Financing for Homeowners
Find low-interest loans to help you make energy improvements that boost your comfort and lower your bills.
Energy efficiency, unlike other home improvements, is an investment that pays off right away and for years to come through lower energy bills. Paying for those improvements is now a lot easier thanks to low-interest loans—offered through many financial institutions, and in partnership with Efficiency Vermont. Work with us to find a loan that makes sense for you, including home equity loans and standard mortgages, as well as specialized loans such as the Heat Saver Loan and PACE (Property Assessed Clean Energy) financing.
- Many loan options, some with interest as low as 0% and financing of up to 100%
- Monthly energy savings can equal or exceed your monthly loan payment
- Part of your energy savings is counted as income in the underwriting process
The NeighborWorks of Western Vermont Energy Loan
A loan offered by NeighborWorks of Western Vermont is available statewide. Loan funds may be used to finance energy efficiency improvements and necessary health and safety improvements. Qualifying improvements include cold climate heat pump heating and cooling systems, efficient hot water heaters, air sealing, insulation, renewables, and more. Visit the Neighborworks of Western Vermont website for more information.
- Low or no interest loans of up to $40K and 100% financing of the project cost
- Processed in two business days or less
- Low closing costs are financed into the loan; payback period of up to 15 years
- No prepayment penalty
- Green Mountain Power customers can repay their NeighborWorks of Western Vermont Energy Loan on their electric bill.
Property Assessed Clean Energy (PACE) financing is a unique way to finance energy efficiency improvements for your home. Repayment of PACE financing is tied to the property, not to the owner. PACE financing is available at a competitive fixed interest rate and with $0 down. Term options of 10, 15 or 20 years allow for most projects to be cash-flow positive. In addition to financing thermal and electric efficiency improvements, PACE can finance on-site renewables such as solar PV.
- Financing of up to $30,000, with $0 down
- PACE financing can stay with the property in the event of a sale, or can be paid off at any time with no penalty
- Closing costs: 2% of financed amount (can be rolled into loan), payback period of up to 20 years
- PACE interest is tax deductible
- PACE is a property assessment, not a loan and does not affect your debt-to-income when applying for other credit such as a second mortgage
Eligibility Requirements for PACE
- For qualifying energy efficiency improvements and renewable energy systems
- Property must be located in a PACE district (PDF) (cities and towns must vote to form districts)
- For single-family homes and multifamily properties of two to four units (must be owner occupied)
- Cash-flow analysis must be provided by Efficiency Vermont