Land Park, East Sacramento
and Curtis Park Specialist

The Devil’s in the Details – a Follow-up

Last week I wrote a blog about the PACE program.  Today I was fortunate to hear a speaker that represents one of the companies that offer this type of program.  The company is known as Ygrene (Energy spelled backwards).  I

For those of you who are not familiar with this program, it offers a loan to do energy improvements to your home.  The difference is that the loan is paid back via your property taxes.  In other words, the loan does not stay with the borrower, but with the property.

I thought you might like to learn a bit more about the program that is offered by Ygrene.

  • The term of the loan can be either 10 years or 20 years.
  • The interest rate is 6.5% or 7.5% respective to the above terms.
  • There must be a 15% equity in the home
  • The borrower must be current on his/her property taxes and mortgages for the past 3 years.
  • The borrower must not have had a bankruptcy in the past 3 years.
  • The borrower may borrow up to 10% of the properties market value.
  • There is a 3% prepayment penalty if the loan does not go full term.
  • There is approximately $750 in loan fees to be paid.
  • The borrower may be owner or non-owner occupied.
  • The contractor that the borrower uses must be on their certified contractor list.
  • 50%-60% of the loans of this type will have to be paid off when the property transfers

So, there you have it.  Hopefully if you were considering a PACE loan, this will help you decide how to proceed.

1 Comment

  1. I took out a Ygrene loan when I had solar panels installed on my house two years ago. I asked about prepayment penalties and was told that for an additional (I believe it was) .5% on the interest I could pay off the loan early. What they didn’t tell me was that the entire amount would have to be paid off at one time. I contacted Ygrene a few months later and told them I wanted to make a large payment and was told I could not make additional payments; I would have to pay off the entire amount. I took out a line-of-credit loan at a much lower rate and paid off Ygrene. But even agreeing to pay the extra interest, I was charged $100 to research the loan to determine what was owed on it, and a $55 processing fee.

    Reply

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