FAQ – Single Family Energy Conservation Loan Program

Single-Family Energy Conservation Loan Program

How can I qualify for the Energy Conservation Loan Program?

To qualify for the Single Family Energy Conservation Loan Program you must: 1) own a 1-4 family home located in the State of Connecticut; 2) the average of your adjusted gross income as reported on your IRS income tax returns for the last two years must not exceed the program’s established income limits for your family size; 3) you must be a resident of the State of Connecticut; and, 4) you must have good credit.

What are the program’s established income limits?

Income limits vary depending on the size of your family and the location of your home. Click here for the current income limits.

What is an eligible property?

A single family property with 1 to 4 residential units located in the State of Connecticut may qualify for the Single Family Energy Conservation Loan Program.

How much money can I borrow?

The minimum loan amount under the Energy Conservation Loan (ECL) program is $400. The maximum amount you can borrow is $25,000. These figures are based on your ability to repay the loan. To determine how much you can borrow, we will add up all of your existing debts, i.e., mortgage, insurance, real estate taxes, car loan, student loan and your revolving charge cards and compare that figure to your income level. All of these factors taken together will determine the final amount that you can borrow.

How is the interest rate determined?

ECL below-market interest rates are based upon: 1) the borrower’s average adjusted gross income from the past two years’ federal income tax filings; 2) family size; and, 3) the location of the property and improvement types.  See the ECL fact sheet for current interest rates.

What are the terms of the loan?

Repayment of the loan is based upon a maximum term of 10 years. Borrowers may repay the loan sooner if desired, with no prepayment penalty.

Do I need excellent credit to qualify?

No, but CHIF will look to see that all of your credit accounts are current, and will review your history of repaying your mortgage and other consumer accounts to determine if you are a reasonable credit risk. If you have filed for bankruptcy in the past, it must be a minimum of 4 years since your discharge date to qualify for an ECL loan. If you have a question about your credit history, you may contact CHIF’s lending staff. 

How long is the application process?

Applications are typically reviewed within 2-3 business days from the date of receipt. When CHIF first receives your application, we will run a check of your credit history, and will verify whether you meet the program requirements. Once we determine that you qualify, you will be notified by CHIF’s lending staff either by e-mail or mail.

Do I need to send an estimate or proposal along with my application?

No. One of the attractive features of this program is that no estimate or proposal is required at the time of application. However, a written estimate will be required later in the application process, and you are welcome to submit it with your application if you already have one.

What other materials should I submit with my application?

In addition to the completed application form, please submit copies of the past two years’ federal tax returns with schedules and a copy of your monthly mortgage statement or coupon or release of mortgage or deed.

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