MySolar Loan Process & Disclosures
The current prime rate is: 3.25%. Rates effective as of February 8, 2021. Rates subject to change at any time.
Loan Process Specifics
You may apply for a pre-approval before your installer has completed a proposal. However, no funds may be disbursed before the following two conditions are met:
1. You provide us with a copy of your signed solar installation contract from an approved installer. Keep in mind that UMassFive will not finance projects that exceed 150% of your annual electricity consumption, and we require that the Total Solar Resource Fraction (TSRF) be 65% or greater.
2. We have confirmed that you are a member of the Credit Union (see below).
Due to the nature of the program, you will receive three disbursements of loan proceeds from UMassFive.
The first disbursement will be for 30% of the project cost, which represents the down payment due to the installer, plus any approved amounts for site or structural work, such as roof repair or tree removal. These funds will be issued via check which will be payable to you and the installer unless you authorize us to disburse directly to the installer on your behalf. From the time of this first disbursement up to 12 months following, you will only be required to make monthly payments of the interest due on your loan balance. You will receive monthly billing statements for just the interest that has accrued each month.
The loan application and loan closing can all be performed digitally or at one of our branches.
The second disbursement of 30% of the project cost will be issued once the Credit Union receives confirmation that your city or town has issued permits for the installation to begin. A check will be issued to you and the installer, unless you have previously authorized us to disburse funds directly to your installer. This disbursement will be equal to the total loan amount minus the amount of the initial disbursement. The combination of the two disbursements (plus any accrued interest) is your permanent financing over the 10 year term (or shorter term, if requested). Your payment should be approximately $10.61 per $1,000 borrowed. You do not need to re-apply for this second disbursement.
The final disbursement of the remaining 40% of the project cost will be issued once the Credit Union receives confirmation that your solar installation is complete and connectivity has been achieved. A check will be issued to you and the installer, unless you have previously authorized us to disburse funds directly to your installer.
Twelve months after your first disbursement , or sooner if you so choose, the remaining balance of your MySolar loan will be amortized over the originally agreed upon term (5, 10, or 15 years) with a fixed monthly principal and interest payment. Disclosures will be provided to you with the final loan terms.
Large Print Disclosures
The interest rate is fixed for the life of the loan, determined by your credit score at the time of application.
The maximum loan amount is determined by the credit score of the borrower(s), not to exceed $75,000.
Payment example: 5.50% for 60 months equals $19.10 per $1,000 borrowed.
UMassFive will file a UCC1 lien on the solar array (panels and inverters).
Membership at UMassFive
UMassFive is a not-for-profit financial cooperative, and as such, can only make loans to members of the cooperative. All borrowers on a MySolar Loan from UMassFive must be members prior to any loan disbursal. If there are joint applicants on the Solar Loan, both borrowers must be members.
Membership in UMassFive is not available to the general public. Eligibility is limited to the employees, students, alumni, or members of select employer groups, schools, and associations. Family members of eligible members may also join the Credit Union. So, if your parents, grandparents, children, spouse, or siblings are eligible to join UMassFive, so are you. Click here for membership eligibility information.
If you do not currently qualify to join UMassFive, you may join a sponsoring organization (for as little as $35), such as the Community Involved in Sustaining Agriculture (CISA), River Valley Co-op, or the Leverett Village Co-op. CISA has an online membership application, while a River Valley Co-op membership application can be found online and mailed in. Both River Valley Co-op and the Leverett Food Co-op accept in-person applications as well.
You will become a member once each borrower has purchased a $5 share in the Credit Union. Your share will be maintained in a savings account and entitles you to all the services of the Credit Union.