Questions & Answers

Please note that this section will be continuously updated as Program Administrator receives and answers relevant question about the program.

How does the application process work?

The process involves four steps:

• Apply Now: Submit a fast, free application with no impact on your credit score.
• Credit Union Match: Receive information about the local credit union processing your loan application and contact details of the loan officer handling your file.
• General Contractor Match: Get information and contact details for approved and qualified contractors or suppliers in your area.
• Funding: Once you sign a contract with a contractor or supplier and the credit union issues a clear to close, funding is provided.

What types of home improvement projects are eligible for financing?

Eligible projects include:

• Heating and Colling system upgrades
• Kitchen and bath remodels
• Windows and doors
• Decks, patios, and walkways
• Roofing and siding
• Basement remodels
• Other home improvement projects

What are the loan terms and interest rates?

PayClipper offers loans with 0% APR for 4 years to excellent borrowers. Rates of 3% APR and 6% APR are also offered.

Are there any fees associated with the loan?

No, there are no application fees, no origination fees for 0% loan, no early payoff fees, or stage funding requirements.

Does applying affect my credit score?

No, applying through PayClipper has no impact on your credit score.

Is home equity required as collateral?

No, home equity collateral is not required for these loans.

In which areas is PayClipper's service available?

Services are available only in Massachusetts, limited to the following counties: Norfolk, Suffolk, Middlesex, and Essex.

How does PayClipper select contractors and suppliers?

PayClipper conducts deep analysis and due diligence for all network contractors and vendors but does not endorse nor warrant the licensing, workmanship, or business practices of the contractors and businesses chosen by you (the borrower).

Is Energy Assessment Required to qualify for heating or cooling system upgrade?

No. This program is not sponsored by Mass Save. As of late 2024, Mass Save stopped offering rebates and financing for any fossil fuel related equipment, essentially providing Heat Pump upgrades only.

Does PayClipper offer any rebates on equipment or installation?

Since PayClipper is not funded by the utility companies, there are no rebates as we know them through Mass Save. However, some equipment manufacturers do provide rebates. Please consult with qualified contractor. As a side note, home owner should shop multiple quotes as we sometimes find that quotes with "rebate" can sometimes exceed non-rebated quotes.

What parameters PayClipper uses to make lending decisions?

PayClipper does not review, process or make any decisions on your application. Program administrator works with credit union lenders to provide and streamline lending process and guidelines, but ultimate decisioning resides with the credit union itself. PayClipper ensures applicant's eligibility and provides interface where qualified contractor is matched with project request and approved lender receives application for processing.

Can borrowing amount be increased beyond stated $25,000 limit?

We get that question all the time. This depends on how lender views your profile as borrower. We have seen some exceptions made but not by large amount. Credit Unions are most amazing at structuring loan to fit your needs. This might entail loan package where you would get $25,000 at 0% APR, and second loan that could be traditional equity product or refinance some other type of loan product that is collateralized.

Please note that for home upgrades exceeding lending limit, borrower can utilize PayClipper program for partial cost. For example, if renovating kitchen, borrower can use program to purchase cabinetry and or countertops from approved vendors.

What is a UCC filing, and does it encumber my home or interfere with my ability to re-finance my mortgage?

For Mass Save and Payclipper loans, Credit Union may file a Uniform Commercial Code (UCC) form called a “UCC-1 filing” at both the State and County level in order to give public notice that you have entered into a security agreement with the Credit Union that specifies your project as the collateral for your loan. If your mortgage provider were to ever need to foreclose on your home, or if you tried to sell the home without first repaying your loan, then the UCC filing would show up in a title search in the public records.

The UCC-1 filing includes your name, address, a description of the collateral (which is project description). So, the UCC-1 filing is technically not a lien on your real property (i.e. your residence or real estate), nor is it technically a “fixture filing.” However, it is filed via a similar process as a fixture filing so that it can be found more easily as a public record. Credit Union will remove the UCC-1 filing after your loan is fully paid off. Credit Union can assist with subordinating or temporarily suspending the UCC-1 filing if you refinance your mortgage in the future and your mortgage provider requires it. Technically, since Credit Union's UCC-1 filing is only on the personal property that's represented by your home improvement type, there shouldn't be any conflict with the mortgage lender's lien on your residence (i.e. your real property), but many mortgage lenders still require a subordination agreement. Fortunately, the process for providing one is relatively simple and straight-forward. Credit Union charges a flat fee of around $75 (amount varies in different counties) to execute a notarized subordination agreement and can provide a one-page instruction document and a standard subordination agreement upon request.