Tag Archives: Appraising Energy Efficient Improvements

Lower Energy Bills with an Energy Efficient Mortgage – Connecticut

Lower Your Energy Bills when you Refinance or Buy a Home in CA or AZ. Call me Today for More Information Lisanne Jordan 480-231-3719 Meet Jane and John. They’re approved for an FHA mortgage with a purchase price of 200,000. They start shopping for a home with their real estate agent Sally. After what seems like forever…..they find the perfect home and it was love at first sight. They have just enough money saved for their down payment and closing costs, and their monthly mortgage payments will be about the same amount that they’re paying now each month for rent. So they both think at the same time “this’ll be no problem”. They make an offer of 200k on their dream home and their offer’s accepted Everything’s moving along just fine until their home inspector tells them that the homes heating and air conditioning system is as old as the house and it only works when it wants to. And the repair person tells them that it can’t be fixed. The seller won’t make the repairs….John and Jane don’t have the money to do the work themselves, And worst of all, they find out that they can’t close on the home in the condition it’s in. Their dream home’s slipping away! What should they do? The Energy Efficient Mortgage With an Energy Efficient Mortgage, John and Jane can roll the cost MANY energy efficient improvements, into their mortgage, and make one monthly payment at the same low interest rate. And best of all, the home won’t have to appraise for any more than the purchase price and they won’t have to qualify for the additional amount that they finance. This is a relief because they’ve already been told that they won’t qualify for a higher loan amount. There’s one catch though, the improvements have to be “Cost Effective”. They say to themselves, “How do I know if the improvements are cost effective?” Their very helpful lender (that’s me) tells them that an energy audit will give them the information that they need. An energy audit is like a miles per gallon rating for a car. It’ll tell them how energy efficient their home is right now, how efficient their home will be after they make the upgrades, and how much they’ll save each month after the improvements have been done. John and Jane decide to spring for the cost of an energy audit. They have an energy auditor come to the house, and the report he gives them says that replacing the HVAC unit will be “cost effective”. But wait there’s more….he also tells them that insulating the attic will save them even more money, and that they can finance the cost of new energy efficient appliances too! If John and Jane make all of these improvements they’ll save more money each month, than their mortgage payment will increase, so the whole package of improvements will be considered “cost effective”. Because they can finance up to 5% of the property’s value, or 10,000 in their case, they’ll also have enough money to make all of the upgrades. Even better….John and Jane’ll still be able to close on time because the repairs can be done after closing, so they won’t have to cancel their moving vans. Now John and Jane can go to closing knowing that their home will be MUCH more comfortable and that they’ll save money every month on their utility bills. It’s a Win Win for everyone. They’re able to buy their dream home and the seller’s able to sell his home NOW without any additional costs. Anyone who’s approved for an FHA loan can use this program to make energy saving improvements. And best of all they can use this program just because they want to, not because they have to.