Jul 282016

Green Makeover and Purchase Combo Loan

 green makeover loan

A government backed loan program is available to purchase and makeover homes green. It allows a home buyer to include the cost of a Green Makeover into one Purchase Loan.

How does it work?

The best feature is that the loan amount is determined as if the Green Makeover has already been completed and a little higher in some instances.

The home seller is paid for the purchase of the home at closing, and the Green Makeover funds are held in escrow and paid to the contractors after they have completed the work, usually 3-10 days later.

Another great feature is that Green Makeover Purchase Loan programs usually require less than a 5% down payment and are easier to qualify for than traditional Purchase Loans, only requiring FICO scores in the low 600s.

The Green Makeover loan can be enhanced with an additional government-backed Energy Efficient Mortgage (EEM) feature. The advantage of this feature is that the borrower is not required to qualify for the additional amount of the Green Makeover. Instead, the future energy savings qualify the borrower for the additional amount.

What is usually included in a Green Makeover?

A Green Makeover can include some or all of the following; High-performance heat pump air conditioning, thermal windows, low energy water heating, improved insulation, energy and water efficient appliances and pool pump, soft water making and filtering, healthy air systems, water efficient fixtures, reflective roofing, or a solar electric system.

How much energy will I save?

House and upgrade choice dependent, a Green Makeover can save a homeowner between 50% to 80% in electricity costs, at an escalating rate, compared to what it would normally cost.

Substantial water savings can also be experienced as well as the life of appliances being extended and their maintenance costs being reduced.

Can I also qualify for a tax credit?

You must confirm with your tax professional. However, public information states that tax credits equal to approximately 30% on all of the solar improvements are available from Uncle Sam as a thank you for helping to protect the environment. Other incentives and rebates from participating utility companies, cities and counties are also possible.

Will the Green Makeover increase the value of my home?

A Green Makeover will add value to the home and increase its saleability beyond other homes in the same neighborhood. Studies show that because they save money, green homes sell faster and for more.

How will I know that the Green Makeover will be effective?

You will receive a 3rd party certified, Before-And-After-Upgrade, Energy Rating from a state certified HERS (Home Energy Rating Services) Energy Rater, who has inspected and done a performance analysis of your home.

Do all homes qualify for the Green Makeover program?

Yes and no. The Green Makeover program is most effective for homes that do not require repairs, renovations or the replacement of cosmetic components. The program works best for homes that require the replacement of the energy features of a home only.

Hopefully, the above information has been helpful to you. If you have not already done so, please visit my “can you afford mortgage financing” page  to get you going. You will then have an idea of whether you can afford mortgage financing, and if so, take the next step, which will be to start talking to a mortgage loan officer.

Other posts about financing that will also be useful to you are:

Energy Efficient Mortgage (EEM).

Green Home Mortgage Financing

Federal Housing Authority – FHA Loan Programs

Types Of Mortgage Loans

Green renovation loan amounts – How they can be greater than appraisal values.

Our services are always FREE to Buyers, and we contribute $500 towards closing costs if you buy through us, as well as $250 toward our Switch to Green, Switch it Forward Fund, to help fight poverty and climate change.

Let us show you how we can be Your Green Dream Team to help you to Live in a High Performance Green Home, that will Save You Money and help you to Pay Your Mortgage Off Years Earlier, while at the same time, live in a home that is Healthier, More Comfortable, Safer and Kinder To The Earth.

Thank you for visiting. Please use the form below to contact us and then check out the rest of our BLOG. We look forward to making Green Home living your reality.

Marius J Smook – Licensed Real Estate Eco-Broker, LEED AP for HOMES, Home Energy Rater.

Get your checklist now.

 July 28, 2016

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