A new Florida Solar Home Equity Agreement is available, called ‘NADA Homeshares’. The highly useful system gives homeowners the chance to exchange fractions of their home equity for solar installation costs. Using it can allow you to start your solar dream, without any upfront costs or monthly payments!
Why Nada Solar Home Equity Agreement?
- Finance your solar dream, even if you don’t have the cash.
- Get solar panels on your property this year!
- Get funding in 2-3 weeks!
- NO upfront costs.
- There are NO monthly payments!
- 0 interest over 10 years.
- No payment until closing in 10 years.
- Remedies if you can’t pay the closing costs after 10 years (including a new agreement).
Nada Solar Home Equity Agreement vs Other Solar Financing
| Nada | Credit Card | Personal Loan | HELOC | Reverse Mortgage | |
| Cash Amount | $50k | $50k | $50k | $50k | $50k |
| Monthly Payment | $0 | $1,416 | $1,190 | $588 | $0 |
| Interest Rate | 0.0% | 20.7% | 19.9% | 12.3% | 7.8% |
| No Income Required | ✓ | X | X | X | ✓ |
| No Age Requirement | ✓ | ✓ | ✓ | ✓ | X |
| No Mortgage Requirement | ✓ | X | X | ✓ | X |
What is a Home Equity Agreement?
- A home equity investment (HEI) or home equity agreement, is a financial arrangement where homeowners provide a minority ownership stake in the property, in exchange for cashing out to make investments.
- Nada allows you to use your unlocked home equity for whatever you need, including solar panels and solar energy systems!
- You always retain ownership of your home. The Homeshare is represented with a Lien against the home.
- The company never has access as a tenant and cannot lease out the home.
- They are great solutions for homeowners who lack the cash or credit to invest in solar but would love to get solar panels up fast.
Are Home Equity Agreements Loans?
According to Nerd Wallet, “Home Equity Agreements differ from mortgages and home equity loans because you don’t make a monthly payment or pay interest. Instead, at the conclusion of the agreement term, you pay back the company the equity advance it gave you as well as a percentage of any appreciation in your property value.Who Is Eligible for a Florida Nada Solar Home Equity Agreement?
- Homeshare are available for homeowners with:
- A 580+ Fico score
- More than 30% equity in their home.
How Much Money Can I Get?
Nada says home shares require you to leave 20% equity in the home and be no larger than $150,000.What Can The Funds Be Used For?
- Funds from Nada’s Florida Solar Home Equity Agreement can be used for home improvements like solar.
- Additional cash can be requested for debt consolidation or to rebuild your savings account.
What Costs Are There?
- There are NO monthly costs.
- There are NO upfront costs.
- Closing costs are required and vary, depending on your application and situation.
- Closing costs are usually 15-20% of your overall home improvement costs.
- To learn more, contact Nada for a personalized estimate.
How Long Is a Nada Home Equity Agreement?
- 10 years.
Can You Leave the Agreement Early?
- Yes
- There are no early exit penalties.
What Happens If You Sell Your Home?
- Nada says “Ordering a payoff on a Homeshare is just like a mortgage payoff and would be handled by the Title Company at closing.”
What Happens If I Can’t Pay It Off?
If you can’t pay the closing costs in 10 years, you have 3 options:- Sell the home
- Refinance the home
- Renew with Nada for another 10-year option with a new Homeshare.
Are Nada Home Shares Taxable Income?
Nada says on their site that its Homeshare Agreements “are secured by a second lien and that it should not be taxable event at time of origination, and there should be typical real estate capital gains tax treatment when the Homeshare Agreement ends.” However, Nada and FloridaPowerServices are not tax advisors and do not give advice. As each homeowner’s tax situation is unique, you should consult a professional tax advisor to understand what is taxable income.How to Get a Nada Florida Solar Home Equity Agreement?
- Apply for the program via a quick and easy application.
- Schedule a home inspection to review the property’s condition.
- Wait for Nada to finalize the paperwork and deposit funds.
- Receive funding for your solar investment!
What’s Needed to Apply:
- Driver’s license Copy or State ID
- Current Mortgage Statement copy
- Proof of Homeowners Insurance
- Proof of Income
- Copy of Social Security Card
