For environmentally-conscious homeowners the Hero program seems like a great way to make improvements they wouldn’t be able to afford otherwise. Though these well intentioned loans seem appealing, in many cases they’ve become more of a burden than a benefit.
What is The Hero Program?
The Hero loan program offers loans to homeowners for the purpose of financing renovations to homes that will increase their energy efficiency. The world is going through some radical changes due to global warming, and it’s important that we all take steps to reduce our carbon footprint.
The Hero program was started with the best of intentions. This program wants to help make a positive impact on the environment by financing the modernization of older homes that are less than environmentally friendly. But it turns out, these loans aren’t quite what they seem.
How Does The Hero program work?
Hero loans are made available to homeowners for the purpose of making positive changes to the eco-friendliness of their homes. Homeowners can purchase things like solar panels, energy-efficient water-heaters, low-flow toilets, and more.
A Hero loan is not your typical loan. With most loans you pay them back over time, or if you’re lucky, you pay them in a lump sum. Hero loans aren’t paid back over time, instead they are realized as a part of the tax burden associated with the house. If this doesn’t sound straightforward to you, it’s because it isn’t. This is one of the reasons people are having such a hard time with the loans, but we’ll delve into that a little bit later in the article.
Missouri and California Hero Program
The Hero program is available in two states; California and Missouri. It’s no surprise that California allows these types of loans because they’ve always been very active in the pursuit of climate justice and awareness. Missouri has vast natural landscapes and preservation of the environment is high priority for this state.
The Hero loan program works in the same way for both of these states. The homeowner applies for the Hero loan, and if they are approved, the Hero loan will pay 100% of the renovation costs.
Is The Hero Program Tax Deductible?
Hero loans are included in your tax bill, but are stated separately and not deductible as property tax. This means that even though you’re making improvements on the home, it’s not deductible and you aren’t going to save any money on taxes. This is another reason that many people are trying to get out of their Hero loan. There has even been a Hero loan lawsuit or two in the past. Though this loan was created with the best of intentions, the reality is it’s just not for everybody.
Hero Program Pros and Cons
A lot of the pros of the Hero program are pretty obvious. This type of loan seems great because it allows people to make improvements to their homes that reduce their eco footprint. Not everyone can afford to deck their home out with solar panels and low-flow toilets, and Hero loans allow them to do so.
Once you’ve agreed to the loan and started working, Hero program problems start to arise. It’s not long before people realize that the Hero loan isn’t going to afford them any tax deductions. The additions to the home will increase its value, but this is another area where things get tricky.
The Hero program payoff procedure isn’t as straightforward as one might think. If you move out of your house before the Hero loan has been completed, the loan does not stay tied to the property. It is transferred to the homeowner and you have to pay off the rest of the loan.
Is The Hero Loan Program Worth It?
Tricky payoff procedures, tax deductions and Hero program interest rates all seem to be common problems for homeowners. In the end, it seems that even though Hero loans have the best of intentions, there are some flaws that many homeowners just can’t overlook.
A lot of homeowners jump at Hero loans because they know how important it is to be eco-conscious. Hero loans seem like a way they can help the environment and increase their property value. Unfortunately, they aren’t all they’re made out to be, and people are trying to find a way out.
Getting Out of a Hero loan
When you’ve had enough and want out of your Hero loan, your options are fairly limited. You can pay-off the loan, or you can sell the house. Selling your house to CashNVestors is a quick and easy way to get out of a Hero loan, and makes some extra money along the way.
If you’ve taken on a Hero loan and its not working the way you’d hoped it would, rest assured that you can still get out, and places like CashNVestors can help!