Conventional Energy Efficient Mortgage
With Fannie Mae’s HomeStyle® Energy mortgage® Borrowers can apply for the financing to make energy efficiency upgrades with a conventional purchase or refinanced mortgage. The reduction in monthly utility costs qualifies them to afford the energy efficiency upgrades and the installation costs of Solar and Wind powered technologies.
FreddieMac'sGreenCHOICE Mortgage Grants borrowers greater purchasing power by financing the energy-efficient upgrades that will reduce their monthly utility expenses. Qualifying them to finance with any mortgage product, property type and financing terms (up to 30 years) despite the higher debt-to-income and housing expense-to-income ratios for manually underwritten loans. (Up to 15% of “as completed” purchase price.)
Contact me below to discover which lenders in your area specializes with these loans.
Federal Housing Administration (FHA) Energy Efficient Mortgage Program
FHA’s Energy Efficient Mortgage program (EEM) allows homeowners to save money on utility bills by providing their financing for energy efficient improvements with their FHA-insured mortgages. The Energy efficient improvements must be cost effective and include the cost of materials, labor, inspections, and the cost of the home energy assessment by a qualified energy assessor.
FHA grants these mortgages so Homebuyers see savings on energy bills and reduction in monthly payments, allowing the borrower to afford a higher valued home. The maximum amount of the energy efficient improvements that can be added to the borrower’s regular FHA loan amount is the lesser of: The cost of the energy efficient improvements to be made based on a home energy assessment; or the lesser of 5 percent of:
o The Adjusted Value;
o 115 percent of the median area price of a Single Family dwelling; or
o 150 percent of the national conforming mortgage limit.
Contact me below to discuss whether your next home qualifies and live green.
Alternative Energy-related Programs and initiatives
Happy to direct you to the right program for your current or next home, contact me with the link below.
Section 203k Rehabilitation Mortgage
EEM may be combined with any FHA Title II mortgage, including the Section 203(k) Rehabilitation Mortgage Insurance program. The 203(k) program allows borrowers to finance a variety of home improvements, repair or modernization projects. An Energy Package from an EEM can be layered on top of the improvements to be made under the 203(k) program.
Energy Efficient Homes (EEH)
When the home being financed meets minimum Energy Efficient Home standards, FHA permits the borrower's qualifying ratios to be "stretched" by two percentage points above the standard limits. This stretch recognizes energy savings, and allows a borrower to qualify for a higher loan amount. The stretch ratios permitted for an Energy Efficient Home may be used with any FHA insurance Title II program, including Energy Efficient Mortgages, and Section 203(k) Rehabilitation Mortgages.
Solar And Wind Technologies
Under FHA's Solar and Wind Technologies policy, borrower can have a higher mortgage amount in order to pay for the cost and installation of new solar or wind energy system. A new solar or wind system must be made at the time of home purchase or refinance.
FHA's Weatherization policy allows borrowers to finance up to $3,500 to pay for basic weatherization items, such as thermostats and insulation.
Already happy in your current home but want to help save the climate? Check out this amazing non-profit based green bank in Lansing Michigan. Dedicated to ensure your energy isn't wasted.