Contractors know the frustration—homeowners love your proposal but hesitate when they see the price tag. Traditional financing often falls short, leaving money on the table and jobs unfinished. Hearth’s newest HELOC offering changes that equation entirely.
This new financing option gives your customers access to lower interest rates, longer repayment terms, and significantly larger loan amounts. More importantly, it gives you the tools to win higher-value contracts without cutting your margins or compromising your profitability.
Why HELOCs Matter for Your Business
A Home Equity Line of Credit (HELOC) lets homeowners borrow against their home’s equity—usually at better rates and with higher limits than personal loans, since the home is used as collateral. And with Hearth’s new HELOC option, the process is faster and easier than traditional HELOCs. There are no in-person appraisals, no application or appraisal fees, and funding can happen in as little as 3–7 days. Customers can choose between a fixed-rate HELOC or a flexible HELOC-backed Visa card that earns 2% cashback. It’s a smarter way to unlock bigger budgets and help more homeowners say yes without asking you to lower your price.
Let’s say a homeowner wants a $40,000 kitchen renovation but only qualifies for a $15,000 personal loan at 18% interest. With Hearth’s HELOC option, that same homeowner could access the full $40,000 at rates starting as low as 6.99%. The monthly payment drops, and suddenly your full proposal becomes affordable.
This isn’t just about one job—it’s about leveling up your approach to larger projects. Roofing companies are using HELOCs to sell premium materials instead of basic shingles. HVAC contractors are upgrading customers to high-efficiency systems with smart home integration. Kitchen remodelers are keeping projects intact instead of cutting corners to meet budget constraints.
How the New HELOC Process Works
The application process is straightforward and designed to get your customers funded quickly:
Step 1: Customer Prequalification
Customers use your personalized Hearth financing link to prequalify. They’ll now see three financing options: personal loans, 0% promotional credit cards, and HELOCs. Our system automatically presents the best options based on their financial profile.
Step 2: Lender Connection
Once prequalified for a HELOC, customers connect directly with the lender to complete their application. This step involves income verification, home valuation, and final underwriting—but it happens much faster than traditional HELOCs.
Step 3: Access to Funds
Approved customers receive a credit line they can access as needed. Unlike a lump-sum loan, they only pay interest on what they actually use. This flexibility often makes the financing more attractive to cautious homeowners.
The entire process typically takes one week from application to funding—3X faster than conventional HELOCs that can drag on for months.
HELOC Qualification Requirements
Your customers need to meet specific criteria to qualify for HELOC financing:
Basic Requirements:
- U.S. residents using their primary residence
- FICO or VantageScore of 640 or higher
- Verifiable income
- Have equity in the home (loan-to-value under 89%)
- All applicants and co-owners must be 18 or older
- Available in most states, with a few exclusions: CT, DE, GA, HI, ID, IN, MD, MA, MO, MT, NV, NY, RI, SC, TX, VT, WA, and WV.
Additional Considerations:
- Second homes or investment properties have extra requirements
- Lines over $100,000 require proof of homeowner’s insurance
- Valid government-issued ID required for all signers
The prequalification automatically generates offers based on income, homeownership, credit score, and existing debt obligations. This means customers see realistic options upfront rather than getting surprised by qualification issues later in the process.
Key Benefits That Drive Sales
The advantages of Hearth’s HELOC option create game-changing selling points for your estimates:
Lower Interest Rates: Starting at 6.99% APR, these rates typically beat personal loans by significant margins. Lower monthly payments make larger projects affordable for more homeowners.
Higher Loan Amounts: Customers can access up to $250,000, depending on available home equity. This opens the door for larger projects without budget limitations.
Flexible Fund Access: The HELOC works like a credit card—customers draw funds as needed rather than taking a lump sum. They only pay interest on the amount actually used, which reduces their financial commitment.
No Prepayment Penalties or Annual Fees: Customers can pay off balances early without additional fees, giving them financial flexibility and peace of mind.
Fixed and Variable Rate Options: Customers can choose the rate structure that best fits their financial planning, with APRs ranging from 6.99% to 15.49%.
Getting Started with HELOC Financing
Getting started is straightforward—your existing Hearth financing link automatically includes HELOC options for qualifying customers. There’s no additional setup, no new processes to learn, and no dealer fees to worry about.
The key is positioning this option correctly with your customers. Focus on monthly payment affordability rather than total loan amounts. Emphasize the flexibility of drawing funds as needed, and highlight the speed of approval compared to traditional HELOCs.
Concierge Service: We Handle the Heavy Lifting
HELOCs can offer better rates and bigger budgets—but for many homeowners, the process is new territory. It involves a few more steps than a personal loan, and that can create confusion or hesitation. That’s where Hearth’s Concierge service comes in.
With Concierge, you don’t have to explain HELOCs, field questions about paperwork, or follow up on funding. A dedicated Hearth rep steps in to guide your customer every step of the way—from prequalification all the way to approved funding.
What Concierge Handles:
- Reviews prequalification results with your customer, including HELOC-specific options
- Clearly explains the HELOC process—what’s required, how it works, and why it’s beneficial
- Assists with document collection and uploads (e.g., income verification, insurance)
- Coordinates with the lender and answers any questions your customer may have
- Provides regular updates so you stay informed every step of the way
Contractors who use Concierge see double the funding success rate and much faster turnaround times—especially when homeowners are exploring HELOCs for the first time.
Offering next-level financing has never been easier. Just share your Hearth link—our Concierge team will take it from there. Want help getting started or positioning HELOCs with your customers? Talk to a team member today to get started with Concierge.
Note: this is not a requirement to offer HELOC options to your homeowners.
Make Financing Your Competitive Edge
Access to better financing options fundamentally changes how you can approach customer conversations. Instead of wondering whether a homeowner can afford your services, you can focus on providing the right solution for their needs.
The contractors already using Hearth’s HELOC option report significant improvements in close rates and average project values. They’re winning jobs they would have lost to financing constraints and keeping project specifications intact instead of cutting features to meet budget limits.
This financing option works best when integrated into your sales process from the beginning. Present financing alongside your project proposals, not as an afterthought when customers express price concerns.
Talk to a team member today to learn how Hearth’s HELOC option can transform your sales process and help you win more business at the prices your services deserve.
