General

• What does the name "HERO" stand for?

  HERO is an acronym that stands for: Home Energy Renovation Opportunity

• What is the HERO Financing Program?

  HERO is the #1 energy efficiency financing program in the United States. HERO partners with local governments to make energy efficient, water efficient, and renewable energy products more affordable for homeowners.

• How is HERO Financing different than other forms of financing?

  HERO is unique in that it provides financing for approved energy efficient, water efficient, and renewable energy products. HERO finances 100% of the cost to purchase and install eligible products. HERO offers low-fixed interest rates, flexible payment terms including 5/10/15/20 years for most products, and repayments are made through your property taxes. Additionally, if the property is sold before the HERO Financing is paid in full, the remaining payments can be passed on to a new property owner.

• How is HERO Financing paid through my property taxes?

  The repayment of HERO Financing is included in your property tax bill, which is delivered and collected by the County. You will see a line item titled HERO Financing on your property tax bill. If you make property tax payments through an impound escrow account, your lender will adjust your monthly payment to include the amount due for HERO Financing.

• Who can apply for HERO Financing?

  HERO Financing is available to commercial and residential property owners in many cities and counties across the State of California. To find out if HERO is available in your community please enter your zip code at www.heroprogram.com or call 1-855-HERO-411 (1-855-437-6411).

• Are all contractors qualified to install eligible HERO products?

  No. Contractors must be registered with the HERO Program in order to be qualified to install HERO eligible upgrades. To register with the HERO Program contractors must be properly licensed and bonded with the Contractors State License Board.

  To find a registered HERO Contractor please enter your zip code at www.heroprogram.com to explore the contractors in your community. Property owners are responsible for the selection of the contractor(s) and product(s) necessary to complete their project.

• What happens if a property is sold?

  Property taxes typically stay with the property when it is sold. Under the HERO Program, when you sell or refinance your property, your remaining payments may stay with the property. However, your lender may require you to pay off the remaining balance when you refinance or sell your home.

Eligibility

• What are the eligibility criteria for HERO Financing?

  Homeowners who meet the minimum criteria below are eligible for HERO Financing. Specific eligibility requirements for residential properties include the following:

  • All mortgage-related debt must not exceed 90% of the value of the property.
  • Mortgage payments must be current at the time of application, and property owner(s) must not have had more than (1) 30-day mortgage late payment over the past twelve months.
  • Property taxes for the prior twelve-month period must have been paid on time and no more than one late payment within the past three years.
  • No outstanding involuntary liens, such as tax liens or mechanic's liens.
  • The property owner(s) must not have filed for bankruptcy in the past two years. If they have a bankruptcy record between two and seven years old, they the property owner(s) must not have had any additional late payments more than (60) days past due in the last (24) months.
  • Mobile homes must be permanently attached to the property and the owner of the underlying property must be the applicant and be subject to real property taxes

  For more information, please go to www.heroprogram.com.

• What products are eligible for HERO Financing?

  There are more than 150,000 products that are eligible for HERO Financing. Generally, energy and water efficient products and renewable energy systems are eligible. Please explore the list of Eligible Products at www.heroprogram.com for more information. If you wish to install a product that is not on the list contact us at 1-855-HERO-411 (1-855-437-6411) to get an application.

• If I owe more on my house than its market value, am I still eligible for HERO Financing?

  No. Total mortgage liens on the property cannot not exceed 90% of the value of the property.

• Can a mobile home/manufactured home qualify for HERO Financing?

  Mobile homes (and manufactured homes) are eligible if they are permanently attached to the real property and pay real property taxes (not DMV fees). The mobile home owner must also be the owner of the underlying land. Since an AVM value is often not available for mobile or manufactured homes, the tax assessed value or recent appraisal value may need to be used for the debt-to-value and Eligible Product costs calculations.

• Does a condominium qualify for HERO Financing?

  Condominiums may be eligible depending on the Covenants, Conditions and Restrictions (CC&R's) of the complex as well as the physical design of the unit. Condominium owners who apply for HERO Financing may need to obtain written authorization from condominium management stating that the property owner is allowed to install the proposed Eligible Products.

• Can a property placed in a trust qualify for HERO Financing?

  Yes. Trust property is eligible for HERO Financing if adequate documentation of the Trust, and the applicants' authority under the Trust, are provided with the application. All Trustees must sign all HERO Program documents.

• Are commercial properties eligible for HERO Financing?

  Yes. Commercial properties are eligible for HERO Financing.
  

Costs + Rebates

• Are there application fees?

  There are no fees to apply for HERO Financing.

• What interest rates does HERO offer?

  The interest rate for HERO Financing varies depending upon the term. Terms can range from 5 - 20 years and will affect your rate. HERO interest payments may be tax deductible, which can lower the effective interest rate.

• How is HERO tax deductible?

  Just like a mortgage, interest paid on the principal balance is tax deductible. A property owner's initial payments will be comprised of more interest and less principle. Over time, payments will be comprised of more principle and less interest. Therefore, the amount that is tax deductible will vary over the term of the financing, just like it would be with a mortgage.

• Why does tax deducibility matter?

  Deducting the interest on payments means that property owners will not have to pay taxes on that amount of money. For example, if a homeowner paid $100 in interest this year, they can deduct that amount from their total income. Simply put, they would not pay taxes on that $100. The actual reduction in interest is related to the homeowner's tax bracket. HERO is different because some other financing options for home energy products are not tax deductible.

• Can rebates be used with HERO Financing?

  Yes, homeowners can still receive any rebate that is offered by their local utility, city, county, etc. HERO Financing does not affect the rebate process in any way.

To find out how you can finance your system through the HERO Financing Program or to arrange a FREE ESTIMATE on a new heating and air conditioning system, call Cole Services today.