The Connecticut Green Bank said Tuesday it is seeking lenders interested in joining its Smart-E loan program through an open request for qualifications.
Launched in 2013, the program has helped nearly 9,000 homeowners complete projects worth more than $170 million that generate renewable energy, improve the efficiency of their homes, or remove health and safety hazards, the Green Bank said.
Smart-E loans can be used for projects such as:
- Home performance and efficiency, such as air sealing, insulation or windows.
- Heating and cooling, including HVAC projects, heat pumps and air conditioning.
- Water heating.
- Renewable energy sources, such as solar systems.
- Resiliency, such as battery storage systems, water-related improvements, residential wells, or landscaping, and
- Health and safety, such as asbestos abatement and mold remediation.
The Green Bank said it is expanding the program to reach more Connecticut homeowners, especially low- to moderate-income households and communities of color. It also seeks to increase the program’s offerings into resilience and potential opportunities created by money available through the Greenhouse Gas Reduction Fund (GGRF), it said.
Smart-E loans provide capital to residents through a network of participating lenders and vetted contractors who install the projects.
For lenders, the Green Bank said, the program provides a no-cost way to engage with new and existing customers through a loan that has proven to have few delinquencies and charge-offs. It supports the program with marketing and technical assistance, as well as a loan-loss reserve.
Borrowers must meet a minimum 580 FICO score, have a maximum of a 50% debt-to-income (DTI) ratio (though DTI may be waived for a FICO score over 680), and no bankruptcies or foreclosures for seven years. All final underwriting decisions are made by the lender, and lenders become the loan servicer.
A virtual information session for lenders will be held on Wednesday, Aug. 7, at 1 p.m. To participate, register here.
