Budgets, bills, depleted nest eggs, roller coaster credit scores…homeowners have a lot to contend with lately. But their home improvement dreams are just as strong as ever.
Many homeowners have found themselves in different financial situations since the pandemic began. Some don’t even realize their credit scores, or FICOs, have dropped until they try to get financing from their bank or credit union (a prime lender). Unsecured personal loans often require a credit score of 660+, and some are only available to those with scores of 700+.
Home improvement dealers have noted seeing a recent trend of lost, delayed or downsized projects due to customers not being able to obtain financing. Those lost or downsized dreams also equal lost or downsized sales for dealers. But there is hope!
Home Improvement (Sales) Dreams Can Come True.
Home improvement dealers can take matters into their own hands. By bringing a financing program under their own roof, they have the power to offer a second look at the customer’s financing request that was turned down somewhere else. It’s called “second look financing.”
Foundation Finance Company provides second look financing as part of its dealer financing program. The process is almost seamless since the customer can use the same completed credit application they used for the first look. Foundation Finance’s underwriters have the expertise to review the credit application with a wider scope, if needed, and can approve FICOs down to 600. So, the chances of a customer’s financing getting approved through an in-house program with Foundation Finance are pretty good!
Foundation Finance second look program benefits for dealers:
- Near-prime and subprime programs – FICOs as low as 600 considered.
- Underwriting decisions based on a proprietary model, including FICO and application factors.
- Credit approval rate of up to 77% of the deals other lenders decline.
- Lower rates and dealer fees for subprime customers.
- Competitive financing promotions for every customer – low-fee and “no-fee” options available with same-as-cash and reduced APRs.
- Fast decision turnarounds.
The benefits of second look financing are too strong to ignore. As home improvement spending is on the rise and more homeowners are dreaming up projects they can’t do themselves, this isn’t the time to be without an in-house financing program.
Gaining more sales and giving customers a second chance at their renovation dreams is a sound business strategy. Home improvement dealers can enroll free in Foundation Finance’s dealer network, which not only sets them up with a full financing program (first and second look financing), it also provides training, marketing materials and unlimited dealer support.