Top 10 Hearth FAQs

Top 10 Hearth FAQs

We receive a lot of questions from contractors about our process and product. This blog post has the answers to some of our most commonly asked questions.

Have a question that isn’t answered here? Check out our Help Center for more FAQs!

Why should I offer financing?

If you don’t offer financing, you’re limiting the number of deals you can close. 58% of Americans have less than $1,000 saved. They might need your services — but don’t have the cash on hand to pay for it. By offering them financing, you’re enabling them to receive the funding they need to start the project now and to pay back the funds over time.

Financing can allow homeowners to:

  • Address a “can’t wait” project (like a leaky roof) when they don’t have enough cash on hand to pay for it out of pocket.

  • Enjoy the ease of monthly payments rather than taking a lump sum out of their bank account at once.

  • Have the flexibility to upgrade their project

By offering financing options, you can appeal to these homeowners, expand your customer base, and grow your business -- and your bottom line!  

Is Hearth a bank?

No, Hearth is a software that helps contractors offer personal loans to their clients quickly and easily.

Banks and other financing institutions can take weeks to process and approve a loan application. Homeowners may spend valuable time and energy applying for a bank loan, wait weeks for an answer, and then scramble to find another source of funding if their application is rejected.

With Hearth, homeowners can see their loan options within 60-90 seconds without any effect on their credit score, can apply for the loan right on the lending partner’s website, and receive the funds within 1-3 days.

What is a personal loan?

Personal loans are the financing option that homeowners find through Hearth. With personal loans, homeowners receive the funding upfront and pay it back in monthly payments over a set period of time.

This type of loan doesn’t require any home equity and can be used for any sort of project, whether it’s HVAC, roofing, landscaping, or something else entirely.

What is Profit Protection Financing?

Profit Protection Financing is a type of financing focused on protecting your profits. Because Hearth offers Profit Protection Financing, we don’t charge you any per-loan dealer fees. Instead, every cent you make stays with you.

Other financing companies offer Buy-Down Financing where you, as a contractor, buy down your client’s rates to show them lower rates than they would’ve seen otherwise. You’ll typically be charged about 7-15% of every job: a cost known as a dealer (or merchant) fee. That amount comes out of your profit margin and goes to a third-party financing provider.

The following chart shows you how much you could lose in dealer fees — after just a single job!

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For more information on the different types of financing, check out The Contractor’s Handbook: How to pick the right financing option to grow your business.

What rates can my homeowner expect with Profit Protection Financing?

If you offer Profit Protection Financing through Hearth, your clients can expect to see the following rates. The majority of clients will see options with APRs in the ranges listed below, but some may receive options with lower or higher APRs. Exact rates depend on your client’s financial profile and the lending partner’s unique model.

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Why do the funds go to the homeowner and not to the contractor?

Hearth doesn’t want you to be liable for the loan. If the loan isn’t paid in time or in full, the lending partner will work directly with the homeowner so you don’t have to worry about fielding calls, following up with clients, or managing paperwork.

Why don’t you offer 0% options?

There are a couple of reasons why you won’t find 0% loan options through Hearth.

  1. We don’t want to charge you dealer fees. If you offer homeowners 0% options, you’ll be covering the interest that they would’ve paid. You’ll be charged dealer fees to cover that amount.

  2. We don’t want your clients to be surprised. 0% financing offers usually last only for a promotional period of time before the rates increase. The rates will be dependent on your credit score, but they’ll probably be around the national average, which is currently 17.67%

Here’s an example:

Picture a homeowner wants to take out a $10,000 loan with a 60-month loan term for a project. They have a couple of options:

Option 1: The homeowner finds a financial partner through Hearth who provides a set rate of 13% throughout the duration of the loan.

  • Monthly Payment Amount: $227.53

  • Total Interest Paid on the Loan: $3,346.67

  • Cost to contractor: $0

Option 2: The homeowner finds a financial partner who provides 0% financing for 12 months and 17.67% for the remaining 48 months. The homeowner decides to pay back the entire loan within the 0% promotional period.

  • Monthly Payment Amount: $833.33

  • Total Interest Paid on the Loan: $0

  • Cost to contractor: $1,300

Conclusion: If the homeowner picks Option 1, they will be paying more in interest, but they’ll also be paying $600 less per month than they would if they picked Option 2. With Option 2, the homeowner will be able to pay off the loan within a year and without any interest -- but you might be covering their interest. The 13% interest that they would’ve normally seen may come out of your pocket -- and cost you $1,300 (13% of the $10,000 job).

Why does Hearth have a subscription fee?

Hearth’s annual subscription allows you access to unlimited loans with no dealer fees. We also have other features that allow you to offer financing quickly and easily.

With Hearth you’ll:

  • Save thousands of dollars by not paying dealer fees

  • Be able to offer financing through our mobile app

  • Increase your sales with loans up to $100,000

  • Find loan options for FICO scores as low as 500

  • Know when your client has received their loan

  • Receive your own personalized marketing materials

Do you have a rewards program?

Yes, our Referrals Rewards Program means that you can earn at least $250 for every contractor whom you refer who signs up with Hearth.  Visit this link to join:

Once you fill out the form, you’ll receive an email from a member of our team with steps on how to refer and when to expect your rewards.

If you’re not a contractor yourself but you work with contractors who want to offer financing, you may be a good fit for our Affiliates program! Click this link to learn more:

What support will I receive?

We have a dedicated Customer Success team who are on-hand to answer any questions that you or your homeowners have. The response time will vary based on your subscription plan but will be no more than 48 hours.

Have a question we didn’t answer here? Visit our Help Center for more questions and answers.


*For each self-reported credit score range, pre-qualification rate is calculated by dividing the number of pre-qualified Hearth users by the total number of users who submitted a loan request.

**For pre-qualified Hearth users with this credit score range, our lending partners returned loan options with this range of minimum APRs for the 65% of pre-qualified users with minimum APRs between the 10th and 75th percentiles.

***For example, a loan in the amount of $10,000 for a term of 5 years with an APR of 6.00% would be repaid over 60 monthly payments in the amount of $193.33.

How Marshland Lawn & Pressure Washing secured five new clients in one month by offering financing