often get approved here.
HOW IT WORKS
1. Pre-Qualification The customer applies through your standard Hearth financing link. A soft credit check is run — no impact to their score. They enter their home value, mortgage balance, and income to view estimated offers, including loan amount, APR, and terms.
2. Full Application If they want to move forward, they complete the full application with personal and property details, link their bank account (or upload documents), and submit a photo ID. A hard credit check is performed at this stage.
3. Review & Sign The customer reviews the final loan offer and all disclosures, then signs the loan agreement electronically.
4. Notarization (If Required) Depending on state requirements, notarization may be needed. This can be done remotely or in person.
5. Funding Once approved and signed, the customer can add a virtual card to their digital wallet immediately. A physical Visa card arrives in approximately 7 business days and can be used anywhere Visa is accepted.
6. Repayment & Reuse Customers make fixed monthly payments and can request additional draws if credit is still available on the line. No prepayment penalties — they can pay it off early at any time.
HOW TO OFFER IT TO YOUR CUSTOMERS
There’s no extra setup required on your end. Send your standard Hearth financing link as you normally would. If a customer qualifies based on their credit profile and property, the HELOC option will appear automatically alongside other financing offers. They select it and apply directly.
Keep in mind: not every customer will see a HELOC offer. It depends on their individual credit profile and whether their property meets the qualification criteria.
Best Practice Tip: Bring up the HELOC option during your financing conversation — especially for larger or multi-phase jobs. It’s an easy way to reframe the budget conversation: instead of asking “how much can you spend?”, you’re asking “how much equity do you have to work with?” For homeowners who’ve been in their house a few years, the answer is often a lot more than they think.
WHERE IT’S AVAILABLE
The HELOC option is available in most states across the U.S. It is currently not available in: South Carolina, Rhode Island, Delaware, Texas, Missouri, Nevada, Hawaii, Massachusetts, or New York.
QUESTIONS? WE’VE GOT YOU.
For questions about a customer’s application, contact Aven directly: Phone: 1-833-380-7212 Email: [email protected]
For general Hearth support: Email: [email protected]
