Take Advantage of the 5% increase in Energy Efficient Mortgages & Tax Credit

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Mortgage and Lending with Independent

What is a Energy Efficient Mortgage? *FHA & VA Only*

In simple terms, An Energy Efficient Mortgage is financing improvements for your Home that is Energy Efficient.  Becoming Energy Efficient reduces your monthly utility costs and can ultimately increase your home value.

Below are some examples of what to improve to become more Energy Efficient.

  • Windows and Doors
  • Insulation & Cooling
  • Roofs
  • Lighting

EEM increases to 5%

Previously, Energy Efficient Mortgages were capped at $4,000 or $8,000 in improvements, whichever was greater.

June 10 2009 HUD released the change to The maximum amount of the portion of the EEM for energy improvements is the lesser of 5% of:

• the value of the property, or

• 115% of the median area price of a single family dwelling, or

• 150% of the conforming Freddie Mac limit

 

So now you can make some great improvements to your home and go for a combo to get an additional tax credit on top of that!

 

Up to $1,500 Tax Credit for Energy Efficiency Improvements

Tax credits are now available for home improvements which must be "placed in service" from January 1, 2009 through December 31, 2010.

Most all Energy Efficient Improvements (Please Check with your Tax Advisor) will allow 30% of cost, up to $1,500 to be claimed as a Tax Credit.

 

The Ultimate Combo Example

So realistically you could get the following:

  1. Buy a home and repair all the windows by financing the repair cost in an Energy Efficient Mortgage.
  2. Get the $8,000 tax credit as a first time home buyer
  3. Get the $1,500 tax credit as an Energy Efficient Improvement

Total = $9,500 Tax Credit!!

How would you like that? 

So take advantage of this great offer as most people don't realize it's still out there!!

_______________________________________________________________________

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Just-In-Time Loans - Mortgage Needs and Advice on Time. (757) 692-3464

 

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Tina Merritt 09/18/2009 12:54 AM
  2. Cathy Mayo Kahn 10/10/2009 09:45 AM
Topic:
Mortgage / Finance
Groups:
VIRGINIA
1st Time Buyers
VA-RAIN
The FHA Mortgage Group
First Time Homebuyer
Tags:
improvement
fha
home
tax credit
eem

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Ambassador
270,670
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058

This is a great change!  Combining this with a FHA 203K mortgage is not difficult and the EEM portion does not have to appraise!

Jul 20, 2009 10:39 PM #1
Rainmaker
4,431,606
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is good information for consumers.Thanks for the post.

Jul 20, 2009 11:09 PM #2
Rainmaker
477,178
Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

Justin, that is a great program!  We keep seeing a lot of homes in our area that could use better windows, heating and cooling plant and insulation.  By doing the things you describe, they'll get those tax credits AND have a more valuable home to boot!  John

Jul 21, 2009 03:11 PM #3
Rainer
24,923
Charles G. Hennebeul
AMERICAN CASH SOLUTIONS INC - Melville, NY

As usual its great tos ee your fresh positive blogs and use of marketing tools left and right!

Keep it up!

Charles

Business Plan Writer for Small Businesses

www.mybuildingfunds.com

Oct 07, 2009 06:39 AM #4
Rainer
9,565
Gil Faust
Bank of the West - Berkeley, CA

I thought an Energy Efficient Mortgage was also available with Fannie and Freddie??

Feb 11, 2010 07:33 AM #5
Anonymous
mani

good

Apr 11, 2010 06:40 PM #6
Rainer
24,491
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Broker / Owner - Progressive Realty Corporation

I need to research and see what the credits are for 2011.  Obviously the credits for the home purchase are gone (unless you are military with some additional criteria like being deployed during the other credit period).

Jan 17, 2011 05:11 PM #7
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Justin Williams

Loan Officer
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