When your house mower stops working, the solution may be a $400,000 loan
SAN FRANCISCO — A new type of loan is now in the pipeline for those looking to move their lawn mower.
But the money will come with a big price tag: a $40,000 annual interest rate.
In an effort to get the mower into the hands of the public, the state Department of Public Utilities is launching a pilot program that will offer borrowers a lower rate than the national average for mower maintenance.
It will require borrowers to apply online, and those with a mortgage will pay a 10% down payment, which will pay for the cost of the loan.
If the borrower has an income above $60,000, they will also pay a $5,000 monthly maintenance fee.
“It’s an opportunity to help the public be a part of this important public service,” said Kim Whelan, Public Utilities executive director.
The pilot program, known as the California Loan Forgiveness Program, will offer a lower interest rate than other loan programs.
It will be launched over the next six months, but Whelans hopes to see the program in full operation by the end of the year.
While this is not the first time the public has tried to get a loan for a lawn mowing, it is the first program to be offered to the general public, Whelanes said.
This is not a traditional loan program.
It’s a private loan program, which is a very small loan program for a public utility.
It allows for a lot of flexibility and the ability to borrow on a long term basis, she said.
The program is intended to help reduce the costs of maintaining a mower for a homeowner.
Whelans said that, when the program launched, it was aimed at the lower end of borrowers income range.
Under the loan, the homeowner must repay the loan within 30 days of the due date, and it will not be paid back unless the mowers performance falls below a certain threshold.
At this point, the program has about 25 borrowers.
Whelani said there are many more to come.
Some homeowners will pay interest upfront.
Others will have to pay a maintenance fee for the first year.
And some borrowers may be able to get their mowers repaired after the initial $40 monthly loan.
The California Loan forgiveness program is one of the first federal programs aimed at helping low-income borrowers, but it has been under scrutiny for years.
Critics have raised questions about whether the program is designed to help borrowers in areas that have the lowest income levels.
Public Utilities is offering a program to help low- and moderate-income households with the cost associated with their mower service.
For example, in 2015, Whelpans said the program would help homeowners who were paying about $5.00 a month in mortgage interest for their lawn.
If they were to pay $20 a month for maintenance, they would have a total of $70.50 per month.
More than 5 million households, including more than 500,000 people who were enrolled in the program, are currently paying interest on their mortgages.
Despite concerns about the program’s fairness, Wshelan said the public can be assured that the program will help those who can’t afford to pay the interest upfront and have limited income.