An FAQ: The Top PACE Loans Financial Questions + Answers

I get a lot of questions in my line of work about financing for home improvement projects that take a whole-house approach to energy efficiency. Our area, known for being beautiful and environmentally friendly, is also an ideal spot for eco-focused homeowners. There are multiple financing programs available in Northern California to help folks fund double pane windows, energy efficient HVAC systems, and high-quality insulation to boost their home’s sustainability levels.

I never get tired of having homeowners ask me questions about home energy saving upgrade financing programs. I make a point of keeping a mental log of the most frequently asked questions so that my answers are always up-to-date for the next time I get asked. That’s why today I want to address the top questions and answers about the Property Assessed Clean Energy (PACE) loans financial program. Let’s get started!

To speak directly to an expert PACE contractor on the Bell Brothers team, call 916.226.9677.

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FAQ #1: How Do I Apply for a PACE Loan?

Let’s start at the beginning. If you’ve decided it’s indeed time to upgrade your home’s energy efficiency, I suggest you sign up for a free energy assessment to find out what upgrades your home could benefit from the most. This can be done by a local contractor, like the specialists on the Bell Brothers’ team. Once you’ve decided what upgrades are right for your home, the very same contractors will be able to get the work started—and perfected—for you.

Our experts at Bell Brothers, for instance, will send out an inspector to come in before they start any work to ensure each of the projects they propose is, in fact, eligible for PACE financing. We’re the No Surprise Guys, so we guarantee there are no surprises once work started on your home. We’ll also be happy to help you navigate the application process; we know all there is to know about signing up for PACE loans.

FAQ #2: How Do PACE Loans Work?

PACE loans offer long-term financing for energy efficient residential (R-PACE) and commercial (C-PACE) upgrades and for the installation of renewable energy sources. It allows homeowners to pay for sustainable home upgrades without a huge payment upfront.

There are a few things that make PACE loans unique from other financing programs, however, that are important to know about:

  1. Down payments: A down payment is not required for PACE loans.
  2. Selling your home: The loan is tied to the home rather than the homeowner. This means that when a homeowner takes out a PACE loan, the home is used as collateral. If the house is sold before the loan is paid in full, the remaining balance stays attached to the home.
  3. Length of payments: The length of each PACE loan varies, but is between 5 and 25 years.
  4. Making payments: There are no monthly payments when you finance your project with a PACE loan. Rather, loan payments are added to your property tax payments.
  5. Equity vs credit score: PACE loans are granted largely based on your home’s equity, rather than your personal credit score.

Bell Brothers loves to help Northern California homeowners like you qualify for PACE financing. Give us a call in Sacramento at 916-266-9677, Stockton at 209-800-8325, or Vacaville at 707-266-5334 and we’ll help you through the financing application process.

FAQ #3: Where Is PACE Financing Available?

PACE loan financing is available in 33 states across the United States, but most of the programs are directed at commercial properties. Residential PACE programs are currently available in California, Florida, and Missouri. You can find out if a residential PACE program is offered in your area by checking the official list of PACE programs.

Popular locations in Northern California include:

  • Sacramento
  • Elk Grove
  • Davis
  • Stockton
  • Citrus Heights
  • Woodland

FAQ #4: Who Is Eligible for PACE Financing?

Any homeowner in California, Florida, or Missouri who lives in one of the eligible areas may qualify for PACE financing. If you are unsure of your eligibility, contact the team at Bell Brothers. We’d be happy to help you find out if you qualify for financing.

FAQ #5: What Do I Need to Provide During the Application Process?

You will be required to provide the following in order to be considered for a PACE loan:

  • A statement of your home’s equity
  • Proof that mortgage payments have been made on-time in the last year
  • Proof that property tax payments have been made on-time in the last three years
  • A good credit score

FAQ #6: What Home Upgrades Can I Pay for with PACE?

Basically, the kinds of upgrades that PACE can cover are divided into four categories: renewable energy installation, energy efficiency, water conservation, and natural disaster preparedness.

Some of the most popular upgrades that Bell Brothers works with their clients on are:

  1. Double pane window installation
  2. HVAC system replacement
  3. Low flow water fixtures
  4. Efficient hot water heaters
  5. Year-round insulation

If you’re unsure if your next home project qualifies for PACE financing, reach out to a local contracting company like Bell Brothers who has worked with PACE and can answer all of your pressing questions.

PACE Finance-Friendly Contractors for Your Home Upgrade

Experienced local contractors, like the No Surprise Guys at Bell Brothers, are experts on financing plans and can help you navigate the entire PACE application process as well complete the upgrade work, from start to finish. We really know the ins and outs of energy efficiency loans, which means you won’t have to worry about a thing.

I find it really rewarding to help folks through the entire process of making energy efficiency upgrades to their homes; I really feel like I’m making a lasting difference in the world. Programs like PACE make my job all the more meaningful because making people’s homes more efficient doesn’t just benefit them, it improves the health of the whole planet. And at the end of the day, that’s something we can all get on board with.

At Bell Brothers, our trained HVAC professionals would be happy to help you make your home more energy-efficient by installing a new HVAC system, low-flow plumbing, or upgrading your windows. Contact us today to schedule a free in-home consultation.