The FHA and VA are expanding their guarantees to residential properties with superior PACE (Property Assessed Clean Energy) liens, but certain clarifications must be made before the market will really open up, according to legal experts. Under newly issued guidance, the FHA and the VA will begin insuring mortgages on qualified residential properties encumbered by PACE liens in support of a White House initiative to make clean energy and energy upgrades available to low- and moderate-income homeowners. PACE programs are available in 19 states and in the District of Columbia and have enabling legislation in 32 states, plus Washington, DC. Such programs provide financing for home improvements that enable homeowners to make energy and water use more efficient and less costly. The financing, however, is not like a traditional loan product. Homeowners repay the PACE financing through a ...