the scoop on energy efficiency mortgages
A new wave of energy efficiency mortgages are being introduced today by the FHA which allow you to borrow 5% more to upgrade a home you buy with energy efficiency products such as solar panels, LED bulbs, weatherization and other energy efficiency appliances.
According to the FHA, Fannie Mae and Freddie Mac are under pressure from the federal government to develop new mortgages which include more flexible underwriting guidelines to reward energy conscious borrowers and builders. Energy friendly loans would increase incomes of applicants by dollar for every dollar of projected energy savings from green energy upgrades and efficient design. For the program to work correctly, State governments need to provide professional training to licensed appraisers so they can value highly efficient buildings correctly.
What do you think about the federal support for energy efficiency mortgages?