Is a way to finance hurricane impact windows, energy efficient windows and an array of energy efficient retrofit projects. In this case, the city offers you a loan and you pay it back through your property tax bills for 15 to 20 or up to 30 years.. A private lending partnership will review your project and appraise your property in detail. If all goes well, they provide a loan for the approved home improvements. The money is given to the city in the form of a bond funded by the lenders. The bond pays for your improvements. You pay back the loan or the bond through your property tax payment as a Voluntary Ad Valorum Assessment.
There will be several closing costs to originate this loan but since they are added to the loan, there won’t be any upfront or out of pocket expenses.
- Equity based
- Finance up to 90% Loan to Value (LTV)
- Credit: Must be current on Mortgage: No Late pays – no missed payments – go back 3 years
- Income not a factor – No income verification.
- All costs are added to the financed amount (no “out of pocket)
- Approved in many Cities, not available in all municipality.
- Funding with bonds sold to private investors
- Bond becomes an Ad Valorem Assessment to the Tax Bill
- Homeowner can pay with cash to contractor and then finance with the approved PACE provider. OR Finance the project and sign an “Assignment of Payment” form so the contractor gets paid directly after the project is completed. Check the guidelines with the City Chamber.
- No Pre Payment fees for early payoff.
- Interest is calculated using Simple Interest method so you are only paying interest on the outstanding balance of your loan.
- Your loan can be recalculated to a lower payment one time in the first two years if a substantial bulk payment is made toward the balance.