Want to get more “Green” out of your mortgage?

By
Mortgage and Lending with Arthur Buhrer, Olympic Mortgage Services CL 1456034

Want to go Green? Don't worry you will be able to get financing.

All lender agencies - Fannie Mae, Freddie Mac, and FHA - will have no problem funding a mortgage for a Green Built Home. Sometimes there might be incentives for such a home; however I haven't seen any of them.

The Energy Efficient Mortgage is where you get an energy audit of the home. Then based on the recommendations of the audit you can increase your mortgage to pay for improvements without it disqualifying due to higher income to debt ratios. By saving money on the utilities the borrower will then be free to pay for a slightly higher mortgage.

Another way to look at a Green Mortgage would be to look at where the monthly payments are going. Are they going to a corporately responsible company? Or is the mortgage being sold overseas to an oil barren? Does the company value human rights or is the other half of the company engaged in cheap Mexico labor?

Knowing that the home loan is going to a reputable company that values human rights, corporate ethics, and doesn't engage in polluting industries is a huge step forward to a greener mortgage. 

 Are there special programs that will help someone interested in improving the green quality of an existing "normal" home?

Several programs do exist where the borrower, either through a purchase or refinance, can improve the energy efficiency of the home and more.

1.Purchases -
  a. Both USDA and FHA have purchase programs that will allow the borrower to purchase a home and make certain repairs or upgrades to the property. All within one loan!

  b.Example repairs are as follows but not limited to: Weatherization, Insulation, Waterproofing, Mold removal, and Septic system and/or Well repair or replacement.

 c.Some programs also allow for adding on an addition and finishing out a basement.

2.Refinances -
Conventional, FHA, or USDA loans can be refinanced into a rehab or repair program to upgrade or repair the home.

To lean more about home repair and rehab loans CLICK HERE for a free informational PDF.

Comments (1)

Sherry Siegel, Managing Broker, EcoBroker, ABR
BrokersGroup, serving Sequim and Port Angeles - Sequim, WA

Hi Arthur...

I like the way you've blended the practical actions we can take (weatherization, insulation, etc.) with two common lending programs (USDA and FHA loans), and tied it up by getting us to think where our mortgage $$$ really go. Do you have any recommendations for home inspectors who also do energy audits? That would be another great combination. I really appreciate your "green conscience" in the lending world in Sequim

Mar 30, 2009 10:02 AM