Green Mortgages Allow More Options for Upgrades

As Alex reported 9/17/2011 on Property Source Radio.  – Daily Real Estate News | Tuesday, Sept 12, 2011

With the growth of green building the last decade, green lending has emerged to help finance those often costly “green” upgrades.

Dave Porter, with PorterWorks in Stanton, Wash., who provides continuing education courses on green lending to those in the real estate industry, says there are several basic types of green mortgages, which most of the public still isn’t very aware about. For example, energy-efficient mortgages (EEMs) are “used to finance the construction of a home that would meet green standards or to buy one that’s newly built.” An energy improvement mortgage (EIM), on the other hand, is used to buy and fix up a house that needs green improvements, like insulation or new windows.

The loans are available through mortgage programs by Fannie Mae, the Federal Housing Administration, Veterans Affairs, and the Department of Agriculture.

“They have slight differences in requirements, but basically they allow you to finance the home, plus the energy-conserving improvements, without having to qualify for the additional cost of the improvements,” Porter told the Chicago Tribune.

Source: “Market Ripe for Green Loans,” Chicago Tribune (Sept. 9, 2011)

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