FHA Loans
Schedule a free
consultation with our home loan experts.
Energy Efficient Mortgages
What is the purpose of this
program?
Provides mortgage insurance for a person to purchase or refinance a
principal residence and incorporate the cost of energy efficient
improvements into the mortgage. The mortgage loan is funded by a
lending institution, such as our mortgage company, bank, savings and
loan association and the mortgage is insured by HUD.
What are the eligibility
requirements?
-
Borrowers are eligible for
approximately 97% financing. Borrowers are able to finance closing
costs and the up front mortgage insurance premium into the mortgage.
Borrowers are also responsible for paying an annual premium.
-
Eligible properties are one to two
existing units and new construction.
-
The cost of the energy efficient
improvements that may be eligible for financing into the mortgage is
the greater of 5% percent of the property's value (not to exceed
$8,000) or $4,000.
-
To be eligible for inclusion in
the mortgage, the energy efficient improvements must be cost
effective, meaning that the total cost of the improvements is less
than the total present value of the energy saved over the useful
life of the energy improvement.
-
The cost of the energy
improvements and estimate of the energy savings must be determined
by a home energy rating system (HERS) or energy consultant. Up to
$200 of the cost of the energy inspection report may be included in
the mortgage.
Click here to
get Pre-Qualified Online Free.
downloads
Refinance Info | Home equity loans | Our
company info | Interest Rates | Less
than perfect credit
|
