Growing PACE Loans Worse than Hard Money

01/17/2017
Comments
  • Brian every thing you said was right on the money. You look better – you seemed so stressed out over the confirmation hearings….Politics is a whole new game my friend with twitter, instagram, facebook, and the like. Politicians are people who want their 15 minutes of fame and think they know more than the American people. They want a pension that will never go away. I think we need to cut that stuff off. You get whatever you put into your pension and the American people are off the hook.

    Bernie January 17, 2017 8:00 am Reply
  • just another sign that the ones who control guidelines, AUS, Interest rates, “new” programs, local/state politicians who love that tax dollars, are willing do anything to keep the bubble propped up. the titanic was unsinkable until it was sinking. PACE loans, small fish in big pond, keep your eye on high balance FHA, that program will be the death nail for FHA. losses will mount. mark my words it will not end well, people that should never bought a home coupled with a home that should have never been valued at that price.

    somedude January 17, 2017 8:47 am Reply
  • You completely ignored the savings from energy bills that offsets the payment therefore there is effectively no payment….so no harm to anyone and possibly a small savings and good for the environment too. Agreed that if you pay cash for energy saving upgrades and solar it is a much better deal with a greater savings but you have to also factor in what return you could have had if you invested that cash money into investments with say a 6% average return then you it is a wash. Again…no harm no foul and helps the environment to boot.

    Mike January 17, 2017 11:20 am Reply
    • There are ways to get HELOCs up to 90% LTV these days for ZERO Cost. HELOCS are free with annual fees of $75/yr (typically). The HERO/PACE program costs are $2k+ in loan fees. If you analyze the APR, it makes much more sense today to do a ZERO Cost HELOC!!

      Fred Solomon January 18, 2017 8:37 am Reply
  • Get your facts straight. PACE now can’t be offered in CA without a disclosure modeled after the ones the Consumer Financial Protection Bureau requires for mortgages, even though they average like only $20k. And on lien position, only the back taxes are due before the primary mortgage holder gets paid – NOT the whole PACE amount. Let’s fight for real estate professionals. Not shill for bankers.

    Jon January 17, 2017 8:25 pm Reply
  • I would love to see comments defending these loans from someone who sells them or anyone who can give us the other side to look at.

    Bradford Page January 18, 2017 4:37 am Reply
  • The HERO and Ygrene PACE loans were a result of FHA, VA, Fannie Mae, and Freddie Mac not allowing them to be on title.

    There have been major changes by FHA, VA, Fannie Mae and Freddie Mac that will now help homeowners finance energy improvements or even refinance their current loan to reduce their rate and payment.

    I write an informative article here that explains what options a homebuyer or homeowenr now has ==> http://homeloanartist.com/purchase-refinance-home-fha-va-hero-pace-loan/

    Brad Yzermans January 18, 2017 9:30 am Reply

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