What is a clean energy assessment, and what pros and cons are associated with it? Is it better to use a clean energy assessment or a home equity line of credit? A person that is doing a clean energy assessment loan is looking to do improvements like windows, doors, roofs, and other things that help you to be more energy efficient. By doing these Clean Energy Assessment loans, you are usually able to qualify for an amount that you wouldn’t have been able to qualify for if you had to have your credit or your income checked doing a home equity line of credit.
As for the cons of the Clean Energy Assessment loan, you typically have to pay a higher interest rate for this program, and if you are going to refinance later on, you’re going to have to pay this loan off before you can do so. There is also a lot of false advertising going on with this program about the fact that someone could buy your house and take over this assessment and you’ll never have to pay it off. However, this is only applicable if someone was paying cash for your house. Most likely, If the buyer of your house is getting financing, their lender will require it to be paid off.
Other pros include the fact that this program is a nice option if you are having issues with your credit, or you cannot verify your income.
If you get a Home Equity line of credit, it gives you a lower interest rate with lest costs initially, and on top of that you are able to have more flexibility to pick the contractor that you want, as opposed to being forced to use somebody who is the program.