Energy Smart Loan
Salt Lake County’s Energy Smart Loan is a finance tool that makes available low interest loans to moderate and low-income homeowners for energy efficient home improvements.
When you install a new furnace, air conditioner, or insulation, you improve the comfort of your home while saving money and reducing waste. Our low interest financing provides you a way to weatherize your home and make energy improvements without creating a financial hardship for yourself.
Additionally, Energy Smart loans can finance the purchase and installation of renewable energy improvements that include solar, wind, and geo exchange technology.
Who may apply?
Salt Lake County homeowners, including homeowners who live within one of the County's sixteen incorporated cities, who meet the following two criteria:
- Occupy their home
- Have a combined household income for those 18 years of age and older that is 80% or less of area median income
|
Income Table |
||
| People per Household | Combined Area Median Income at 80% | |
| 1 | $39,950 | |
| 2 | $45,650 | |
| 3 | $51,350 | |
| 4 | $57,050 | |
| 5 | $61,650 | |
| 6 | $66,200 | |
| 7 | $70,750 | |
| 8 | $75,350 | |
What are the terms and rates?
- Repayment Period: 2 to 10 years
- Interest Rate: 5%
- Minimum Loan Value: $2,000
- Maximum Loan Value: $50,000
- Loan to Value (LTV) Ratio: 97%
- Total Debt to Income (DTI) Ratio: 45%
- Credit Score: 600+
Who administers the loan?
Community Development Corporation of Utah
Are tax credits and utility rebates available?
Yes, Community Development Corporation of Utah employs construction managers who will help you identify and apply for all tax credits and utility rebates. Utility rebates received by you will be used to reduce the principle amount of your loan.
What is the process?
- Download, fill out, and submit a loan application
- Your application will be reviewed and your loan eligibility will be determined based upon your loan worthiness and credit score. You may be turned down if your application doesn't qualify.
- Representatives from Salt Lake County will meet with you at your home to review the loan options and make a visual assessment of your home.
- An energy assessment of your home may be required. Energy assessments are performed by certified consultants at no cost to the homeowner. Typically, the consultant will conduct a blower door test, review your previous year’s utility usage, and inspect the following: insulation levels; window and door weatherization; the age, condition, and efficiency of major appliances including the furnace and water heater.
- Based upon these two assessments, a scope of work that is acceptable to the homeowner is drafted. Qualified contractors then provide competitive bids based on the scope of work. Homeowners may recommend their own preferred contractors; however, Community Development Corporation of Utah reserves the right to reject unqualified contractors.
- Contractors are selected and costs are established.
- Loan underwriting is completed. The homeowner accepts the loan payment schedule and the loan is closed.
- The homeowner formally accepts the contractor’s proposal and work begins.
- The homeowner gives final acceptance of the contractor’s work. The contractor issues warranties. Liens are released and rebates are delivered to Community Development Corporation of Utah and applied to the loan’s principle balance
- The loan is serviced.
