A Home Improvement Loan With No Down Payment or Credit


The Property Assessed Clean Energy Program (PACE) is lending money to homeowners without down payments or good credit.  Those two things are not required, because the loans are based on improvements that would make the homes more energy efficient or hurricane proof.  The eligible improvements include roof replacement, new air conditioning units, solar panels, solar pool heating, insulation, low-flow plumbing systems, impact windows and hurricane strapping, awnings, and more.

The maximum loan term is 20 years, and the loans are repaid as an assessment on the borrower’s property tax bill.  The loans can be repaid in full following the sale of the improved home, and the improvements would obviously improve the value of the home enough to cover the repayment at closing.  The PACE administrators are saying that the property tax assessment from the loan can be transferred to future buyers of the home, but FHA, Freddie Mac, and Fannie Mae apparently refuse to underwrite homes with PACE assessments.

This type loan is probably not for everyone.  Homeowners with strong equity and good credit can obviously obtain home equity loans or refinance their home to take money out for home improvements at a low interest rate.  However, it’s perfect for home owners that bought homes right before the market crash.

I read this article in The Sun Sentinel 

Please feel free to contact for more information about this.  You can submit your inquiries to us directly from our contact page, or you can email us at gilbertbocarealtors@gmail.com and call us at 561-445-1846.


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