A tenfold of home owners out there dream of saving money. Usually, this can be done through the installation of energy efficient upgrades. There are those who opt to remodel their space by adding new windows or even placing solar panels. All of these may work if you have the budget.
Needless to say, to change a home can be quite expensive. Some people are left with no choice but to use their savings or finance upgrades. They may direct this from their credit card or their home equity. As a matter of fact, there has been a home loan program from FHA which enables borrowers to finance their energy efficient upgrades. They do this for their home refinance or purchase loan. There are still options.
Today, the Federal Housing Administration comes with an Energy Efficient Mortgage program or EEM that may assist home owners to save money and then help the environment all at the same time. What are the usual features?
The Features of the EEM Program
- In order to qualify, you may have to focus on homes that are occupied by owners only.
- You might have to purchase or refinance. This is considered to be an excellent way for buyers who are eyeing for an older home. There are upgrades which may be supported by a purchase loan.
- The usual cost of improvements is noted by a particular energy consultant or even the home energy rating system (HERS). This type of expense may be related to home loan itself.
- Homes should have one to four units. They are the most legible one.
- The borrower is compulsory to at least have a 3.4% down payment. This can be of the purchase price or appraised value.
- Just remember that the cost of your improvement must be less than 5% of its appraised value.
Indeed, to consider a type of energy efficient improvement is not that easy. There are requirements that have to be fulfilled. They have to be taken upon prior to anything else. For whatever you intend to install, it has to cost less than the amount that has to be saved from the energy expense. This must be over the entire useful life. This means that if you intend to purchase new windows, you must evaluate how long it would take before the replacement. Such is a chance to save money and energy.
Once you have determined your projected savings, the upgrade expense will not be hard to know. Doing so would prevent you from borrowing too much money which is not asked by the upgrade anymore. There are tons of requirements that can protect consumer. When you have already installed upgrades, paying in cash may still occur.
For the aforementioned to be realized, do not forget to work with an approved lender. This should not be complicated if you know what are necessary in this kind of venture. Before starting, do not forget to do your own research so that you can succeed.