FHA – Updated Requirements for Properties with PACE Loans

December 18, 2017rashtonBulletins, Bulletins


Effective for FHA Case Numbers assigned on and after January 6, 2018, properties encumbered with Property Assessed Clean Energy (PACE) obligations will no longer be eligible for FHA-insured financing.

PACE loans are made through government-sponsored programs to finance energy efficient upgrades and installations and where repayment is made through special tax-like property assessments.

Below is a summary of the underwriting changes made for purchase and refinance transactions to ensure outstanding PACE obligations are paid off and closed.

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