Contractor Financing Programs in 2026: Dealer Fees, Credit Floors, and Who Actually Approves You
A working comparison of contractor financing programs: real enrollment requirements, what dealer fees actually cost you, and published credit floors.
Most contractors pick a financing partner the same way: a rep shows up, promises fast approvals, and you sign. Nobody reads the fee schedule. Nobody asks what the credit floor actually is. Then eighteen months later you're eating 12% on every financed job and wondering where the margin went.
This is a working comparison of the contractor financing programs that matter in 2026 — what it really takes to get enrolled, what the dealer fees cost you in real dollars, how deep each lender's credit box goes, and the two programs sitting in pitch decks right now that no longer exist.
Download the full 31-page guide free → — every major program, direct application links, and the one-page directory. Versión en español aquí.
Two things changed in 2026 that most sales teams haven't caught
Before comparing anything, audit your own materials this week. Two of the most commonly quoted items in home improvement sales are now wrong.
Mosaic is no longer originating loans
Mosaic filed Chapter 11 in June 2025. The company that acquired it has said it has no plans to write new business — it services the existing book only. If Mosaic is still on a rate sheet, in a pitch deck, or in a rep's mental list of options, pull it today. Separately, Ally Lending was absorbed into Synchrony, so that name is also gone as a standalone option.
The 25C and 25D federal tax credits are gone
Both were terminated after December 31, 2025. Any rep still telling a homeowner they'll get 30% back from the IRS on a 2026 installation is making a claim that is no longer true. That is not a small compliance problem — it is a material misrepresentation used to close a sale, and it is sitting in a lot of scripts.
The dealer fee math almost everyone gets wrong
This is the single most expensive misunderstanding in contractor financing, and it costs more than picking the "wrong" lender ever will.
When a lender offers your customer 0% APR, somebody is paying that interest. It's you, through the dealer fee deducted before your money lands.
To protect your margin, you cannot simply add the fee percentage on top. You have to divide:
Financed price = your target net ÷ (1 − dealer fee %)
On a $20,000 job at a 12% dealer fee, that's $20,000 ÷ 0.88 = $22,727. Submit $20,000 instead and you net $17,600 — a straight 12% out of your margin.
Notice the markup you needed was 13.6%, not 12%. That gap widens fast:
- A 5% fee needs a 5.3% markup
- A 12% fee needs a 13.6% markup
- A 20% fee needs a 25.0% markup
- A 30% fee needs a 42.9% markup
A 30% fee requires a 42.9% markup, which is exactly the point where very long 0% promotional terms stop being sellable at all. If your reps are offering 0%-for-60 on a job priced for cash, you are financing your customer's loan out of your own profit.
The fix isn't teaching your reps algebra. It's a price sheet with the math already done — cash price, 0%-for-60 price, reduced-APR price, side by side, so the rep reads a number instead of calculating one.
Who actually approves you: enrollment requirements by lender
"Fast approvals" is marketing. What matters is whether you can get enrolled, and whether your customers clear the credit box. Here's where the real bars sit.
Prime programs, if you qualify
Regions Home Improvement Financing publishes the highest bar in the industry: 5+ years in business and $500K+ in annual remodeling sales. There's a secondary path at 3 years and $300K if you already have a Regions banking relationship. In exchange you get the most transparent fee posture of any bank program — no membership fees, no processing fees — and funding in roughly 24 hours. If you're close to the bar, it's worth asking rather than assuming.
Service Finance, a Truist company, is the realistic step down: big-bank backing, more than 50 programs, and unsecured loans up to $100,000 with no income documentation. This is where most established contractors who miss the Regions bar should land.
If you're newer
PowerPay is one of very few programs that explicitly works with businesses under 2 years old — they say so publicly rather than burying it. It charges $0 in contractor fees, has a tier reaching FICO 500+, and can have you operational within a day. For a young company, this is usually the entry point.
Synchrony HOME has no published minimums for time in business or revenue, and the largest existing cardholder base in the industry, with a 6 to 60 month promotional menu. The catch is the 34.99% standard APR once the promo window closes — a real problem for the customer, and a real reputational problem for you if nobody explained it at the table.
The second-look lender you should always carry
Foundation Finance publishes a FICO 550 floor in writing. Almost nobody else publishes a minimum at all. Free enrollment, no volume minimums, approvals up to $100,000, and terms out to 240 months.
This is the program that turns a decline into a signed contract. Carrying only a prime lender means every customer under roughly 660 walks. A second-look partner is not optional if you sell in a mixed credit market.
Small tickets and trade specialists
For jobs under $5,000, Wisetack is generally the cleanest fit — it's built for smaller tickets where traditional home improvement paper doesn't make sense. Acorn Finance works as a zero-fee comparison option across a wider range.
By trade: Aqua Finance for water treatment, FTL Finance for HVAC, and GoodLeap for solar. Trade specialists tend to understand your ticket sizes and install timelines better than a generalist, which shows up in approval rates.
The dealer agreement clauses that claw money back
Enrollment requirements get all the attention. The agreement you sign is where money actually disappears — after you've already been paid.
Six things to read before signing:
- Recourse provisions. Under what conditions does the lender come back to you for a defaulted loan?
- Chargeback triggers. What lets them reverse a funded deal, and how long does that window stay open?
- Holdback and reserve terms. How much of your money do they retain, and what releases it?
- Completion certificate leverage. A customer refusing to sign a completion certificate can freeze your funding indefinitely. Know the dispute process before you need it.
- Exclusivity language. Some agreements quietly restrict you from carrying a competing lender, which kills your second-look strategy.
- Fee change rights. Can they revise the dealer fee schedule unilaterally, and with what notice?
How to build a lender stack instead of picking one
The contractors who close best don't have a financing partner. They have a stack of three:
- A prime lender for strong credit — best rates, best customer experience, lowest fees.
- A second-look lender for the 550 to 660 band, so a decline becomes a smaller approval instead of a lost job.
- A small-ticket or zero-fee option for jobs where a full home improvement loan is overkill.
Three programs cover most of what walks through your door. More than four becomes an operational burden your reps won't actually use.
If you're generating leads through paid ads, financing availability belongs in the ad and on the landing page — not saved as a surprise at the kitchen table. It's one of the strongest qualifying signals you can put in front of a homeowner, and it changes who books. Related reading: why home service leads don't close and speed to lead and CRM automation.
Frequently asked questions
What are the best contractor financing programs in 2026?
There is no single best program. Established contractors should carry a stack of three: a prime lender such as Regions Home Improvement Financing or Service Finance, a second-look lender such as Foundation Finance for the 550 to 660 credit band, and a small-ticket option such as Wisetack for jobs under $5,000. Businesses under two years old typically start with PowerPay, which explicitly accepts them.
How do I calculate the price increase needed to cover a dealer fee?
Divide, do not add. Financed price equals your target net divided by one minus the dealer fee percentage. On a $20,000 job at a 12% dealer fee that is $20,000 divided by 0.88, which equals $22,727. The markup required is 13.6%, not 12%. At a 30% fee the required markup is 42.9%.
What credit score do contractor financing lenders require?
Most lenders do not publish a minimum. Foundation Finance publishes a FICO 550 floor in writing, and PowerPay has a tier reaching FICO 500 and above. Prime bank programs generally approve customers in the high 600s and above, which is why carrying a second-look lender matters — without one, every customer below roughly 660 walks.
Is Mosaic still offering contractor financing?
No. Mosaic filed Chapter 11 in June 2025 and the company that acquired it has stated it has no plans to write new business, servicing the existing loan book only. Contractors should remove Mosaic from rate sheets and pitch decks. Ally Lending was separately absorbed into Synchrony.
Are the 25C and 25D federal tax credits still available in 2026?
No. Both were terminated after December 31, 2025. Any sales claim that a homeowner will receive 30% back from the IRS on a 2026 installation is no longer accurate and should be removed from sales materials immediately.
What are the enrollment requirements for Regions Home Improvement Financing?
Regions publishes the highest bar in the industry: five or more years in business and $500K or more in annual remodeling sales, with a secondary path at three years and $300K for contractors who already hold a Regions banking relationship. In return it charges no membership or processing fees and funds in roughly 24 hours.
Get the full comparison
The guide covers every major program in one place: enrollment requirements, real dealer fee ranges by product type, published credit floors, the full fee-math table, the dealer agreement clauses worth negotiating, and a direct application link and phone number for each lender. Section 12 is a one-page directory you can work straight down.
Download the free 2026 contractor financing guide →
It's free, it takes about thirty seconds, and you can read it on screen immediately. Spanish edition: Guía de financiamiento para contratistas.
If you'd rather have someone look at your current lender setup and tell you where the margin is leaking, book a call with our team.
This article is general business information, not legal, tax, or financial advice, and is not an endorsement of any lender. Consumer credit and contractor licensing rules vary by state and change over time. Confirm current terms directly with each lender before enrolling or quoting a customer, and consult a licensed attorney about dealer agreements and advertising compliance in the states where you operate. Program details researched and verified August 2026.