Energy Efficient Mortgages Are On The Rise

Energy efficient mortgages or "green" mortgages as they are also known, have gained momentum and popularity over the last 5 years.  They allow the home owner to finance certain home improvements such as as solar panels, geo-thermal heating, and more efficient air conditioning systems to name a few.  One thing to keep in mind is the cost of the improvements and how long you will live in the home.  You want to make sure you can get back what you have put in as some of these improvements are costly.  

Currently, Fannie Mae FHA, and VA offer loan products that cover energy efficient improvements.  Each will have their own qualifying criteria so have your lender explain them in more detail.  One caveat is the borrower will have higher monthly payments due to these loans and shoul factor that in when deciding what is best.  The flip side to this is the long term benefit and savings to the home owner.  The lender will also have to see the benefit and savings in order to fund the loan.

 Keep in mind that a lender is not only investing in your ability to pay back a loan but also the home you purchase, until it is paid off.  So any improvements that re-enforce the homes value will most likely be ok with them.  Another way to look at is they want to ensure that if you default they can get their money back if the home has to be sold.

Visit this link for more details on these mortgages...http://bit.ly/1fePuOd

Christopher Pagli - www.WestchesterCountyRealEstateMarket.com

Accredited Buyer Representative

Real Estate Associate Broker

William Raveis Legends Realty Group

914.406.9023

chris@LegendsRealtyGroup.net

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