In a time where many are looking deeper into solar power, and the benefits it could bring to homeowners, Fannie Mae is making their own green contribution.
The company recently introduced HomeStyle Energy mortgage in order for borrowers to create energy and water efficiency improvements to their home.
Borrowers with an existing higher-interest energy loan will be able to refinance or roll the loan into a new mortgage. Borrowers will also be enabled to finance energy upgrades when purchasing or refinancing their home.
The new mortgage will be available for use for 1-4 units properties such as condos. It is available for all approved Fannie Mae lenders.
“The National Association of Home Builders has found that energy efficient features are highly desired by homeowners, and we are committed to helping lenders serve these customers,” said Carlos Perez, Fannie Mae senior vice president and chief credit officer for single-family.
“HomeStyle Energy mortgage will be particularly helpful to borrowers who want to pay off debt for existing energy improvements,” Perez said. “It will also benefit homeowners who want to make their home more comfortable and efficient.”
Borrowers can now receive up to 15% of the as-completed appraised value of the home to use for upgrades for energy efficiency if they turn in an energy report. They can also finance up to $3,500 in water-efficiency upgrades without a report.
Most property assessed clean energy loans are not eligible for Fannie Mae-backed mortgages, but can be paid off with this option.