Are there alternative financing options for making energy improvements other than PACE?

Yes. FHA programs and other market options exist.

FHA's 203(k) Rehabilitation program and Title I Property Improvement programs provide insurance for loans to make repairs and improvements to properties, including for making energy efficient improvements.

Other market options may include Home Equity Lines of Credit or leasing programs.

Each borrower should talk to his or her lender and compare the terms and costs of the various financing options to determine the best for his or her situation and needs.

You may find an FHA-approved lender in your area using the Lender Locator at https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist
The Lender Locator is not an all-inclusive list of lenders currently participating in a particular program such as HECM, 203(k), Title 1, etc. Please contact the listed lenders to confirm their participation in each specific HUD/FHA program. You can also find lenders in your area using your local telephone directory under the heading "Mortgages".

HUD Policy


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03517