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U PDATE 05/08/12 Special EnergyWorks Energy Efficiency Home Improvement Financing In Southeastern Pennsylvania.

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Presentation on theme: "U PDATE 05/08/12 Special EnergyWorks Energy Efficiency Home Improvement Financing In Southeastern Pennsylvania."— Presentation transcript:

1 U PDATE 05/08/12 Special EnergyWorks Energy Efficiency Home Improvement Financing In Southeastern Pennsylvania

2 AFC First – A National Leader in Residential Energy Efficiency Lending and Programs Contractor-driven, energy-related home improvement lending is our primary business. Founded in 1947, our complete focus since 1999 has been assisting high- quality contractors and motivated consumers to affordably install energy-related home improvements. AFC First is one of only three Fannie Mae approved Energy Lenders in the U.S. and considered a national leader in this market. National footprint with over 3,000 Approved Contractors, Manufacturer, Utility and State and Municipal Partners and Sponsors. We operate the Green Energy Training Center & Academy for Home Performance, BPI and contractor sales training. Creating new Green Energy Federal Credit Union for program expansion. Named nations first private Home Performance with ENERGY STAR® sponsor by US DOE on October 1, 2011 (non-utility, state, municipal or non-profit). Selected as one of 18 national FHA PowerSaver pilot lenders by HUD and DOE.

3 What is Keystone HELP®? Principally supported statewide by the Pennsylvania Treasury, Department of Environmental Protection and Pennsylvania Housing Finance Agency and administered by AFC First Financial Corporation, a Home Performance with ENERGY STAR® Sponsor and energy efficiency lender. Additional support for lower rates in Bucks, Chester, Delaware, Montgomery and Philadelphia counties by EnergyWorks, a Better Building program. For work performed by a network of over 1,600 independent Pennsylvania contractors who have been approved to participate in Keystone HELP®. Approved Contractors also have access to AFC Firsts National EnergyLoan® financing program which can be used to finance most items that are not eligible under Keystone HELP®.

4 One of the Most Successful Energy Financing Programs in the Nation – A Great Sales Tool! Over 10,000 and $70 million in unsecured loans Over 1,000 and $20 million in secured loans 85% for Single Measure (HVAC, Insulation, etc.) 70% Approval Rate 1.62% Cumulative Charge Off for Unsecured Loans Since Inception 4

5 What is True Fixed Rate Financing? Many home improvement financing options are finance-company-type programs with promotional or teaser interest rates for an introductory time which then revert to a very high rate if the loan balance is not paid off during the promotional period. These credit card types of financing also do not necessarily guarantee a fixed rate or payment for the loan term. Keystone HELP® is a True Fixed Rate, simple interest loan with longer terms and lower payments than typical bank or other types of unsecured home improvement financing. Since there is no penalty for pre- payment, the customer may pay it off or make additional principal payments at any time. Credit Card or Promotional Finance Company Programs Keystone HELP® 18 to 26.99%! or a Short TermTeaser Rate 0.99% to 8.99% depending on program Interest Rate is Never Really Locked in Read the Fine Print True Fixed Rate Rate and Payment are Fixed for Life of Loan $2,000 $50 $26 $5,000 $125 $66 $10,000 $250 $132 $15,000 $375 $198 Credit Card payments based on 2.50% minimum payment factor EnergyLoan payment based on ten year, fixed rate, 8.99% APR

6 FACT: Same as Cash Buyers Would Likely Buy Anyway Low Monthly Payments Drive Increased Sales A 2012 university research survey found that 81% of homeowners who completed energy upgrades would not have done so without affordable monthly payment financing! Whether its heating, cooling, windows, insulation, Whole House or renewable energy, most homeowners want the best combination of affordability and efficiency. Successful, top-notch contractors reinforce affordability by giving consumers a monthly payment option on every estimate. A low monthly payment offset by likely energy savings removes the Affordability Barrier and drives the sales of higher efficiency improvements. Estimate Can We Afford It?

7 True Fixed Rate Financing Options for Pennsylvania Homeowners Single Measure Installed Energy Improvements Most types of HVAC, Windows, Insulation, etc., can be financed using Keystone HELP®. Special Programs for Whole House Energy Improvements – Home Performance with ENERGY STAR® through Keystone HELP®. Special Programs for Geothermal Heat Pumps through Keystone HELP®. Larger Loans (to $35,000 ) for Solar and Other Improvements through AFC Firsts Renovate and Repair and FHA PowerSaver Programs.

8 Broad Credit Approval for Keystone HELP® Loans Tier 1 to $15, FICO minimum 50% Debt to Income Ratio No Bankruptcy in the past 7 years Tier 2 to $7, FICO minimum 45% Debt to Income Ratio No Bankruptcy in the past 5 years Secured loan options (PowerSaver) to $35, FICO minimum 45% Debt to Income Ratio No Bankruptcy in the past 2 years 8

9 Who May Perform the Work? Only Approved Contractors which have been vetted for financial and ethical stability and meet the standards of the AFC First Energy Program may perform the work. Approved Contractors may also participate in any special state, utility or other programs which AFC First administers. BPI Certification allows participation in Home Performance with ENERGY STAR® programs where available. Minimum 3 years in business, history of financial stability and evidence of $50,000 net worth or compensating factors Satisfactory company and personal credit histories Satisfactory Better Business rating Satisfactory customer and trade references Overall reputation for a high level of service and workmanship

10 Who is Eligible for Keystone HELP® financing? Pennsylvania homeowners who own and are making qualifying improvements to their 1 to 2 unit primary residence located in Pennsylvania are eligible. Good credit and the ability to repay are required. There is no minimum income limit. Some programs have a maximum income limit. Special lower rates for homeowners in southeastern Pennsylvania supported By EnergyWorks!

11 May Consumers Combine Keystone HELP® Loans with Utility and Other Rebates? Absolutely. Consumers may use all available rebates to reduce the price of the job and the amount of their Keystone HELP® loan. Combining available rebates with Keystone HELP® monthly payments is the best way to present affordability to a consumer.

12 Keystone HELP® Loans ENERGY STARADVANCED PERFORMANCE KEY FEATURES No Energy Audit Required 100% Financing Available $1,000 to $25,000* True Fixed Rate Not a Teaser Fixed Monthly Payments Unsecured No Lien Filed on Home No Home Equity Required New Homeowners Eligible No Points, Fees or Costs 3, 5 or 10 Year Term No Penalty for Pre-Payment Contractor Paid Directly Upon Satisfactory Completion Heating & Cooling Systems Water Heaters Windows & Doors Insulation - Floor & Ceiling All Work Related to Installation of Qualifying Improvements Heating & Cooling Systems Water Heaters Insulation - Floor,Ceiling & Wall All Work Related to Installation of Qualifying Improvements Must meet ENERGY STAR standards or minimum program standards Must exceed ENERGY STAR standards and meet minimum ADVANCED PERFORMANCE standards 25% of loan may be used for non- qualifying improvements Maximum Loan $15,000 25% of loan may be used for non- qualifying improvements Maximum Loan $15, % Statewide 5.99% Bucks, Chester, Delaware, Montgomery and Philadelphia counties through EnergyWorks (windows & cooling not eligible for lower rate) 7.99% Statewide 4.99% Bucks, Chester, Delaware, Montgomery and Philadelphia counties through EnergyWorks (cooling not eligible for lower rate) $250,000 Maximum Household Income Pennsylvania Financing for SINGLE MEASURE INSTALLED ENERGY HOME IMPROVEMENTS H EATING, C OOLING, I NSULATION, W INDOWS, D OORS, ETC.

13 13 Keystone HELP® Loan ENERGY STAR®ADVANCED PERFORMANCE All improvement work (including additional non-qualifying items) can be financed if at least 75% of the project consists of qualifying improvements and all related installation work as listed below. AIR SOURCE HEAT PUMP (SPLIT SYSTEMS) AIR SOURCE HEAT PUMP (PACKAGE SYSTEMS) CENTRAL AC SYSTEM SPLIT SYSTEMS CENTRAL AC PACKAGE SYSTEMS BOILERS (ALL FUELS) FURNACES (NATURAL GAS, OIL OR PROPANE) Effective 2/1/12 ENERGY STAR minimum natural gas is 95% AFUE FURNACES (OIL) INDOOR SOLID FUEL BURNING FURNACES (wood, coal etc.) ENERGY STAR rating not required AFUE 78% or OMNI rated WATER HEATERS (ALL FUELS) CEILING FANS PROGRAMMABLE THERMOSTATS VENTILATING FANS WINDOWS/DOORS With NFRC label, U factor.30 or less AIR SEALING AND INSULATION ENERGY STAR certification not required. All of the following must be achieved: Air sealing of the home and ducts (non-blower door), and Ceiling insulation installed achieves R-38 or better*, and Floor insulation installed achieves R-25 or better* * Unless structural limitations prevent achievement of these insulation levels, in which instances the maximum R-value that can be achieved is required, with complete fill of ceiling and floor cavities with insulation (i.e. no voids) at a minimum. All improvement work (including additional non-qualifying items) can be financed if at least 75% of the project consists of qualifying improvements and all related installation work as listed below. AIR SOURCE HEAT PUMP (SPLIT SYSTEMS) SEER 15.0, EER 12.5, HSPF 8.5 AIR SOURCE HEAT PUMP (PACKAGE SYSTEMS) SEER 14.0, EER 12.0, HSPF 8.0 CENTRAL AC SYSTEMS SEER 16.0, EER 13.0 CENTRAL AC PACKAGE SYSTEMS SEER 14.0, EER 12.0 BOILERS (NATURAL GAS, OIL OR PROPANE) AFUE 90 FURNACES (NATURAL GAS OR PROPANE) AFUE 96 FURNACES (OIL) AFUE 90 WATER HEATER (GAS, OIL OR PROPANE) Energy Factor 0.82 OR thermal efficiency 90 % WATER HEATER (ELECTRIC HEAT PUMP) Energy Factor 2.0 R- 5 WINDOWS OR LOW-E STORM WINDOWS AIR SEALING AND INSULATION ENERGY STAR certification not required All of the following must be achieved Blower door-directed air sealing of the home and ducts is performed, in accordance with ENERGYSTAR recommended air sealing practices, BPI Technical Standards for Envelope or BPI Technical Standards for Building Analyst, and Ceiling insulation installed achieves R-38 or better* Floor insulation installed achieves R-25 or better* Wall insulation installed achieves R-15 or better.* * Unless structural limitations prevent achievement of these insulation levels, in which instances the maximum R-value that can be achieved is required, with complete fill of ceiling and floor cavities with insulation (i.e. no voids) at a minimum. Pennsylvania Qualifying SINGLE MEASURE INSTALLED ENERGY HOME IMPROVEMENTS

14 Keystone HELP® UNSECURED CAPP Whole House Loan Home Performance with ENERGY STAR Keystone HELP® SECURED WHOLE HOUSE Loan KEY FEATURES BPI Energy Audit Required From $1,000 to $15, % Financing Available True Fixed Rate Not a Teaser Fixed Monthly Payments Unsecured No Lien Filed on Home No Home Equity Required New Homeowners Eligible No Points, Fees or Costs 3, 5 or 10 Year Term No Penalty for Pre-Payment Contractor Paid Directly Upon Satisfactory Completion Heating & Cooling Systems Water Heaters Windows & Doors Insulation - Floor & Ceiling Cool Roofs Other Work Recommend by a Certified (BPI) Contractor KEY FEATURES RESNET HERS Rating Required From $5,000 to $35, % Financing Available True Fixed Rate Not a Teaser Fixed Monthly Payments Secured by Home First, Second or Third Lien To 120% Of Homes Value New Homeowners Eligible Nominal Closing Costs 10, 15 or 20 Year Term No Penalty for Pre-Payment Contractor Paid Directly Upon Satisfactory Completion Heating & Cooling Systems Water Heaters Windows & Doors Insulation - Floor & Ceiling Other Work Recommended by a Certified (BPI) Contractor Improvements must be ENERGY STAR qualified and part of a comprehensive project of blower door directed AIR SEALING, INSULATION and other energy saving measures as recommended by a Certified Contractor (BPI) and meet minimum program qualifications utilizing the CAPP Checklist. *0.99 EnergyWorks loan subject to process guidelines. Improvements must be ENERGY STAR qualified and part of a comprehensive project of blower door directed AIR SEALING, INSULATION and other energy saving measures as recommended by a Certified Contractor (BPI) who also provides a RESNET HERS rating. Predicted minimum energy savings of 15% to 25% required, depending on homes energy profile. 2.99% Statewide 0.99% Bucks, Chester, Delaware, Montgomery and Philadelphia counties through EnergyWorks and in the City of Allentown 3.875% to 6.375% Based on Homes Equity and Loan Term Statewide Plus $325 Energy Audit Credit to Homeowner $250,000 Maximum Household Income Pennsylvania Financing forWHOLE HOUSE ENERGY IMPROVEMENTS HEATING, COOLING, WINDOWS WITH BLOWER DOOR DIRECTED AIR SEALING & INSULATION HOME PERFORMANCE WITH ENERGY STAR ® BY A BPI CONTRACTOR

15 Keystone HELP® Loan for GEOTHERMAL HEAT PUMP SYSTEMS Keystone HELP® Optional Additional Loan for GEOTHERMAL TAX CREDIT ANTICIPATION KEY FEATURES No Energy Audit Required From $1,000 to $15, % Financing Available True Fixed Rate Not a Teaser Fixed Monthly Payments Unsecured No Lien Filed on Home No Home Equity Required New Homeowners Eligible No Points, Fees or Costs 3, 5 or 10 Year Term No Penalty for Pre-Payment Contractor Paid Directly Upon Satisfactory Completion Closed Loop Geothermal Heat Pump Systems All Related Work incl. Well KEY FEATURES An optional, additional unsecured loan, with no payments for 12 months, for the estimated amount of the borrowers Federal Income Tax Credit for the purchase and installation of a qualifying geothermal system, subject to eligibility, calculated at 30% of the cost of the system, maximum $10,000. Available only when made in conjunction with an Unsecured Loan for Geothermal Heat Pump Systems Improvements must meet ENERGY STAR Tier 2 specification and other qualifying improvements that are ENERGY STAR qualified or meet program standards. Keystone HELP Makes the First 12 Monthly Payments 4.99% Statewide No accrued interest if paid off within 12 months. If not paid off standard Energy Loan rates apply, currently 14.99% to 15.99%. No Restriction on Maximum Household Income Pennsylvania Financing for GEOTHERMAL HEAT PUMP SYSTEMS C LOSED L OOP G EOTHERMAL H EAT P UMP S YSTEMS AND ALL R ELATED W ORK

16 AFC Firsts FHA PowerSaver & Secured Loans for SOLAR & LARGER ENERGY IMPROVEMENTS KEY FEATURES No Energy Audit Required From $5,000 to $35, % Financing Available True Fixed Rate Not a Teaser Fixed Monthly Payments Secured by Home First, Second or Third Lien To 120% Of Homes Value New Homeowners Eligible Nominal Closing Costs 10, 15 or 20 Year Term No Penalty for Pre-Payment Contractor Paid Directly Upon Satisfactory Completion Sunrooms (Heated) Solar PV & Thermal Heating & Cooling Windows & Doors Insulation – All Types Lighting & Controls Electrical & Plumbing Most Energy Improvements All Related Work All makes and models regardless of rating 50% of loan may be used for non- qualifying improvements 6.375% to 8.875% Based on Homes Equity and Loan Term Statewide No Restriction on Maximum Household Income Pennsylvania Financing for SOLAR & LARGER ENERGY IMPROVEMENTS SUNROOMS (HEATED), SOLAR PV & THERMAL, HEATING & COOLING, WINDOWS AFC FIRSTS RENOVATE & REPAIR ENERGYLOAN

17 Simple Consumer & Contractor-Friendly Loan Process Customer Gets Estimate Customer contacts an AFC First Approved Contractor to get an estimate for qualifying improvements. Easy Customer Application For fastest approval, customer applies online at the application integrated on the contractors website, at keystonehelp.com or by phone at (888) Fast Approval We will have a quick decision on the application (typically within an hour), advise the contractor and consumer, and answer any questions. We take care of the details! Contractor Provides Job Info Contractor sends us a copy of their estimate/proposal and Contractor Spec Sheet identifying final price and qualifying improvements. BPI test in and test out required for Whole House programs. Customer Signs Note Customer signs the simple one page loan note we will provide to them (or to the contractor for delivery to the customer). We Pay the Contractor We pay the Contractor same day upon receipt of Completion Certificate and verbal customer confirmation that the work has been done to their satisfaction. (888) afcfirst.com

18 Simple Forms and Process

19 Even for Whole House Home Performance with ENERGY STAR Loans!

20 Program Delivery Accept Applications Online via program website Through Integrated App on Contractors Website Call Center and Toll- Free Numbers Utility Links and Call Center Direction

21 State and Regional Special EnergyLoan® Programs Administered by AFC First A VAILABLE IN P ROGRAM N AME L OAN A MOUNT I NTEREST R ATE C ONTRACTOR C OST E LIGIBLE E QUIPMENT E LIGIBLE B ORROWERS T ERM C OLLATERAL P ENNSYLVANIA Keystone HELP ® Energy Efficiency- Unsecured $1,000 to $15, % to 5.99% in Southeast PA 2.99% to 8.99% Statewide None ENERGY STAR® and Advanced Performance, Heating, Cooling, Windows, Insulation and Whole House Energy Improvements Qualifying homeowners who own and occupy a 1 to 2 unit residence. Maximum income limits may apply. 3, 5, and 10 Year None required, Unsecured Keystone HELP ® Energy Efficiency- Secured $5,000 to $35, % to 8.875%None Whole House Energy Improvements; Larger Energy Projects, Sunrooms and Solar Qualifying homeowners who own and occupy a 1 to 2 unit residence. Maximum income limits may apply. 10, 15 and 20 Year Up to 120% of Homes Value 1 st, 2 nd 3 rd Lien Keystone HELP ® Geothermal $1,000 to $15,000, plus additional Tax Credit Loan to $10, % Plus no payments for 12 months on Tax Credit Loan None Qualifying Closed Loop Geothermal Heat Pump Systems Qualifying homeowners who own and occupy a 1 to 2 unit residence. 3, 5 and 10 Year None required, Unsecured D ELAWARE Energize Delaware$1,000 to $20, % and 6.99%None Qualifying Heating, Cooling, Windows, Insulation and Whole House Energy Improvements Qualifying homeowners who own and occupy a 1 unit residence. 3, 5 and 10 Year None required, Unsecured M AINE Efficiency Maine PACE$6,500 to $15, %None Qualifying Heating, Cooling, Windows, Insulation, Solar and Whole House Energy Improvements with energy audit and 20% savings 1-4 unit properties in PACE qualified townships 5, 10, and 15 Year Up to 100% of Homes Value+, Junior Lien I LLINOIS Illinois Energy Efficiency Loan Program (On Bill Finance) $500 to $20, %None Currently available to customers of Ameren Illinois, ComEd, Peoples Gas and North Shore Gas customers for selected qualifying improvements. Contact us for details. Qualifying homeowners who own a residential single family, duplex, or other residential building with 4 or less units, or a condominium at which they receive the applicable utility service 3, 5 and 10 Year None required, Unsecured K ENTUCKY KY Home Performance Loan & Rebate Program $2,500 to $20, % for first 100 homes None ENERGY STAR®, Heating, Cooling, Windows, Insulation and Whole House Energy Improvements with energy audit and 20% savings Qualifying homeowners who own and occupy a 1 unit residence 3, 5 and 10 Year None required, Unsecured G REATER C INCINNATI GC-HELP Loan$2,500 to $20, %* in KY 6.99% in OH *for first 100 homes as part of KHP None ENERGY STAR®, Heating, Cooling, Windows, Insulation and Whole House Energy Improvements with energy audit and 20% savings Qualifying homeowners who own and occupy a 1 unit residence 3, 5 and 10 Year None required, Unsecured National EnergyLoan® Program from AFC First A VAILABLE IN P ROGRAM N AME L OAN A MOUNT I NTEREST R ATE C ONTRACTOR C OST E LIGIBLE E QUIPMENT E LIGIBLE B ORROWERS T ERM C OLLATERAL A LL 50 S TATES EnergyLoan®$1,000 to $25, % Standard Program 6 & 12 Month Same as Cash Available None for Standard Program All makes and model of Heating, Cooling, Insulation, Windows, Solar and most other energy related improvements Qualifying homeowners who own and occupy a 1 to 2 unit residence or vacation home. Up to 10 Years None required, Unsecured AFC First also Administers Special Lower Rate State and Local Programs In Addition to the National EnergyLoan®

22 AFC First Keystone HELP® Contacts Ken Yeager VP of Business Development Andrew Greenspan Business Development Manager Bob Groegler Business Development Manager Tessa Shin Director of Home Performance & Renovation Lending Peter Krajsa Chairman and CEO John Hayes President and COO Julie Unger VP of Operations Laura Nelson CFO Susan Moring Marketing Manager (888) keystonehelp.com afcfirst.com


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