Replacement windows can be a significant home improvement project, especially if you have a house with a lot of windows and a patio door or two. As we’ve discussed before on this site, replacing your home’s windows and doors is definitely a wise investment in your home, but you still may be struggling to come up with the money for the project.
Fortunately for San Diego homeowners, there are multiple options for funding your replacement windows and doors that don’t involve putting the entire project on a high-interest credit card.
PACE Financing (HERO Program, Ygrene Works, CaliforniaFIRST, AllianceNRG)
The PACE Program, which stands for Property Assessed Clean Energy, was established in California in 2008 to help homeowners finance home improvement projects that reduce their home’s electric, gas, or water consumption. And since energy-efficient replacement windows can help save energy, they qualify for this type of funding.
Financing programs like HERO, YgreneWorks, CaliforniaFIRST, and AllianceNRG are all part of the PACE Financing program. The program offers 100% financing on qualifying projects, which means there is no upfront cost for you, the homeowner. They offer low interest rates and repayment periods up to 20 years.
Payments are made through your property tax bill, which means they may be tax deductible. You also may be able to transfer the payments to the next owner of your home if the loan is not paid off by the time you go to sell your home, although some mortgage lenders require that the loan be paid in full upon sale or refinance.
Financing eligibility is based on the equity you have in your home, as well as a few other factors, such as mortgage and property tax payment history. In order to use any of the programs associated with PACE Financing, you must have your windows installed by a company that is registered with PACE.
Find out which PACE programs are offered in your area of San Diego by visiting http://energycenter.org/policy/property-assessed-clean-energy-pace#PaceMap
Third Party Financing From Your San Diego Replacement Window Company
Many replacement window companies in the San Diego area use financing companies that specialize in home improvement projects and energy-efficient upgrades to help homeowners fund their window and door replacement projects.
In general, you apply for these loans through the replacement window company you use, and the money can only be used to pay that company (and will be paid directly to them).
With some of these loans, your home is not used as collateral, which means there is no lien place on your property. Another advantage to these loans is that you can get approved rather quickly—often in minutes—over the phone, and they generally have high approval rates.
Some of the financing companies used by San Diego replacement window companies include GreenSky Financing and EnerBank USA.
Home Equity Loan or Line of Credit
Since you are improving and adding value to your home by replacing your home’s windows and doors, it is entirely appropriate to consider using your home’s equity to make the purchase. You don’t need to go through your home’s current lender to take equity out of your home—you can go through any lending institution offering home equity loans or home equity lines of credit (HELOCs).
The advantages to these types of loans are that interest you pay may be tax deductible and you can use the funds to pay any replacement window contractor you choose. The disadvantage of this type of loan is that they sometimes take a while to secure, as there will likely be a home appraisal and more extensive approval process involved.