Q:

What is the HERO financing program?

A:

Quick Answer

Home Energy Renovation Opportunity financing allows certain California homeowners to repay the cost of power and water efficiency improvements through special property tax assessments, explains the U.S. Department of Energy. The Western Riverside Council of Governments sponsors the program.

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Full Answer

HERO loans include a fixed interest rate and are repayable over a five-, 10-, 15- or 20-year period, indicates heroprogram.com. There is no minimum credit score and interest payments are tax deductible. Property owners who use HERO financing may transfer the repayment obligation to the buyer upon selling a property.

Only eligible homeowners may participate, notes heroprogram.com. To qualify, a homeowner must be current on mortgage and tax payments and have no involuntary liens. The amount of mortgage debt may not exceed 90 percent of the property's value. Homeowners must not have filed bankruptcy in the seven years prior to a HERO application and the property must not be part of an active bankruptcy estate.

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