How is PACE different from other financing options?

PACE is a special assessment, commonly referred to as a PACE assessment, for an improvement tied to the property. Should a transfer of property ownership occur, the PACE assessment obligation stays with the property, not the property owner. Therefore, if you sell the property the new homeowner could then take over the balance of the assessment; however, the seller's lender or the buyer's lender (Mortgage Company) may require pay off the remaining outstanding balance of the assessment before the property can be refinanced or sold. This is particularly true for Freddie Mac and Fannie Mae mortgages.

Important considerations include: 

  • Failure to pay the full tax bill including the PACE assessment could trigger foreclosure and property loss even if the property owner is current on other mortgage lien(s). 
  • The PACE assessment is the priority lien and the lien position may impact options to sell or refinance. Some mortgage lenders (particularly Freddie Mac and Fannie Mae) may be unwilling or unable to modify or refinance a property subject to a PACE assessment due to the type and position of the assessment requiring payment in full prior to refinancing or sale of property.

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1. What are the pros and cons of PACE?
2. How is PACE different from other financing options?
3. What is the interest rate for PACE financing?
4. What improvements qualify for PACE financing?
5. Is there a time limit or a funding limit on the amount of financing available?
6. Does a condominium qualify for PACE?
7. Do I have to pay the remaining PACE assessment in full if I sell my property?
8. What happens if my PACE assessment is not paid?
9. Can I pay my PACE assessment early?