PACE Program In Texas: Myths To Debunk!

pace financing

There is a lot of information to consider when determining which financing option is ideal for your next home improvement project. With so much information to process, how do you tell the difference between fact and fiction? Here are four frequent myths regarding PACE financing, also renowned as Property Assessed Clean Energy financing. Additionally, the blog will also discuss how the PACE program in Texas is a versatile and beneficial financing option for homeowners wishing to make their houses safer and more energy-efficient.

Myth 1: PACE loan is government-funded

FACT: Although the federal government approves PACE loans, it is not a government-funded loan or subsidy. PACE financing is offered through public-private partnerships with PACE providers, known as PACE program administrators. PACE finance allows homeowners to access long-term financing with low, competitive, fixed interest rates. There is no obligation to engage in the PACE program. The scheme includes numerous consumer safeguards and protections to ensure that the property owners fully understand the loan package.

Myth 2: Property taxes are raised with PACE financing

FACT: While payment for a PACE-financed project appears as a distinct line item on a homeowner's property tax bill, it doesn't raise your property taxes. Because the financed amount from the PACE program and your property taxes are due on the same time frame, the total amount due on the property tax statement bi-annually or annually will increase as a result of the combined amounts. Once the homeowner pays off the financed amount in full, the line item will discontinue to show on the property tax bill.

Myth 3: PACE possesses a higher foreclosure charge

FACT: This prevalent fallacy has the opposite effect. PACE has a beneficial impact on the housing market. When a homeowner makes energy-efficient renovations to their home, they will save money on their energy and water bills each month, while also increasing the value of their home. Additionally, homes that have energy efficiency improvements completed have a significant reduction in default risks - up to one-third reduced risk.

Myth 4: PACE can be used by people with poor credit scores .

FACT: PACE financing is not tailored to a certain credit or income profile. PACE customers have an average FICO score of 705, and FICO scores ranging from 670-739 are considered good. PACE financing is not exclusively based on the individual's credit history. Instead, several factors, including the potential equity in your house, play a larger role in calculating your PACE interest rate. Because having a low FICO score is neither an issue nor a barrier to access, PACE financing is frequently an appealing alternative for many homeowners who have built up equity in their houses.

Other options for financing home improvements include personal loans, unsecured loans, a Home Equity Line of Credit ("HELOC"), a home equity loan, or other traditional property-secured loans, all of which have pros and cons such as higher interest rates, stricter underwriting requirements, and upfront costs.

How do PACE assessments help proprietors?

PACE financing allows homeowners to benefit instantly from home improvement energy savings while paying for their renovations over time, providing the following major benefits:

PACE financing's built-in customer safeguards ensure that you are informed about every stage of your project, from HVAC to solar installation to windows, doors, and even a more energy-efficient roof over your head.

Final Words

Thus, property owners and stakeholders must understand C-PACE funding to make informed decisions about energy efficiency and renewable energy projects. You need to debunk the myths associated with C-PACE financing. If you need help with the PACE program in Texas and financing advice, C-PACE.COM can help you out. They offer C-PACE loans on various business projects in Texas. Schedule an appointment with the experts today!