Want to make some energy efficient improvements in your next home but don't know how to pay for it? Guarantee Mortgage in San Francisco just might have a loan for you. If you qualify for an FHA loan, you may also qualify for the Energy Efficient Mortgage which allows you to finance home energy efficiency improvements with your mortgage, without affecting your qualification, down payment or appraisal. Up to 5% of the purchase price of the property can be used for energy efficient improvements including:
Hot water heater upgrade
Dual pane vinyl windows
Insulation, walls and ceiling
Weatherization-includes door, window, wall, and pipe penetrations
The loan also works with VA financing, for up to $4,000 in improvements. Debt to income and loan to value ratios are not a consideration.
To begin the process an energy audit is performed on the subject property to determine the most effective improvement, and the estimated savings created by the upgrade. The purchase and installation cost of the improvement is incorporated directly into the mortgage.
Qualification is based on having the additional monthly mortgage amount offset by the monthly savings in utility bills. In effect, the upgrades add no additional monthly cost. All paperwork is completed in the first 3 to 5 days of the transaction, insuring that the process will not interfere with on-time closings. All work is done after the close of escrow. Cost of audit is approximately $300, $250 refunded by CAR if you work with a REALTOR. The cost of the audit is waved if the transaction doesn’t close.
To get in touch with a mortgage broker who can answer your questions or provide this mortgage, please contact me. What have you got to lose?