Green Mortgages Save Your Buyers Big Money!

30 March 2010 by Robyn Hardy Please wait View Comments

Did you know your buyer can get a Solar Water Heater added to every FHA Loan that you close with no additional money at closing and still close in 30 days!

DON’T LET YOUR BUYERS HEAR ABOUT THIS PROGRAM FROM ANOTHER AGENT!

I don’t know why any buyer wouldn’t consider a “Green Mortgage,” and don’t forget your past clients who may want to refinance into a “Green Mortgage.” They can benefit as well and it is a perfect reason to get in touch!

I met a loan officer last week who shared information about a specialty he has getting buyers “Green Mortgages”. I was shocked at the amount of savings and benefits related to these loans. I was also dismayed because my daughter just bought her first home and, with this knowledge, she could have saved a lot more money and enjoyed the benefits of upgrades to her home and a Green Mortgage. Of course, she can always refinance with a Green Mortgage but that will be a couple years from now.

This is NOT a renovation loan. No additional information is needed for the appraised value; home is closed and the work begins AFTER the buyer owns the home; upgrades will pay for themselves in the first years of the mortgage while reducing the overall energy cost of the home. Educating your buyers regarding “green mortgages” is very important and finding a lender who specializes in them is even more important. There are not many out there right now who truly have the knowledge and certification to do so. A green mortgage simply is a type of mortgage that provides you a money-saving discount or a bigger loan than normally permitted as a reward for making energy-efficient improvements or for buying a home that meets particular energy-efficiency standards. So, it’s easier for you to qualify for a loan. Green mortgages hinge on the principle that a more energy-efficient home means lower utility bills and, as a result, greater income, qualifying a prospective homeowner to buy a more expensive house. The mortgages often are called Energy Efficient Mortgages (EEMs) or Energy Improvement Mortgages (EIMs).

Example: When a buyer bought a home, their lender made it possible to add ceiling fans and floor and furnace duct insulation by adding $2,300 to their loan – bumping it from $142,500 to $144,800. That raised their monthly mortgage by $17, but their utility bills dropped by $45 monthly. In the long run, the buyer benefits from the updates to their home, practicing green living and thousands in savings over the life of the loan.This is the loan officer I spoke with whom is extremely knowledgable and will do trainings and webinars across the country to educate brokers and agents. He is also able to lend all over the country. Check out your local area for a certified “Green Lending” specialist and make sure they have actually closed some loans. Some are certified but have not actively closed anything.

Jim Tulin
Senior Loan Offi cer
Green Loan Specialists
Offi ce: 480.614.6409
Cell: 480.703.9778
Fax: 480.907.3085
Jim.Tulin@novahomeloans.com

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