How Does Ygrene Financing Work?

Having a well-protected and energy-efficient property is everyone’s dream. Unfortunately, such property improvement projects are not cheap. Although you can save more money in the long run by having an energy-efficient home, the initial costs can be too high for some people. Alternatively, you can consider having the projects done with Ygrene financing.

What Is Ygrene Financing?

Ygrene offers PACE (property assessed clean energy) financing. It is a financing system to upgrade a property, either residential or commercial, in hopes of improving its energy efficiency, water conservation, and protection against disasters. The funding program allows people to improve their property without spending anything initially.

Unlike regular loans, PACE financing binds to the property instead of the individual. Hence, your eligibility depends on the property equity instead of your credit score. You will repay the loan through property bills at low rates. Moreover, PACE is also tax-deductible. The repayment terms can be as long as 30 years.

How Does It Work?

Ygrene financing takes care of your home improvement projects very efficiently. The procedure only consists of these six easy steps:

1. Check your property’s eligibility. It takes just a few seconds to see how many improvements you can make on your property.

2. Apply for the projects you intend to do by filling out forms. You will also need to sign a few documents.

3. After getting approved, you can choose whichever contractor you trust for the projects. Ygrene offers an extensive network of contractors that all are certified, trained, and proven professionals.

4. Get your projects finished. Feel free to contact Ygrene about any issues with your contractors.

5. Ygrene will issue payment directly to your contractor after you confirm that you are satisfied with the job. You don’t need to spend a dime out of pocket on your projects.

6. Start repaying your property assessment through your property tax bill. For a first project, the term can be up to 17 months after the project’s completion.

Pros and Cons

You need to see both sides of the coin when considering whether Ygrene PACE financing is right for you. It is nice to know all the benefits you can get. But it is also vital to understand the potential drawbacks.

● No credit score checking
● No initial cost
● Possible long repayment terms
● Potentially lower monthly energy bills due to improved energy efficiency
● The loan is tax-deductible
● The improvements may increase the property value
● The loan can be passed on to the next owner if the property is sold

● Will result in a higher property tax bill due to the repayment
● Interest rates can be higher compared to other loan alternatives
● Lack of understanding of the financing policy may put property owners in a difficult situation
● Possible difficulties in selling the property because not everyone is willing to repay the PACE assessment

Ygrene PACE financing can help you switch to a more sustainable way of life through property improvement. But before you jump to sign anything, make sure you have a clear and thorough understanding of it. If in doubt, feel free to consult a tax specialist or financial advisor about your situation. A contractor that you trust may give you some insight into it as well.

ECM does not offer Ygrene Financing. This article is for informational purposes only.