Home Loan Investment Bank’s solar loans: What you need to know

In this day and age, going solar is a no-brainer for many homeowners, offering substantial financial and environmental benefits.

But coming up with the $15,000 to $25,000 in upfront costs to install a solar system on your home can be difficult.

This is where solar loan providers such as Home Loan Investment Bank (HLIB) can come into play.

If you’ve been on the search for a solar loan provider, then you may have already come across an HLIB solar loan option. With flexible loan options and competitive interest rates, HLIB can provide you with the chance to create your own solar energy.

Before you consider a solar loan from Home Loan Investment Bank, here’s what you should know. 

Overview of Home Loan Investment Bank

Based in Warwick, Rhode Island, Home Loan Investment Bank (HLIB) is a full-service financial institution that has been offering commercial, small business and personal loans since 1959. HLIB is an FDIC-insured federal savings bank (FSB) which started as a small local business, and has now turned into a multi-location bank.

HLIB has now expanded to offering retail banking, including home improvement lending. These home improvement loans are what you can use to finance your solar system.

Solar loan options

Home Loan Investment Bank offers one type of solar loan known as an FHA Title 1 loan. This type of loan can be used on a solar installation as well as other home improvement projects.

The FHA Title 1 loan is a home-improvement loan that has no prepayment penalties and requires no home equity. This means that the loan is available to a wider variety of potential borrowers.

The U.S. Department of Housing and Urban Development insures private lenders, including HLIB, on all FHA Title 1 loans.

Loan amounts

The maximum home improvement loan offered by HLIB is $25,000 per single family home.

As the average solar system costs under $20,000 (after the federal solar tax credit), the majority of installations would be able to be covered entirely by an HLIB loan.

Loan terms

Each solar installation must be designed specifically for your situation, and HLIB takes the same approach for a solar loan. This is why they offer six different loan lengths, with the shortest being 3 years and the longest loan being 20 years.

With a wide range of loan lengths compared to other lenders, borrowers are given more flexibility with their loan and payment options.

Interest rates

The interest rates for an HLIB home improvement loan will vary on a case-by-case basis. In most cases, the interest rate will range between 3% to 9%.

The main determinants of your loan’s interest rate will be the length of the loan, and a credit report from the applicant(s).

How to apply for an HLIB solar loan

Solar loans from HLIB are offered to borrowers through their network of solar installers as well as directly through the bank.

Once one of HLIB's installer partners has designed a solar system that meets your energy needs, you will be provided with the option to apply for an FHA Title 1 loan.

Once your application is approved and you’ve signed the contract, the installation process will take place. When you’re happy with the system, payment will be made to your installer.

The other alternative is to go directly to HLIB - either online or in-person - and talk to one of their loan officers.

Concerns raised by HLIB customers

From examining a number of different customer reviews of HLIB, there are a few issues that do raise some potential concerns.

Here’s some of the key issues that customers have brought to light:

• Poor customer service: It is clear, from recurring negative complaints, that customers have been unhappy with their treatment by HLIB. Common issues include long waiting times, for both online and mobile services, as well as a lack of communication with consumers.

• Repayment issues: Some consumers have had trouble making payments online, and have also wrongfully received late fees for repayments that have already been made. There are also numerous complaints about HLIB’s online platform not functioning and not allowing payments to be made.

• Difficulties in checking and closing accounts: Customers report issues with checking their loans balances, finalizing their payments and closing their accounts.

Should you go solar with an HLIB loan?

Home Loan Investment Bank provides a solar loan with flexible loan terms, competitive rates and loan amounts to cover the majority of solar installations. So, if you’re looking at going solar with one of HLIB’s installer partners and you can’t cover the upfront costs, then an HLIB solar loan is a viable option.

However, the negative reviews on HLIB raise concerns. The reports of poor customer service and difficulties in payment processing, pose the biggest downside to borrowing from HLIB. These aspects could also deter potential customers and point them towards other lenders.

If Home Loan Investment Bank isn’t for you, then there are many other solar financing companies that you could consider instead. If you want to learn more about your financing options, check out our expert review of the top 6 solar financing companies. 

You can also go to our home solar calculator to find out whether solar financing is right for you.