Changes to the Mass Solar Loan Program
Recently we received an advisory from the Massachusetts Solar Loan Program about the future of the program. Simply put: the program is about to hit its cap.
What does that mean for you? Well, if you already have a loan, nothing. But if you are getting sick and tired of that utility bill, and you want a great deal on financing, this is really important. Here are the points, followed by the full advisory:
- The program is shifting its focus away from non-income qualified borrowers. However, there will still be closing cost caps for participating lenders (rates will go up!)
- If you want to get a loan, it MUST CLOSE before December 13th
- It takes 2 weeks to get a loan closed, so TIME IS OF THE ESSENCE!
Please let your friends and family know about these changes, especially if they have been considering going solar. This is extremely time sensitive information!
As noted in previous communications, the Mass Solar Loan program is nearing full utilization of the initial program funding (tracked here). This notice announces a programmatic transition that steps down loan support while providing additional funding for future program activities that focus on income-qualified customers. Details on the timeline of this transition and new program structure are provided below.
The new program structure will take effect for all loans closed on or after December 13th 2017. Loan support under the current program structure is available for all projects that close on a program loan through December 12th 2017.
Note that technical application approval alone does not reserve funding, so please take the appropriate steps with your customers to ensure they apply for the loan and schedule a closing prior to the transition if they would like to receive funding under the current structure.
New Program Structure:
Non-Income Qualified Customers (Greater than 120% of State Median Income) – will not be eligible for any loan support incentives (IRBD, IBLS, and Loan Loss Reserve), however will still be able to take advantage of technical project approval and program structure to seek market rate loans from a participating lender. Standard loan requirements and consumer protections such as the interest rate and closing cost caps will still be applicable for non-income qualified customers.
Moderate Income Customers (Between 80% and 120% of State Median Income) – will be eligible for Income Based Loan Support corresponding to 10% of the loan amount, capped at $3,500, and will be able to qualify for Loan Loss Reserve if eligible. Moderate income customers will NOT receive an interest rate subsidy and will receive market rate loans from participating lenders.
Low Income Customers (Below 80% of State Median Income) – the incentives will remain unchanged from the current program structure. Low income customers will be eligible for Income Based Loan Support corresponding to 30% of the loan amount, capped at $10,500, and will be able to qualify for Loan Loss Reserve if eligible. Low income customers will be eligible for a 1.5% Interest Rate Buy Down (the current IRBD rate).