CHIF Single-Family Energy
Conservation Loan Program FAQ How much money can I borrow?
The minimum loan amount under the Energy Conservation Loan (ECL) program
is $400. The maximum amount you can borrow is $10,000. These figures
are based on your ability to repay the loan. To determine just how much you
can borrow, we will add up all of your existing debts, i.e., mortgage, insurance,
real estate taxes plus things like your car loan, student loan and 5% of the
balance on your revolving charge cards and compare that figure to your income
level. All of these factors taken together will determine the final amount that
you can borrow.
How is the interest rate
determined?
The ECL interest rates are 1%, 3%,
and 6%. These below-market rates are based upon the borrower's
average adjusted gross income from the past two years' federal tax filings,
family size, and the physical location of the property.
What are
the terms of the loan?
Repayment of the loan is figured for
a maximum period of 10-years. Borrowers may repay the loan sooner if
desired.
Do I need excellent credit to
qualify?
Yes, CHIF will look to see that all
of your credit accounts are current. We want to know that you have a strong
history of repaying any debts that you personally incur. If you have a
question about your credit history, you may contact a CHIF loan
officer.
How long is the application
process?
The entire process averages between
three to four weeks from the time we receive your application in our office to
the actual closing or granting of the loan. When CHIF first receives your
application, we will run a check of your credit history. We will check to
see that you meet the debt-to-income ratio. Once we determine that you
qualify, you will be contacted by a CHIF loan officer either by phone or
mail.
Do I need an estimate or proposal to
send in with my application?
No. One of the attractive
features of this program is that no estimate or proposal is required at the time
of application. However, a written estimate will be required later in the
application process.
What other materials should I submit
with my application?
In addition to the completed
application form, please submit copies of the past two years' federal tax returns
with schedules and a copy of your monthly mortgage statement or coupon or release
of mortgage or deed.
For more information contact CHIF at:
loans@chif.org |