PACE Financing Explained: How to Get 100% Home Improvement Financing in California

PACE (Property Assessed Clean Energy) is a financing program that allows homeowners to fund energy-efficient and renewable energy improvements with no money down. The loan is repaid through your property tax bill over 5–30 years.

Key features:
• 100% financing — no down payment required
• Approval based on home equity — not credit score
• Repaid through property taxes — transfers with the home if sold
• Long repayment terms — 5 to 30 years
• Tax-deductible interest — like property taxes
• Same-day approval — often approved within hours

PACE was created by California legislation to encourage energy-efficient home improvements. It's available through programs like Renew Financial (now part of Forbright), which is the program Times Square Remodeling is certified with.

PACE covers a wide range of home improvements — more than most homeowners realize:

Energy efficiency:
• HVAC systems (central air, mini-splits, heat pumps)
• Insulation (attic, wall, floor)
• Windows and doors (dual-pane, energy-rated)
• Cool roofing and roof replacement
• LED lighting upgrades
• Water heaters (tankless, heat pump)

Renewable energy:
• Solar panel installation
• Battery storage systems

Water conservation:
• Low-flow fixtures
• Drought-tolerant landscaping
• Greywater systems

Seismic & wind resistance:
• Foundation bolting
• Cripple wall bracing
• Roof tie-downs

What many people don't realize: A comprehensive remodeling project (new roof + windows + HVAC + insulation) can often be entirely PACE-financed because all components qualify as energy-efficient upgrades.

PACE eligibility is based on your property, not your personal credit:

Requirements:
• You own the property (residential 1–4 units)
• Property is in a PACE-participating jurisdiction (most of California)
• Property taxes are current (no delinquencies in the last 3 years)
• Mortgage is current (no late payments in the last 12 months)
• Sufficient home equity (typically need at least 10–15% equity)
• No active bankruptcies

What doesn't matter:
• Credit score (no minimum)
• Debt-to-income ratio
• Employment status
• Income level

This makes PACE accessible to homeowners who might not qualify for traditional home improvement loans.

Here's the step-by-step process when you use PACE financing with Times Square Remodeling:

1. Free consultation — We assess your project and identify PACE-eligible components
2. Application — We help you apply (takes about 15 minutes)
3. Approval — Typically same-day or next-day
4. Project begins — Construction starts with no money out of pocket
5. Completion & inspection — Work is completed and verified
6. Repayment — Added to your property tax bill in the next cycle

The entire application-to-approval process often takes less than 24 hours. There's no lengthy underwriting process like a traditional loan.

How does PACE compare to other ways to finance home improvements?

PACE vs. HELOC:
• PACE: No credit score requirement, same-day approval, transfers with property
• HELOC: Lower interest rates, but requires good credit and takes 2–6 weeks to close

PACE vs. Personal Loan:
• PACE: Longer terms (up to 30 years), lower monthly payments, no credit check
• Personal loan: Faster for small amounts, but higher rates and shorter terms

PACE vs. Cash:
• PACE: Preserves your savings, potential tax deduction on interest
• Cash: No interest costs, but depletes reserves

Best for: Homeowners who want to preserve cash, have limited credit options, or want to finance a large project with manageable payments tied to their property tax bill.

Before choosing PACE, understand these factors:

- Interest rates: PACE rates are typically 6.5–9.5% (higher than HELOCs but lower than credit cards)
• Property tax lien: PACE creates a lien on your property that takes priority over your mortgage — some mortgage lenders require notification
• Selling your home: The PACE assessment can transfer to the buyer, but some buyers' lenders may require it to be paid off at closing
• Right to cancel: California law gives you 3 business days to cancel after signing

We always recommend discussing PACE with your mortgage lender before proceeding. Times Square Remodeling can help you evaluate whether PACE is the best option for your specific situation.