What makes PACE Funding better than other financing options?
PACE Funding offers low customer rates and is available for property owners who might not be able to use other forms of financing due to low credit scores or not being an owner-occupant.
Are there any fees to the contractor?
There are both fee and no-fee options.
What are the customer fees?
In California the origination fee consists of 6.95% of the project cost, a lien recording fee of $55-285, a loan loss reserve of $90, a foreclosure expense reserve of $10, and an annual administrative fee of $45 which is financed so it is paid over the life of the assessment.
In Florida the origination fee consists of 7.45% of the project cost, a lien recording fee of $60, and an annual administrative fee of $95 which is financed so it is paid over the life of the assessment. The annual administrative fee in percentage is 4.17%.
Is there anything that a contractor can do to help if a city or county hasn’t approved PACE Funding yet?
PACE Funding would love contractor help. Having a local contractor contact his or her local municipality can go a long way to getting PACE Funding approved there. Contact us at 844-USE-PACE to work with us!
What is the process from the start of an application to receiving a notice to proceed?
3 day right of recession
Income documentation
Welcome Call
Signed work contract
Are there any verification calls?
Yes, a recorded Welcome Call (Confirmed terms call) when the contract has been created and a recorded Completion Call when the Certificate of Completion has been signed.
Verification calls require a phone call, can the contractor call PACE Funding while in the home and hand the phone to the customer?
Unfortunately, no. The call must be placed to the property owners personal phone number or the property owner can call into PACE Funding from his/her own phone.
How is the customer identification verified?
PACE Funding verifies ID using Docusign’s ID verification, SSN/DOB and address.
What is PACE Funding’s process for payment to the contractor?
Completion Certificate must be Signed by at least one property owner and the contractor
Completion Call verified
Invoice submitted
How long does it usually take to get money in a contractor’s account when completed?
PACE Funding will initiate payment by ACH no later than three business days after file is marked pending in portal next to invoice.
If a contractor is using equipment not listed in the portal, how difficult would it be to get it added?
Approved products vary across the country. Just email PACE Funding at operations@pacefunding.com. If the products are PACE approved for efficiency standards in your area we can include them.
Can the customer opt out of financing after the 3-day rescission period?
If the customer would really like to switch from PACE to another form of finance, for example, a HELOC, PACE Funding would work with the contractor to make sure they were still getting paid on time. The customer still has power through the Certificate of Completion, so we’ve found in these cases it’s best to have a conversation with all parties to make sure the customer is getting the financing that they really want as well as the payments/timings that the contractor needs.
The assessment contract is only good for 120 days. What happens if the system is not funded within 120 days?
PACE Funding would reserve the right to reprice after 120 days. PACE Funding would at minimum need an addendum because the capitalized interest will be different (lower if the project is late).
What is required to start funding?
A Certificate of Completion and work contract are required. PACE Funding want the permit when it’s done, but it’s not required for funding.
Are the notices to proceed ever conditional? Such as susceptible to holdups when allotted resources to projects?
No, it is solid.
Does a contractor do site inspections?
PACE Funding will inspect the first 3 projects for new contractors. PACE Funding continues to perform random inspections of 5% of jobs of all contractors.
Do PACE Funding send contractors at the end of the year 1099?
Yes.
The program requires that the permit be uploaded to close out a project. Is this the initial building permit that allows construction to move forward or is this a post-inspection signed-off final building permit?
It is the signed job card.
Can a contractor provide paper documents vs electronic? Many customers do not have access to email, computer, etc.
PACE Funding can provide pdf’s that the contractor can print, get signed, scan and email back to PACE Funding.
Why does there seem to be delays with Notice to Proceed (NTP)?
It is dependent on the final customer’s signing date. If a contractor feel that a contractor should have received the NTP, please call 844-USE-PACE.
Can PACE Funding send trigger emails during the process? Ability to select turning on/off notifications?
A contractor should be receiving emails when the customer credit decision is made and the Notice to Proceed is issued. For other milestone or status updates, a contractor can check the portal.
Does PACE Funding offer milestone payments?
We have a partnership with a partner that offers advance payments for a fee.
How is the mortgage-payment history checked?
In California the customer is allowed one 30 day late mortgage payment in the past 6 months according to Experian or similar.
In Florida the customer has to be current on their mortgage on the date of application.
How do trusts work? What’s needed about the trust?
PACE Funding will verify trustee information on title.
What type of credit report does PACE Funding use?
Merge from 2 bureaus. It shouldn’t matter since PACE Funding is not getting a score; PACE Funding is just looking for specific missed payments or a bankrutcy within the past 2 years.
How long does a contractor have to wait for credit manual situations?
A few minutes if it is during business hours and, for example, it is just a spelling issue . Contractors can reduce the frequency of these issues by making sure that the customer fills out the application completely and accurately.
Otherwise, it depends on the customer if PACE Funding needs a trust document.
If a contractor receives a “manual” credit decision, then a contractor can call 844-USE-PACE to inquire about the application.
Can a contractor speak directly with an underwriter?
Yes, call 844-USE-PACE. However, PACE Funding cannot reveal confidential credit information. It may be more helpful to have the property owner call.
Can the homeowner or contractor appeal the Maximum Financing Amount?
Yes, if a party feels that the property value is too low, PACE Funding will accept a professional appraisal as the basis for a property value.
Are split tickets allowed?
PACE Funding can finance the part of a larger project that is PACE eligible.
Can projects be easily split into two separate funding checks for example windows first, and then roofing?
If needed, PACE Funding could either make two payments to the contractor for the separate projects or PACE Funding could do it as 2 separate loans/assessments and waive some of the customer fees on the second assessment.
Is there a limit to the number of times the assessment can be paid down?
There is no limit as long as the prepayment is at least $2,500. They can make as many prepayments as they like without any charge.
Prepayment Fees: What is the “reasonable fee” in the event that the prepayment is less than 2,500? Similarly, can PACE Funding specify (or put some bounds around) what the redemption fee would be?
Likely around $150, but it may be more if the county has unusually high filing fees.
If the assessment is paid down, does it go straight to principal?
We’ll verify with the customer, but when they prepay, PACE Funding assumes they want to pay down the principal and re-amortize the new balance over the remaining term.
Can the tool recalculate payments if the tax credit is applied AFTER year one? (For example, the annual payment is $2,230 in the first year, but then the customer applies the tax credit in year two, will the system account for the previous higher payment and include subsequent lower ones?)
Because only a small amount of principal is paid in year 1, the year 2 of the after-the-tax credit schedule is very close to what it would be after re-amortization. If the sales representative wants a better number, he/she can run the payment calculator for the post-tax-credit cost.
Is the 25-year product available to all types of projects? (Not just solar)
PACE assessments cannot be longer than the life of an asset. The cities don’t want a homeowner to take out a 25-year loan for an air conditioner with a 15-year warranty. Therefore, only a few types gets 25-year PACE, such as solar, roofing and windows. However, for mixed projects, PACE Funding will go with the project with the highest portion of the cost. For example, a $25,000 project that is $15,000 for solar and $10,000 for windows can get 25 years for the whole project.
Can a customer participate in this program if they have already participated in PACE in the past?
Yes, PACE Funding has already seen this happen. PACE Funding just can’t refinance an existing PACE-financed project, nor an existing project that’s been previously financed by something else, like a credit card or HELOC.
How is the maximum financing amount determined?
In California the maximum financing amount is the LOWEST of:
15% of the property value
Available equity in the property (must be at least 10% to qualify)
$200,000
In Florida the maximum financing amount is 20% of the just value of a property, except in Palm Beach County where there is a 10% equity requirement.
Bear in mind that the maximum financed amount is not just the project cost; it also includes fees and capitalized interest, so the maximum project cost will always be smaller than the maximum finance amount. PACE Funding shows maximum project cost in the portal for contractor’s convenience.
Why is PACE Funding’s Maximum Financed Amount less than that from other PACE providers for solar systems?
We’ll finance solar up to $7/W pus adders for roof repairs, service panel upgrades and/or trenching.
$7W allows the installer to enjoy 40%+ gross margins
Does PACE Funding offer a 24 months deferred payment option?
PACE Funding only offers deferment until the next property tax payment. That can be up to 18 months, or as little as 6 months.
Is there a minimum allowable financed amount?
In California the minimum financed amount allowable is $5,000.
In Florida the minimum financed amount allowable is $2,500.
