The Home Loan Investment Bank complete review

Solar loans are the fastest-growing method of financing a solar panel installation for your home or business. Across the country, more than half of all new solar installations are done with either a cash purchase or through a solar loan.

Home Loan Investment Bank, headquartered in Warwick, Rhode Island, is a full-service bank that offers solar loans alongside other financing products. HLIB's loans are accessible to solar shoppers across the country and are one of the top 10 financing options available to solar shoppers on the EnergySage Marketplace. If you're comparing solar quotes from a few different solar installers, you may have encountered a loan option from Home Loan Investment Bank.

Solar shoppers typically have a few different ways to finance their solar panel installation. People who are less concerned about maximizing their financial savings can sign a solar lease or PPA with a solar company. Homeowners who want to access the higher financial benefits that come from owning the system outright typically choose to buy it either in cash or with a solar loan. These solar loans can come from a bank or a specialized solar lender.

Home Loan Investment Bank solar loans are offered to homeowners through their network of solar installers, as well as directly through the bank. When your installer creates a quote for a solar energy system installation, they often include a built-in financing option from a company like Home Loan Investment Bank (note: when you join the EnergySage Marketplace, you can simply indicate a preference for their loan option during registration).

Every home solar installation is different, and HLIB's product offerings are customizable to customer needs. Loan amounts, terms, and interest rates will depend on the specifics of each installation.

Loan types

Home Loan Investment Bank offers FHA Title 1 loans to finance solar and other home upgrades. FHA Title 1 loans are insured by the U.S. Department of Housing and Urban Development's Federal Housing Authority and require no home equity or appraisals.

Loan terms, interest rates, and amounts

According to the company, Home Loan Investment Bank's solar loan terms range from 3 to 20 years. Borrowers can pay off the loan at any time with no prepayment penalties. Interest rates on Home Loan Investment Bank financing options also vary based on the customer's credit score and loan term selected and currently range from 3.75-9.75%.

Additional benefits of Home Loan Investment Bank

Home Loan Investment Bank will offer loans to customers with credit scores as low as 620, making them more accessible than some other financing options. Additionally, homeowners can apply for a loan through the bank separately rather than having to work with their installer. HLIB also doesn't charge fees to its contractor partners, unlike some other solar loan providers.

As mentioned above, homeowners have a few different sources of financing for their solar projects. EnergySage solar shoppers who finance their purchase will typically choose either a loan from a traditional bank or a loan from a specialized solar lender. The financing option you select depends on your priorities.

Solar is a relatively new technology, and some traditional banks may be hesitant to provide financing for it. Home Loan Investment Bank functions more like a traditional bank than many of the specialized lenders available to solar shoppers, but the company is well-versed in solar and should be able to answer any questions you might have about the lending process.

The approval process for your solar loan is also dependent on the loan type. Equipment-backed options offered by specialized solar lenders tend to have a quick approval process, often in as little as 24 hours. If you choose a home equity loan from your local bank, you need to have some equity in your home, and the bank will conduct a home appraisal as part of the approval. These loans can take up to several weeks to be approved.

By comparison, Home Loan Investment Bank's FHA Title 1 loan doesn't require equity in your home or an appraisal to move forward. However, it does have a longer approval process than equipment-backed loans (typically funds in 12 to 14 days).

If your main concern is approval time and a streamlined application process, you may want to compare Home Loan Investment Bank against an equipment-backed loan option. Similarly, if you have a strong relationship with your local bank and they are willing to offer you solar financing through a home equity loan or line of credit, you may want to evaluate the terms offered with Home Loan Investment Bank's solar loan option.

Many of the 450+ local installers who provide solar quotes on the EnergySage Marketplace use Home Loan Investment Bank as their loan provider. If you're interested in a loan from Home Loan Investment Bank, simply join EnergySage today and indicate Home Loan Investment Bank as your preferred lender when you register your property.