PACE financing is a game changer versus traditional financing options. PACE provides up to 20% LTV in addition to a mortgage (typically up to 80% LTV), effectively replacing equity investments with a loan from Petros PACE Finance.
PACE Financing | Bank or Private Loan | Internal Funding | |
---|---|---|---|
Downpayment | 0% | Up to 20% of asset value | N/A |
Finance Rate | Market Rates | Competitive | None |
Term of Loan | 10-30 Years | 1-7 Years | N/A |
Debt Capacity | Remains the Same | Reduced | Reduced |
Upon Sale | Lien Tied to Property | Balloon | Paid Off |
Approval Time | 15-30 Days | Up to One Year | N/A |
Financing Fees | 0-3% | 1-2% | N/A |
Recourse to Owner | None | Usually | N/A |
Loan Acceleration | None | Yes | N/A |
Min Investment | $500,000 | Varies | N/A |
Max Investment | Up to 20% of TPV | Varies | N/A |