SAN BERNARDINO AND RIVERSIDE COUNTIES SPECIALIZED ENERGY LOANS
Making Energy Efficient upgrades to your home is affordable with HERO Financing for San Bernardino, L.A and Riverside Counties. HERO offers a low-interest, long-term, tax-deductible financing option that is repaid through your property taxes. Approvals are NOT based on credit scores and applying is simple.
HERO Program Features
• Borrow up to 15% of the value of your home
• No credit score requirements
• Payments are made as part of your property taxes
• Interest is tax deductible
• Utility bill savings may potentially cover your payments
• If you sell your property before the balance is paid, the new owner can assume the remaining payments
What is HERO?
The Riverside HERO Program is provided through a partnership between the Western Revierside Council of Governments (WRCOG) and Renovate America, Inc. The program provides low-interest rate financing to create jobs and reduce utility costs while stimulating the local economy and reducing greeenhouse gas emissions.
Generally, permanently affixed energy afficiency, water efficiency, and renewable energy products are eligible for HERO credits. Property owners may repay HERO advances through a property tax bill assessment over a span of five to 20 years. The length of time the advance can be repaid depends on the useful life of the products and other factors.
Learn more about Riverside HERO Program
At Home Performance Matters, our experienced sales team knows the details of the Riverside HERO low-interest advance program. We can determine whether your property is eligible and walk you through the process of applying for and receiving the funding to help pay for your own solar energy Installation. Call today for a free, no-obligation HERO program consultation.
LOS ANGELES COUNTY SPECIALIZED ENERGY LOANS
Take advantage of low-interest home energy loans to jumpstart your projects today. Matadors Community Credit Union offers Southern California Edison (SCE) and/or Southern California Gas Company (SoCalGas®) customers low annual percentage rate (APR) financing on residential energy efficiency and solar projects. For a limited time, Energy Upgrade California in Los Angeles County is now offering property owners a 2% fixed interest rate on eligible residential energy efficiency and solar projects! Loans can be made for up to $2,500 – $50,000 for a term of 5 – 20 years, with no prepayment penalties or closing costs. These loans are offered through Matadors Community Credit Union with support from Los Angeles County. To qualify, energy efficiency projects must be enrolled in the Southern California Edison and/or Southern California Gas Energy Upgrade California incentive program. Solar projects must be installed concurrently or after the installation of energy efficiency measures and must be enrolled in the California Solar Initiative program.
MCCU offers Home Energy Loans with preferred interest rates for participants in the Energy Upgrade California™ Home Upgrade rebate program. Properties must be serviced by Southern California Edison or The Southern California Gas Company (not including Ventura, Santa Barbara or San Luis Obispo Counties). The Home Upgrade offers property owners rebates and incentives on eligible residential energy efficiency projects and makes rebate recipients eligible for preferred interest rates for qualifying energy efficiency and solar projects. To learn more about program details and available incentives, visit the Home Upgrade website.
4.99% APR for up to five years*
5.99% APR for up to 10 years*
6.99% APR for up to 15 years*
Loan amounts from $2,500-$50,000
660 Fico requirement
At Home Performance Matters,
our experienced sales team
knows the details of the
2.99% – 7.99% for 8 – 20 years
Interest rates vary depending on credit score
The Energy Network collaborates with various private lenders to offer financing to make energy efficiency upgrades more accessible to homeowners. This low-interest funding can be used in conjunction with other utility financing, rebates and incentives. Individually tailored to meet your needs, The Energy Network’s third-party lending experts will guide you through the process so you can begin saving money and energy sooner.
Financing offerings include:
Home Energy Loans: low-interest financing on residential energy efficiency and solar projects for homeowners completing a Home Upgrade or Advanced Home Upgrade. Cool Comfort Financing: low-interest financing on residential Heating, Ventilation and Air Conditioning (HVAC) projects.
Cool Comfort Financing
Take advantage of low-interest financing to jump-start your heating and cooling home upgrade project. In collaboration with The Energy Network, Matadors Community Credit Union offers eligible
homeowners low rate financing on residential Heating, Ventilation and Air Conditioning (HVAC) projects.
Home Energy Loans
In collaboration with The Energy Network, Matadors Community Credit Union offers Southern California homeowners low annual percentage rate (APR) financing on residential energy efficiency and solar projects.
What is a Home Equity Loan?
A home equity loan (sometimes called a HEL) allows you to borrow money using the equity in your home as collateral. Equity is the amount your property is currently worth, minus the amount of any other mortgage on your property. You receive the money from a home equity loan as a lump sum and usually have a fixed interest rate that will not change. If you cannot pay back the HEL, the lender could foreclose on your home. With a home equity line, you will be approved for a specific amount of credit. Many lenders set the credit limit on a home equity line by taking a percentage (say, 75 percent) of the home’s appraised value and subtracting from that the balance owed on the existing mortgage. For example:
In determining your actual credit limit, the lender will also consider your ability to repay the loan (principal and interest) by looking at your income, debts, and other financial obligations as well as your credit history.
What should you look for when shopping for a plan?
If you decide to apply for a home equity line of credit, look for the plan that best meets your particular needs. Read the credit agreement carefully, and examine the terms and conditions of
various plans, including the annual percentage rate (APR) and the costs of establishing the plan. Remember, though, that the APR for a home equity line is based on the interest rate alone and
will not reflect closing costs and other fees and charges, so you’ll need to compare these costs, as well as the APRs, among lenders.
For more information on equity loans you can visit: http://www.consumerfinance.gov/
FHA’s Energy Efficient Mortgage program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage.
In 1992, Congress mandated a pilot demonstration of Energy Efficient Mortgages (EEMs) in five states. In 1995, the pilot was expanded as a national program. EEMs recognize that reduced utility expenses can permit a homeowner to pay a
higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage loan is funded by a lending institution, such as a mortgage company, bank,
or savings and loan association, and the mortgage is insured by HUD. FHA insures loans. FHA does not provide loans.
All persons who meet the income requirements for FHA’s standard Section 203(b) insurance and can make the monthly mortgage payments are eligible to apply. The cost of the energy improvements and estimate of the energy savings must
be determined by a home energy rating system (HERS) or an energy consultant. The cost of an energy inspection report and related fees may be included in the mortgage. Cooperative units are not eligible. EEM can also be used with FHA’s Section 203(h) program for mortgages made to victims of presidentially declared disasters. The mortgage must comply with both Section 203(h) requirements, as well as those for EEM. However, the program is limited to one unit detached houses.
The borrower is eligible for a maximum FHA insured loan, using standard underwriting procedures. The borrower must make a 3.5 percent downpayment. This 3.5 percent downpayment is based on the sales price or appraised value. Any
upfront mortgage insurance premium can be financed as part of the mortgage. Eligible properties are one to four unit existing and new construction. EEMs may be added to some other loan types, including streamline refinances. The cost of the energy efficient improvements that may be eligible for financing into the mortgage is the lesser of A or B as follows:
A. The dollar amount of cost-effective energy improvements, plus cost of report and inspections, or
B. The lesser of 5% of:
• The value of the property, or
• 115% of the median area price of a single family dwelling, or
• 150% of the conforming Freddie Mac limit.
To be eligible for inclusion in the mortgage, the energy efficient improvements must be cost effective, meaning that the total cost of the improvements is less than the total present value of the energy saved over the useful life of the energy improvement.
The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed as part of the cost effective energy package.
The energy improvements are installed after the loan closes. The lender will place the money in an escrow account.
The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings will be achieved.
The maximum mortgage limit for a single family unit depends on its location, and it is adjusted annually. Look online to find FHA’s maximum mortgage limits by county.