Just thought I would let everyone know of this home energy efficiency improvement financing resource available for most areas in California. I am not a representative of this financing program, but do act as a general contractor within the program. Many of my clients have found this financing useful when completing a large remodel or room addition. This post is not meant to be an advertisement, but instead a resource in case you need help financing home energy upgrades on your next rehab project.
Residential Energy Efficiency Loan (REEL) program benefits (see image below for more details):
- Unsecured financing
- APR 4.5% - 9.95%
- Finance 100% of the project costs
- Loans up to $50,000
- up to 15 year term
- 0$ closing costs
- Quick loan approval, typically less than 24 hours
- 70% of the amount borrowed must be used for energy efficiency improvements such as HVAC, water heating, cool roofs, insulation, duct sealing, air sealing, lighting, appliances, pool pumps, windows, and more
- 30% of the amount borrowed can be used for non-energy related improvements such as cabinets, flooring, and other finishes.
- This program can also be combined with local utility rebate programs and federal tax incentives
Property Eligibility Requirements:
- Single family residential property
- Upgrade 1- 4 units
- Must receive gas or electric service from one of these utilities (SocalGas, Socal Edison, PG&E, SDGE)
- Mobile homes need to be anchored to permanent foundation
- 580 - 600 minimum credit score (depends on lender)
- Debt to income ratio less than 55%
Project Eligibility Requirements
- Work has to be completed by a participating REEL contractor
- A combustion safety test by a contractor who is certified by BPI or NGAT must be completed upon project completion (typically this is the contractor doing the work)
- Work must meet building code requirements.
you can find more information here: https://www.thecheef.com/reel
I hope you found this post useful.
Thanks for the tip. This should come in handy.
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