In the past several years, a popular way to finance the cost of replacement windows and doors has been through the HERO program. You may have heard of it—we used to use it at BM Windows until we realized the drawbacks associated with it. Basically, the HERO program is a financing option that allows homeowners to purchase new windows and doors with no money down, and pay for them in installments through their property tax bill. Sounds great, right?
What you need to understand about financing home improvement projects through the HERO program is that doing so creates a tax lien on your home. This can cause a problem if you ever want to refinance your home. Proponents of the HERO program have also claimed that if you sell your home, HERO payments can be transferred to the next owner. This is true in some cases, but not all. Some mortgage companies, such as Fannie Mae and Freddie Mac, have refused to underwrite loans for homes with this type of tax lien on them, and require that the loan be paid off in its entirety at the time of the sale. This has come as a shock and a disappointment to more than one homeowner.
There are still many replacement window companies in San Diego suggesting the HERO program, but BM Windows is no longer one of them. Instead, our company has chosen to offer financing through EnerBank, a bank that offers zero-down loans for home improvement project, such as replacement windows and doors.
Loans through EnerBank can be approved over the phone in a matter of minutes. The loan is totally unsecured, meaning you don’t need to use your home as collateral, and there is no tax lien placed on your property. Interest rates are fixed for the life of the loan, so you know exactly how much your payment will be every month.
Loans from EnerBank are only available through an authorized contractor like BM Windows. Their interest rates are generally low (much lower than a credit card), and there is no early prepayment penalty. In our experience, and in the experience of many of our San Diego replacement window customers, this type of loan is a great option!
If you’ve always thought that replacement windows and doors were out of reach for you for financial reasons, you may want to think again! With zero-down financing, and low monthly payments, energy-saving windows and doors can be affordable for almost any homeowner.
If you want to find out more about replacement windows and doors, contact us to schedule a free, in-home consultation, At your consultation, be sure to ask one of our sales representatives about financing through EnerBank to see if this type of loan is right for you.