If you are a homeowner considering the Property Assessed Clean Energy (“PACE”) program to finance home improvements eligible under the PACE program such as the installation of solar panels, a new roof, HVAC, or windows and doors, etc., you may be wondering how to go about selecting the best PACE provider, also known as a PACE program administrator or PACE financing company. If you’re already working with a home improvement contractor, your contractor may have offered you financing through one of their preferred PACE providers.
Questions like: is the PACE financing my contractor offered me the best option for me, is the PACE provider my contractor recommended my only option or can I choose a PACE provider on my own, and what should I look for when selecting a PACE provider? might be crossing your mind.
The short answer to most of those questions is that you have options when it comes to PACE financing and selecting a PACE provider is ultimately your decision. The only limitation you may encounter is around participation as PACE financing is only available in certain communities and coverage varies by PACE provider. Click here to check if your property is located in a PACE participating community.
Unlike, traditional forms of home improvement financing – cash-out refinance, Home Equity Line of Credit (“HELOC”), Home Equity Loans, personal loans, or credit cards – where you receive the funds and you are responsible for paying your financial obligation to the contractor, the funds from PACE financing are paid directly to the contractor upon satisfactory completion of your eligible project. Therefore, the home improvement contractor must be already registered or register with the PACE provider before the project is completed to receive payment.
The most important things that you should look for during the selection process include:
- Expertise: Look for a company that specializes in PACE financing. PACE home improvement financing is not something you can afford to put in the hands of just any company that claims to do PACE financing the right way. PACE is a unique financing program and you should find a company that is an expert in the industry.
- Experience: The first PACE financing company – Renew Financial (“Renew”) – dates back to 2008 and it established roots in California. It currently operates in Florida under the program name RenewPACE and in California under CaliforniaFirst. Renew has helped thousands of homeowners obtain PACE financing to make their homes safer, healthier, and more energy-efficient. How long has the PACE provider you are considering been involved in PACE financing?
- Approval Process: Look for a company that offers an easy financing application process. Most PACE providers have implemented an electronic application process which requires you to complete an application online and to have the ability to receive communication regarding your application via email as well as signing documents electronically. Electronic applications allow PACE providers to issue a financing decision generally within 30 minutes or less.
- Competitive fixed interest rates and fees: Interest rates and fees vary by PACE provider as well as the home improvement contractor you select. Some contractors have the ability to offer lower fixed interest rates than others. The interest rates a contractor is able to offer you may be based on the amount of volume they generate. The customary PACE financing fees include but are not limited to: one-time fees for origination and program management, county lien recording fees, and other fees.
- Large network of home improvement contractors: In order for the contractor to receive payment, it must be already registered or register with the PACE provider of your choice prior to completing your home improvement project. The process for a contractor to register with a PACE provider is generally quick and easy as long as the contractor has all their documentation in order and is responsive. If you have not found a contractor for your project, the PACE provider you select can most likely recommend you to one or more registered contractors in your area.
Find out today if PACE financing is an option for you. Click here or call 866-891-6879 to contact an authorized PACE provider in your area. An expert PACE financing advisor will answer all of your questions and provide you with a FREE and No-Obligation quote.
PACE financing is subject to credit approval. Underwriting requirements may vary and are subject to change. Additional underwriting requirements and restrictions apply. PACE financing may be required to be repaid upon refinance or sale. Homeowners should perform due diligence before selecting a home improvement contractor. PACE financing is private financing that must be repaid in full. PACE financing is not a government subsidy.