Any one is using CaliforniaFIRST program for financing?

[abyebye]

One of the installers mentioned this program to me:

https://californiafirst.org/

Was wondering if anyone here has experience with it?

[solarfrank]

It's the same program like HERO.

[abyebye]

Yeah, it's similar. But my installer said it's better than HERO. But I don't see their rates rates on their website.

[solarfrank]

California First -No FICO Score Requirements- but they will run a credit check to see if you're the owner of the property. Hero will take in consideration also your FICO score. Rates are 6-9 %.

[abyebye]

Thanks for the info!

California First -No FICO Score Requirements- but they will run a credit check to see if you're the owner of the property. Hero will take in consideration also your FICO score. Rates are 6-9 %.

[mihzyd777]

Hero vs. CaliforniaFIRST basically the same. I just applied for HERO today and it was simple. I've looked at both almost the same. Hero does not pull your credit score, however it does hit your credit history to ensure you haven't been late on major items in the last 12 months. That being said you can call HERO @ 1-855-HERO-411 and they are actually very friendly and answer ALL your questions.

On top of that the benefit HERO uses over CaliforniaFIRST are: HERO offers homeowners additional consumer protection benefits including extensive contractor training, fair-price monitoring, experienced customer service reps, and dispute resolution assistance to resolve any consumer complaints. When you talk to a HERO certified contractor you can ask what type of training HERO required and it will surprise you how extensive it is on top of the normal Solar training they already have.

Hope this helps!

[mihzyd777]

Also one more thing to note is CaliforniaFIRST has a minimum financing amount of $50,000 and HERO has no minimum and HERO is much more lenient. Hope this helps! Info here on all programs: http://www.pacenow.org/resources/all-programs/

[abyebye]

One of the vendors said half of their customers used CaliforniaFIRST... And the salesperson said he just used that to cover the new artificial turf in his own backyard.
Even though I didn't choose them, I don't think he lied to me about that.

I don't see your link mentioned the 50k minimum. Do you have another link for the minimum amount?

Also one more thing to note is CaliforniaFIRST has a minimum financing amount of $50,000 and HERO has no minimum and HERO is much more lenient. Hope this helps! Info here on all programs: http://www.pacenow.org/resources/all-programs/

[mihzyd777]

When you click on link that takes you to all the programs under California and you click CaliforniaFIRST scroll down to read about the program in its entirety. At the end of the 2nd paragraph it will say: "For basic program terms, click here." You click where it says "click here" and it will download the info sheet. Very first line is the minimum amount.
Hope that helps.

[Smknf250]

One other big difference is Calfirst had a 25 year term and Hero only goes 20 years. In most cases I have seen Calfirst is slightly lower on the interest rate. The biggest benefit to these programs that I see is they don't report on your credit as debt. They aren't the cheapest loans but for some people that is important.

[Stopsignhank1]

Also one more thing to note is CaliforniaFIRST has a minimum financing amount of $50,000 and HERO has no minimum and HERO is much more lenient. Hope this helps! Info here on all programs: http://www.pacenow.org/resources/all-programs/

I don't agree with either these programs because of all of the extra fees and the interest rates seem high, but the minimum financing amount is $5,000 not $50,000

https://californiafirst.org/homeowner-overview/homeowner-application/

[jdkevles_CA1ST]

CaliforniaFIRST -- Correcting a misunderstanding posted re: our financing terms

My name is Jonathan Kevles and I work for the CaliforniaFIRST PACE program. There seems to be a misunderstanding about the CaliforniaFIRST PACE program's financing terms. The misunderstanding stems from links provided on the PACENow web site that take users to information only about our COMMERCIAL PACE program.

Our RESIDENTIAL PACE program has much different terms. Residential PACE applies, under California law, only to 1-3 unit residential properties.

Our minimum Residential PACE financing amount is $5,000 (not $50K). We offer fixed interest rate financing:
5 years - 6.75%
10 years - 7.59%
15 years - 7.99%
20 years - 8.29%
25 years - 8.39%

Here is a link to our Residential program's FAQ page: https://californiafirst.org/about-ca...t/program-faq/

And here is a link to our Commercial program's home page: https://californiafirst.org/commercial-overview/

We are working with PACENow to have them update their site's links so that site users are clear as to which of our two programs they are clicking on.

Please don't hesitate to contact me with any questions, or if you come across anything else that seems off.

When you click on link that takes you to all the programs under California and you click CaliforniaFIRST scroll down to read about the program in its entirety. At the end of the 2nd paragraph it will say: "For basic program terms, click here." You click where it says "click here" and it will download the info sheet. Very first line is the minimum amount.
Hope that helps.

Mod Note, please no advertising stuff, so I got rid of phone number. Rules for new users is no advertising, BUT as your links relate to the post
directly I will let it go. Oh by the way welcome to Solar Panel Talk

[nomadh]

I don't understand these programs. Aren't there equity loans you can get in the 3-4% range and you can write it off? How are these loans better? Is it for people with bad/no credit?

[jdkevles_CA1ST]

How is PACE different than a home equity loan or line of credit?

It is true that PACE financing is similar to a home equity loan, yet with important distinctions. The primary distinction is that if the homeowner who entered into the PACE assessment contract sells the home before the PACE balance is paid off in full, the repayment obligation transfers to the new owner.

If the homeowner wishes to pay off the balance in full before the repayment term is over, he/she may do so. (In the CaliforniaFIRST Residential PACE program, there is no penalty for prepayment.) Home sellers may take advantage of this option for a variety of reasons. Paying off the balance at the time of sale with the home's sale proceeds can be arranged.

Regarding the comparison between PACE and a home equity line of credit (HELOC) -- yes, a HELOC has lower rates today than what most PACE programs offer. But a HELOC's rate is variable, and must be paid off in full when the home is sold. And many people do not want to tap their HELOC because they are saving it for an emergency (e.g., unexpected medical bills). Also, US Census figures show that only some 12% of homeowners actually have a HELOC in place.

A Home Equity Loan (HEL) is similar to PACE in that the interest rate for a HEL is fixed. Yet, like a HELOC, the HEL balance must be paid off in full when the home is sold, unlike PACE. A quick look at HEL interest rates show that they are about even with PACE interest rates, though HEL rates seem to have quite a range. That range is likely based on the borrower's FICO score. PACE rates are both fixed and FICO score agnostic.

PACE, HELs, and HELOCs all share the same tax benefit -- the interest portion of all of these financing options is deductible from one's federal income taxes.

The ability to transfer the PACE obligation from one owner to the next is important - many of the energy efficiency, renewable energy, and water conservation investments that qualify for PACE financing may take 10 or 15 years for the homeowner to earn back the investment through lower utility bills, yet many (most?) people do not live in a home for that long. Just as the home and its lower utility bills are passed on from one owner to the next, so are any remaining PACE repayment obligations.

PACE does not pretend to be better than a HELOC or HEL. There may be homeowners for whom a HEL or a HELOC is a better option for them than PACE. Yet the 30,000+ homeowners who have taken advantage of PACE in California over the last few years are among those who found that PACE is the best options for them. With 6 million single family owner-occupied units in California, CaliforniaFIRST - and certainly our competitors - are excited to provide PACE to that large and as yet untapped market segment for whom PACE is an excellent option to choose from.

Hope that answers your questions.

I don't understand these programs. Aren't there equity loans you can get in the 3-4% range and you can write it off? How are these loans better? Is it for people with bad/no credit?

[sabersix]

My name is Jonathan Kevles and I work for the CaliforniaFIRST PACE program. There seems to be a misunderstanding about the CaliforniaFIRST PACE program's financing terms. The misunderstanding stems from links provided on the PACENow web site that take users to information only about our COMMERCIAL PACE program.

Our RESIDENTIAL PACE program has much different terms. Residential PACE applies, under California law, only to 1-3 unit residential properties.

Our minimum Residential PACE financing amount is $5,000 (not $50K). We offer fixed interest rate financing:
5 years - 6.75%
10 years - 7.59%
15 years - 7.99%
20 years - 8.29%
25 years - 8.39%

Here is a link to our Residential program's FAQ page: https://californiafirst.org/about-ca...t/program-faq/

And here is a link to our Commercial program's home page: https://californiafirst.org/commercial-overview/

We are working with PACENow to have them update their site's links so that site users are clear as to which of our two programs they are clicking on.

Please don't hesitate to contact me with any questions, or if you come across anything else that seems off.

You are leaving out a significant cost of the HERO programs - fees. These fees add around 7% of the amount financed, so for example a $20,000 solar install is financed at $21,400.

The CaliforniaFIRST Property Owner Handbook lists the following Upfront Costs:

Program-Related Fees
Lien Recording Fees
Reserve Fees
Capitalized Interest
Administrative Fee (Annual)

I found it very hard to find the actual financing terms on the website. It seems these are purposefully obfuscated until an application if filed.

As others have said, there are better options than HERO.