Energy Efficient, “Green Mortgages” Get a Boost Thanks to Housing Act and FHA 's 203(k) Loan

Energy Efficient, “Green Mortgages” Get a Boost Thanks to Housing Act and FHA 's 203(k) Loan

As the use of an EEM Mortgages grows lenders are still offering a great mortgage that can be used for Green Improvements and also the rehabilitation of the home. Many foreclosed homes in the area are in need of major work due to the neglect of the property. The traditional EEM gave borrowers the opportunity to finance energy upgrades within a single mortgage and stretch their debt-to-income ratios, effectively allowing borrowers to qualify for a larger loan amount and a home with more green features.

Available today is the FHA’s 203(k) streamlined rehabilitation loan. This versatile product, while not designed exclusively for energy purposes, can be used to finance up to $35,000 in energy upgrades to a property. From insulation, windows or solar panels, to a new furnace-virtually any energy feature qualifies. Environmental retrofits such as radon mitigation systems are also eligible under the 203(k) program. To learn more about the 203(k) streamlined rehabilitation loan and its many uses, visit the following website: http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm.

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