Property Assessed Clean Energy assessments help create “greener” homes. PACE offers funding for energy-efficient home improvements. These include solar panels, water pumps, and more. Recently the Federal Housing Administration discussed PACE home loan approval.
“The FHA will approve purchase and refinance mortgage applications in states that treat PACE obligations as special assessments similar to property taxes,” wrote Florida Realtors.
The requirements they developed are summarized by Florida Realtors below:
- The PACE obligation must be collected (escrowed) and secured by the creditor in the same manner as a special assessment against the property.
- The PACE obligation cannot accelerate – specifically, the entire amount of the obligation cannot become due in the event of delinquency after endorsement of the FHA-insured mortgage. The property may be subject to an enforceable claim or lien that is superior to the FHA-insured mortgage but only for the delinquent portion of the PACE obligation.There are no terms or conditions that limit the transfer of the property to a new homeowner.
- The existence of a PACE obligation on a property is readily apparent to mortgagees, appraisers, borrowers and other parties to an FHA-insured mortgage transaction, and information on PACE obligations must be readily available for review in the public records where the property is located.
- In the event of a home sale with outstanding PACE financing, the PACE assessment remains with the property. In cases of foreclosure, priority collection of delinquent payments for the PACE assessment may be waived or relinquished. Unless a payoff is negotiated, the buyer will assume the obligation and will be responsible for the payments on the outstanding PACE amount.
It’s important to be kind to the environment. A big step to be taken towards this includes PACE homes. Now that a PACE home loan is an option, more home buyers and builders should be encouraged to be energy-efficient. For information on energy efficient homes in Miami, contact RE/MAX Paradise today!