Money Talks: Here’s About PACE Funding

A man working on his home finances

The U.S. Census Bureau’s latest American Housing Survey tells us that between 2017 and 2019, 79.5 million Americans upgraded their homes.

If homeownership has taught you anything, it’s that there’s no avoiding your roof when it leaks or your windows when a hurricane is on its way. Some home improvements are necessary, but the money to get them done is not easy to come by.

Well, that was until PACE programs. PACE funding has been a financial solution for hundreds of thousands of residential property owners.

In this article, we discuss the basics of PACE. What Is PACE? How does it work? And most importantly, is it right for you?

What Is PACE financing? 

PACE (Property Assessed Clean Energy) provides property owners with fast funding for home improvement projects that focus on reducing water usage, energy usage, or protect against storm damage.

PACE programs are not government incentive programs. Homeowners that opted for PACE do not receive special discounts, government funding, or payment forgiveness.

Which Type of Project is Eligible for PACE? 

This fantastic program focuses on home improvement projects that reduce your home’s carbon footprint and strengthen your home’s defenses. You’d be surprised at how many home improvement projects could positively impact your community.

Typically, projects that qualify for PACE fall under one of these umbrellas:

  • Energy Efficiency
  • Water Efficiency
  • Transition to Renewable Energy Sources (Solar)
  • Storm Protection

These projects look like solar panel installations, impact window and door installations, skylight installations, roof replacement, and even HVAC replacement.

Your Eligibility & Repayment Options

There is no minimum credit score to qualify for the PACE program. Instead, you get approved for funding based on your home equity, ability to repay, and your mortgage repayment history.

Qualifications for PACE programs vary from state to state.

It is important to note that PACE funding is a debt of property and not a personal debt. Despite their similarities, PACE is not a loan. It’s a property tax assessment which means PACE funding is attached to the property and repaid through your property taxes.

Repayment is simple and convenient. Homeowners can choose between repayment options as long as 20 years or even 30 years. And the payment is due when your property tax bills are due.

What’s impressive about this program is that you don’t pay until the work is done to your liking and signed off by you.

Planning to Sell Soon? No Problem 

PACE financing is secured by a lien on the property.

The word “lien” might scare you but, remember that PACE is repaid through your taxes. Property taxes are legally transferable.

So, if you are planning to sell your property, you may transfer the debt of property to the new owner.

Traditional Financing V.S. PACE Financing

People apply for financing for financial breathing room.  We suggest that you do deep research on the terms of funding from here on out because its terms are key to figuring whether this option makes financial sense for you.

High interest rates and strict payment installments make repayment of traditional financing difficult and jeopardize your economic mobility. 

What is different about PACE financing is its flexible terms and repayment plans. Highlights of PACE financing are zero money down, long-term repayment (up to 30 years), low-interest rates, no payment until 2023. These terms protect homeowners’ financial future.

With PACE funding, your wallet can breathe.

Get Approved in Under an Hour

We’ll help you apply for PACE funding. At A to Z GC, we are dedicated to providing homeowners with quick and easy improvements; but, most importantly, affordable enhancements.

PACE financing has proven to be the most cost-effective way to get home improvement projects done.

If you’re unsure about PACE financing, call us at (305) 239-2042. We’ll have one of our home improvement pros answer any questions you may still have.

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