Fannie Mae Unveils ‘HomeStyle Energy’ Mortgage

Filed in Codes and Regulations, Housing Finance by on April 5, 2016 0 Comments

houe, piggy bankConsumers now have a new way to finance energy and water efficiency improvements in their homes.

Last week, Fannie Mae introduced the HomeStyle Energy mortgage which enables borrowers to finance energy-efficient upgrades when purchasing or refinancing a home. This mortgage may be more affordable than a subordinate lien, home equity line of credit, Property Assessed Clean Energy (PACE) loan or unsecured loan.

The HomeStyle Energy mortgage allows borrowers to finance up to 15% of the “as-completed” appraised property value of a home. Individuals can finance up to $3,500 in weatherization or water-efficient improvements with no energy report.

NAHB members say it is a great way to spur more green building and remodeling projects.

“The margins are good, so it will cover a lot of activities that builders and remodelers do, including third-party certification,” said Matt Belcher, immediate past chair of NAHB’s Sustainability and Green Building Subcommittee and principal of Verdatek Solutions in Wildwood, Mo. “It will leverage more activity in this realm.

“A lot of builders — big and small — are doing things that qualify for this mortgage,” Belcher added. “It’s a great marketing tool for them.”

More information about the HomeStyle Energy mortgage is available on Fannie Mae’s website. For additional information about NAHB green resources, contact John Ritterpusch.

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