PACE loans are used by home owners and developers specifically for energy efficient upgrades. New windows, doors, HVAC etc. Only special lenders do these loans. As I write this in October of 2026, rates range from 6% to 12.99% depending on the project. There are initial set up fees as well.  The upgrades are done by approved vendors and supervised by the loan company. They are not paid for monthly like a regular loan but instead are paid for annually on your property tax bill with as much as a 30 year repayment schedule. Basically, the payment would be amortized over 30 years with twice per year annual payments on your property tax bill. Once in place, a Pace loan becomes a “super priority lien” meaning it moves in priority over everything but federal and state taxes. Even in front of mortgages. This may sound good however, they do complicate financing. Obtaining a loan to purchase or a refinance may not be possible as lenders likely would not want to be subordinate to a Pace loan.  In a sale, the PACE loan follows the property and if not paid off at close, would stay on the property tax bill for the new owner to pay. Even a cash buyers desire to buy a property would be affected as they will not want to inherit the debt. Many agents do not know where to look to see if a PACE lien is in place on a property. It is a seller disclosure item (if the seller thinks to answer this question accurately or even know they have a PACE loan) and the loan will appear on the title report in the property tax section. Even developers of new homes can use PACE loans to finance part of their building costs (which they can then pass on to you). I see the value of PACE loans, though I am not a fan. They are expensive, complicated and may not be worth the trouble.