Frequently Asked Questions

What makes PACE Funding better than other PACE options?

Not all PACE providers are enabled to offer financing in all jurisdictions. PACE Funding is available in California, Florida and Missouri, and offers low rates and options for both homeowners and contractors. PACE Funding also offers some financing options that no other provider can offer. 

Are there any fees for the contractor?

There are both fee and no-fee options.

Are there fees for homeowners?

Yes, there are fees for homeowners, for example, relating to the recording of the Assessment with the County where they property is located. These fees vary from county to county. There is also a small annual administrative fee which is financed so that it is paid over the life of the assessment. This is passed onto the county that collects the annual payments with the property taxes. 

All fees are laid out in detail on the Assessment Contract or Finance Agreement package with the rest of the financial disclosures. 

What is the time frame from the start of an application to receiving a Notice to Proceed?

It depends on how much of the information we can gather from credit reports and county websites. It can be as short as the 3 day right of rescission or longer if the homeowner needs to supply some missing information. 

Are there any verification calls?

Yes, there are at least two calls made to the homeowner. The first is a Welcome, or Confirmed Terms call, when the Assessment Contract, or Finance Agreement, has been created. In addition, a Completion call when the Certificate of Completion has been signed by both the contractor and the homeowner. Calls are offered in English and Spanish. 

Can the contractor call PACE Funding while in the home and hand the phone to the homeowner to complete a verification call?

Unfortunately, no. The call must be placed to the property owner(s)’ personal phone number or the property owner can call PACE Funding from their own phone. 

How is homeowner identification verified?

PACE Funding verifies ID using Docusign’s ID authentication “out of wallet” security questions, that are specific to the consumer based on Social Security Number, date of birth and address. 

What is PACE Funding’s usual process for payment to the contractor?

The property inspection must be completed, the Completion Certificate must be signed by at least one property owner and the contractor, the Completion Call with the property owner must have been completed and the self-inspection report must be submitted. The invoice will be automatically generated at that point and can be paid that same day.

How long will it take to get the payment to the contractor’s account?

PACE Funding pays within 24 hours of receipt of the invoice during the regular working week. If all documents are submitted by 10 am Pacific, payment will be sent out that day. Speed of receipt of payment depends on whether the payment is made by wire or ACH. 

If a contractor is using equipment that is not listed in the PACE Funding portal, how can it be added?

Email with the manufacturer’s data sheet and we’ll check it out. If it is approved for PACE efficiency standards in your jurisdiction we can add it quickly and easily to our options. 

The Assessment Contract (known as the Finance Agreement in Florida) is only good for 120 days. What happens if the project is not funded within 120 days?

PACE Funding reserves the right to reprice after 120 days. At a minimum, an addendum to the Contract would be needed because the capitalized interest would need to be changed. 

What is required to start funding?

A self-service property inspection, a Certificate of Completion, and a Completion call with the property owner are required. PACE Funding may require a final permit but it is not required for funding. It is the responsibility of the contractor to obtain necessary permits at the time of the project, including final signoff of permit from the applicable building department.

Does PACE Funding require property inspections?

Yes, PACE Funding requires property inspections and has implemented a streamlined and easy to use self-inspection process using the Truepic App. Contractors, or even homeowners, can easily complete the Inspection by taking pictures with their cell phone and by using the free Truepic app.

Does PACE Funding send out 1099’s to contractors at the end of the year?


Why do there sometimes appear to be delays with Notice to Proceed (NTP)?

A project requires a signed Assessment Contract, known as the Finance Agreement in Florida, and a final approval from a Senior Underwriter before the project will be given NTP. Occasionally the Underwriting team may be waiting for additional supporting documentation before they can give final approval, such as a mortgage statement confirming that the homeowner is current on his/her mortgage and not in forbearance. 

What has been PACE Funding’s approval rate?

80-85%. The majority of declines have been due to late mortgage payments or liens and judgements against a property depending on where the property is located and local PACE statutes. 

How is the mortgage payment history checked?

Mortgage payment history is checked through a third party credit report service provider. In some States and jurisdictions mortgage payment history must be taken into account by PACE underwriters.

How does it work if the property is vested in a Trust?

PACE Funding will verify trustee information on the property title. 

What type of credit report does PACE Funding use?

We use TransUnion and Experian.

Can a contractor speak directly with an underwriter?

Yes, call 844-USE-PACE. However, PACE Funding cannot reveal homeowner credit information to anyone other than the homeowner. 

Can the homeowner or contractor appeal the Maximum Financing Amount?

Yes, if a party feels that the property value is too low, PACE Funding may accept a professional appraisal as the basis for a property value.

Can a home improvement project include both PACE eligible and non PACE eligible items?

PACE Funding can finance the PACE eligible part of a larger project. 

Can projects be easily split into two separate funding checks, for example for windows first and then roofing?

If needed, PACE Funding could either make two payments to the contractor for the separate projects or could create two separate assessments while waiving some of the homeowner fees on the second assessment. 

Is there a limit to the number of times an assessment could be paid down?

There is no limit to the number of times an assessment can be paid down, but there is a requirement that the prepayment be at least $2,500. 

If the assessment is paid down, does it go straight to the principal?

It is up to the homeowner, but PACE Funding assumes that any prepayment would go to the principal and that the new balance will be re-amortized over the remaining term. 

How does PACE Funding determine the terms of the financing that may be offered?

PACE assessments may not be longer than the lifespan of the improvement being financed. There may also be different maximum terms on offer depending on local requirements where the property is located. 

For projects that include more than one improvement type, PACE Funding will use the improvement item with the highest proportion of the cost to determine the maximum term allowed. 

Can a property owner participate in PACE if they already have a PACE assessment on their property?

Yes, but this needs to be disclosed to PACE Funding at the time of application, and needs to be taken into account when determining the maximum financing amount. 

How is the maximum financing amount determined?

The maximum financing amount is determined using the property value and the available equity in the property. Calculations depend on the requirements and PACE law in the jurisdiction where the property is located. 

The maximum financing amount will include fees and capitalized interest so the maximum project amount will always be less than the maximum financing amount. 

When will my first payment be due?

Annual payments are paid with property taxes to the County. Depending on when the project is completed and notice given to the County, the County may have already prepared the next property tax bills. As a general rule, if the project is completed by June 30th of a given year, the assessment will show up on that November’s property tax bill. If it is completed July 1 or later, then it would show up on the next November’s property tax bill. 

Can you share documentation of the PACE Funding program disclosures required in California?

Yes! They are inserted here for reference.  pace-funding-group-sample-disclosures-california

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