A new nonprofit lender, Sustainable Home Loans of Arizona (SHILA), is revolutionizing home improvement financing for Arizonans. With initial funding of $500,000 from the Maricopa County Industrial Development Authority, SHILA aims to finance over $5 million in home upgrades within the next three years. Co-founders Ty Lorts and Chuck LeVinus established SHILA to address the often-prohibitive costs of home repairs and improvements, particularly for seniors and low-income families. SHILA offers financing for a range of projects, including energy-efficient upgrades like solar panels, heat pumps, solar water heaters, insulation, and low-e windows. They also finance electric vehicle chargers, health and safety improvements, and disability modifications such as ramps, walk-in showers, and widened doorways. Unlike traditional banks, SHILA does not require a minimum credit score, making home improvements accessible to those with low incomes, poor credit, or unique financial situations.
Arizona has one of the oldest housing stocks in the West, with a significant portion of homes built before 1980. This often translates to inefficient insulation, outdated windows, and aging HVAC and water heater systems, resulting in high energy bills. Homes built before 2000 are typically 30% less energy efficient than newer constructions, and Arizona residents often face monthly electricity bills between $150 and $250 due to air conditioning use in the extreme heat. With Arizona experiencing record-breaking temperatures, homeowners are actively seeking ways to reduce energy consumption. The “green” upgrades financed by SHILA can potentially save homeowners thousands of dollars annually on utility costs. For example, improved insulation can cut energy expenses by up to 20%, energy-efficient windows can reduce heat gain by as much as 70% during the summer, and solar panels can decrease electricity bills by over $1,200 each year.
Home renovation spending in Arizona is projected to increase in the coming years, with energy-efficient improvements being highly desirable features for homebuyers. However, the upfront costs of these upgrades often create a barrier for many homeowners. Insulating a home can range from several thousand dollars depending on the type of insulation and the size of the home. Solar panel systems can cost tens of thousands of dollars before incentives, and replacing an HVAC system can also be a significant expense. Traditional financing options often exclude lower-income homeowners. The average credit score needed for home improvement loans is generally high, and a considerable portion of Arizona homeowners have either bad credit or no credit history. Home equity lines of credit (HELOCs) require existing home equity, and credit cards typically carry high interest rates.
SHILA addresses these challenges by offering a unique approach to lending. They have no minimum credit score requirement and offer affordable monthly payments tailored to any income level. Loan amounts range from several thousand to tens of thousands of dollars with competitive interest rates, and the loans are unsecured, meaning there are no liens placed on the home. The approval process is designed to be fast, often taking as little as 48 hours. SHILA also offers competitive interest rates and focuses on serving underserved communities. For more information or to apply, visit SHILA’s website at https://shilaaz.org.
