We're here to answer your questions.
We’ve made Ygrene financing as simple as it can be — but when it comes to a financial commitment, it makes sense to ask all the right questions. We’ve provided answers to the ones customers ask most below. If you don’t find what you’re looking for here, please contact us directly.
Want to find out if your home is eligible for Ygrene PACE financing? You can easily find out if you qualify in a few seconds.
Ygrene financing provides 100% no money down financing to help property owners make energy efficiency, renewable energy, water conservation, and storm protection improvements to residential, multifamily, commercial and agricultural buildings. Ygrene is a provider of Property Assessed Clean Energy (PACE) financing. See below for more specific details on PACE.
Eligibility for Ygrene is based primarily on home equity and, in the state of California, your ability to pay, among other factors. No minimum credit score is required for approval — your credit will only be pulled to verify certain underwriting criteria. The credit pull is a soft credit pull and will not affect your credit score. Payments can be spread out up to 30 years with no payments for up to a year or more1, subject to underwriting guidelines, approvals, and date of funding.
Depending on where you live, PACE financing can be used for improvements on commercial, residential, nonprofit, light industrial and agricultural properties. PACE helps communities at all levels by lowering utility bills for property owners, creating green jobs and helping local governments achieve important environmental goals.
Ygrene's award-winning PACE program, with built-in consumer protections, delivers greater choice for home and business owners by providing accessible and affordable financing for energy efficiency, resiliency, renewable energy, water conservation, storm protection and seismic upgrades. (Qualifying upgrades vary by state. Explore qualifying projects by state here.)
PACE is different from many other financing options because the financing acts as an assessment on the property, which is why eligibility is based primarily on property equity and what you can afford based on your debt-to-income ratio, instead of your credit score. The financing is tied to the property instead of the individual, and is repaid over the financing term through your property taxes.
To date, PACE has been successfully used by over 220,000 residential and commercial property owners to improve their property's energy efficiency, lower utility bills, protect from hurricanes, and reduce their carbon footprint. By providing over $1 billion of private capital to more than 550 local communities, Ygrene has created thousands of jobs and invested millions into local economies across the U.S. Learn more at ygrene.com. Learn more about how PACE works here.
Ygrene can be used to pay for hundreds of energy efficiency and renewable energy upgrades for both home improvement and commercial projects. In certain states, storm protection improvements, electric vehicle charging stations, water conservation projects, and seismic retrofits are also eligible. You can find out which projects are available in your area here.
Some common improvements that Ygrene can be used for include solar, energy-efficient heating and cooling (HVAC) systems, windows, doors, roofing, insulation, ducts, pool pumps, water heaters, drought-tolerant landscaping, and water-conserving indoor plumbing repairs. Here is the full list of projects that Ygrene can finance, by state.
It’s simple. First, check your eligibility. If your property is in one of our service areas, you can apply online and get a decision in 30 minutes or less. Eligibility is primarily based on property equity, among other factors (no minimum credit score required). Applying for PACE financing with Ygrene will have no effect on your credit score. In the state of California, your ability to afford payments is also factored into the approval process.
Approval criteria varies by state, but are primarily based on the existing equity in your property and your ability to repay the financing according to terms set forth in the agreement.
Specific criteria required for approval include:
- Property taxes current for at least the past 3 years
- Mortgage payments must be current
- All owners on property title are on the application
- No reverse mortgage
- No mobile homes
- A minimum of 10% equity in your property
- No involuntary liens on the property in question
- No current bankruptcy
In the state of California, there are additional requirements, including:
- Verification of mortgage payment history may be required, depending on the district the property is located in
- No bankruptcy filed within the last four years
- Income verification — the property cannot have liens in excess of $1,000
For a full list of underwriting requirements in your state, Call us at 866-634-1358.
No minimum credit score is required to qualify. A soft credit pull is still necessary to check for bankruptcies and mortgage history, but your actual credit rating will not affect the final approval decision. A soft credit pull will not affect your credit score.
Part of our underwriting criteria requires that we check for bankruptcies and mortgage payment history, which are most easily accessible through your credit report. Ygrene completes a soft credit pull that will not affect your credit score.
A soft pull typically occurs when a person or company checks your credit report as part of a background check. A soft pull may be recorded in your credit report, depending on the credit bureau, but does not affect your credit score. Ygrene completes a soft credit pull when you complete a PACE financing application.
No, PACE is not a loan. Although you may have heard of PACE referred to this way, the term “PACE loan” is actually a misnomer. Unlike loans or revolving lines of credit, PACE is a property assessment. This means that the financing is affixed to your property instead of your personal credit history. It’s also why approval for PACE is primarily based on the equity in your property, as well as your debt payment history, and in the state of California, your ability to repay the financing.2 (Property eligibility for PACE financing varies by state, so requirements may vary.) Repayment is completed through your property tax bill, usually on an annual basis, over the lifetime of your financing agreement.
Your PACE financing will be added as an assessment which will show up as a new line item on your property tax bill. This new tax payment will remain on your bill for the length of the term you selected when you completed your financing agreement. Simply pay your property tax bill in the same way you have previously—either when the bill arrives or via your impound/escrow account.
Payments are due on the same schedule and deadlines as your current property taxes. This applies whether you pay the tax bill directly or monthly through an impound or escrow account. Contact Ygrene Customer Care for more details.
There is no prepayment “penalty” for paying off your financing early. However, a processing fee will be charged if the PACE financing is paid off early, and interest may be due according to the amortization schedule. The processing fee may vary by state — please contact Ygrene Customer Care for further details.
No, PACE financing is not a government discount, subsidy, or incentive program. Though PACE offers affordable interest rates, it does not offer discounts or free services. PACE is a type of financing used to pay for the cost of the property improvements.
PACE is a specialized financing program; before it can be offered to commercial and residential property owners in a specific service area, it must first be adopted by the state government and then enabled at the municipal level. Once PACE is available in a particular area, private companies are able to offer PACE financing products such as Ygrene. The upgrades are then completed by one of a network of independent contractors who offer PACE as a financing option to their customers.
The cost of your home improvement project is determined by your independent contractor, based on what their company charges for such services. PACE offers an avenue for homeowners to pay for those upgrades through affordable financing. The property owner voluntarily chooses to enter into a financing agreement, and is solely responsible for complete repayment, according to the financing terms.
Yes. When you accept Ygrene financing, you agree to make the PACE repayments as a part of your property taxes. Ygrene PACE financing is then repaid with your annual property taxes and secured by a continuing lien on the property. The lien is only in effect for the term of your financing and will not remain on your property once the financing is repaid.
In some cases, PACE payments may transfer to the new owner. Keep in mind that PACE is a “first priority lien”, which means that it could be prioritized over a mortgage loan if the property owner were to default on payments. So while property taxes are legally transferable, some mortgage lenders may require full repayment (payoff) of your remaining PACE tax obligation as a condition of a refinance or sale. Ygrene has also given property owners the ability to pre-pay down their PACE assessment with no penalty. Although they will still incur the interest associated with the financing, homeowners can remove the PACE assessment through prepayment and sell their home.
Before obtaining PACE financing through Ygrene, you should consider the likelihood and timing of a possible sale or refinance (as well as the costs to prepay the tax obligation). To determine if PACE is right for you, speak with your lender.
As the financing company, we want every customer to have a stellar experience with the contractor they choose. Ygrene will always be willing to help facilitate communication between the customer and the contractor they’ve chosen to work with.
Ygrene offers an added layer of protection for our customers. After you receive your Financing Agreement, we will set a time for a Ygrene Financing Specialist to review the terms and conditions with you and answer any outstanding questions you may have prior to signing. We want you to feel confident that Ygrene is the right financing option for you.
We can also help you find reputable independent contractors in your area. We evaluate every contractor within our independent network extensively for quality of work, professionalism, and compliance with state regulations.
We release final payment to your contractor only after you’ve provided final approval on your project — an added measure for peace of mind that other forms of financing in the marketplace simply do not offer.
Yes, in certain states. Ygrene offers customers in California and Florida the opportunity to reduce or ‘buy down’ current interest rates with SelectRateSM. A lower, fixed interest rate can not only save you money on your annual payment, but also reduce the amount of interest you pay over time.
When you choose SelectRate, you will pay a nominal fee (points) that will be added to the cost of your project and rolled into your financing in exchange for a 1- 2% reduction of your current rate. It’s important to note that if you’re planning to sell or refinance your home anytime soon, SelectRate may not be right for you. The longer you plan to own your home, the more buying down your rate upfront can help you save.
No. Though repossessing a home is technically possible if tax payments are delinquent, Ygrene has never foreclosed upon a customer, and doesn’t have any plans to do so in the future.
Find out if your property qualifies in seconds, then submit your application. You’ll receive an approval decision within 30 minutes, or call 866-634-1358 to speak to a customer service representative.
1Timing of first payment depends on date of funding; interest accrues after funding.
2In Broward County, Florida, approval is based primarily on home equity and affordability.