California Real Estate Podcast with Andrea Manroe - What You Need to Know About PACE & Hero Loans

What You Need to Know About PACE & Hero Loans

01/06/17 • -1 min

California Real Estate Podcast with Andrea Manroe

Have you ever considered seeking PACE or Hero Program financing for your home? It's a great government incentive, but it's important to know the finer details before taking on this loan.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

Today I wanted to take a moment to talk about PACE loans—also known as Hero loans.

PACE financing stands for 'property assessed clean energy' and provides local governments the opportunity to provide financing for homeowners that want to do projects that are either energy efficient, water efficient, or integrate renewable energy products into their home.

In California, the Hero Program is the most well-known opportunity for homeowners to receive this type of financing. It's considered a tax lien in first position on the property, meaning upon the sale of the home, it will be paid prior to any other creditors involved in the property being paid. This even includes the lender on the home mortgage.

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PACE financing lets local government loan money for energy-efficient home projects and features.

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This first position is important because the Federal Housing Financing Agency won't allow Freddie Mac and Fannie Mae to lend on houses that have Hero liens in the first position on the mortgage. This is very important because it can make it difficult for homeowners to refinance on the property or new owners to get financing when the home is sold.

Additionally, it's important for people who get Hero financing to contact their mortgage lender right away so they can start taking money to pay that lien into an impound account. If not, you could get behind in your payment and end up having to pay double each month in order to catch up.

I hope this helped you understand PACE financing better. If you have any other questions about this financing or you're thinking about buying or selling a home, don't hesitate to give me a call or send me an email today. I look forward to helping you!

Have you ever considered seeking PACE or Hero Program financing for your home? It's a great government incentive, but it's important to know the finer details before taking on this loan.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

“

PACE financing lets local government loan money for energy-efficient home projects and features.

”

Previous Episode

Merry Christmas and Happy New Year!

In addition to wishing you a merry Christmas and a happy New Year, I want to thank you for supporting my business.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

In light of the holiday season, today’s message is one of thanks.

First, I want to wish you a very Merry Christmas and a Happy New Year. Second, I want to thank you for supporting my business throughout 2016. I appreciate your referrals very much, and I look forward to doing business with you in the future.

If you’re looking to buy or sell real estate in San Diego in 2017, just visit my website and we’d be happy to get in touch with you. Thanks again, and Merry Christmas!

Next Episode

What Is an FHA Loan and How Can It Benefit You?

If you’re looking to buy a home, you might consider taking out an FHA loan. I’ll go over what an FHA loan is and why it might be a good option for you as a buyer.

Thinking of selling? Get a free home valuation

Thinking of buying? Search all homes for sale on the MLS

If you’re looking to buy a home, you’ve probably heard the term “FHA loan.” Today I’ll go over what an FHA loan is and how it can benefit you as a borrower.

An FHA loan is a mortgage that is insured by the Federal Housing Commission that requires a lower down payment on the condition that buyers pay property mortgage insurance as a part of their monthly mortgage payment.

The property mortgage insurance allows lenders to offer loans to borrowers at much more attractive interest rates with lower down payments. You can qualify for an FHA loan with a lower credit score as well.

The minimum down payment on an FHA loan is 3.5%, but it can be as high as 5%. Borrowers can use their own savings, a gift, or a grant for their down payment. The FHA does allow borrowers to get assistance from their lender, the builder, or the seller to help with closing costs. Although, if the lender helps with closing costs, they typically charge a higher fee on the loan.

The FHA is an insurer, not a lender, so it’s important to get your FHA loan from a qualified FHA lender.

FHA loans also require a two-part mortgage insurance. The first part is paid at the close of escrow, which is equal to 1.75% of the purchase price and can be rolled into your loan. The second part is paid during the life of your loan.

The FHA also has a special loan product for borrowers who are purchasing a private property that may need repairs called the 203K.

The F...