Is your Home Green is your Home Mortgage a Green Loan.
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.
If you would like to learn more feel free to contact me will@MyEquityPro.com
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.
If you would like to learn more feel free to contact me will@MyEquityPro.com
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