The United States has bet heavily on solar power, to the tune of 39 Billion in annual solar subsidies. California has also heavily invested in solar power with over $250 million dollars spent helping homeowners to install solar panels on their rooftops, energy efficient windows and doors, heating and cooling equipment, water heaters, insulation and roofs. There are 2 main loan programs that people have used to finance energy efficient upgrades to their homes in California; HERO (Home Energy Renovation Opportunity) & PACE (Property Assessed Clean Energy) loans. Tens of thousands of Californians have signed up for HERO and PACE loans in the last 10 years. Investing in energy efficiency may be a wise choice, but many of these homeowners have been surprised at the difficulty that has arisen from choosing these programs to finance their upgrades.
The HERO/PACE loans make it difficult to sell your property because many traditional financing options refuse to accept lien position behind these loans. In 2010, Fannie Mae and Freddie Mac refused to back mortgages with PACE and HERO loans on them. Many retirees have been completely surprised that their energy efficiency improvements could have such an effect on their ability to refinance or purchase a home. Reverse Mortgage loans have not allowed homeowners to pay off HERO or PACE loans out of the refinance of their homes; leaving homeowners stuck in their current loans until they can figure out a way to pay it off out pocket.
HUD has issued a mortgage letter dated 12/17/17 that confirms that as of January 6th 2018, HERO and PACE loans can now be paid off through the close of a reverse mortgage! If you know of anyone that tried to get a reverse mortgage before but could not because of their HERO or PACE loan, please forward this onto them so they can eliminate their monthly mortgage payment and HERO/PACE add to their property taxes. This change will surely be a welcome change to the over 13,000 Californians with these added costs to their property taxes. For questions or help eliminating HERO & PACE loans from your home with a Reverse Mortgage contact Robert Krepps at 877-567-7476 or firstname.lastname@example.org