The new HERO Financing Program in participating cities allows you to purchase home improvements such as a new heating or cooling system, or a new water heater, and then to finance it through property tax payments over several years. Not only does this mean certain properties are certain to be eligible for the financing, in many circumstances the payments may be tax deductible. Plus if you sell the home, the cost of the system may be passed on to the new owners in many circumstance, so that they pay for the benefits. Here are some FAQ:
General
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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.
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Eligibility
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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.
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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.
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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.
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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.
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Costs + Rebates
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Are there application fees?
There are no fees to apply for HERO Financing.
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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.
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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.
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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.
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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.

HERO FINANCING PROGRAM HVAC | HVAC HERO FINANCING | HVAC PROPERTY TAX FINANCING
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