Are you in need of a new roof but don’t have the money to get the work done?
Well, we have great news for you! Thanks to the government-sponsored PACE Program property owners can get their roof work done without any upfront cost.
“The Property Assessed Clean Energy (PACE) is a financing mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy, and water conservation projects,” as communicated by PaceNation.org.
Established by the Federal Government in 2015, the Pace Program allows property owners in selected states to leverage the equity in their homes to finance big projects throughout their property. The cost of the project is then broken-down over a term of 5, 10, 15, 20, or 25 years (in regards to roofing) and applied, paid through the home’s property taxes on a yearly basis.
BENEFITS OF PACE PROGRAM:
~NO UPFRONT COST~
~NO CREDIT CHECKS~
~NO OUT-OF-POCKET FEES~
~ENEGRY EFFICIENT MATERIALS~
HERE’S HOW IT WORKS:
First, the property that an owner wants to use the PACE Program financing option needs to be placed in the system to determine whether the property itself is within the eligibility area of the financing program. A contractor or their company representatives who are affiliated with one of the few companies allowed to offer the PACE Program can do that for you.
Along with the property’s eligibility status, a few preliminary criteria need to be met in order for the property owner to qualify for the program.
- Property owners must be up-to-date with their mortgage payments if there’s a current mortgage on the eligible property. Whether the owner has been late on payments in the past is irrelevant as long as they are current with their payments at the time of submitting the financing application.
- Property owners must have paid their yearly property tax on time for the past 3 years from when they are applying for the PACE Program financing.
- Property owners cannot currently be in bankruptcy at the time of applying for the PACE Program financing. Whether the owner has been in bankruptcy in the past is irrelevant as long as they are not in bankruptcy at the time of submitting the financing application.
- Property owners must have equity in their property in order to qualify for any amount of financing. For example, if a property owner has only $11,000 worth of equity in their property but the job for the roof costs $15,000 then the financing would only be up to the $11,000, which means the remaining cost would have to be paid out-of-pocket.
Once the property owner meets these 4 qualifications and their property is determined to be within the eligibility area, the contractor or their representative can proceed with the next step, the calculating process. This step gives the property owner all the details and allows them to pick options for the financing: term length, interest rate, APR, finance charge, and yearly/monthly payments.
The difference between the yearly and monthly payments is usually determined by how the property owner pays their property tax. If the property owner has a mortgage then the payments are usually broken down into monthly installments and arranged with the mortgage company to hold in escrow along with the normal monthly payments made to the mortgage company.
If the property owner pays for their property tax at their own discretion then the payments can be paid as the property owner sees fit because the financing will already be applied to the property’s yearly taxes. So whether the property owner pays off their property tax quarterly or in one lump sum the financing is already applied for the year to their property taxes.
If the customer is comfortable and agrees to the terms and conditions of the financing then the contractor or their representative will fill out and submit an electronic application to their affiliated PACE Program provider. Everything from start to finish is done electronically and made easy for the property owner to understand.
Within moments of submitting the application, a response is given on whether the property owner has been fully approved, partially approved, or denied; partially approved primarily means that the PACE Program provider just needs to see verifiable documents to proceed with approval like a mortgage statement, etc.
Either response given, the property owner will receive an immediate call from the PACE Program provider within a few minutes of the response. That call will either give the property owner a reason for the application denial and how to possibly become approved, what information is needed to change the partial approval to full approval, or ascertain that the property owner is fully aware and agrees to the terms and conditions, and answer any questions they might have regarding the approved financing.
Once the call is complete, the PACE Program provider will send the property owner a finance document via email to sign electronically and sign back to them. At that point, the property owner has the financing they need for the contractor to get started on their roof work. No money is exchanged between the parties involved until the property owner signs off on the completed roof work in which the financing company releases the money to the contractor.
Other than not having to pay any upfront cost on what is normally a big expense to a property owner, there are other benefits that property owners who have taken advantage of the program have seen thanks to the government PACE Program financing.
POSSIBLE BENEFITS:
~INCOME TAX CREDIT (ENERGY EFFICIENCY)~
~HOMEOWNER INSURANCE REDUCTION~
~ELECTRICITY BILL REDUCTION~
We offer the PACE Program financing at D&B Roofing and the many customers that we have had who have taken advantage of the financing option only have great things to say about the program.
Let us get you a new roof today with no upfront cost!
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