|Financial Energy Efficient|
The Federal Housing Administration has the Power Efficient Home loan system (EEM) that can help property entrepreneurs reduce costs and help the environment at the same time.
FHA EEM Program Features:
- Owner occupied houses only. You need to live there to be able to qualify.
- Purchase or Refinance. This is excellent for real estate buyers buying an older house. You can fund developments into your buy loan.
- The cost of developments are determined by a power consultant or a house energy rating system (HERS). This cost can be rolled into the property loan.
- Homes with one to four units are eligible.
- Borrower is required to make a 3.5% down transaction of either the cost or evaluated value.
- The cost of the developments need to be less than 5% of the evaluated value, 150% of the conforming loan limit ($417,500), or 115% of the local community median house cost. For example if your house is evaluated at $300,000 the developments need to be $15,000 or less.
When considering what type of power effective developments to make, consider the FHA requirements. Whatever you are setting up needs to cost less than the amount it will preserve you in energy cost over its useful life. For example if you are buying new windows that cost you $15,000 they would evaluate how long it will be before you need to replace the windows and how much energy they will preserve.
By determining your projected benefits, over the course of the windows life, they will determine if the upgrade cost qualifies. This prevents people from over spending on developments. In many ways this requirement protects the consumer. If you want to set up developments that will cost more than they preserve, you can still do so by paying for them in cash.
In purchase to get the FHA's Power Efficient Home loan system you need to work with an FHA accepted mortgage lender. These loans are more complicated than a standard re-finance or buy loan so work with a home lender who has extensive experience working with the FHA.
Once the loan is accepted the lending company will place the cash for developments into an escrow consideration. After the developments have been installed the lending company will release the funds to pay for them. It is important to negotiate with contractors and product suppliers for transaction terms.
They need to set up the items, invoice you, then you can submit the bills to the lending company for inspection and transaction. Contact an FHA accepted mortgage lender today to learn how your house can go Green without tapping into your bank consideration.
Homeowners are trying to preserving money any way they can and Bethany understands this, that is why she writes about the FHA EEM system. Home mortgages such as this one help property entrepreneurs who want to take advantage of low home loan rates and get the most out of their re-finance. Not only are you preserving on your monthly installments but you are increasing your houses value and preserving on energy costs.