Updated Income Based Loan Support Thresholds - Effective February 14, 2017
Effective February 14th 2017, Income Based Loan Support thresholds have been updated to reflect more recent data on state Median Income. Please see http://www.masssolarloan.com/loan-support-incentives to see these updated thresholds.
Wall Street Journal Prime Rate Adjustment - Effective December 14, 2016
The US Federal Reserve announced December 14th 2016 an increase in the Target Federal funds rate and therefore the Wall Street Journal Prime Rate has increased from 3.5% to 3.75%. The Gross Loan Interest Rate under the Mass Solar Loan program is capped at WSJ Prime + 2.75% so effective December 14th 2016 this cap is now 6.5% (making the maximum Customer Intertest rate 5% after the Interest Rate Buy Down.
Program Updates - Effective Oct. 17, 2016
As announced on Sept. 13, 2016, in order to meet the overall goals of the program, the following changes to the interest rate buy down (IRBD) take effect October 17, 2016.
- Loan Loss Reserve (LLR) funding re-allocation: The Mass Solar Loan program will reallocate $3 million in unreserved LLR funding to the IRBD budget, increasing the total amount of IRBD funds from $9 million to $12 million. The LLR incentive will continue to be available going forward and loans with previously allocated LLR funds will not be affected.
- IRBD Rate Step Down: The IRBD rate will decrease from the 3 percent to 1.5 percent. All loans closed prior to Oct. 17, 2016 will receive the current IRBD rate of 3 percent. All loans closed on or after Oct. 17, 2016 will receive the new IRBD Rate of 1.5 percent. This will be based on the loan closed date as entered by the lender on the loan support application.
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