U PDATE 05/08/12 Special EnergyWorks Energy Efficiency Home Improvement Financing In Southeastern Pennsylvania.

UPDATE 05/08/12

Special EnergyWorksEnergy EfficiencyHome Improvement Financing In Southeastern Pennsylvania

AFC First – A National Leader in Residential Energy Efficiency Lending and Programs

• Contractor-driven, energy-related home improvement lending is our primary business. Founded in 1947, our complete focus since 1999 has been assisting high-quality contractors and motivated consumers to affordably install energy-related home improvements.

• AFC First is one of only three Fannie Mae approved Energy Lenders in the U.S. and considered a national leader in this market.

• National footprint with over 3,000 Approved Contractors, Manufacturer, Utility and State and Municipal Partners and Sponsors.

• We operate the Green Energy Training Center & Academy for Home Performance, BPI and contractor sales training.

• Creating new Green Energy Federal Credit Union for program expansion.

• Named nation’s first private Home Performance with ENERGY STAR® sponsor by US DOE on October 1, 2011 (non-utility, state, municipal or non-profit).

• Selected as one of 18 national FHA PowerSaver pilot lenders by HUD and DOE.

http://www.energizedelaware.org/

What is Keystone HELP®?• Principally supported statewide by the Pennsylvania

Treasury, Department of Environmental Protection and Pennsylvania Housing Finance Agency and administered by AFC First Financial Corporation, a Home Performance with ENERGY STAR® Sponsor and energy efficiency lender.

• Additional support for lower rates in Bucks, Chester, Delaware, Montgomery and Philadelphia counties by EnergyWorks, a Better Building program.

• For work performed by a network of over 1,600 independent Pennsylvania contractors who have been approved to participate in Keystone HELP®.

• Approved Contractors also have access to AFC First’s National EnergyLoan® financing program which can be used to finance most items that are not eligible under Keystone HELP®.

One of the Most Successful Energy Financing Programs in the Nation – A Great Sales Tool!• Over 10,000 and $70 million in unsecured loans• Over 1,000 and $20 million in secured loans• 85% for Single Measure (HVAC, Insulation, etc.)• 70% Approval Rate• 1.62% Cumulative Charge Off for Unsecured Loans Since Inception

4

6408%

68019%

720 Plus73%

Loans Made by Credit Score

640 680 720 Plus0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Charge Off % by Credit Score

What is True Fixed Rate™ Financing?

Many home improvement financing options are finance-company-type programs with “promotional” or “teaser” interest rates for an introductory time which then revert to a very high rate if the loan balance is not paid off during the promotional period. These “credit card” types of financing also do not necessarily guarantee a fixed rate or payment for the loan term.

Keystone HELP® is a True Fixed Rate, simple interest loan with longer terms and lower payments than typical bank or other types of unsecured home improvement financing.

Since there is no penalty for pre-payment, the customer may pay it off or make additional principal payments at any time.

Credit Card or Promotional

Finance Company Programs

Keystone HELP®

18 to 26.99%! or a Short Term “Teaser” Rate

0.99% to 8.99% depending on

program

Interest Rate is Never Really Locked in

Read the Fine Print

True Fixed Rate™Rate and Payment are Fixed for Life of Loan

$2,000 $50 $26

$5,000 $125 $66

$10,000 $250 $132

$15,000 $375 $198“Credit Card” payments based on 2.50% minimum payment factor

EnergyLoan payment based on ten year, fixed rate, 8.99% APR

FACT: “Same as Cash” Buyers Would Likely Buy AnywayLow Monthly Payments Drive Increased Sales

• A 2012 university research survey found that 81% of homeowners who completed energy upgrades would not have done so without affordable monthly payment financing!

• Whether it’s heating, cooling, windows, insulation, “Whole House” or renewable energy, most homeowners want the best combination of affordability and efficiency.

• Successful, top-notch contractors reinforce affordability by giving consumers a monthly payment option on every estimate.

• A low monthly payment offset by likely energy savings removes the “Affordability Barrier” and drives the sales of higher efficiency improvements.

Estimate

“Can We Afford It?”

True Fixed Rate™ Financing Options for Pennsylvania Homeowners

• Single Measure Installed Energy Improvements Most types of HVAC, Windows, Insulation, etc., can be financed using Keystone HELP®.

• Special Programs for “Whole House” Energy Improvements – Home Performance with ENERGY STAR® through Keystone HELP®.

• Special Programs for Geothermal Heat Pumps through Keystone HELP®.

• Larger Loans (to $35,000 ) for Solar and Other Improvements through AFC First’s Renovate and Repair and FHA PowerSaver Programs.

Broad Credit Approval for Keystone HELP® Loans

• Tier 1 to $15,000• 680 FICO minimum• 50% Debt to Income Ratio• No Bankruptcy in the past 7 years

• Tier 2 to $7,500• 640 FICO minimum• 45% Debt to Income Ratio• No Bankruptcy in the past 5 years

• Secured loan options (PowerSaver) to $35,000• 620 FICO minimum• 45% Debt to Income Ratio• No Bankruptcy in the past 2 years

8

Who May Perform the Work?

• Only Approved Contractors which have been vetted for financial and ethical stability and meet the standards of the AFC First Energy Program may perform the work.

• Approved Contractors may also participate in any special state, utility or other programs which AFC First administers.

• BPI Certification allows participation in Home Performance with ENERGY STAR® programs where available.

• Minimum 3 years in business, history of financial stability and evidence of $50,000 net worth or compensating factors

• Satisfactory company and personal credit histories• Satisfactory Better Business rating• Satisfactory customer and trade references• Overall reputation for a high level of service and workmanship

Who is Eligible for Keystone HELP® financing?

• Pennsylvania homeowners who own and are making qualifying improvements to their 1 to 2 unit primary residence located in Pennsylvania are eligible. Good credit and the ability to repay are required. There is no minimum income limit. Some programs have a maximum income limit.

• Special lower rates for homeowners in southeastern Pennsylvania supported By EnergyWorks!

May Consumers Combine Keystone HELP® Loans with Utility and Other Rebates?

• Absolutely. Consumers may use all available rebates to reduce the price of the job and the amount of their Keystone HELP® loan.

• Combining available rebates with Keystone HELP® monthly payments is the best way to present affordability to a consumer.

Keystone HELP® Loans

ENERGY STAR ADVANCED PERFORMANCE

KEY FEATURES

• No Energy Audit Required

• 100% Financing Available

• $1,000 to $25,000*

• True Fixed Rate™ Not a “Teaser”

• Fixed Monthly Payments

• Unsecured

• No Lien Filed on Home

• No Home Equity Required

• New Homeowners Eligible

• No Points, Fees or Costs

• 3, 5 or 10 Year Term

• No Penalty for Pre-Payment• Contractor Paid Directly Upon

Satisfactory Completion

•Heating & Cooling Systems•Water Heaters•Windows & Doors•Insulation - Floor & Ceiling •All Work Related to Installation of Qualifying Improvements

•Heating & Cooling Systems•Water Heaters•Insulation - Floor,Ceiling & Wall •All Work Related to Installation of Qualifying Improvements

Must meet ENERGY STAR standards or minimum program standards

Must exceed ENERGY STAR standards and meet minimum ADVANCED PERFORMANCE

standards

25% of loan may be used for non-qualifying improvements

Maximum Loan $15,000


Maximum Loan $15,000

8.99%Statewide

5.99% Bucks, Chester, Delaware, Montgomery and Philadelphia counties through EnergyWorks (windows & cooling not eligible for lower rate)

7.99% Statewide

4.99% Bucks, Chester, Delaware, Montgomery and Philadelphia counties through EnergyWorks (cooling not eligible for lower rate)

$250,000 Maximum Household Income


Pennsylvania Financing for SINGLE MEASURE INSTALLED ENERGY HOME IMPROVEMENTS HEATING, COOLING, INSULATION, WINDOWS, DOORS, ETC.

13

Keystone HELP® Loan

ENERGY STAR® ADVANCED PERFORMANCE

All improvement work (including additional non-qualifying items) can be financed if at least 75% of the project consists of qualifying

improvements and all related installation work as listed below.

•AIR SOURCE HEAT PUMP (SPLIT SYSTEMS)•AIR SOURCE HEAT PUMP (PACKAGE SYSTEMS)•CENTRAL AC SYSTEM SPLIT SYSTEMS•CENTRAL AC PACKAGE SYSTEMS•BOILERS (ALL FUELS)•FURNACES (NATURAL GAS, OIL OR PROPANE)Effective 2/1/12 ENERGY STAR minimum natural gas is 95% AFUE

•FURNACES (OIL)•INDOOR SOLID FUEL BURNING FURNACES (wood, coal etc.) ENERGY STAR rating not required AFUE ≥ 78% or OMNI rated

•WATER HEATERS (ALL FUELS)

•CEILING FANS

•PROGRAMMABLE THERMOSTATS

•VENTILATING FANS

•WINDOWS/DOORSWith NFRC label, U factor .30 or less

•AIR SEALING AND INSULATIONENERGY STAR certification not required. All of the following must be achieved:Air sealing of the home and ducts (non-blower door), andCeiling insulation installed achieves R-38 or better*, andFloor insulation installed achieves R-25 or better** Unless structural limitations prevent achievement of these insulation levels, in which instances the maximum R-value that can be achieved is required, with complete fill of ceiling and floor cavities with insulation (i.e. no voids) at a minimum.

All improvement work (including additional non-qualifying items) can be financed if at least 75% of the project consists of qualifying

improvements and all related installation work as listed below.

• AIR SOURCE HEAT PUMP (SPLIT SYSTEMS)SEER ≥ 15.0, EER ≥ 12.5, HSPF ≥ 8.5• AIR SOURCE HEAT PUMP (PACKAGE SYSTEMS)SEER ≥ 14.0, EER ≥ 12.0, HSPF ≥ 8.0• CENTRAL AC SYSTEMSSEER ≥ 16.0, EER ≥ 13.0• CENTRAL AC PACKAGE SYSTEMSSEER ≥ 14.0, EER ≥ 12.0• BOILERS (NATURAL GAS, OIL OR PROPANE)AFUE ≥ 90• FURNACES (NATURAL GAS OR PROPANE)AFUE ≥ 96• FURNACES (OIL)AFUE ≥ 90• WATER HEATER (GAS, OIL OR PROPANE)•Energy Factor ≥ 0.82 OR thermal efficiency ≥ 90%• WATER HEATER (ELECTRIC HEAT PUMP)•Energy Factor ≥ 2.0

• R- 5 WINDOWS OR LOW-E STORM WINDOWS•AIR SEALING AND INSULATIONENERGY STAR certification not requiredAll of the following must be achievedBlower door-directed air sealing of the home and ducts is performed, in accordance with ENERGYSTAR recommended air sealing practices, BPI Technical Standards for Envelope or BPI Technical Standards for Building Analyst, andCeiling insulation installed achieves R-38 or better*Floor insulation installed achieves R-25 or better*Wall insulation installed achieves R-15 or better.* * Unless structural limitations prevent achievement of these insulation levels, in which instances the maximum R-value that can be achieved is required, with complete fill of ceiling and floor cavities with insulation (i.e. no voids) at a minimum.

Pennsylvania Qualifying SINGLE MEASURE INSTALLED ENERGY HOME IMPROVEMENTS

Keystone HELP®UNSECURED “CAPP” Whole House LoanHome Performance with ENERGY STAR

Keystone HELP®SECURED “WHOLE HOUSE” Loan

KEY FEATURES

• BPI Energy Audit Required

• From $1,000 to $15,000




• Unsecured








•Heating & Cooling Systems•Water Heaters•Windows & Doors•Insulation - Floor & Ceiling•Cool Roofs•Other Work Recommend by a Certified (BPI) Contractor

KEY FEATURES

• RESNET HERS Rating Required

• From $5,000 to $35,000




• Secured by Home

• First, Second or Third Lien

• To 120% Of Home’s Value


• Nominal Closing Costs




•Heating & Cooling Systems•Water Heaters•Windows & Doors•Insulation - Floor & Ceiling•Other Work Recommended by a Certified (BPI) Contractor

Improvements must be ENERGY STAR qualified and part of a comprehensive

project of blower door directed AIR SEALING, INSULATION and other energy saving measures as recommended by a

Certified Contractor (BPI) and meet minimum program qualifications

utilizing the CAPP Checklist. *0.99 EnergyWorks loan subject to process

guidelines.

Improvements must be ENERGY STAR qualified and part of a comprehensive

project of blower door directed AIR SEALING, INSULATION and other energy saving measures as recommended by a

Certified Contractor (BPI) who also provides a RESNET HERS rating.

Predicted minimum energy savings of 15% to 25% required, depending on

home’s energy profile.

2.99%Statewide

0.99% Bucks, Chester, Delaware, Montgomery and Philadelphia counties through EnergyWorks and in the City of Allentown

3.875% to 6.375%Based on Home’s Equity and Loan TermStatewide

Plus $325 Energy Audit Credit to Homeowner



Pennsylvania Financing for “WHOLE HOUSE” ENERGY IMPROVEMENTS HEATING, COOLING, WINDOWS WITH BLOWER DOOR DIRECTED AIR SEALING & INSULATION

HOME PERFORMANCE WITH ENERGY STAR ® BY A BPI CONTRACTOR

Keystone HELP® Loan forGEOTHERMAL HEAT PUMP SYSTEMS

Keystone HELP® Optional Additional Loan forGEOTHERMAL “TAX CREDIT ANTICIPATION”

KEY FEATURES


• From $1,000 to $15,000




• Unsecured








•Closed Loop Geothermal Heat Pump Systems •All Related Work incl. Well

KEY FEATURESAn optional, additional unsecured loan, with no

payments for 12 months, for the estimated amount of the borrower’s Federal Income Tax Credit for the purchase

and installation of a qualifying geothermal

system, subject to eligibility, calculated at 30% of the cost

of the system, maximum $10,000.

Available only when made in conjunction with an

Unsecured Loan for Geothermal Heat Pump Systems

Improvements must meet ENERGY STAR Tier 2 specification and other qualifying improvements that are ENERGY STAR qualified or meet

program standards.

Keystone HELP Makes the First 12 Monthly Payments

4.99%Statewide

No accrued interest if paid off within 12 months. If not paid off standard Energy Loan rates apply, currently

14.99% to 15.99%.

No Restriction on Maximum Household Income


Pennsylvania Financing for GEOTHERMAL HEAT PUMP SYSTEMSCLOSED LOOP GEOTHERMAL HEAT PUMP SYSTEMS AND ALL RELATED WORK

AFC First’s FHA PowerSaver & Secured Loans forSOLAR & LARGER ENERGY IMPROVEMENTS

KEY FEATURES


• From $5,000 to $35,000




• Secured by Home

• First, Second or Third Lien

• To 120% Of Home’s Value


• Nominal Closing Costs




•Sunrooms (Heated)•Solar PV & Thermal•Heating & Cooling•Windows & Doors•Insulation – All Types•Lighting & Controls•Electrical & Plumbing•Most Energy Improvements•All Related Work

All makes and models regardless of rating


6.375% to 8.875%Based on Home’s Equity and Loan TermStatewide


Pennsylvania Financing for SOLAR & LARGER ENERGY IMPROVEMENTSSUNROOMS (HEATED), SOLAR PV & THERMAL, HEATING & COOLING, WINDOWS

AFC FIRST’S RENOVATE & REPAIR ENERGYLOAN

Simple Consumer & Contractor-Friendly Loan Process

• Customer Gets EstimateCustomer contacts an AFC First Approved Contractor to get an estimate for qualifying improvements.

• Easy Customer ApplicationFor fastest approval, customer applies online at the application integrated on the contractor’s website, at keystonehelp.com or by phone at (888) 232-3477.

• Fast ApprovalWe will have a quick decision on the application (typically within an hour), advise the contractor and consumer, and answer any questions. We take care of the details!

• Contractor Provides Job InfoContractor sends us a copy of their estimate/proposal and Contractor Spec Sheet identifying final price and qualifying improvements. BPI “test in” and “test out” required for “Whole House” programs.

• Customer Signs NoteCustomer signs the simple one page loan note we will provide to them (or to the contractor for delivery to the customer).

• We Pay the ContractorWe pay the Contractor same day upon receipt of Completion Certificate and verbal customer confirmation that the work has been done to their satisfaction.

(888) 232 -3477 afcfirst.com

Simple Forms and Process

Even for “Whole House” Home Performance with ENERGY STAR Loans!

Program Delivery

• Accept Applications Online via program website

• Through Integrated App on Contractor’s Website

• Call Center and Toll- Free Numbers

• Utility Links and Call Center Direction

State and Regional Special EnergyLoan® Programs Administered by AFC FirstAVAILABLE IN PROGRAM NAME LOAN AMOUNT INTEREST RATE CONTRACTOR

COST ELIGIBLE EQUIPMENT ELIGIBLE BORROWERS TERM COLLATERAL

PENNSYLVANIA

Keystone HELP® Energy Efficiency-

Unsecured$1,000 to $15,000

0.99% to 5.99% in Southeast PA

2.99% to 8.99%Statewide

NoneENERGY STAR® and Advanced Performance, Heating, Cooling,

Windows, Insulation and “Whole House” Energy Improvements

Qualifying homeowners who own and occupy a 1 to 2 unit residence.

Maximum income limits may apply.3, 5 , and 10 Year

None required, Unsecured

Keystone HELP®Energy Efficiency-

Secured$5,000 to $35,000 3.875% to 8.875% None

“Whole House” Energy Improvements; Larger Energy Projects , Sunrooms and

Solar

Qualifying homeowners who own and occupy a 1 to 2 unit residence.

Maximum income limits may apply.

10, 15 and 20 Year

Up to 120% of Home’s Value1st, 2nd 3rd Lien

Keystone HELP® Geothermal

$1,000 to $15,000, plus additional “Tax

Credit Loan” to $10,000

4.99%Plus no payments for 12 months

on “Tax Credit Loan”None Qualifying Closed Loop

Geothermal Heat Pump SystemsQualifying homeowners who own and

occupy a 1 to 2 unit residence. 3, 5 and 10 Year


DELAWARE Energize Delaware $1,000 to $20,000 3.99% and 6.99% NoneQualifying Heating, Cooling, Windows, Insulation and “Whole House” Energy

ImprovementsQualifying homeowners who own and

occupy a 1 unit residence. 3, 5 and 10 Year


MAINE Efficiency Maine PACE $6,500 to $15,000 4.99% NoneQualifying Heating, Cooling, Windows, Insulation, Solar and “Whole House”

Energy Improvements with energy audit and 20% savings

1-4 unit properties in PACE qualified townships

5, 10, and 15 Year

Up to 100% of Home’s Value+,

Junior Lien

ILLINOISIllinois Energy Efficiency

Loan Program (On Bill Finance)

$500 to $20,000 4.99% None

Currently available to customers of Ameren Illinois, ComEd, Peoples Gas and North Shore Gas customers for selected qualifying improvements.

Contact us for details.

Qualifying homeowners who own a residential single family, duplex, or other residential building with 4 or less units,

or a condominium at which they receive the applicable utility service

3, 5 and 10 Year None required,

Unsecured

KENTUCKY KY Home Performance Loan & Rebate Program $2,500 to $20,000 3.99%

for first 100 homes NoneENERGY STAR®, Heating, Cooling,

Windows, Insulation and “Whole House” Energy Improvements with

energy audit and 20% savings

Qualifying homeowners who own and occupy a 1 unit residence

3, 5 and 10 Year


GREATER CINCINNATI GC-HELP Loan $2,500 to $20,000

3.99%* in KY 6.99% in OH

*for first 100 homes as part of KHPNone

ENERGY STAR®, Heating, Cooling, Windows, Insulation and “Whole

House” Energy Improvements with energy audit and 20% savings

Qualifying homeowners who own and occupy a 1 unit residence

3, 5 and 10 Year


National EnergyLoan® Program from AFC FirstAVAILABLE IN PROGRAM NAME LOAN AMOUNT INTEREST RATE CONTRACTOR

COST ELIGIBLE EQUIPMENT ELIGIBLE BORROWERS TERM COLLATERAL

ALL 50 STATES EnergyLoan® $1,000 to $25,000

14.99% Standard Program

6 & 12 Month Same as Cash Available

None for Standard Program

All makes and model of Heating, Cooling, Insulation, Windows, Solar and

most other energy related improvements

Qualifying homeowners who own and occupy a 1 to 2 unit residence or

vacation home. Up to 10

YearsNone required,

Unsecured

AFC First also Administers Special Lower Rate State and Local Programs In Addition to the National EnergyLoan®

AFC First Keystone HELP® Contacts

• Ken Yeager VP of Business Development• Andrew Greenspan Business Development Manager• Bob Groegler Business Development Manager• Tessa Shin Director of Home Performance

& Renovation Lending

• Peter Krajsa Chairman and CEO• John Hayes President and COO• Julie Unger VP of Operations• Laura Nelson CFO• Susan Moring Marketing Manager

(888) 232 -3477 keystonehelp.com afcfirst.com

U PDATE 05/08/12 Special EnergyWorks Energy Efficiency Home Improvement Financing In Southeastern Pennsylvania.

Documents

energy program

renewable energy

energy upgrades

energy efficiency lender

energy star sponsor

likely energy savings

approval rate

high rate