As part of the current stimulus packages, large banks are now lending to smaller local banks and lending institutions.

Interest rates are at historic lows, and now is the perfect time to take advantage of these rates and invest in solar.

Lenders are trying to create "green energy"-type loans. These loans are basic real estate loans that now add the cost of solar installation into the appraised values. This helps customers who have bought or refinanced homes in the last two or three years to secure financing for green projects.

Due to large, attractive federal tax credits, more and more customers are financing the federal tax rebate on a short personal loan, which allows them to pay off the federal tax credit within a year when they have reclaimed those tax credit monies. The remaining money can be financed on a real estate-type loan at a much lower payment.

The only downside is that the payments for solar are higher in the first year, after which time the tax credit loan is paid off.

Several loans to consider are:

• Conventional 1st and 2nd trust deed notes (real estate loans)
  These loans are best at a fixed interest rate. If customers pay the same amount on this loan as they did on their existing utility bill, the solar is usually paid for in 10-12 years. This includes financing the tax credit money.

If customers apply the tax credit money to the loan, the loan is paid off in about 8 years.

• Conventional Lines of Credit (real estate loan)
  These real estate-type loans are not usually at a fixed rate.

The good news is that you can find them at very low rates. Also, payments decrease when the principle is paid back. This is an attractive feature when tax credit monies are received and used to pay down the principle amount of the loan.

• Personal notes
  These loans carry higher rates of interest and are usually
  amortized over 5 to 8 years.

NEW! Secured Residential Loan Program for California Customers!

• From 6.74% to 7.24% fixed rate
• 3-month deferred 1st payment option
• No income documentation required for loans up to $40,000
• No prepayment penalties
• Bank pays all loan fees and costs up to $150,000
• 2nd lien position
• Loan amounts: $10,000 - $250,000
• Terms: Up to 20 years - fully amortized
• Maximum CLTV 90% - additional added-back value of contract price up to $50,000
• Maximum DTI: up to 50%
• Owner-occupied residences only
• Loan amounts above $150,000 may require modest fee for property appraisal

This program, available exclusively through Clean Power Finance, is underwritten and sponsored by Guaranty Bank.

Golden 1 Credit Union

New Resource Bank