Borrowing to Permanently Lower Your Bills

Cashflow from Efficiency Updates

Energy Efficient FHA Loans: Here’s an article contributed by MortgageLoanPlace which explains more about Energy Efficient Mortgages, and how to borrow money when buying a brown home to make it green.

“Most likely you’ve heard of FHA loans, but did you know that using an FHA loan is one of the best ways to buy a green or energy efficient home?  The FHA has a specific program designed to help reduce pollution in the United States.  It’s appropriately titled “The FHA Energy Efficient Mortgage Program.”

This program allows homebuyers to find properties of interest and identify items that could be changed or upgraded to make the home more energy efficient.

Generally with a conventional loan these upgrades would either come out of the buyer or seller’s pocket–paid in cash.  However, the FHA Energy Efficient Mortgage Program allows homebuyers to finance these upgrades 100%.

There are some limits to the spending amount your home might be eligible for.  The upgrade cost can be 5% of the home’s value (not to exceed $8,000) or $4,000, whichever number is higher.  It may not seem like you could do much to improve the energy efficency of a home with a few thousand dollars, but look at it as an investment.

First of all, mortgage rates are at historic lows and the upgrades can be completely rolled into your home loan.  So, you’ll only pay 5-6% on the borrowed money and when that is divided over 30 years, it will equate to just $30-40 per month.

More likely than not, the upgrades you make will save more than that additional cost and then some.  With energy efficient mortgages, there’s definitely an opportunity for savvy consumers to be green and save green!”

If you’re considering buying a home that needs evergy saving upgrades, an FHA Energy Efficient Loan could be the answer.

Garreth Wilcock is an Austin EcoBroker® with Keller Williams Realty.

Specializing in: Green Austin Real Estate and New Green Homes in Austin.

(512) 694 8873