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Ygrene Works: Improve your home with zero money down and no credit eligibility

Ygrene has quickly become the largest administrator of Property Assessed Clean Energy Program (PACE) in Miami with over 2,000 completed projects—resulting in a combined value of more than $70 million. Ygrene is a program in which homeowners can finance home improvements with no money down and no credit eligibility. Ygrene will create a non-ad valorem assessment on your property tax bill and you will pay back a portion of the project cost each year thru your property taxes.

Improvements that are eligible for financing are those that will reduce your consumption of energy or better protect your property against windstorm damage. The work must constitute an improvement to the property itself, therefore, new construction is not eligible for Ygrene. Things such as A/C units, water heaters, roofs, windows, insulation, electric car chargers, and solar panels are some of the most common improvement items.

Zero money down and no credit eligibility might sound too good to be true, but it’s true and it’s really good! There are several requirements you must meet in order to qualify: 

  1. You must have at least 10% equity in the property
  2. You cannot currently be in bankruptcy
  3. If you have a mortgage, you must be current on your mortgage
  4. There can be no involuntary liens on the property
  5. You cannot have any late property tax payments for the past 3 years or the length of time that you have lived in the property (whichever is less)
  6. You cannot have any notices of foreclosure for the past 3 years or the length of time that you have lived in the property (whichever is less)

 During our research we discovered that there is a $505 processing fee, but no other upfront fees. You select from their list of approved contractors, all required permits will be pulled, and Ygrene pays the approved contractor once the work is completed and inspected. The cost of the improvement must be at least $2,500 and no more than 20% of the tax assessed value of the property. There is a 5% prepayment penalty or the outstanding balance to repay the loan early, but if you know before you proceed with the loan that you will repay early you can opt to add 1.5% of the contract amount to the closing fees and this will waive the repayment penalty for the future. Right now the current interest rates are between 7.32%-7.94% depending on how many years you plan to finance the project, but the term cannot exceed 20 years.

When it comes time to sell your home the assessment may be transferable, however, the buyer’s lender may refuse to assume the assessment, at which time, they can request this to be paid off before the sale closes. Best practice would be to discuss any Ygrene assessments during the contract negotiation process.

CHECK YOUR ELIGIBILITY 

Ygrene is a great option for those who don’t have the cash on hand or are ineligible to refinance for an equity line due to poor credit scores. If you have improved your home thru Ygrene, we would love to hear about your expereince! Email us: info@luxuryestatesofmiami.com

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