Program Information
In addition to the zero-interest Mass Save HEAT loan, the Compact also offers the Energy Saver Home Loan program, in partnership with MassHousing and the Massachusetts Community Climate Bank.
The Energy Saver Home Loan Program offers customers who live in their home full time and make below 135% of the area median income, the ability to finance upgrades that can help reduce their energy consumption. These upgrades can include solar, converting to heat pumps for heating and cooling, heat pump water heaters, weatherization, and more. A full list of eligible upgrades can be found below. The program only considers the income of the names listed on the deed when determining if a customer meets the income requirements. Homeowners must be income-qualified and occupy either a single-family home or at least one unit in a 2-4-family home. The work performed (inclusive of all rebates and incentives) must demonstrate modeled energy savings of at least 20%.
Full details on the loan product, program requirements eligible upgrades, and lenders can be found below.
Here is how the program works:
Step 1: Reach out to the Compact at 1-800-797-6699 or EnergySaver@CapeLightCompact.org to set up an initial informational call or in-person meeting. During this meeting, a staff member from the Compact will review the program with you and ensure the upgrades you are exploring can help you meet the required 20% energy reduction.
Step 2: Customers who are interested in proceeding will receive the initial intake form, which will require them to submit proof of residency in the home, a copy of the deed, and income verification documents for anyone listed on the deed.
Step 3: Once income-verified, customers will be connected with Abode Energy Management, the Energy Service Provider, who will assess your home for areas of improvement through an in-person site visit. They will determine whether the proposed improvements will achieve the required 20% energy reduction and can connect customers to program participating installers for things like solar and heat pumps, as well as ensure the customer has access to Mass Save incentives.
Step 4: Once the customer has selected their participating installer for the upgrades, the customer will have a follow-up meeting with the Compact to collect any remaining documents required to access the loan.
Step 5: Once all documents have been received, the Compact connects the customer to the lender that they have chosen from the list of participating lenders. The customer proceeds with accessing the loan. Participating lenders can be found below.
Step 6: Funds are handed over to the installers and work is complete. The Energy Service Provider will complete a quality installation inspection.
Ready to get started?
Email EnergySaver@CapeLightCompact.org or call 1-800-797-6699
Energy Saver Home Loan – Income Limits By County*
| County | 80% Limit | 135% Limit |
|---|---|---|
| Barnstable | $98,160 | $165,645 |
| Dukes | $110,000 | $185,625 |
| Nantucket | $122,480 | $206,685 |
*Income eligibility is determined by the combined income of residents listed on the property deed.
In June of 2023, Governor Healey announced the launch of the Massachusetts Community Climate Bank (MCCB), the first climate bank in the nation with a specific focus on decarbonizing affordable housing.
Strategically placed within the State’s Housing Finance Agency, the MCCB leverages MassHousing’s existing capabilities and infrastructure. MCCB financing helps deliver decarbonization benefits to low-and-moderate-income residents and Environmental Justice communities disproportionately burdened by pollution and poor health.
As part of this initiative, MassHousing has created a new program called the Energy Saver Home Loan Program (ESHLP), which is funded by the MCCB.
The borrower is qualified at the full amortized rate. Rebates are not part of the loan. Months 1-18 are designed to bridge the gap until the Borrower receives any rebates. We strongly encourage Borrowers to pay down their principal balance with the rebates but they are not required to. There are no pre-payment penalties and additional payments can be made as a single payment. Loans can be recast with a minimum principal payment of $2,500 with no fee.
Borrowers up to 80% AMI
| Term | Rate | Amort Type | Payment ($50,000 Loan) | Payment ($100,000 Loan) |
|---|---|---|---|---|
| 1-18 Months | 0.50% | Interest Only | $20.83 | $41.67 |
| 19-240 Months | 0.50% | Amortizing | $235.85 | $471.70 |
Borrowers between 80 – 135% AMI
| Term | Rate | Amort Type | Payment ($50,000 Loan) | Payment ($100,000 Loan) |
|---|---|---|---|---|
| 1-18 Months | 2.00% | Interest Only | $83.33 | $166.67 |
| 19-240 Months | 2.00% | Amortizing | $269.64 | $539.28 |
Eligible Improvements will be determined by the Energy Service Provider. Fossil fuel equipment upgrades are not eligible. Some upgrades, such as solar and EV chargers, must be paired with other upgrades that can achieve a 20% energy reduction. The upgrades most likely to achieve this reduction are Heat Pumps, Heat Pump Water Heaters and Insulation upgrades. Customers not completing one or more of those three upgrades are unlikely to be eligible to meet the required energy reduction.
| Category | Improvement |
|---|---|
| Health and Safety Improvements | |
| Combustion Safety Repair | |
| Mold Remediation | |
| Knob and Tube Wiring Remediation | |
| Asbestos Remediation | |
| Oil Tank Removal | |
| Basement Moisture | |
| Non-Structural Leak Repair (cladding, roofing, window, door) | |
| Structural Repair | |
| Energy Efficiency/Weatherization | |
| Air Sealing and Insulation | |
| Duct Sealing and Insulation | |
| Roofing | |
| Fortified Roofing | |
| White Roofing | |
| Windows | |
| Exterior Doors | |
| HVAC | |
| Ventilation | |
| Air Source Heat Pumps | |
| Ground Source Heat Pumps | |
| Thermostats | |
| Domestic Hot Water | |
| Heat Pump Water Heater | |
| Solar Thermal | |
| Electric/Clean Energy Technologies | |
| Electric Panel Upgrade and Wiring | |
| EV Charging Station | |
| Solar PV | |
| Battery Storage | |
| Appliances, Lighting, Fixtures | |
| Electrical/Induction Cooking (cooktop, range, oven) | |
| Heat Pump Clothes Dryer | |
| Low Flow Faucets and Toilets | |
| LED Lighting | |
| Site Work | |
| Arborist-Approved Shade Trees | |
| Tree Pruning |
Transaction Type
Second Mortgage for Energy Improvements (could go into 3rd position after 1st and DPA)
Loan Limits
Min $10,000 up to a Max of $100,000
Contingency Amount
5% contingency amount required (this may be waved depending on the improvement type). The contingency is a part of a project’s budget put aside to cover any unforeseen costs, risks, events, or changes in scope that may affect the project’s cost over the course of its life.
Closing Costs and Fees
Borrowers are responsible for all closing costs and fees which may be rolled into the loan. Closing Costs may include, but are not limited to, Recording Fees, MERs Fee, Credit Reports, Attorney/Title Rundown, Flood Cert, Overnight Fees, and Application Fee.
Eligible Borrower
Owner Occupied single family home, or single unit in 2-4 unit multi-family home. Applicant must meet program income limits.
Minimum Credit Score
620 -Anything below 620 will be submitted for review.
Maximum Debt-To-Income (DTI)
50%
Maximum Combined-Loan-To-Value (CLTV)
105% of assessed or appraised value based on a drive-by appraisal with external pictures and comps. Value determined is based on as-complete of expected improvements, including expected rehab.
Property Type
Single Family & 2-4 Units –NO CONDOMINIUMS; NO HOMES HELD IN TRUST.
BankFive
All Counties
BayCoast Bank
Dukes and Nantucket County Only
Bristol County Savings Bank
Barnstable County Only