Mass Save HEAT Loan Program. Nancy E. Stokes Senior Vice President, Lending Mechanics Cooperative Bank

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1 Mass Save HEAT Loan Program Nancy E. Stokes Senior Vice President, Lending Mechanics Cooperative Bank

2 Program Details Mass Save is an initiative sponsored by Massachusetts gas and electric utilities and energy efficiency service providers. The Sponsors of Mass Save work closely with the Massachusetts Department of Energy Resources to provide a wide range of services, incentives, trainings, and information promoting energy efficiency that help residents and businesses manage energy use and related costs.

3 Smart Thinking By making smart choices homeowners and renters, and large and small businesses can better manage energy costs, while simultaneously enhancing the value of their real estate and reducing greenhouse gas emissions.

4 0% Financing Options In 2012, customers are eligible to apply for a 0% loan and obtain applicable utility rebates for the installed system upgrades!

5 How it Works To apply for a Heat Loan you must complete the following simple steps: Complete a Mass Save Home Energy Assessment and receive a Heat Loan Intake Form. Obtain signed, itemized contractor proposals for the eligible efficiency improvements that will be financed Send a copy of the proposal(s) from your chosen contractor(s) to your Heat Loan Administrator for eligibility review and approval

6 How to Apply (cont.) Upon successful review of the provided documents, customers will be provided a Heat Loan Authorization Form (net any utility rebates) to bring to Mechanics Cooperative Bank for the loan.

7 How to Apply (cont.) Successful applicants will receive a loan agreement and two-party check(s) made out to the customer and contractor for the full amount of the loan. After all the work is complete the customer will need to notify their Heat Loan Administrator to schedule a verification inspection. All payment arrangements including initial deposits or final payments are solely between the contractor and customer.

8 Lending Details Owner Occupied Residential 1-4 Units: Micro Loan: $500 to $2000, Maximum term 24 months, Minimum Fico Score 680 Unsecured, Maximum debt to income ratio of 40% Standard Loan: $2001 to $5,000, Maximum term of 60 months, Minimum Fico Score 700, Unsecured, Maximum debt to income ratio of 40% $5,001 to $15,000, Maximum term of 60 months, Minimum Fico Score of 700, maximum debt to income ratio of 40% Extended Loan: $15,001 to $25,000, Maximum Term of 84 Months, Minimum Fico Score of 700, debt to income ratio of 40%.

9 Lending Details Non-Owner Occupied 1-4 Units: Standard Loan: $5,000 to $15,000, Maximum term of 60 months, Minimum Fico Score of property owner 700, UCC filed with the Registry of Deeds, Debt Service Coverage ratio of 1.20 or better $15,001 to $25,000, Maximum Term of 84 Months, Minimum Fico Score of property owner 700, UCC filed with the Registry of Deeds, Debt Service Coverage ratio of 1.20 or better

10 Lending Details C & I, Multi-family 5+, Non-profits: Standard Loan: $5,000 to $15,000, Max term of 60 months, Minimum Fico Score of property owner 700, UCC filed with the Registry of Deeds, Debt Service Coverage ratio of 1.20 or better $15,001 to $25,000, Maximum Term of 84 Months, Minimum Fico Score of property owner 700, Debt Service Coverage ratio of 1.20 or better Large Loan: $25,001 to $100,000, Maximum Term of 84 Months, Minimum Fico Score of property owner 700, Title run-down and mortgage filing required. Debt Service Coverage ratio of 1.20 or better. First or second position lien only. An appraisal may be required.

11 FAQ s Who pays for the Mass Save Residential Energy Assessment and how much does it cost? The Mass Save Residential Energy Assessment is free to all Residential customers served by the participating electric and gas utilities.

12 FAQ s Which utility companies participate in the HEAT Loan Program? A customer must obtain a Mass Save HEAT Loan Authorization form (for Residential customers) through their participating gas utility including: Columbia Gas of Massachusetts New England Gas Company NSTAR Gas Unitil Gas

13 FAQ s Can alternative energy systems be financed through this program (i.e. financing solar systems)? Unfortunately, no. Financing is only available for energy efficiency projects. Please refer to the list of eligible measures (listed on which includes heating systems, hot water systems, insulation upgrades and window replacements.

14 Contact For more information on how Mechanics Cooperative Bank can help your home and business save on energy costs contact: Commercial Customers: Paula Botelho Vice President, Lending Residential Customers: Tracy Hallisey Vice President, Lending

15 Questions? MECHANICS ( )

16 Thank you!