Some of the available programs are:
- Fannie Mae - Up to 15% of the mortgage total may be allocated to energy-efficient improvements with no affect on your loan-to-value ratio.
- FHA - Borrow up to 5% of the loan-to-value amount for energy-efficient improvements, not to exceed $8,000 or less than $4,000.
- Energy Star Mortgage - If your new home is 30% or more energy efficient than the Model Energy Code guidelines, you may qualify for an Energy Star mortgage. The benefits of this mortgage are: Allows up to a 2% "stretch" in the allowable debt-to-income ratio by the lender, as well as at least one of the following incentives:
- A lower interest rate;
- A discount on closing costs or origination fees; and/or
- May pay for the cost of the initial home energy audit.
- Utility financing may also be available in your area. Check with your local banks, non-profits, or other organizations to see what alternatives may be available.
- Homeowners benefit from the reduced utility costs and healthier indoor environment;
- Home Buyers can get more home for their money;
- Home Sellers benefit because they have a documented energy audit report they can use as a marketing tool to distinguish their home from others;
- Lenders benefit because the home (their collateral) is more cost-effective and valuable to them;
- Utility companies can invest in more research of alternative energy methods because the demand for them is increasing.
- Energy efficient homes cost less to maintain
- Buyers can get more home for their money with an EEM
- Buyers can get a slightly higher loan amount to cover costs
- Sellers can distinguish their home with a home energy audit
-TMC
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