Green Chicago Mortgage News

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Going Green Saves you Green

Because of the high cost of dirty fuels, going Green actually SAVES a homeowner money. Saving money by saving the environment is the key message I’m helping to deliver to Americans.

Energy Efficient Mortgages (EEM)

An Energy Efficient Mortgage is a loan to purchase a home and the energy saving systems needed to reduce the homeowners utility bills by more than than the cost of financing the energy saving systems. A homeowner can also refinance their home to finance the addition of these energy saving systems to their current home.

Conventional Energy Efficient Mortgages (EEM)

The conventional (or Fannie Mae) Energy Efficient Mortgage is the most powerful of the three EEM programs specifically designed to make existing homes more comfortable and affordable. This mortgage is perfect if you are buying or refinancing a home and you are thinking about renovating or updating it as you do so. It also enables you to do ANY energy efficient upgrades without touching the equity or the down-payment on your home.

What should I know about the Conventional EEM?

• ANYTHING that contributes to the energy efficiency of your home is covered by the Energy Efficient Mortgage. If you have something specific you’d like to do to your home, call us and we’ll let you know if you can do it.
• You can borrow up to 15% of the home’s appraised value for energy efficient improvements. For a home that appraises for $150,000, you could finance up to $22,500 in energy efficient upgrades.
• The cost of the improvements are added onto the appraised value of the home. If you did $10,000 in improvements on a home that appraises for $150,000, your new appraised value is immediately $160,000.
• You do not need to have as much income for a conventional Energy Efficient Mortgage as you would for a conventional mortgage. The Energy Efficient Mortgage takes into consideration the fact that your home is more affordable and rewards you accordingly.
• One positive side effect of an energy efficient home (other than lower utility bills) is that it has a good impact on the environment. The average home that goes through an Energy Efficient Mortgage will reduce greenhouse gas emissions by 2-4 TONS per year.

• The conventional Energy Efficient Mortgage can be combined with both fixed-rate and adjustable-rate mortgages.

The Conventional Energy Efficient Mortgage at work

http://www.energyefficientmortgages.com/conveem.html

New Construction Energy Efficient Mortgages (EEM)

Just because you’re not renovating an older home with the Energy Efficient Mortgage, doesn’t mean there aren’t benefits for those of you thinking about building a new energy efficient home. For those of you who were going to forego the optional energy efficient upgrades because it cost too much, think again because this mortgage takes away that roadblock. In some ways it works similarly to the renovation EEM, but there are some really good reasons why you’d go this route if you’re going to go the extra mile on energy efficient upgrades.

What should I know about the New Construction EEM?

• ANY energy efficient upgrades to your building package can be added and are covered by the New Construction Energy Efficient Mortgage. If you have something specific you’d like to do to your home, call us and we’ll let you know if you can do it.
• Because Fannie Mae wants to encourage people like you and me to build energy efficient homes, the Energy Efficient Mortgage rewards you with up to a 5% instant equity credit. This means that if you’re building an energy efficient home and it originally appraises for $200,000, it is now worth $210,000. Call us to learn more about this…
• You do not need to have as much income for a New Construction Energy Efficient Mortgage as you would for a regular construction loan. The Energy Efficient Mortgage takes into consideration the fact that your home is more affordable and rewards you accordingly.
• One positive side effect of an energy efficient home (other than lower utility bills) is that it has a good impact on the environment. The average home that goes through an Energy Efficient Mortgage will reduce greenhouse gas emissions by 2-4 TONS per year.
• The New Construction Energy Efficient Mortgage can be combined with both fixed-rate and adjustable-rate mortgages. We can also to construction to permanent financing (or single-close mortgages) so that you don’t need to pay two sets of closing costs.

http://www.energyefficientmortgages.com/consteem.html

FHA Energy Efficient Mortgages (EEM)

The FHA Energy Efficient Mortgage, while not as powerful as the conventional EEM, still accomplishes the same things while getting the benefits of FHA financing. It is again, still a good mortgage if you are buying or refinancing a home and you are thinking about renovating or updating it as you do so. It also enables you to do ANY energy efficient upgrades without touching the equity or the down-payment on your home.

What should I know about the FHA EEM?

• ANYTHING that contributes to the energy efficiency of your home is covered by the FHA Energy Efficient Mortgage. If you have something specific you’d like to do to your home, call us and we’ll let you know if you can do it.
• You can borrow up to 5% of the home’s appraised value or $4,000 which ever is greater. The total amount borrowed cannot to exceed $8,000. For a $150,000 home, you could spend up to $7,500 on energy upgrades.
• You do not need to have as much income to qualify for a FHA Energy Efficient Mortgage as you do for a regular FHA mortgage. The Energy Efficient Mortgage takes into consideration the fact that your home is more affordable and rewards you accordingly.
• One positive side effect of an energy efficient home (other than lower utility bills) is that it has a good impact on the environment. The average home that goes through an Energy Efficient Mortgage will reduce greenhouse gas emissions by 2-4 TONS per year.
• The FHA Energy Efficient Mortgage can be combined with both fixed-rate and adjustable-rate mortgages.

The FHA Efficient Mortgage at work

http://www.energyefficientmortgages.com/fhaeem.html

VA Energy Efficient Mortgages (EEM)

The VA Energy Efficient Mortgage, while not as powerful as the conventional EEM, still accomplishes the same things while getting the benefits of VA financing. It is again, still a good mortgage if you are buying or refinancing a home and you are thinking about renovating or updating it as you do so. It also enables you to do ANY energy efficient upgrades without touching the equity or the down-payment on your home.

What should I know about the VA EEM?

The VA Energy Efficient Mortgage at work

http://www.energyefficientmortgages.com/vaeem.html

http://www.resnet.us/ratings/overview/faq_mortgage.htm

Article from October 1998 issue of the Appraisal Journal that reports that the market value of a home increases by an average of $20 for every $1 decrease in annual utility costs through energy efficiency.

http://www.resnet.us/ratings/overview/resources/appraisal/default.htm