Energy Loans without Interest Payments!
Did you know that some banks in Massachusetts offer qualified borrowers a 0% interest Mass Save HEAT Loan? Many people in Boston have been able to take advantage of this opportunity to significantly improve their home’s energy efficiency, thus reducing energy costs, without having to pay any interest on the loan.
The first step is to complete a Home Energy Assessment, where a professional will thoroughly evaluate your home’s insulation, windows, energy systems etc. and provide you with a report listing ways that Mass Save could help make your home more efficient. If you have projects that are too costly to finance from savings, you can discuss those options with your energy advisor and they will give you a HEAT Loan Intake Form, indicating which energy efficiency measures you could use the HEAT Loan to finance, such as heating equipment, water heaters, or insulation upgrades. (The HEAT loan will finance window replacement only if you currently have single-pane windows.)
The second step is for you to choose a licensed and insured contractor. Once you and the contractor have signed the HEAT Loan Intake Form, you can send that to Mass Save to confirm that the work specified by the contractor matches program eligibility. If the measures are eligible, Mass Save will send you a Heat Loan Authorization Form.
With the Authorization Form in hand, your third step is to choose a participating bank or credit union and apply for a loan. You can find a list of all the banks/credit unions that offer the 0% HEAT Loan through the Mass Save website. (A snippet of that list is pictured below.)
You’ll see that some offer pre-approval over the phone or internet in addition to through their branches. The list will tell you which banks are approved for the area you live in, any fees that the bank applies, whether the loan can be unsecured, and other variables.
“The Heat Loan application process is quite simple,” according to Tom Hankard, a loan officer and branch manager at Webster First Federal Credit Union in Winthrop, Mass. “Along with the Heat Loan Intake Form, the lender will always need the applicant’s paystub or other proof of income. We encourage everyone to apply but loan approval is not guaranteed as lenders look at such things as the applicant’s credit report, past and current credit history, along with other outstanding debts. Even with a zero percent loan, lenders still need to establish if the borrower can afford the new loan payment.”
Cornelius Prioleau, Vice President of Century Bank is another lender who partners with Mass Save. Mr. Prioleau encourages homeowners to “not be discouraged to go through the Heat Loan process. This is something that can really help them. Century Bank is committed to helping homeowners get their loans approved. Our loan underwriting is flexible. We look at each potential borrower’s individual characteristics.”
If your loan application is approved, the bank will send a check or checks, made out to both you and your contractor, for the full amount of the loan, minus any rebates which you expect to receive from Mass Save. Your fourth step is to let the contractor know that you’re ready for them to start the project. They’ve got 90 days from the loan closing to finish the home energy efficiency improvements financed by the loan. Once they’re done, your fifth step is call Mass Save to schedule your quality assurance check.
Finally, in order to retain all of the money-saving benefits that the Mass Save Heat Loan Program offers, your sixth and final step is to complete the rebate application for the equipment that has been installed in your home.
You will not regret participating in the Mass Save Heat Loan Program—especially when you see your heating bills drop, without the added burden of a high interest loan!
This is part 2 of a series. Part 1 provided an overview of HEAT Loan. Part 3 will cover other sources of home improvement funds from the City of Boston.
Visit Mass Save® for videos and step by step instructions about applying for a HEAT Loan (and the Expanded HEAT Loan).
* If you live in a building with more than 4 units, call 800-594-7277 to find out how your building might apply for Mass Save services.
