Deferred Payment Loans | Energy Smart Homes | Zero Interest Loans | St. Paul, MN
Live in the city of Saint Paul and need energy upgrades in your home? Take advantage of our lowest cost financing option: Energy Smart Homes, a zero interest deferred loan. No payments are required for 15 years or until sale or refinance (with cash back) of the affected property, at which time the entire loan principal is repaid to the NEC.
Borrowers can cover from one half to the entire cost of their energy projects using an Energy Smart Homes loan, but they must match the financing 1:1. The match can be covered with cash, with other financing (the NEC has several great financing options), or by using payments toward another qualified home improvement.
There is no home equity requirement and no household income restriction. Financed improvements must be prescribed by an Xcel Energy Home Energy Audit.
Qualified home energy improvements include:
- Attic & wall insulation & air sealing
- Water heaters
- Electrical and/or ventilation work related to above improvements
Loan costs include $250 for loan administration, plus minimal fees for a credit report, title check, origination, and recording. Closing costs will be paid upfront by the borrower (fees average $350).
Approximately 10% of loan funds are set aside for owners of rental properties (1 – 4 units).
Underwriting requires that the applicant is current on any existing mortgage loans; that they have no unpaid taxes or judgments; and that they are not currently seeking bankruptcy protection. If the deed to the property is held by someone other than the applicant, the deed holder is required to enter into the loan application.
The NEC will revolve the loan proceeds to new borrowers as funds are repaid. This is a fantastic program for all of Saint Paul!
Call (651) 221-4462 x 132 or send an email to learn more.
The Energy Smart Homes Program is made possible through the Saint Paul Sales Tax Revitalization program.