Increasing Middle America’s Access to Capital for Energy Improvements
While middle income Americans have historically invested in improvements that maintain and increase the value of their homes, they have seen an important source of financing – the equity in their properties – evaporate at the same time that their access to other loan products has been restricted. A number of energy efficiency programs are deploying credit enhancements, novel underwriting criteria, and innovative financing tools to reduce risks for both financiers and borrowers in an effort to increase the availability of energy efficiency financing for middle income households. While many of these programs are income-targeted, the challenges, opportunities, and emerging models for providing access to capital may apply more broadly across income groups in the residential sector.
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