PACE Financing
Property-Assessed Clean Energy financing — funds energy/water upgrades and solar through a special assessment on the property tax bill.
Quick answer
PACE Financing: Property-Assessed Clean Energy financing — funds energy/water upgrades and solar through a special assessment on the property tax bill. Typical cost: 6%–9% APR equivalent; 5–25 year terms..
Why it matters
PACE qualifies on equity instead of credit but creates a senior lien that can complicate refinancing or selling the home.
Typical cost
6%–9% APR equivalent; 5–25 year terms.
Pros
- • No credit minimum
- • Repaid via tax bill
- • Transferable to next owner (theoretically)
Cons
- • Senior to mortgage — Fannie/Freddie won't refi until paid off
- • Aggressive contractor sales tactics reported
Common uses
- • Solar, HVAC, roofing, windows
Alternatives
HELOCCash-out refiSolar loan
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Frequently asked questions
- Why do mortgage lenders dislike PACE?
- Because it's a senior lien — it gets paid before the mortgage in foreclosure.
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