Go Green apply for a Green Home Mortgage Loan.
Over the last week I have been doing a little research and fell upon a Investor/Lender that offers Green Home Loans (AKA Energy Efficient Mortgage (EEM)).
What is a Green Home Loan?
It is a Home Loan for both Purchase and Refinance applicants. EEM offer lower interest loans to energy efficient borrowers. The EEM forecasts the future savings on energy efficient upgrades/improvements and allows the borrower to account for the savings as additional income. With increased income = increased loan amount.
What is the Science behind a Green loan?
It is a normal loan, no funky ARM or balloon mortgage. It is a simple Fixed Rate. Borrowers will be allowed an additional $4,000 or 5% of the loan amount (capped at $8,000) on top of their initial loan. A Home Energy Rating System (HERS) audit is required. This will bring to light the cost effective improvements. The cost of the improvements are required to be less than the cost of the energy saved over the life of the improvement. The EEM requires a final audit to verify improvements and allow for the release of funds. Similar to a 203k loan EEM funds will be held in an Escrow Holdback account. A Green Borrower will have 90 days to implement and finish improvements.
Is your House Green?
If you would like to learn more about how you can go Green with your Mortgage Loan, Feel free to contact me. It’s time to reduce your Homes “SQ Footprint”..
1 response so far ↓
Jay // September 29, 2008 at 8:11 pm
I am not very handy around the house with do-it-yourself type of projects and construction and so forth, so I am constantly calling professionals to come to the house and fix this or that. It is getting kind of expensive, and in these tough economic times I need to start learning how to do some of this stuff.