What is Hearth Financing?

Hearth Financing is a consumer financing platform specifically designed for home improvement projects. It addresses the gap between "I have cash" and "I'll take out a HELOC" for homeowners who want to preserve equity or move quickly.

How Hearth works:

1. Soft credit pull — pre-qualification doesn't affect credit score.
2. Pre-qualification — minutes online, provides a rate estimate.
3. Hard pull on formal application — once you choose a term and accept.
4. Funding — typically 2-7 business days after acceptance.
5. Unsecured — no home equity or lien.

Typical 2026 terms:

• Loan range: $1,000 to $250,000.
• APR starting at 7.99% (varies by credit and term).
• Terms: 1-12 years typical.
• Minimum FICO: 550 (better rates at 680+).
• No prepayment penalty.
• Fixed monthly payments.
• Funding: 2-7 business days.

Hearth vs HELOC comparison:

| Feature | Hearth | HELOC | |---|---|---| | Collateral | None | Home | | Rate | Fixed | Variable | | Funding speed | 2-7 days | 2-8 weeks | | Closing costs | None typical | $500-$3,000 | | Minimum credit | 550 | 680+ typical | | Tax-deductible | No | Maybe (if used for home improvement) |

When Hearth makes more sense than HELOC:

• You don't have sufficient home equity (bought recently, no equity yet).
• You want speed (HELOC underwriting takes weeks).
• You don't want home as collateral.
• Your credit is below HELOC threshold.
• Project is smaller ($5K-$60K range).

When HELOC makes more sense:

• You have substantial home equity.
• You want variable-rate flexibility or to draw over time.
• You want the tax deduction.
• You can wait 2-6 weeks for underwriting.

Hearth details:

• Minimum credit — 550 FICO, but most approvals happen at 620+.
• Maximum debt-to-income — typically 45%.
• Acceptable use — any home-improvement project.
• Disbursement — direct to your bank account (you pay contractor) or directly to contractor.

AskBaily + Hearth integration:

• AskBaily's chat flow offers Hearth pre-qualification as part of project scoping.
• Soft pull takes 60 seconds.
• If pre-qualified, rate shown before contractor match.
• No AskBaily kickback beyond standard affiliate relationship.

Alternatives to consider:

• Cash.
• HELOC (if equity + time + credit allow).
• GreenSky, LightStream, SoFi (competing lenders).
• Credit card (worst option for projects over $5K).
• Contractor financing.

See /financing for AskBaily's full rundown of remodel financing options.