PACE Financing FAQs
Obtaining home improvement financing is an important decision and one that often takes careful consideration and research. It's normal for you to have questions and hopefully the answers below can help you determine if PACE financing is the right option for your home improvement financing needs. If you don't see your question, feel free to call us at 844-736-3934
What is PACE financing?
The Property Assessed Clean Energy ("PACE") program exists through State legislation and is authorized by local governments. PACE financing allows homeowners to enter into a voluntary contractual assessment, known as a PACE assessment, to finance energy and safety related home improvements that are permanently fixed to real property.
How is PACE financing different than traditional financing?
Unlike traditional financing methods, PACE is property-based financing and the program is funded through public-private partnerships with one or more PACE providers (also known as PACE program administrators). PACE financing uses private capital to fund every home improvement project. The amount financed is then collected through a voluntary assessment on the property tax bill and a lien is placed on the property until the financing is repaid in full. No minimum credit score is required to qualify.
Plus, the program offers:
- Competitive fixed interest rates
- Payment terms of 5, 10, 15, 20, 25, or 30 years depending on the expected useful life of the product(s) being installed
- Zero money upront required
- 100% financing
What are the eligibility requirements?
PACE is property-based financing, which means that the eligibility requirements are primarily based on the property itself and not the homeowner's credit score. For example:
- The property must be located in a participating community
Click HERE to check if your property is in a participating community
- Property taxes must be current
- All mortgage debt against the property must be current
- No recent foreclosure proceedings
- The home improvement project and product(s) being installed must meet program requirements, etc.
Underwriting requirements may vary and are subject to change. Additional underwriting requirements and restrictions apply. Please contact us at 844-736-3934 to confirm your eligibility.
What kind of home improvement projects are eligible for PACE financing?
PACE financing is available for a large variety of energy and safety related home improvement products and projects. Some of the most common ones include:
- Air-source heat pump
- Attic insulation
- Ceiling insulation
- Duct replacement
- Heating, Ventilation, and Air Conditioning ("HVAC")
- Radiant barrier
- Solar panels
- Solar water heater
- Water softener
- Windows and doors
Contact us at 844-736-3934 for a complete list of eligible products and projects.
Is PACE financing a government subsidy?
No, PACE financing is not a government subsidy. PACE financing is private financing that must be repaid in full.
How much can be borrowed with PACE financing?
Homeowners can borrow a minimum of $5,000 and up to $250,000, to cover the cost of eligible home upgrades.
How does repayment work?
The amount financed through PACE will appear as a new line item on the property tax bill. A lien will be placed against the property until the amount financed is paid back in full. While PACE payments are billed once per year, the way the county collects the property taxes will determine when and how a homeowner will pay each annual PACE payment.
If an impound/escrow account is used to pay property taxes, homeowners should contact their lender to discuss increasing their monthly impound/escrow payments accordingly.
Are there any pre-payment fees?
No, there are no fees for paying all or a portion of the financing early. Homeowners can pay off their PACE financing at any time or in increments of $2,500.
Can I use any home improvement contractor?
Since payment is made directly to the contractor after the project is completed, and the homeowner signs off on it, the contractor must be registered with Renew Financial. Contractors must meet program requirements and can register by visiting: renewfinancial.com/pace-contractors.
All participating contractors must have a valid and active Contractor's license with their State's licensing board.
Are there consumer protections?
Yes, for more information visit renewfinancial.com/resources/consumer-protections-pace-financing.
Why do you ask for my Social Security Number if my credit score does not matter?
As part of the application, Renew Financial will perform a soft pull on the credit report for each homeowner to verify elements necessary to determine eligibility for financing, such as mortgage payment history.
What happens to the PACE assessment if I want to sell or refinance my home?
Some mortgage lenders may require the PACE assessment to be paid off in full at the time of sale or refinance. Subordination of the PACE assessment is not an available option.
Discover if PACE financing from Renew Financial is the right fit for your unique situation, contact us today at 844-736-3934 or click HERE to find out if your property is located in a participating community.
PACE financing is subject to credit approval. Underwriting requirements may vary and are subject to change. Additional underwriting requirements and restrictions apply. Homeowners are encouraged to use PACE financing responsibly. Homeowners should perform their due diligence when selecting a home improvement contractor.