Foundation Finance Company and Hearth are both popular contractor financing options, and they both serve residential home improvement contractors. But the way each one charges you is fundamentally different. Foundation Finance is free to enroll with dealer fees on each job. Hearth charges a flat annual subscription with zero per-job fees. Depending on your volume and the types of projects you finance, one of these models will cost you significantly more than the other over the course of a year.
Here is a full cost comparison and breakdown of where each platform makes the most sense.
How Each Platform Charges You
Foundation Finance Company operates on a dealer fee model. Enrollment is free, and there are no monthly minimums. When a homeowner’s loan funds, Foundation Finance charges you a dealer fee as a percentage of the funded amount. That fee varies depending on the loan product, the APR offered to the homeowner, and the term length. For standard products, fees tend to fall in the 3% to 9% range. Promotional low-rate products carry higher fees.
Hearth operates on a subscription model. As of 2026, plans start around $1,499 per year for Starter and $1,799 per year for the Pro plan, which is the most popular option for active contractors. Once you are on the subscription, every funded job through Hearth costs zero additional dealer fees. You also get access to Hearth’s bundled contractor tools (estimates, contracts, payment collection) as part of the subscription.
Side-by-Side Comparison
| Feature | Hearth | Foundation Finance Company |
|---|---|---|
| Fee model | Flat annual subscription | Per-job dealer fee (varies by product) |
| Enrollment cost | ~$1,499 to $1,799/yr | Free |
| Per-job dealer fee | $0 | Varies by product (typically 3% to 9%) |
| Loan maximum | $250,000 | $100,000 |
| Maximum term | Varies by lender (typically up to 120 months) | Up to 240 months (20 years) |
| FICO minimum | 550 | Typically 600+ depending on product |
| Approval speed | Typically under 60 seconds | Often within 48 hours |
| Lender network | 18+ lending partners | Single lender (Foundation Finance) |
| Contractor referral program | Referral incentives available | Yes, referral program for contractors |
| Primary trades served | All home improvement trades | Bath, kitchen, windows, siding, roofing |
| Bundled contractor tools | Yes (estimates, contracts, payments) | No |
The Loan Term Difference Matters for Your Customers
One area where Foundation Finance stands out is term length. Loans up to 240 months (that is 20 years) give homeowners significantly lower monthly payments on large remodeling projects. On a $50,000 whole-home remodel, a 240-month loan at a reasonable rate could cut the monthly payment down to a level that barely registers in a homeowner’s budget. That is a real selling tool, especially for high-ticket bath and kitchen jobs where the scope often surprises homeowners.
Hearth’s loan maximum of $250,000 is higher than Foundation Finance’s $100,000 cap, but most residential home improvement jobs fall under $100,000 anyway. For the majority of bathroom remodels, kitchen renovations, and window replacement projects, Foundation Finance’s loan ceiling is not a limiting factor.
Break-Even Volume Calculation
At a 6% average dealer fee with Foundation Finance (a reasonable blended estimate for a mix of standard and promotional products), here is what your break-even looks like against Hearth’s $1,799 Pro plan:
- $1,799 divided by 6% = $29,983 in financed volume
- At roughly $30,000 in annual financed projects, both platforms cost the same
- Above $30,000 per year, Hearth saves you money on every dollar financed
If your dealer fee average is closer to 8% because you use a lot of promotional products, the break-even drops to about $22,500. Two mid-size bathroom remodels or a couple of window replacement jobs would clear that threshold.
Who Foundation Finance Is Best For
Foundation Finance Company is a natural fit for contractors who specialize in bath, kitchen, window, and siding work. It has deep relationships in those trades and products designed around those project types. The free enrollment also makes it a good starting point if you are new to offering financing and want to test homeowner uptake before committing to an annual fee.
The 240-month maximum term is a genuine differentiator for contractors who do large remodeling projects. If your average job is $40,000 to $75,000 and you want to give homeowners very low monthly payment options, Foundation Finance’s term flexibility is hard to match.
For contractors doing under $25,000 in financed volume per year, Foundation Finance’s dealer fee model will typically cost less than Hearth’s annual subscription.
Who Hearth Is Best For
Hearth makes the most sense once your annual financed volume clears the break-even threshold, which for most contractors falls between $22,000 and $35,000 per year depending on which dealer fee rates you are comparing. Above that threshold, every additional financed job costs you nothing in per-job fees, which compounds fast over a full year.
The 550 FICO minimum is another meaningful edge. Foundation Finance generally requires a higher FICO floor depending on the product, which means some homeowners who would get approved through Hearth’s 18-lender network will not qualify through Foundation Finance. In practical terms, that means more closed deals from the same homeowner pool.
If you also want estimates, contracts, and payment tools bundled with your financing platform, Hearth’s subscription covers all of that at no additional cost.
Can You Use Both?
There is no exclusivity requirement on either side. Some contractors keep Foundation Finance for its long terms on large kitchen and bath jobs while using Hearth as their primary platform for everything else. Whether running two platforms is worth the added complexity depends on your volume in each segment.
Bottom Line
Foundation Finance Company is a strong dealer-fee option with genuine advantages in term length and trade specialization. For bath, kitchen, window, and siding contractors doing low to moderate financing volume, it is a competitive choice with no upfront cost. Once your annual financed volume pushes above $25,000 to $30,000 per year, Hearth’s flat subscription model starts saving you money, and the gap widens with every additional job. The 550 FICO minimum and 18-lender network give Hearth a consistent edge on approval rates that adds up to real revenue over a full season.
Ready to See If Hearth Makes Sense for Your Business?
Hearth gives contractors access to 18 plus lenders at a flat annual rate with no per-job dealer fees. If you finance more than $36,000 in projects per year, the math almost always works in your favor.